DoD awards $55.6M contract for Maverick Missiles to Raytheon Company
Contract Overview
Contract Amount: $55,562,124 ($55.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2013-06-17
End Date: 2016-06-21
Contract Duration: 1,100 days
Daily Burn Rate: $50.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMS BUY FOR MAVERICK MISSILES
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $55.6 million to RAYTHEON COMPANY for work described as: FMS BUY FOR MAVERICK MISSILES Key points: 1. Contract awarded to Raytheon Company for Maverick Missiles. 2. Significant spending on guided missile manufacturing. 3. Potential for cost overruns given the contract value. 4. Sector focus on defense manufacturing.
Value Assessment
Rating: fair
The contract value of $55.6 million for Maverick Missiles appears substantial. Benchmarking against similar missile system procurements would be necessary to definitively assess value, but the lack of competition suggests potential for higher pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The lack of competition for this significant missile procurement may result in taxpayers paying a premium for the Maverick Missiles.
Public Impact
Taxpayers may be overpaying for essential defense equipment due to a lack of competition. The Department of Defense relies on Raytheon for critical missile systems. This contract contributes to the defense industrial base in Arizona.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency in pricing due to no-bid contract.
- Potential for cost overruns on a large defense contract.
Positive Signals
- Procurement of critical Maverick Missiles for the Air Force.
- Contract awarded to a known defense manufacturer, Raytheon.
- Firm Fixed Price contract provides some cost certainty.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the defense industry. Spending in this sector is often substantial and driven by national security needs, with limited competition for specialized systems.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, suggesting limited opportunities for small business participation in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Further oversight may be needed to confirm the necessity of a non-competitive procurement.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited small business participation
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.6 million to RAYTHEON COMPANY. FMS BUY FOR MAVERICK MISSILES
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 $55.6 million.
What is the period of performance?
Start: 2013-06-17. End: 2016-06-21.
What is the justification for awarding this contract on a sole-source basis instead of through a competitive process?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or the unavailability of alternative sources. Without specific documentation, it's difficult to ascertain the precise reason. However, sole-source contracts often raise concerns about potential overpricing and reduced innovation due to the absence of competitive pressure.
How does the awarded price compare to historical pricing for Maverick Missiles or similar systems procured competitively?
Direct comparison is challenging without access to historical competitive pricing data for Maverick Missiles or comparable systems. However, sole-source contracts are inherently at a disadvantage regarding price discovery. It is plausible that the price could be higher than if the contract had been competed, as Raytheon faced no direct market pressure to lower its bid.
What is the expected impact of these Maverick Missiles on the Air Force's operational capabilities?
Maverick Missiles are air-to-ground munitions designed for close air support and precision strikes against various targets. Their procurement is crucial for maintaining the Air Force's combat readiness and effectiveness in fulfilling its mission objectives. The acquisition of these missiles directly enhances the service's ability to project power and engage enemy forces.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 1151 E HERMANS RD, TUCSON, AZ, 85756
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: $55,562,124
Exercised Options: $55,562,124
Current Obligation: $55,562,124
Subaward Activity
Number of Subawards: 178
Total Subaward Amount: $46,296,678
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-06-17
Current End Date: 2016-06-21
Potential End Date: 2016-06-21 00:00:00
Last Modified: 2025-04-22
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