DoD Awards $2.98B for PATRIOT UAE Missiles, Sole-Source to Raytheon
Contract Overview
Contract Amount: $2,986,266,447 ($3.0B)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2008-12-17
End Date: 2019-04-30
Contract Duration: 3,786 days
Daily Burn Rate: $788.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PREDOMINANT - PATRIOT UAE
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $2.99 billion to RAYTHEON COMPANY for work described as: PREDOMINANT - PATRIOT UAE Key points: 1. Significant investment in advanced missile defense systems. 2. Raytheon Company is the sole provider, indicating limited market competition. 3. Long contract duration (2008-2019) suggests sustained need. 4. Focus on guided missile manufacturing highlights a critical defense sector.
Value Assessment
Rating: fair
The total award of $2.98 billion for PATRIOT UAE missiles is substantial. Without specific per-unit cost data or comparable contracts for similar systems, a precise value assessment is difficult. However, the scale suggests a high-value, specialized procurement.
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 potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this large contract raises concerns about potential overpayment and the efficient use of taxpayer funds.
Public Impact
Enhances national security through advanced missile defense capabilities. Supports high-tech manufacturing jobs within the defense industry. Potential for cost overruns due to lack of competitive bidding. Ensures availability of critical defense assets for the U.S. Army.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration may mask inefficiencies.
- Lack of detailed cost breakdowns hinders value assessment.
Positive Signals
- Provides critical, advanced missile defense technology.
- Supports a key defense contractor and its supply chain.
- Ensures operational readiness for the U.S. Army.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of national defense spending. Benchmarks for similar sole-source, high-value missile system procurements are scarce, making direct comparison challenging.
Small Business Impact
The data indicates this was a large sole-source contract awarded to Raytheon Company, with no indication of subcontracting to small businesses. Further analysis would be needed to determine if small business participation was sought or achieved.
Oversight & Accountability
The sole-source nature of this procurement warrants close oversight to ensure fair pricing and effective delivery. Transparency in cost justification and performance metrics is crucial for accountability.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency on cost justification.
- Long contract duration may obscure performance issues.
- No small business participation indicated.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ma, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.99 billion to RAYTHEON COMPANY. PREDOMINANT - PATRIOT UAE
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 $2.99 billion.
What is the period of performance?
Start: 2008-12-17. End: 2019-04-30.
What was the rationale for awarding this contract as sole-source, and were alternatives explored?
The provided data states the contract was 'NOT COMPETED,' implying a sole-source justification. Typically, this occurs when only one vendor possesses the necessary technology, capability, or security clearance. However, without further documentation, the specific reasons and exploration of alternatives remain unclear, potentially impacting the government's ability to secure the best value.
How does the per-unit cost of these PATRIOT UAE missiles compare to similar systems or previous procurements?
The data does not provide a per-unit cost or comparable contract information, making a direct benchmark impossible. The total award of $2.98 billion over 3,786 days (approx. 10 years) suggests a significant investment. Assessing value requires detailed cost breakdowns and comparisons with similar missile systems, which are absent here.
What is the long-term strategic value and operational effectiveness of the PATRIOT UAE system procured under this contract?
The PATRIOT UAE system is a key component of U.S. and allied air and missile defense capabilities. Its strategic value lies in protecting critical assets and personnel from aerial threats. The long duration and substantial funding suggest sustained operational effectiveness and importance to the Department of the Army's mission.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 350 LOWELL ST, ANDOVER, MA, 01810
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: $2,986,266,447
Exercised Options: $2,986,266,447
Current Obligation: $2,986,266,447
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q09G0001
IDV Type: IDC
Timeline
Start Date: 2008-12-17
Current End Date: 2019-04-30
Potential End Date: 2019-04-30 12:04:00
Last Modified: 2021-02-17
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