DoD Awards Raytheon $12.3M for MALD CLS Order, Extending Missile Production Through 2027
Contract Overview
Contract Amount: $12,287,243 ($12.3M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2025-09-26
End Date: 2027-09-25
Contract Duration: 729 days
Daily Burn Rate: $16.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MALD CLS ORDER
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $12.3 million to RAYTHEON COMPANY for work described as: MALD CLS ORDER Key points: 1. Significant contract value of $12.3 million awarded to a major defense contractor. 2. Sole-source award raises questions about competition and potential price discovery. 3. Long contract duration of 729 days suggests a substantial, ongoing requirement. 4. Focus on guided missile manufacturing highlights critical defense capabilities.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar missile production contracts is difficult without more detailed cost breakdowns.
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 may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $12.3 million contract means taxpayers may not be receiving the best possible price for these guided missiles.
Public Impact
Ensures continued production of critical missile technology for the Air Force. Supports advanced defense capabilities and readiness for national security. Potential for increased costs due to sole-source procurement method.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can inflate costs.
- Lack of small business participation noted.
Positive Signals
- Supports critical defense manufacturing.
- Long-term contract ensures supply chain stability.
- Awarded to a reputable defense contractor.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a key area for defense spending. Benchmarks for similar sole-source missile production contracts are often high due to specialized technology and R&D.
Small Business Impact
The data indicates no specific small business participation in this contract. As a sole-source award to a large prime contractor, opportunities for small businesses may be limited unless subcontracted.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight will be crucial to ensure cost control and performance under the Cost Plus Fixed Fee structure, especially given the sole-source nature.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation
- Potential for cost overruns
- Long contract duration may obscure initial cost efficiencies
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.3 million to RAYTHEON COMPANY. MALD CLS ORDER
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 $12.3 million.
What is the period of performance?
Start: 2025-09-26. End: 2027-09-25.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. The Department of Defense should have documentation outlining this rationale. To ensure fair pricing, robust negotiation and oversight of the Cost Plus Fixed Fee elements are essential, including detailed cost audits and performance metrics.
How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness of this missile production contract?
Cost Plus Fixed Fee contracts incentivize the contractor to control costs by providing a fixed fee regardless of the actual costs incurred. However, it can also lead to cost overruns if the initial cost estimates are inaccurate or if scope creep occurs. Effective oversight is critical to manage these risks and ensure value for money.
What is the strategic importance of the MALD CLS system, and how does this contract contribute to Air Force readiness?
The MALD (Miniature Air-Launched Decoy) system plays a crucial role in electronic warfare and suppression of enemy air defenses by mimicking enemy aircraft. This contract ensures the continued availability and sustainment of these critical assets, directly contributing to the Air Force's operational readiness and mission effectiveness in complex threat environments.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $12,287,243
Exercised Options: $12,287,243
Current Obligation: $12,287,243
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,952,332
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852025DB001
IDV Type: IDC
Timeline
Start Date: 2025-09-26
Current End Date: 2027-09-25
Potential End Date: 2027-09-25 00:00:00
Last Modified: 2025-12-22
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)