DoD's $99.75M LAU-116 Launcher Contract Awarded to Raytheon Company
Contract Overview
Contract Amount: $99,750,259 ($99.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2011-09-06
End Date: 2016-12-31
Contract Duration: 1,943 days
Daily Burn Rate: $51.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LAU-116 B/A LAUNCHER
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46219
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $99.8 million to RAYTHEON COMPANY for work described as: LAU-116 B/A LAUNCHER Key points: 1. Significant contract value for aircraft parts. 2. Raytheon Company is a major defense contractor. 3. Contract awarded under 'Other Aircraft Parts' NAICS code. 4. No competition was involved in this award.
Value Assessment
Rating: questionable
The contract value of $99.75M for LAU-116 launchers is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or alternative providers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have limited price discovery and potentially led to a higher overall cost for the government.
Taxpayer Impact: The absence of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price might have been achievable through a competitive bidding process.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The Department of Defense relies on specific equipment, potentially limiting alternatives. Long contract duration (2011-2016) means sustained potential for overspending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Specific equipment for defense needs
- Firm fixed price contract type
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for defense readiness, but competitive procurement is key to ensuring value for money.
Small Business Impact
The awardee, Raytheon Company, is a large defense contractor. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential oversight gaps or specific justifications for sole-sourcing. Further review would be needed to confirm if proper procedures were followed and if alternatives were adequately explored.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- No small business participation evident
- Limited transparency on justification for sole-sourcing
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $99.8 million to RAYTHEON COMPANY. LAU-116 B/A LAUNCHER
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 Navy).
What is the total obligated amount?
The obligated amount is $99.8 million.
What is the period of performance?
Start: 2011-09-06. End: 2016-12-31.
What was the justification for not competing this contract, and were alternative solutions considered?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require detailed documentation outlining why competition is not feasible or advantageous. This could include factors like unique technical requirements, proprietary technology, or urgent needs. Without this information, it's impossible to assess if taxpayer funds were used efficiently or if alternatives were overlooked.
What is the benchmark per-unit cost for the LAU-116 launcher, and how does this contract's pricing compare?
A specific per-unit cost benchmark for the LAU-116 launcher is not available in the provided data. Benchmarking would require access to historical pricing for similar systems, competitor bids on comparable contracts, or government cost estimates. Given the sole-source nature of this award, a direct comparison is challenging, and the actual cost may be higher than if it had been competitively procured.
How effective is the LAU-116 launcher in fulfilling its intended mission, and does its performance justify the cost?
The effectiveness of the LAU-116 launcher in fulfilling its intended mission is not detailed in this procurement data. Performance metrics and operational success would typically be assessed through separate program management reviews and operational testing. While the contract specifies a firm fixed price, the value for money is questionable without understanding the system's actual performance and its contribution to defense objectives relative to its cost.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245
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: $99,750,259
Exercised Options: $99,750,259
Current Obligation: $99,750,259
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001910G0006
IDV Type: BOA
Timeline
Start Date: 2011-09-06
Current End Date: 2016-12-31
Potential End Date: 2016-12-31 00:00:00
Last Modified: 2017-01-26
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