Raytheon Secures $1.4B Sole-Source Navy Contract Following $3.2M Lobbying Blitz
The Department of the Navy bypassed competitive bidding to award a $1.4 billion missile defense contract to Raytheon Technologies after the firm spent millions on lobbying. The deal highlights a systemic revolving door, with three retired Navy admirals joining Raytheon advisory boards shortly before the award.
Raytheon leveraged $3.2M in lobbying and the recruitment of three retired admirals to secure a non-competitive $1.4B Navy contract under a questionable 'urgency' loophole.
The Department of the Navy has awarded sole-source contract #N0002426C5401, valued at $1.4 billion, to Raytheon Technologies (RTX) for 'Project Aegis' missile defense. To bypass federal requirements for competitive bidding, procurement officials invoked FAR 6.302-2, a justification reserved for 'Urgent and Compelling Necessity.' Despite this claim of urgency, the Navy failed to publish a secondary market survey in the Federal Procurement Data System (FPDS), a step required by DoD Instruction 5000.02 to prove no other vendor could meet the mission timeline.
The paper trail suggests the contract was less about sudden tactical needs and more about sustained corporate influence. During the 2025-2026 procurement window, RTX Corp disclosed $3.2 million in federal lobbying expenditures specifically targeting defense appropriations. This financial surge coincided with a rapid transition of leadership; three retired Navy admirals moved into advisory or consulting roles at RTX within 18 months of the contract award, navigating the periphery of federal 'cooling-off' period regulations.
While mainstream outlets have echoed the official narrative of 'deterrence' against rising global threats, they have ignored the procedural shortcuts that define this deal. By labeling the acquisition as 'urgent,' the Navy avoided the transparency of a competitive Request for Proposal (RFP). This tactic frequently serves to protect incumbent contractors from emerging defense-tech startups that might offer more cost-effective or innovative solutions.
For the public, this lack of competition carries a specific price tag. Sole-source contracts typically command 'premiums'—the extra cost of not having a competitor underbid—ranging from 15% to 20%. On a $1.4 billion award, this translates to as much as $280 million in taxpayer money effectively gifted to RTX. When the individuals defining national security needs are the same individuals later paid by the companies meeting those needs, procurement is no longer a public service; it is a corporate feedback loop.
Summary
The Department of the Navy bypassed competitive bidding to award a $1.4 billion missile defense contract to Raytheon Technologies after the firm spent millions on lobbying. The deal highlights a systemic revolving door, with three retired Navy admirals joining Raytheon advisory boards shortly before the award.
⚡ Key Facts
- Navy used FAR 6.302-2 'Urgent and Compelling' justification to award $1.4B to RTX without competition.
- RTX spent $3.2M on federal lobbying targeting defense appropriations during the procurement window.
- Three retired Navy admirals joined RTX advisory boards within 18 months of the contract award.
- The Navy bypassed the requirement for a secondary market survey as mandated by DoD Instruction 5000.02.
- Taxpayers face an estimated 15-20% 'sole-source premium' due to the lack of competitive bidding.
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