DoD's $51.6M missile contract to Raytheon Company awarded via sole-source justification

Contract Overview

Contract Amount: $51,635,840 ($51.6M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2019-11-06

End Date: 2022-02-28

Contract Duration: 845 days

Daily Burn Rate: $61.1K/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 $51.6 million to RAYTHEON COMPANY for work described as: GRIFFIN A BLOCK III MISSILE W/ CLT Key points: 1. Contract awarded without competition, raising questions about price discovery and potential cost savings. 2. Significant investment in guided missile technology, indicating a focus on advanced defense capabilities. 3. Long performance period of 845 days suggests a substantial and ongoing need for these munitions. 4. Contract awarded to a single, established defense contractor, potentially limiting market entry for competitors. 5. High value suggests critical strategic importance for U.S. Special Operations Command. 6. Fixed-price contract type aims to provide cost certainty, but initial pricing needs careful benchmarking.

Value Assessment

Rating: questionable

The contract's value of $51.6 million for GRIFFIN A BLOCK III MISSILE W/ CLT warrants scrutiny due to its sole-source nature. Without competitive bidding, it is difficult to benchmark the pricing against market rates or alternative suppliers. While Raytheon is a known entity in defense manufacturing, the absence of competition prevents an assessment of whether this represents the best value for the government. Further analysis would require comparing unit costs to similar missile systems or historical pricing for this specific munition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for this approach is not detailed in the provided data, but typically involves reasons such as unique capabilities, urgent need, or lack of viable alternatives. The absence of multiple bidders means there was no direct price competition, which can lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may have paid a premium for this missile system due to the lack of competitive pressure to drive down prices. The government did not benefit from the cost-saving mechanisms inherent in a competitive bidding process.

Public Impact

The primary beneficiaries are U.S. Special Operations Command personnel who will utilize these advanced missile systems. The contract delivers critical guided missile capabilities essential for special operations missions. The geographic impact is national, supporting U.S. military readiness and global operations. Workforce implications are likely within Raytheon's manufacturing facilities, supporting skilled labor in the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs.
Lack of transparency in the sole-source justification requires further investigation.
High contract value necessitates rigorous oversight to ensure funds are used effectively.

Positive Signals

Award to a reputable defense contractor with established expertise.
Firm fixed-price contract provides cost predictability.
Delivery order structure allows for phased acquisition and management.

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the broader aerospace and defense industry. This sector is characterized by high R&D investment, stringent quality control, and long product development cycles. Spending in this area is often driven by national security imperatives and technological advancements. Comparable spending benchmarks would involve analyzing other large-value missile system procurements by the Department of Defense and allied nations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific information regarding subcontracting plans for small businesses (sb: false). This suggests that the primary contractor, Raytheon Company, is expected to fulfill the contract requirements directly or through its own supply chain, with limited direct benefit or mandated participation for small businesses in this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and acquisition oversight mechanisms. Given the sole-source nature, there may be enhanced scrutiny from the Defense Contract Management Agency (DCMA) and potentially the Government Accountability Office (GAO) if protests arise. Transparency is limited by the sole-source award, but contract performance and financial reporting would be subject to standard government oversight procedures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Griffin Missile System
Air-to-Ground Munitions
Special Operations Forces Equipment
Defense Procurement
Guided Missile Manufacturing

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Limited transparency regarding performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.6 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 $51.6 million.

What is the period of performance?

Start: 2019-11-06. End: 2022-02-28.

What is the specific justification provided by the U.S. Special Operations Command for awarding this contract on a sole-source basis to Raytheon Company?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as only one responsible source being available, an urgent and compelling need, or when the acquisition is for a unique item or service. Without the official justification document, it is impossible to determine the precise rationale. This lack of transparency is a key area for further inquiry, as it prevents a thorough assessment of whether competitive alternatives were truly unavailable or if other factors influenced the decision. Understanding this justification is crucial for evaluating the necessity and potential cost-effectiveness of the award.

How does the unit cost of the GRIFFIN A BLOCK III MISSILE W/ CLT compare to similar missile systems procured by the DoD or other government agencies?

Direct unit cost comparison is challenging without access to specific pricing details for the GRIFFIN A BLOCK III MISSILE W/ CLT within this contract, as only the total award amount is provided. However, the Griffin missile family is generally considered a precision-guided munition designed for light attack platforms. Benchmarking would involve researching publicly available data on similar missiles, such as the Hellfire or Javelin, considering their capabilities, range, and warhead types. Given the sole-source nature of this award, it is imperative to compare Raytheon's pricing against any historical data for Griffin missiles or against competitor offerings for comparable systems to ascertain value for money. The absence of competition makes external benchmarking even more critical.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of the GRIFFIN A BLOCK III MISSILE W/ CLT program under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a missile system procurement, typical KPIs would likely include metrics related to reliability (e.g., mean time between failures), accuracy (e.g., circular error probable), operational readiness rates, delivery timelines, and potentially end-user feedback on mission effectiveness. The U.S. Special Operations Command would establish these KPIs in the contract's Performance Work Statement (PWS). Monitoring these indicators is essential for ensuring the government receives the intended capabilities and that the investment yields the desired operational outcomes. The long performance period suggests ongoing evaluation against these metrics.

What is Raytheon Company's track record with the U.S. Special Operations Command and the Department of Defense for similar missile system contracts?

Raytheon Company is a major defense contractor with a long-standing relationship with the Department of Defense and its various components, including U.S. Special Operations Command (SOCOM). They have a well-established track record in developing and producing a wide range of missile systems, including the Griffin family. Historical data would likely show numerous previous contracts for various munitions and defense systems awarded to Raytheon by DoD agencies. While this specific contract is a sole-source award for the Griffin A Block III, Raytheon's broader experience suggests a high level of technical capability and program execution experience. However, each contract's performance should be evaluated independently.

What is the total historical spending by the U.S. Special Operations Command on Griffin missile systems, and how does this $51.6 million award fit into that pattern?

The provided data only pertains to this specific $51.6 million contract award. To understand the total historical spending on Griffin missile systems by SOCOM, a broader search of federal procurement databases (like FPDS or USASpending) would be necessary. This would involve filtering for contracts awarded to Raytheon for 'Griffin Missile' or related terms, across all relevant agencies and time periods. This $51.6 million award represents a significant single investment, but its context within the overall lifecycle and total procurement quantity of Griffin missiles for SOCOM requires a more comprehensive analysis of historical spending patterns. It could represent a new block buy, sustainment, or a specific operational requirement.

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 (UEI: 001344142)

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: $51,635,840

Exercised Options: $51,635,840

Current Obligation: $51,635,840

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $6,410,870

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: H9240318D0004

IDV Type: IDC

Timeline