DoD awards Raytheon $26.6M for Paveway II computer and air foil groups, impacting ammunition manufacturing
Contract Overview
Contract Amount: $26,585,924 ($26.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2018-11-15
End Date: 2021-12-31
Contract Duration: 1,142 days
Daily Burn Rate: $23.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION OF PAVEWAY II COMPUTER CONTROL GROUPS AND AIR FOIL GROUPS.
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $26.6 million to RAYTHEON COMPANY for work described as: PRODUCTION OF PAVEWAY II COMPUTER CONTROL GROUPS AND AIR FOIL GROUPS. Key points: 1. The contract focuses on specialized components for guided bomb systems. 2. Raytheon Company is a major defense contractor with extensive experience. 3. Potential risks include supply chain disruptions and technological obsolescence. 4. Spending falls within the ammunition manufacturing sector.
Value Assessment
Rating: good
The award amount of $26.6 million for production of Paveway II components appears reasonable given the specialized nature of the equipment. Benchmarking against similar defense contracts for guidance systems components suggests this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This competitive process generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for these critical defense components.
Public Impact
Enhances precision-guided munitions capabilities for the Air Force. Supports ongoing military operations and readiness. Contributes to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if material prices increase.
- Dependence on a single supplier for critical components.
- Risk of schedule delays due to production complexities.
Positive Signals
- Awarded through full and open competition.
- Raytheon has a proven track record.
- Components are essential for current weapon systems.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, which is a critical part of the defense industrial base. Spending benchmarks for similar component production vary widely based on complexity and volume.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this particular award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Air Force is responsible for oversight of this contract. Standard procurement regulations and contract management practices are expected to ensure accountability.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost escalation due to market volatility.
- Risk of single-source dependency for specialized parts.
- Long-term sustainment and upgrade costs.
- Impact of geopolitical events on supply chain.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.6 million to RAYTHEON COMPANY. PRODUCTION OF PAVEWAY II COMPUTER CONTROL GROUPS AND AIR FOIL GROUPS.
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 $26.6 million.
What is the period of performance?
Start: 2018-11-15. End: 2021-12-31.
What is the projected lifespan and upgrade path for the Paveway II system components being produced?
The projected lifespan and upgrade path for the Paveway II system components are crucial for long-term value assessment. Understanding the technology's obsolescence curve and planned modernization efforts will inform future sustainment costs and the need for subsequent procurements. This information is vital for strategic planning and avoiding costly replacements.
How does the unit cost of these components compare to similar systems developed by international allies?
Comparing the unit cost of these Paveway II components to similar systems from international allies can reveal potential cost efficiencies or areas of overspending. Such an analysis, considering differences in technology, production scale, and labor costs, would provide valuable insights into the competitiveness of the U.S. defense acquisition process and identify opportunities for international collaboration or standardization.
What are the key performance metrics used to evaluate the effectiveness of the Paveway II system in operational environments?
The key performance metrics for evaluating the effectiveness of the Paveway II system typically include accuracy (e.g., circular error probable), reliability rates, range, and target engagement success. Data from operational deployments and testing is essential to confirm that the system meets its intended mission requirements and provides a demonstrable return on investment for the taxpayer.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA821311R3011
Offers Received: 2
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: $26,585,924
Exercised Options: $26,585,924
Current Obligation: $26,585,924
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821311D0008
IDV Type: IDC
Timeline
Start Date: 2018-11-15
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2025-04-24
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