DoD Awards Raytheon $66.2M for AMRAAM Program Support, Logistics, and Service Life Prediction

Contract Overview

Contract Amount: $66,220,735 ($66.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-08-01

End Date: 2026-03-31

Contract Duration: 607 days

Daily Burn Rate: $109.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM) PROGRAM SUPPORT (PS), SERVICE LIFE PREDICTION PROGRAM (SLPP), AND CONTRACTOR LOGISTICS SUPPORT (CLS)

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $66.2 million to RAYTHEON COMPANY for work described as: ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM) PROGRAM SUPPORT (PS), SERVICE LIFE PREDICTION PROGRAM (SLPP), AND CONTRACTOR LOGISTICS SUPPORT (CLS) Key points: 1. Contract focuses on critical missile program support and logistics. 2. Raytheon Company is the sole awardee, raising competition concerns. 3. Spending spans over two years, indicating sustained program needs. 4. Engineering services dominate the contract scope.

Value Assessment

Rating: good

The contract value of $66.2M for 607 days of support appears reasonable given the specialized nature of missile program support and contractor logistics. Benchmarking against similar complex defense systems is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Raytheon Company. This limits price discovery and potentially increases costs compared to a competitive environment.

Taxpayer Impact: Taxpayer funds are directed to a single provider without competitive pressure, potentially leading to higher costs than if multiple vendors were considered.

Public Impact

Ensures continued operational readiness of advanced air-to-air missiles. Supports the longevity and effectiveness of a key defense asset. Potential for increased costs due to lack of competition. Impacts the strategic air combat capabilities of the Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for cost overruns without competitive bidding
Reliance on a single contractor for critical support

Positive Signals

Supports critical defense asset
Ensures program continuity
Long-term service life prediction

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related systems. Spending benchmarks for similar specialized defense program support can vary widely based on system complexity and scope.

Small Business Impact

There is no indication of small business participation in this sole-source award. Opportunities for small businesses to subcontract or provide specialized support within this contract appear limited.

Oversight & Accountability

Oversight will be crucial to ensure Raytheon meets performance requirements and to monitor costs, especially given the sole-source nature of the award. The Department of Defense's contracting oversight mechanisms will be key.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost escalation
Contractor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.2 million to RAYTHEON COMPANY. ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM) PROGRAM SUPPORT (PS), SERVICE LIFE PREDICTION PROGRAM (SLPP), AND CONTRACTOR LOGISTICS SUPPORT (CLS)

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 $66.2 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-03-31.

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 proprietary technology held by the contractor. The Department of Defense should have a documented justification, such as 'only one responsible source' or 'urgent and compelling need.' Fair pricing is usually assessed through cost analysis, comparison to historical data, or independent government cost estimates, though competitive benchmarking is absent.

What are the potential risks associated with relying solely on Raytheon for AMRAAM program support and logistics?

The primary risk is the lack of competitive pressure, which can lead to inflated costs and reduced innovation. There's also a dependency risk; if Raytheon faces internal issues, it could disrupt critical missile support. Furthermore, without competition, the government has less leverage to negotiate favorable terms or drive efficiency improvements.

How does this contract contribute to the overall effectiveness and readiness of the Air Force's air-to-air combat capabilities?

This contract is vital for maintaining the operational readiness and extending the service life of the Advanced Medium Range Air-to-Air Missile (AMRAAM), a cornerstone of U.S. air superiority. By ensuring proper support, logistics, and predictive maintenance, it directly enhances the effectiveness of fighter aircraft and the overall air combat capabilities of the Air Force.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA855623R0004

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $66,220,735

Exercised Options: $66,220,735

Current Obligation: $66,220,735

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,047,482

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA867520D0020

IDV Type: IDC

Timeline