Raytheon Awarded $77.6M for AN/TPN-31 ATNAVICS and AN/FPN-67 FBPAR Systems Support
Contract Overview
Contract Amount: $77,614,600 ($77.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2017-03-26
End Date: 2023-03-31
Contract Duration: 2,196 days
Daily Burn Rate: $35.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::CL,CT::IGF CONTRACTOR SUPPORT SERVICES FOR THE AN/TPN-31 ATNAVICS AND AN/FPN-67 FBPAR SYSTEMS.
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $77.6 million to RAYTHEON COMPANY for work described as: IGF::CL,CT::IGF CONTRACTOR SUPPORT SERVICES FOR THE AN/TPN-31 ATNAVICS AND AN/FPN-67 FBPAR SYSTEMS. Key points: 1. Contract awarded to Raytheon Company for critical electronic systems maintenance. 2. Significant contract value of $77.6 million over six years. 3. No competition was utilized for this award, raising potential cost concerns. 4. The sector involves specialized electronic equipment repair and maintenance.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar specialized repair contracts is difficult due to unique system requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive environment.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential support services.
Public Impact
Ensures continued operational readiness of vital air traffic control and landing systems for the Department of Defense. Supports advanced military aviation capabilities through specialized maintenance. Potential for increased costs due to sole-source award impacts taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Cost Plus Fixed Fee structure can incentivize higher costs
- Lack of clear small business participation
Positive Signals
- Essential support for critical defense systems
- Long-term contract provides stability
Sector Analysis
This contract falls within the Other Electronic and Precision Equipment Repair and Maintenance sector. Spending in this area is critical for maintaining complex defense systems, but competitive bidding is often challenging for highly specialized equipment.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (sb: false). There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The contract's duration and sole-source nature warrant close oversight to ensure cost-effectiveness and prevent potential overspending. Regular performance reviews and cost audits are crucial.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation
- Potential for cost overruns
- Limited transparency in pricing
Tags
other-electronic-and-precision-equipment, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.6 million to RAYTHEON COMPANY. IGF::CL,CT::IGF CONTRACTOR SUPPORT SERVICES FOR THE AN/TPN-31 ATNAVICS AND AN/FPN-67 FBPAR SYSTEMS.
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 $77.6 million.
What is the period of performance?
Start: 2017-03-26. End: 2023-03-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Agencies must document these justifications thoroughly. Without this documentation, it's difficult to assess if competitive strategies were explored or if this was the only viable option, impacting the government's ability to secure the best value.
How are cost efficiencies being monitored and enforced under the Cost Plus Fixed Fee structure?
Monitoring cost efficiencies in a CPFF contract requires robust government oversight. This includes detailed cost tracking, regular audits, and performance metrics tied to cost control. The agency should have mechanisms in place to challenge or disallow excessive costs and ensure the contractor is operating efficiently to meet the fixed fee objectives without unnecessary expenditure.
What is the long-term strategy for ensuring competitive sourcing for these systems once the current contract expires?
A long-term strategy should involve market research to identify potential competitors and explore options for breaking down the requirement into smaller, more competitive packages. If the technology remains highly specialized, the agency might consider developing organic capabilities or fostering new entrants through R&D or strategic partnerships to ensure future competition and cost savings.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56JSR15R0065
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752
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: $157,707,849
Exercised Options: $105,718,296
Current Obligation: $77,614,600
Actual Outlays: $2,961,544
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $2,840,221
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-03-26
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 12:03:00
Last Modified: 2025-09-25
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