Raytheon Company awarded $27.9M for GRIFFIN A BLOCK III MISSILE W/ CLT by Department of Defense

Contract Overview

Contract Amount: $27,936,100 ($27.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2018-12-07

End Date: 2020-12-31

Contract Duration: 755 days

Daily Burn Rate: $37.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GRIFFIN A BLOCK III MISSILE W/ CLT

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to RAYTHEON COMPANY for work described as: GRIFFIN A BLOCK III MISSILE W/ CLT Key points: 1. Contract awarded for advanced missile systems, indicating a focus on specialized defense capabilities. 2. The contract value suggests a significant investment in precision strike technology. 3. Sole-source award raises questions about potential cost efficiencies and market alternatives. 4. Delivery order under an existing contract streamlines procurement for critical defense assets. 5. The duration of the contract points to a sustained need for these missile systems. 6. Geographic location of the contractor in Arizona may have local economic implications.

Value Assessment

Rating: fair

The contract value of $27.9 million for the GRIFFIN A BLOCK III MISSILE W/ CLT is difficult to benchmark without more specific details on the quantity and configuration of the missiles. As a sole-source award, direct comparison to similar competitive contracts is not feasible. The firm-fixed-price structure provides cost certainty for the government, but the absence of competition may have led to a higher price than could have been achieved through a competitive bidding process. Further analysis would require understanding the unit cost and comparing it to industry standards for similar guided missile systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Raytheon Company, was solicited. This approach is typically used when a specific capability is required that only one contractor can provide, or in situations where urgency or national security concerns preclude a competitive process. The lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a multi-bidder scenario, potentially impacting the final price paid.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price. Without competitive pressure, the awarded price may be higher than if multiple companies had vied for the contract, leading to less efficient use of public funds.

Public Impact

The U.S. Special Operations Command is the primary beneficiary, receiving advanced missile capabilities. The contract delivers critical components for guided missile systems, enhancing defense readiness. The contract's performance is linked to Arizona (AZ), potentially impacting the local defense industrial base. The acquisition of these missiles supports the operational readiness of special operations forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification requires careful review.
Dependence on a single supplier for critical missile technology could pose long-term supply chain risks.

Positive Signals

Award to a known defense contractor suggests a level of established performance and reliability.
Firm-fixed-price contract provides budget certainty for the Department of Defense.
Delivery order mechanism indicates efficient use of an existing contracting vehicle.

Sector Analysis

The defense sector, particularly guided missile and space vehicle manufacturing, is characterized by high technological complexity and significant R&D investment. Raytheon Company is a major player in this market. This contract for the GRIFFIN A BLOCK III MISSILE W/ CLT fits within the broader category of advanced munitions procurement, a critical area for national defense. Spending in this sector is often driven by evolving geopolitical threats and the need for technological superiority, with contracts typically being large and long-term.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Raytheon Company voluntarily engages small businesses for specific components or services not detailed here. Further investigation into Raytheon's subcontracting plans would be needed to assess broader small business implications.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense's existing procurement regulations and the U.S. Special Operations Command's internal review processes. Transparency is limited due to the sole-source nature of the award. Accountability measures are typically embedded in the contract's performance clauses and delivery schedules. The Inspector General of the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Guided Missile Manufacturing
Special Operations Forces Equipment
Defense Procurement
Advanced Munitions

Risk Flags

Sole-source award may limit price competition.
Lack of detailed performance metrics for this specific delivery order.
Potential for higher costs due to absence of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to RAYTHEON COMPANY. GRIFFIN A BLOCK III MISSILE W/ CLT

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $27.9 million.

What is the period of performance?

Start: 2018-12-07. End: 2020-12-31.

What is the specific capability and intended use of the GRIFFIN A BLOCK III MISSILE W/ CLT?

The GRIFFIN A BLOCK III MISSILE W/ CLT is a precision-guided munition designed for use by special operations forces. The 'CLT' likely refers to a 'Cased Launched' variant, suggesting it can be fired from within a container or launch tube, offering advantages in terms of platform integration and safety. These missiles are typically employed against a range of targets, including personnel, light armored vehicles, and infrastructure, providing a standoff capability for ground and air platforms. The 'Block III' designation indicates a specific generation or upgrade of the Griffin missile system, implying enhanced features, improved performance, or new functionalities compared to earlier versions. Its intended use is to provide a flexible, accurate, and lethal weapon system for asymmetric warfare and counter-terrorism operations.

How does the $27.9 million contract value compare to historical spending on Griffin missiles?

Without specific unit costs or quantities for this $27.9 million award, a direct historical spending comparison is challenging. However, historical data from publicly available sources indicates that the U.S. military has procured Griffin missiles in various configurations over the years. For instance, previous awards for Griffin missiles have ranged from tens of thousands to hundreds of thousands of dollars per unit, depending on the specific block, configuration, and quantity ordered. A $27.9 million contract could represent a significant number of missiles or a smaller quantity of highly specialized variants. To provide a precise comparison, one would need to know the number of units procured under this contract and compare their unit cost to historical unit costs for similar Griffin missile blocks and configurations.

What are the primary risks associated with a sole-source award for advanced missile systems?

The primary risks associated with a sole-source award for advanced missile systems like the GRIFFIN A BLOCK III MISSILE W/ CLT include potential cost overruns due to the lack of competitive pressure, which can lead to prices higher than market value. There's also a risk of reduced innovation, as the sole contractor may have less incentive to invest in cost-saving technologies or product improvements if they are guaranteed the contract. Furthermore, sole-source awards can create vendor lock-in, making it difficult and costly to switch to alternative suppliers or technologies in the future. Dependence on a single supplier also introduces supply chain vulnerabilities; any disruption at the contractor's facility could significantly impact the availability of critical defense assets.

What is Raytheon Company's track record with Department of Defense missile contracts?

Raytheon Company, now part of RTX, has an extensive and long-standing track record of delivering a wide array of missile systems to the Department of Defense and allied nations. They are a prime contractor for numerous advanced weapon systems, including air-to-air missiles, surface-to-air missiles, cruise missiles, and precision-guided munitions. Their history includes successful development, production, and sustainment of complex programs, often involving firm-fixed-price contracts. While specific performance metrics for every contract are not always public, Raytheon is generally considered a reliable supplier of defense technology. However, like any large defense contractor, they have faced scrutiny over contract costs and performance on certain programs throughout their history.

How does the PSC code (if available) inform the nature of this contract and related spending?

The provided data does not include a specific PSC (Product Service Code). However, the description 'Guided Missile and Space Vehicle Manufacturing' strongly suggests a PSC related to missile production. Typical PSCs in this category include '1410' (Missiles and Related Powders), '1420' (Guided Missile and Space Vehicle Parts and Components), or '1430' (Guided Missiles'. These codes are crucial for categorizing federal spending, allowing agencies and analysts to track expenditures within specific industries and product categories. Using the correct PSC helps in benchmarking spending against similar items, identifying trends in defense procurement, and understanding the market landscape for specific defense technologies. Without the exact PSC, we infer it falls within the missile manufacturing domain.

What are the potential implications of this contract for future defense spending on guided missiles?

This contract for the GRIFFIN A BLOCK III MISSILE W/ CLT could signal continued investment in specialized, precision-guided munitions for special operations and potentially other military branches. The sole-source nature might indicate a unique capability or a strategic decision to rely on a specific platform or technology. If the Block III variant proves highly effective and meets operational needs, it could lead to follow-on orders or influence the development of future missile systems. Conversely, the high cost associated with sole-source procurement might prompt future reviews to explore more competitive avenues for similar capabilities, potentially driving innovation and cost-efficiency in subsequent procurements within the guided missile sector.

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

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: $27,936,100

Exercised Options: $27,936,100

Current Obligation: $27,936,100

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $6,769,406

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: H9240318D0004

IDV Type: IDC

Timeline