DoD Awards $40.6M Task Order for Javelin Program Engineering Services to Raytheon/Lockheed Martin JV

Contract Overview

Contract Amount: $40,644,465 ($40.6M)

Contractor: Raytheon/Lockheed Martin Javelin JV

Awarding Agency: Department of Defense

Start Date: 2017-01-04

End Date: 2020-09-30

Contract Duration: 1,365 days

Daily Burn Rate: $29.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CL,CT::IGF AWARD TASK ORDER 0003 (9722 HOURS ) FOR USE IN LIGHT WEIGHT CLU PROGRAM.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $40.6 million to RAYTHEON/LOCKHEED MARTIN JAVELIN JV for work described as: IGF::CL,CT::IGF AWARD TASK ORDER 0003 (9722 HOURS ) FOR USE IN LIGHT WEIGHT CLU PROGRAM. Key points: 1. Significant award for critical defense program. 2. Sole-source award to established joint venture. 3. Long duration suggests ongoing program needs. 4. Engineering services sector is highly specialized.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount is substantial for engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, meaning competition was not sought. This limits price discovery and potentially increases costs for taxpayers.

Taxpayer Impact: The lack of competition for this large award may result in higher costs than if multiple vendors had bid.

Public Impact

Supports a key missile program for the U.S. Army. Ensures continued development and sustainment of critical defense technology. Awarded to a joint venture of major defense contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long contract duration

Positive Signals

Supports critical defense capability
Award to established prime contractors

Sector Analysis

This award falls within the Engineering Services sector, specifically supporting defense systems. Benchmarks for similar specialized engineering services can vary widely based on complexity and security requirements.

Small Business Impact

The award was not made to a small business. The prime contractor is a joint venture of two large defense corporations.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. The long duration also necessitates ongoing monitoring.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition.
Cost-plus contract type increases government cost risk.
Long contract duration may indicate potential for cost growth.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.6 million to RAYTHEON/LOCKHEED MARTIN JAVELIN JV. IGF::CL,CT::IGF AWARD TASK ORDER 0003 (9722 HOURS ) FOR USE IN LIGHT WEIGHT CLU PROGRAM.

Who is the contractor on this award?

The obligated recipient is RAYTHEON/LOCKHEED MARTIN JAVELIN JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $40.6 million.

What is the period of performance?

Start: 2017-01-04. End: 2020-09-30.

What was the justification for the sole-source award, and were any alternatives considered?

The justification for a sole-source award typically involves unique capabilities, critical program needs, or lack of available competition. For this specific award, the justification would likely stem from the specialized nature of the Javelin program and the established expertise of the Raytheon/Lockheed Martin Javelin JV. Further investigation into the specific justification documentation is needed to confirm the rationale and assess if any competitive alternatives were genuinely explored.

How does the cost-plus-fixed-fee structure impact the government's risk and the contractor's incentive for efficiency?

A Cost-Plus-Fixed-Fee (CPFF) contract allows the contractor to recover all allowable costs plus a fixed fee representing profit. This structure shifts significant cost risk to the government, as the final price is not fixed upfront. While the fixed fee provides some incentive for the contractor to control costs to maximize profit, it can also lead to less aggressive cost management compared to fixed-price contracts. Effective government oversight is crucial to manage costs and ensure value.

What is the projected long-term cost and effectiveness of the Javelin program, considering this significant engineering support award?

The long-term cost and effectiveness of the Javelin program are influenced by numerous factors beyond this single task order. This $40.6M award contributes to the program's sustainment and potential upgrades. The effectiveness of the Javelin system itself is well-established in combat. However, the overall long-term cost will depend on future sustainment needs, modernization efforts, and the program's continued relevance against evolving threats, all of which require ongoing budgetary commitment and strategic planning.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1151 E HERMANS RD BLDG 805 M\S C6, TUCSON, AZ, 85756

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,054,419

Exercised Options: $40,644,465

Current Obligation: $40,644,465

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q17D0005

IDV Type: IDC

Timeline