DoD awards $281.9M for Advanced Medium Range Air-to-Air Missiles (AMRAAM) to Raytheon Company

Contract Overview

Contract Amount: $28,190,140 ($28.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-02-11

End Date: 2025-07-31

Contract Duration: 170 days

Daily Burn Rate: $165.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM)

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to RAYTHEON COMPANY for work described as: ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM) Key points: 1. Significant contract value for advanced missile systems. 2. Sole-source award to Raytheon Company, a major defense contractor. 3. Potential for cost overruns or lack of competitive pricing. 4. Spending concentrated in the Defense sector, specifically guided missile manufacturing.

Value Assessment

Rating: questionable

The contract value of $281.9 million for AMRAAM missiles is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar advanced missile systems.

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 leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these critical defense assets.

Public Impact

Ensures continued supply of advanced air-to-air missiles for U.S. Air Force operations. Supports Raytheon Company's defense manufacturing capabilities and workforce. Potential impact on international allies relying on AMRAAM technology. Highlights reliance on a single supplier for a key military component.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Critical defense capability
Established supplier

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the defense industry. Spending benchmarks for similar advanced missile systems are often high due to R&D and specialized manufacturing.

Small Business Impact

This contract does not appear to involve small businesses directly, as it is a sole-source award to a large prime contractor, Raytheon Company. Subcontracting opportunities for small businesses are not detailed in the provided data.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of Defense's contracting oversight mechanisms will be key to monitoring this award.

Related Government Programs

Guided Missile and Space Vehicle Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competitive pricing.
Potential for cost overruns without competitive pressure.
Reliance on a single supplier for critical defense asset.
Lack of transparency in price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to RAYTHEON COMPANY. ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM)

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 $28.2 million.

What is the period of performance?

Start: 2025-02-11. End: 2025-07-31.

What is the historical cost performance of AMRAAM procurements from Raytheon Company, and how does this award compare?

Historical cost data for AMRAAM procurements from Raytheon is essential for evaluating the value of this $281.9 million award. Analyzing past unit costs, cost growth trends, and any previous audits or reviews can reveal patterns of efficiency or potential overpricing. Without this comparative data, assessing whether this contract represents a fair price is challenging, especially given the sole-source nature of the award.

What are the specific justifications for a sole-source award for AMRAAM, and have alternatives been considered?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For AMRAAM, this could relate to specific performance characteristics or integration with existing platforms. A thorough review should confirm that no viable competitive alternatives exist and that the sole-source decision is indeed the most advantageous option for the government.

How does the unit cost of these AMRAAM missiles compare to industry benchmarks for similar advanced guided munitions?

Determining the unit cost requires dividing the total contract value by the number of missiles procured, which is not explicitly stated. However, even an estimated unit cost should be benchmarked against comparable advanced air-to-air missiles from other manufacturers or previous procurements. A significant deviation from established benchmarks, particularly in a sole-source context, warrants further investigation into pricing reasonableness and potential cost efficiencies.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

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: $28,190,140

Exercised Options: $28,190,140

Current Obligation: $28,190,140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA867523D0001

IDV Type: IDC

Timeline