DoD's Raytheon Awarded $69.5M for AN/AQS-20A Sonar Upgrade, Lacking Competition
Contract Overview
Contract Amount: $69,494,409 ($69.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-03-31
End Date: 2026-02-28
Contract Duration: 1,795 days
Daily Burn Rate: $38.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UPGRADE AN/AQS-20A TO AN/AQS-20C
Place of Performance
Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871
Plain-Language Summary
Department of Defense obligated $69.5 million to RAYTHEON COMPANY for work described as: UPGRADE AN/AQS-20A TO AN/AQS-20C Key points: 1. Significant investment in naval sonar technology. 2. Sole reliance on Raytheon raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Impacts naval search and detection capabilities.
Value Assessment
Rating: fair
The contract value of $69.5 million for an upgrade is substantial. Without competitive benchmarking, it's difficult to assess if this price is optimal compared to similar sonar system upgrades or alternative solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Raytheon. This limits price discovery and may prevent the government from securing the best possible price through market competition.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive pressure to drive down prices.
Public Impact
Enhances critical naval mine-hunting and anti-submarine warfare capabilities. Ensures the U.S. Navy maintains technological superiority in underwater detection. Supports ongoing military operations and national security objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns
Positive Signals
- Critical technology upgrade
- Supports national security
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this niche area is crucial for defense readiness, but often involves specialized, high-cost components where competition can be limited.
Small Business Impact
The data indicates this contract was awarded to Raytheon Company, a large defense contractor. There is no explicit information suggesting opportunities for small businesses in this specific sole-source award, though they may be involved as subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price is fair and reasonable. Robust oversight is needed to track performance and costs throughout the contract duration.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on cost justification
- Dependency on a single supplier
Tags
search-detection-navigation-guidance-aer, department-of-defense, ri, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.5 million to RAYTHEON COMPANY. UPGRADE AN/AQS-20A TO AN/AQS-20C
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $69.5 million.
What is the period of performance?
Start: 2021-03-31. End: 2026-02-28.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Department of the Navy would need to provide documentation demonstrating that competitive sources were thoroughly investigated and found unsuitable or unavailable, ensuring the decision aligns with federal procurement regulations and serves the best interest of the government.
How does the AN/AQS-20C upgrade compare in performance and cost to previous versions or potential competitor systems?
Assessing the AN/AQS-20C's performance gains and cost-effectiveness requires detailed technical specifications and lifecycle cost analysis. Benchmarking against the AN/AQS-20A and any theoretical competitor systems would reveal the value proposition of this upgrade. Without this data, it's challenging to determine if the investment yields a significant improvement commensurate with its cost.
What measures are in place to ensure cost control and prevent overruns on this sole-source contract?
Given the sole-source nature, stringent cost control measures are essential. This includes detailed cost analysis, regular performance reviews, and potentially establishing cost-plus-incentive-fee elements if appropriate. The government should actively monitor Raytheon's cost reporting and performance metrics to ensure adherence to the contract terms and prevent unwarranted price increases.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002420R6308
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 1847 W MAIN RD, PORTSMOUTH, RI, 02871
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $69,494,409
Exercised Options: $69,494,409
Current Obligation: $69,494,409
Subaward Activity
Number of Subawards: 118
Total Subaward Amount: $25,730,091
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-03-31
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-12-05
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