DoD Awards $39.7M for Griffin Missiles to Raytheon, Lacking Competition

Contract Overview

Contract Amount: $39,711,300 ($39.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-08-31

End Date: 2025-12-31

Contract Duration: 487 days

Daily Burn Rate: $81.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CY22 GRIFFIN MISSILES

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $39.7 million to RAYTHEON COMPANY for work described as: CY22 GRIFFIN MISSILES Key points: 1. Significant contract value for critical defense hardware. 2. Sole-source award to Raytheon Company raises competition concerns. 3. Long-term contract duration (487 days) impacts flexibility. 4. Guided Missile and Space Vehicle Manufacturing sector.

Value Assessment

Rating: questionable

The award amount of $39.7M for Griffin Missiles is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar missile systems or potential alternative suppliers.

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 lack of competition limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for this significant defense procurement could result in taxpayers paying a premium for essential missile systems.

Public Impact

Ensures continued supply of critical Griffin missiles for Air Force operations. Supports Raytheon Company's defense manufacturing capabilities. Potential for increased costs due to lack of competitive pricing. Long-term contract may not adapt to evolving threat landscapes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Essential defense procurement
Supports established supplier

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical area for national defense. Spending in this sector is often characterized by high R&D costs and specialized production, making competitive sourcing challenging but crucial for cost efficiency.

Small Business Impact

The contract was awarded to Raytheon Company, a large defense contractor. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award, missing an opportunity for small business participation.

Oversight & Accountability

The Department of the Air Force awarded this contract. Oversight is crucial to ensure the necessity of a sole-source award and to monitor performance and cost-effectiveness throughout the contract's duration.

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 competition.
Potential for overpayment due to lack of price discovery.
Long contract duration may not reflect current market conditions.
No small business participation indicated.
Dependency on a single supplier for critical munitions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.7 million to RAYTHEON COMPANY. CY22 GRIFFIN MISSILES

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 $39.7 million.

What is the period of performance?

Start: 2024-08-31. End: 2025-12-31.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the best possible price without competition?

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. Agencies are expected to conduct market research to confirm the lack of alternatives and negotiate the price rigorously, often using historical data, cost analysis, and benchmarking against similar systems to achieve fair and reasonable pricing.

What are the potential risks associated with a sole-source contract for critical defense assets like Griffin missiles?

Sole-source contracts carry risks of inflated prices due to the absence of competitive pressure, potential for complacency from the awarded contractor regarding innovation or efficiency, and a lack of market validation for the chosen technology or price. For critical assets, this can also lead to long-term dependency on a single supplier, potentially impacting supply chain resilience and future procurement flexibility.

How does this contract contribute to the overall effectiveness and readiness of the Department of the Air Force?

This contract ensures the continued availability of Griffin missiles, which are vital for various Air Force platforms and missions. By securing a supply chain for these munitions, the contract directly supports operational readiness and the ability to execute strategic objectives. However, the effectiveness is partially contingent on the price paid and the long-term strategic value compared to alternative munitions.

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: $39,711,300

Exercised Options: $39,711,300

Current Obligation: $39,711,300

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