DoD Awards $12M Javelin JV Contract for Engineering Services, Sole-Sourced

Contract Overview

Contract Amount: $12,080,139 ($12.1M)

Contractor: Raytheon/Lockheed Martin Javelin JV

Awarding Agency: Department of Defense

Start Date: 2017-05-12

End Date: 2021-09-27

Contract Duration: 1,599 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to RAYTHEON/LOCKHEED MARTIN JAVELIN JV for work described as: IGF::CT::IGF Key points: 1. Significant contract value of over $12 million awarded. 2. Dominated by two major defense contractors, limiting competition. 3. Sole-source award raises concerns about price discovery and value. 4. Engineering services sector is critical for defense readiness.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. Without competitive bidding, it's difficult to assess if the $12M price is optimal compared to similar engineering services contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This significantly limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this $12M contract likely means taxpayers are not receiving the best possible price for these engineering services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Javelin JV, a partnership of major defense firms, benefits from this sole-source award. The Department of the Army receives critical engineering services, but at a potentially inflated cost.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of small business participation

Positive Signals

Essential engineering services for defense
Contract awarded to established prime contractors

Sector Analysis

Engineering services are vital for the Department of Defense's operational capabilities. Spending in this sector can vary widely based on project complexity and national security needs. Benchmarks are difficult without specific service details.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses within the defense industrial base.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price paid is fair and reasonable, and that future procurements are competed whenever possible.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for cost overruns (Cost Plus Fixed Fee)
No small business participation
Lack of transparency in sole-source justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to RAYTHEON/LOCKHEED MARTIN JAVELIN JV. IGF::CT::IGF

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 $12.1 million.

What is the period of performance?

Start: 2017-05-12. End: 2021-09-27.

What specific engineering services were procured under this contract, and how do they align with the Javelin missile program?

The contract specifies 'Engineering Services' under NAICS code 541330. While the Javelin JV is known for the Javelin missile system, the exact nature of the engineering support provided under this $12M contract is not detailed. This could range from design modifications, testing, or sustainment engineering, all critical for maintaining the effectiveness of advanced weapon systems.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure a fair and reasonable price?

The justification for a sole-source award is not provided in the data. Typically, such awards require a justification and approval (J&A) citing reasons like unique capabilities or urgent needs. Without this, it's impossible to assess the price reasonableness, though Cost Plus Fixed Fee contracts inherently carry risk of cost escalation.

How does the $12 million cost compare to similar engineering services contracts awarded by the Department of Defense or other agencies?

Benchmarking this $12 million contract is challenging without more specific details on the engineering services rendered. However, sole-source, cost-plus contracts are generally expected to be more expensive than competitively bid, fixed-price contracts. A thorough review would be needed to compare it against similar sole-source procurements for specialized defense engineering.

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: $12,083,790

Exercised Options: $12,080,139

Current Obligation: $12,080,139

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $338,072

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