Raytheon's $30.7M JMM BRU Contract Awarded by DoD Amidst Full and Open Competition

Contract Overview

Contract Amount: $30,690,103 ($30.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2013-06-24

End Date: 2018-05-11

Contract Duration: 1,782 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: JOINT MINIATURE MUNITIONS BOMB RACK UNIT (JMM BRU)

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46219

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to RAYTHEON COMPANY for work described as: JOINT MINIATURE MUNITIONS BOMB RACK UNIT (JMM BRU) Key points: 1. The contract for Joint Miniature Munitions Bomb Rack Units (JMM BRU) was awarded to Raytheon Company. 2. A full and open competition was utilized for this procurement. 3. The contract type is Fixed Price Incentive, suggesting a focus on cost control with performance incentives. 4. The Department of the Air Force is the primary agency involved. 5. The contract duration was 1782 days.

Value Assessment

Rating: fair

The contract value of $30.7 million over nearly 5 years suggests a moderate investment. Without specific unit cost data or benchmarks for similar bomb rack units, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery, as multiple bidders likely competed. This method generally leads to more competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, though the specific savings compared to a sole-source or limited competition are unknown.

Public Impact

Ensures operational readiness for Air Force aircraft by providing essential munitions delivery systems. Supports the defense industrial base through a contract with a major aerospace and defense manufacturer. The JMM BRU is a critical component for deploying various munitions, impacting mission capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data makes detailed value analysis challenging.
Contract duration is relatively long, potentially leading to price escalation risks if not managed.
No indication of small business participation.

Positive Signals

Awarded under full and open competition, promoting competitive pricing.
Fixed Price Incentive contract type can align contractor and government interests.
Clear agency and product identification.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically related to aircraft parts. Spending in this sector is driven by national security needs and technological advancements in military hardware.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were pursued.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, implying oversight from this agency. The use of a definitive contract suggests a clear agreement, but ongoing oversight of performance and costs is crucial.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of detailed cost breakdowns.
Long contract duration.
No explicit mention of small business subcontracting.
Potential for price escalation in FPI contracts if not managed.
Limited insight into specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 million to RAYTHEON COMPANY. JOINT MINIATURE MUNITIONS BOMB RACK UNIT (JMM BRU)

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 $30.7 million.

What is the period of performance?

Start: 2013-06-24. End: 2018-05-11.

What was the average per-unit cost for the JMM BRU under this contract, and how does it compare to industry benchmarks?

The provided data does not include specific per-unit cost information for the JMM BRU. To assess value, this data would need to be obtained and compared against similar contracts or industry pricing for comparable munitions bomb rack units. Without this, a definitive value assessment remains incomplete.

What were the key performance metrics and incentive structures within the Fixed Price Incentive contract, and how effectively were they monitored?

The Fixed Price Incentive (FPI) contract structure implies targets for cost, performance, and delivery, with adjustments based on actual outcomes. Effective monitoring would involve rigorous tracking of these metrics by the Department of the Air Force to ensure Raytheon met its obligations and to manage any cost variances according to the FPI terms.

Given the 5-year duration, what measures were in place to mitigate potential obsolescence or technological advancements in munitions delivery systems?

A 5-year contract duration for military hardware necessitates proactive management. Mitigation strategies could include contract clauses allowing for review and modification, incorporating provisions for incorporating newer technologies if they emerge, or ensuring the JMM BRU design has inherent flexibility to adapt to evolving munitions.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 6125 E 21ST ST, INDIANAPOLIS, IN, 46219

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: $49,995,811

Exercised Options: $30,690,103

Current Obligation: $30,690,103

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline