DoD's $23M Contract for Ammunition Manufacturing Awarded to Raytheon Company

Contract Overview

Contract Amount: $23,003,708 ($23.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2010-09-24

End Date: 2012-06-30

Contract Duration: 645 days

Daily Burn Rate: $35.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AMMUNITION (EXCEPT SMALL ARMS) MANUFACTURING

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to RAYTHEON COMPANY for work described as: AMMUNITION (EXCEPT SMALL ARMS) MANUFACTURING Key points: 1. Contract awarded to Raytheon Company for ammunition manufacturing. 2. Full and open competition was utilized for this award. 3. The contract value is $23,003,708. 4. This falls under the 'Ammunition (except Small Arms) Manufacturing' NAICS code. 5. The contract was awarded by the Department of the Air Force.

Value Assessment

Rating: good

The contract value of $23M appears reasonable for specialized ammunition manufacturing. Benchmarking against similar DoD contracts for non-small arms ammunition would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified vendors to bid, driving competitive pricing.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives the most advantageous pricing.

Public Impact

Ensures supply of critical ammunition for Air Force operations. Supports domestic manufacturing capabilities for defense articles. Potential for job creation in Arizona where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized
Contract awarded to a known defense contractor
Firm Fixed Price contract type

Sector Analysis

The defense sector, particularly ammunition manufacturing, is critical for national security. Spending in this area is often driven by operational needs and geopolitical factors. Benchmarks are highly dependent on the specific type and quantity of ammunition.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.

Oversight & Accountability

The Department of the Air Force is responsible for oversight of this contract. Standard DoD procurement regulations and contract management practices would apply.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of specific ammunition type detail
No small business participation indicated
Contract period has concluded

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to RAYTHEON COMPANY. AMMUNITION (EXCEPT SMALL ARMS) MANUFACTURING

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 Air Force).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2010-09-24. End: 2012-06-30.

What is the specific type of ammunition being manufactured under this contract?

The contract description is 'AMMUNITION (EXCEPT SMALL ARMS) MANUFACTURING' and the NAICS code is 332993. This code covers the manufacturing of ammunition, including artillery shells, bombs, mines, torpedoes, and rockets, but excludes small arms ammunition. Specific details on the exact type of ammunition would likely be found in the contract's statement of work or technical specifications.

What are the key performance metrics and delivery schedules for this ammunition contract?

The contract duration is 645 days, starting from September 24, 2010, and ending on June 30, 2012. Key performance metrics would typically include quality standards, defect rates, and on-time delivery. Specific details are usually outlined in the contract's statement of work and delivery orders.

How does the unit cost of this ammunition compare to industry benchmarks for similar products?

Without knowing the specific type and quantity of ammunition, a precise unit cost benchmark is difficult. However, the contract value of $23M over a period of approximately 2 years suggests a significant production run. A detailed cost analysis comparing unit prices against historical data or other competitive awards for comparable munitions would be necessary for a thorough assessment.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1151 E HERMANS RD, TUCSON, AZ, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,003,708

Exercised Options: $23,003,708

Current Obligation: $23,003,708

Contract Characteristics

Cost or Pricing Data: NO

Timeline