DoD's $40.8M Griffin Missile Purchase: Sole-Source Award to Raytheon Company

Contract Overview

Contract Amount: $40,790,970 ($40.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-05-20

End Date: 2023-02-28

Contract Duration: 1,014 days

Daily Burn Rate: $40.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GRIFFIN MISSLES PURCHASE CY20

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $40.8 million to RAYTHEON COMPANY for work described as: GRIFFIN MISSLES PURCHASE CY20 Key points: 1. Significant investment in guided missile manufacturing. 2. Sole-source award raises questions about price discovery. 3. Potential for higher costs due to lack of competition. 4. Focus on defense sector spending with limited small business participation.

Value Assessment

Rating: questionable

The contract's value of $40.8 million for Griffin missiles is difficult to assess without competitive benchmarks. The lack of competition suggests potential overpricing compared to what might be achieved in an open market.

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 may lead to less favorable terms for the government.

Taxpayer Impact: The absence of competition could result in taxpayers paying more for these missiles than if multiple vendors had vied for the contract.

Public Impact

Taxpayers may be overpaying for critical defense equipment. Lack of competition hinders innovation and potentially limits supply chain resilience. Ensuring fair pricing for defense contracts is crucial for national security budgets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Essential defense procurement
Firm fixed price contract

Sector Analysis

This purchase falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the defense industry. Spending in this area is often characterized by high R&D costs and specialized manufacturing capabilities.

Small Business Impact

The data indicates no small business participation in this contract. This is common in highly specialized defense manufacturing where large, established companies often dominate.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value and that the pricing is fair and reasonable.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
No small business participation
Potential for inflated pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.8 million to RAYTHEON COMPANY. GRIFFIN MISSLES PURCHASE CY20

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 $40.8 million.

What is the period of performance?

Start: 2020-05-20. End: 2023-02-28.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further documentation, it's difficult to ascertain the specific rationale, but it's a key area for oversight to ensure it aligns with federal procurement regulations and serves the best interest of the government.

How does the unit cost of these Griffin missiles compare to similar systems procured competitively?

Direct comparison is challenging without competitive data for the Griffin missile itself. However, the lack of competition suggests the government may not have achieved the most cost-effective price. Benchmarking against comparable missile systems, considering their capabilities and production volumes, would be necessary to identify potential cost discrepancies.

What is the long-term strategic impact of relying on sole-source suppliers for critical defense assets?

Sole-source reliance can create dependency, limit technological advancement through lack of competitive pressure, and potentially lead to price escalation over time. It also poses risks to supply chain resilience if the sole provider faces disruptions. Diversifying suppliers or fostering competition where feasible are strategies to mitigate these long-term 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

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: $40,790,970

Exercised Options: $40,790,970

Current Obligation: $40,790,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA865617D0005

IDV Type: IDC

Timeline