DoD's Air Force awards $80.2M for Paveway II computer and air foil groups to Raytheon Company
Contract Overview
Contract Amount: $80,167,022 ($80.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2019-09-13
End Date: 2022-04-29
Contract Duration: 959 days
Daily Burn Rate: $83.6K/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 $80.2 million to RAYTHEON COMPANY for work described as: PRODUCTION OF PAVEWAY II COMPUTER CONTROL GROUPS AND AIR FOIL GROUPS. Key points: 1. Contract awarded to Raytheon Company, a major defense contractor. 2. Spending falls under Ammunition (except Small Arms) Manufacturing. 3. Full and open competition was utilized. 4. Contract duration was 959 days. 5. The award value is $80,167,022.
Value Assessment
Rating: good
The contract value of $80.2 million for Paveway II components appears reasonable given the scope and duration. Benchmarking against similar complex munitions system procurements would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source or limited solicitations.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment among potential suppliers.
Public Impact
Ensures continued availability of critical components for the Paveway II system. Supports the operational readiness of Air Force munitions. Contributes to the defense industrial base, specifically in ammunition manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract actions if competition diminishes.
- Reliance on a single contractor for specific components could pose supply chain risks.
Positive Signals
- Awarded under full and open competition.
- Supports a key defense system.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the defense sector, specifically focusing on ammunition manufacturing. Spending in this area is crucial for national security and is often subject to rigorous oversight and long-term planning.
Small Business Impact
The data does not indicate any specific involvement or set-aside for small businesses in this particular contract award. Further analysis would be needed to determine the extent of small business participation in the broader supply chain.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, implying oversight from this branch of the DoD. The use of delivery orders under a basic ordering agreement suggests a structured procurement process.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for sole-source dependency in future procurements.
- Supply chain vulnerability for critical components.
- Long contract duration may increase risk of cost escalation.
- Complexity of the components could lead to manufacturing challenges.
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 $80.2 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 $80.2 million.
What is the period of performance?
Start: 2019-09-13. End: 2022-04-29.
What is the historical cost performance of Raytheon Company on similar munitions component contracts?
Analyzing Raytheon's past performance on comparable munitions component contracts is crucial for assessing value. Historical data can reveal trends in cost overruns or savings, efficiency in production, and adherence to delivery schedules. This information helps determine if the current $80.2 million award represents a fair price and if Raytheon's pricing strategy is consistent with their track record.
What are the specific technical risks associated with the Paveway II computer and air foil groups?
Understanding the technical risks associated with these specific components is vital for assessing overall project effectiveness. Risks could include obsolescence of technology, manufacturing complexities, integration challenges with the Paveway II system, or potential performance degradation. Identifying these risks allows for proactive mitigation strategies and ensures the delivered components meet stringent military specifications and operational requirements.
How does the unit cost of these components compare to industry benchmarks for similar defense systems?
Benchmarking the per-unit cost of the Paveway II computer and air foil groups against similar defense systems is essential for evaluating cost-effectiveness. If the per-unit cost is significantly higher than industry averages for comparable components, it could indicate potential inefficiencies or a lack of competitive pressure. Conversely, costs in line with or below benchmarks suggest efficient procurement and competitive pricing.
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: $80,167,022
Exercised Options: $80,167,022
Current Obligation: $80,167,022
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,670,590
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: 2019-09-13
Current End Date: 2022-04-29
Potential End Date: 2022-04-29 00:00:00
Last Modified: 2022-03-17
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