DoD Awards $34.5M for Radar Interface Units to Raytheon Company, Sole-Source Contract
Contract Overview
Contract Amount: $34,528,231 ($34.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-02-26
End Date: 2024-06-28
Contract Duration: 1,218 days
Daily Burn Rate: $28.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENGINEERING SERVICES AND HARDWARE IN SUPPORT OF RADAR INTERFACE UNITS- A-KITS . TO 2
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $34.5 million to RAYTHEON COMPANY for work described as: ENGINEERING SERVICES AND HARDWARE IN SUPPORT OF RADAR INTERFACE UNITS- A-KITS . TO 2 Key points: 1. Significant contract value of $34.5 million for specialized engineering and hardware. 2. Sole-source award to Raytheon Company raises questions about competition and potential price inflation. 3. Contract duration extends to mid-2024, indicating a long-term need for these services. 4. The IT sector, specifically computer systems design, is the primary focus of this expenditure.
Value Assessment
Rating: questionable
The contract's value of $34.5 million for engineering services and hardware is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar radar interface unit support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Raytheon Company. This lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition for a $34.5 million contract means taxpayers may not be receiving the best possible value, as alternative providers were not considered.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The Department of Defense relies on Raytheon for critical radar interface unit support. This contract highlights potential vulnerabilities in the government's procurement process for specialized IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Long-term support for critical defense systems
- Award to established defense contractor
Sector Analysis
This contract falls under the Computer Systems Design Services sector, which is crucial for modern defense capabilities like radar systems. Spending benchmarks in this niche area are hard to establish without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
The contract was awarded to Raytheon Company, a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in oversight regarding competitive sourcing. Further review is needed to understand why this contract was not competed and if adequate justification exists.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price gouging
- Limited small business participation
- Extended contract duration without clear milestones
Tags
computer-systems-design-services, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.5 million to RAYTHEON COMPANY. ENGINEERING SERVICES AND HARDWARE IN SUPPORT OF RADAR INTERFACE UNITS- A-KITS . TO 2
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 Army).
What is the total obligated amount?
The obligated amount is $34.5 million.
What is the period of performance?
Start: 2021-02-26. End: 2024-06-28.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without specific documentation, it's presumed the Army determined Raytheon possessed the sole ability to provide the necessary engineering services and hardware for these specific radar interface units.
What are the risks associated with a sole-source contract of this magnitude?
The primary risks include inflated pricing due to lack of competition, potential for reduced innovation as there's no market pressure, and a missed opportunity to foster competition among other capable firms. This can lead to suboptimal value for taxpayer dollars and potentially limit future sourcing options.
How does this contract contribute to the overall effectiveness of the radar systems it supports?
This contract provides essential engineering services and hardware (A-Kits) for radar interface units, which are critical components of radar systems. Ensuring these units are well-supported and maintained directly impacts the operational readiness and effectiveness of the radar systems, crucial for defense applications.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q20R0005
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 401 JAN DAVIS DR NW, HUNTSVILLE, AL, 35806
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: $34,528,231
Exercised Options: $34,528,231
Current Obligation: $34,528,231
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q20D0019
IDV Type: IDC
Timeline
Start Date: 2021-02-26
Current End Date: 2024-06-28
Potential End Date: 2024-06-28 12:06:00
Last Modified: 2024-09-23
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