Raytheon Awarded $291M for Miniature Air Launched Decoy Jammer (MALD-J) Lot 9/10/11

Contract Overview

Contract Amount: $291,026,754 ($291.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2016-06-29

End Date: 2021-04-30

Contract Duration: 1,766 days

Daily Burn Rate: $164.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MINIATURE AIR LAUNCHED DECOY JAMMER (MALD-J) LOT 9/10/11

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $291.0 million to RAYTHEON COMPANY for work described as: MINIATURE AIR LAUNCHED DECOY JAMMER (MALD-J) LOT 9/10/11 Key points: 1. Significant contract value of $291 million for advanced electronic warfare capabilities. 2. Raytheon Company is the sole provider, indicating a lack of competition. 3. Potential risks include reliance on a single supplier and price escalation. 4. Spending is within the Defense sector, specifically Guided Missile and Space Vehicle Manufacturing.

Value Assessment

Rating: questionable

The contract is a firm fixed price, which typically offers good value. However, without competitive bidding, it's difficult to assess if the price is optimal compared to market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning Raytheon Company is the sole source provider. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this specialized defense system.

Public Impact

Enhances U.S. Air Force electronic warfare capabilities. Supports strategic defense objectives by providing advanced jamming technology. Ensures continued availability of a critical decoy system for combat missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Long contract duration

Positive Signals

Firm fixed price contract type
Addresses critical defense need

Sector Analysis

This contract falls under the Guided Missile and Space Vehicle Manufacturing sector, a specialized area within defense. Spending benchmarks for sole-source contracts in this niche are hard to establish externally.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the prime contractor is Raytheon Company and the small business indicator is false.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency, responsible for overseeing contract performance and ensuring compliance. Further oversight details are not provided.

Related Government Programs

Guided Missile and Space Vehicle Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price creep
Long contract duration without clear competition milestones

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $291.0 million to RAYTHEON COMPANY. MINIATURE AIR LAUNCHED DECOY JAMMER (MALD-J) LOT 9/10/11

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 $291.0 million.

What is the period of performance?

Start: 2016-06-29. End: 2021-04-30.

What is the justification for the sole-source award of the MALD-J contract?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of other qualified sources. Without specific documentation, it's presumed that Raytheon possesses exclusive rights or the necessary expertise to produce the MALD-J system, making competition infeasible or impractical for the Department of Defense.

How does the lack of competition impact the long-term cost-effectiveness of the MALD-J program?

The absence of competition inherently removes the downward pressure on pricing that multiple bidders would provide. This can lead to higher unit costs over the contract's life and may necessitate more rigorous negotiation and oversight from the contracting agency to ensure fair and reasonable pricing, potentially increasing the overall taxpayer burden.

What are the potential risks associated with relying solely on Raytheon for MALD-J production?

Sole reliance on Raytheon creates supply chain vulnerability. Any production issues, quality control failures, or strategic decisions by Raytheon could directly impact the availability of this critical defense asset. Furthermore, the government lacks alternative sources, potentially limiting its leverage in future contract negotiations and price adjustments.

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

Offers Received: 1

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: $445,152,314

Exercised Options: $291,026,754

Current Obligation: $291,026,754

Actual Outlays: $10,683,313

Subaward Activity

Number of Subawards: 185

Total Subaward Amount: $504,380,360

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline