DoD Awards $33.6M for Griffin Standoff Guided Munitions to Raytheon Company
Contract Overview
Contract Amount: $33,636,966 ($33.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2019-11-06
End Date: 2021-09-30
Contract Duration: 694 days
Daily Burn Rate: $48.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GRIFFIN STANDOFF PRECISION GUIDED MUNITIONS
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $33.6 million to RAYTHEON COMPANY for work described as: GRIFFIN STANDOFF PRECISION GUIDED MUNITIONS Key points: 1. Significant award for precision-guided munitions, a critical defense capability. 2. Sole-source award to Raytheon Company, a major defense contractor. 3. Potential for higher costs due to lack of competition. 4. Spending concentrated in the Defense sector, specifically missile manufacturing.
Value Assessment
Rating: fair
The award of $33.6 million for guided munitions appears to be a substantial investment. Without competitive bidding, it's difficult to assess if this price is optimal compared to market alternatives or previous contracts for similar systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning Raytheon was the only vendor considered. This significantly limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these munitions.
Public Impact
Ensures availability of advanced guided munitions for military operations. Supports a key defense contractor and its manufacturing capabilities. Highlights reliance on specific suppliers for critical defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits competition and price negotiation.
- Lack of transparency in pricing due to non-competitive award.
- Potential for cost overruns without market checks.
Positive Signals
- Acquisition of critical defense technology.
- Award to an established defense manufacturer.
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of guided missiles and space vehicles. Spending in this area is often characterized by high R&D costs and specialized production, with significant government oversight required.
Small Business Impact
This award went to Raytheon Company, a large prime contractor. There is no indication that small businesses were involved as subcontractors in this specific delivery order, which is common for sole-source awards of specialized defense equipment.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, suggesting oversight is in place. However, the sole-source nature of the award warrants scrutiny to ensure fair pricing and value for taxpayer money.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in cost justification.
- Dependency on a single supplier for critical defense assets.
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 $33.6 million to RAYTHEON COMPANY. GRIFFIN STANDOFF PRECISION GUIDED MUNITIONS
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $33.6 million.
What is the period of performance?
Start: 2019-11-06. End: 2021-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. The government should have conducted a price analysis, potentially using historical data, cost breakdowns, or other methods, to determine if the price was fair and reasonable despite the lack of competition. Further justification would be needed to understand why alternatives were not viable.
How does the unit cost of these Griffin munitions compare to similar systems procured competitively?
Without access to specific unit cost data and benchmarks for comparable munitions, a direct comparison is difficult. However, sole-source contracts inherently carry a higher risk of inflated pricing compared to competitively awarded contracts. A thorough review of Raytheon's cost proposal and historical pricing would be necessary to assess value.
What is the long-term strategic impact of relying on a single supplier for such critical munitions?
Long-term reliance on a single supplier can create strategic vulnerabilities, including potential supply chain disruptions, price escalation, and reduced innovation. It also limits the government's leverage in future negotiations. Diversifying suppliers or fostering competition where feasible are often recommended strategies to mitigate these risks.
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
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: $33,636,966
Exercised Options: $33,636,966
Current Obligation: $33,636,966
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $161,394
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA865617D0005
IDV Type: IDC
Timeline
Start Date: 2019-11-06
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2020-04-21
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