DoD Awards $35.8M to Raytheon for Advanced Missile Test Support, Sole-Source Contract

Contract Overview

Contract Amount: $35,760,192 ($35.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-11-01

End Date: 2025-04-15

Contract Duration: 1,626 days

Daily Burn Rate: $22.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE FIELD-TEAM TEST SUPPORT (FTS)

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to RAYTHEON COMPANY for work described as: ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE FIELD-TEAM TEST SUPPORT (FTS) Key points: 1. High value contract awarded to a single, established defense contractor. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (over 4 years) suggests critical, ongoing support needs. 4. Testing Laboratories and Services sector, with a focus on advanced missile systems.

Value Assessment

Rating: questionable

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without more detailed cost breakdowns, but the total value is significant for specialized testing services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits opportunities for other vendors and potentially impacts the government's ability to secure the best possible price through competitive bidding.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed contract, as there is less pressure on the contractor to offer the lowest price.

Public Impact

Ensures continued testing and development of advanced air-to-air missile capabilities. Supports critical national defense infrastructure and technological advancement. Potential for cost inefficiencies due to sole-source nature impacts taxpayer value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long contract duration

Positive Signals

Supports critical defense technology
Awarded to established prime contractor

Sector Analysis

This contract falls within the Defense sector, specifically supporting advanced weapons system testing. Spending benchmarks for specialized field-team test support can vary widely, but $35.8M over 4+ years for missile systems is substantial.

Small Business Impact

The data indicates this contract was awarded to Raytheon Company, a large prime contractor. There is no explicit information on small business participation within this specific award, but large sole-source contracts often have limited direct subcontracting opportunities for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure cost controls and performance meet expectations. The Department of the Air Force is responsible for monitoring this contract to prevent potential cost creep and ensure value for money.

Related Government Programs

Testing Laboratories and Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Cost-plus contract type can lead to higher costs
Potential for contractor lock-in
Limited transparency on specific cost components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to RAYTHEON COMPANY. ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE FIELD-TEAM TEST SUPPORT (FTS)

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 $35.8 million.

What is the period of performance?

Start: 2020-11-01. End: 2025-04-15.

What specific testing services are included in this $35.8M contract, and how do they contribute to the overall effectiveness of the AMRAAM program?

This contract covers field-team test support for the Advanced Medium Range Air-to-Air Missile (AMRAAM). The services likely include on-site technical assistance, data collection, system integration, and troubleshooting during testing phases. This support is crucial for validating missile performance, identifying potential flaws, and ensuring the weapon system meets operational requirements before deployment, directly impacting its combat effectiveness.

Given the sole-source award, what mechanisms are in place to ensure Raytheon is not overcharging for these specialized testing services?

As a Cost Plus Fixed Fee contract, the government pays the contractor's allowable costs plus a predetermined fixed fee. Oversight involves rigorous auditing of incurred costs and negotiation of the fixed fee. The Department of Defense likely employs technical experts to validate the necessity and reasonableness of the costs claimed, and may conduct should-cost analyses to benchmark against industry standards, though competition is absent.

What is the long-term strategic value of this ongoing investment in AMRAAM testing support, particularly considering the evolving threat landscape?

Continuous testing and support are vital for maintaining the technological edge of critical defense assets like the AMRAAM. This investment ensures the missile remains effective against evolving threats by allowing for iterative improvements and validation of new capabilities. The long duration suggests a commitment to the AMRAAM's lifecycle, providing sustained readiness and deterrence, which is strategically important for national security.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

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: $35,764,621

Exercised Options: $35,760,192

Current Obligation: $35,760,192

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $47,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA867521D0030

IDV Type: IDC

Timeline