DoD Awards Raytheon $207M for Enhanced Coyote Interceptors to Boost Forward Operating Base Effectiveness

Contract Overview

Contract Amount: $207,271,116 ($207.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2022-09-26

End Date: 2026-01-31

Contract Duration: 1,223 days

Daily Burn Rate: $169.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS TASK IS TO PRODUCE, PROCURE, AND MODIFY THE ENHANCED COYOTE BLOCK 2 AND BLOCK 3 INTERCEPTORS TO IMPROVE EFFECTIVENESS AT FORWARD OPERATING BASES.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $207.3 million to RAYTHEON COMPANY for work described as: THIS TASK IS TO PRODUCE, PROCURE, AND MODIFY THE ENHANCED COYOTE BLOCK 2 AND BLOCK 3 INTERCEPTORS TO IMPROVE EFFECTIVENESS AT FORWARD OPERATING BASES. Key points: 1. Significant investment in critical defense technology for forward operating bases. 2. Sole provider Raytheon Company holds a strong position in this specialized market. 3. Potential risks include reliance on a single supplier and evolving technological needs. 4. Spending aligns with the broader defense sector's focus on advanced interceptor systems.

Value Assessment

Rating: good

The Cost Plus Fixed Fee contract structure allows for flexibility but requires careful monitoring of costs to ensure value. Benchmarking against similar advanced interceptor development contracts is difficult due to the specialized nature of the Coyote system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific nature of the 'Enhanced Coyote Block 2 and Block 3' may have limited the number of capable bidders.

Taxpayer Impact: Taxpayer funds are being allocated to enhance critical defense capabilities, aiming for improved effectiveness and security at forward operating bases.

Public Impact

Enhances the defensive capabilities of US military personnel at forward operating bases. Supports the development of advanced drone and missile interceptor technology. Contributes to the modernization of military hardware and strategic defense posture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source potential for future modifications or sustainment.
Complexity of technology may lead to cost overruns.
Dependence on specific supplier expertise.

Positive Signals

Addresses a critical need for enhanced base defense.
Leverages proven Coyote interceptor technology.
Awarded through full and open competition.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on advanced weapon systems and interceptor technology. Spending benchmarks for such specialized R&D and procurement can vary widely based on technological complexity and program scope.

Small Business Impact

The contract was awarded to Raytheon Company, a large prime contractor. There is no explicit indication of small business participation in the provided data, suggesting potential missed opportunities for subcontracting.

Oversight & Accountability

The Department of Defense, through the Defense Microelectronics Activity, is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust financial oversight to manage costs effectively and ensure accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Microelectronics Activity Programs

Risk Flags

Potential for cost overruns due to contract type.
Limited competition for specialized technology.
Dependence on a single contractor.
Need for ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $207.3 million to RAYTHEON COMPANY. THIS TASK IS TO PRODUCE, PROCURE, AND MODIFY THE ENHANCED COYOTE BLOCK 2 AND BLOCK 3 INTERCEPTORS TO IMPROVE EFFECTIVENESS AT FORWARD OPERATING BASES.

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Microelectronics Activity).

What is the total obligated amount?

The obligated amount is $207.3 million.

What is the period of performance?

Start: 2022-09-26. End: 2026-01-31.

What is the projected cost-effectiveness of the enhanced Coyote interceptors compared to alternative defense strategies?

The cost-effectiveness is difficult to ascertain without detailed performance metrics and comparative analysis against alternative solutions. While the Coyote system offers a specific capability, its long-term value depends on its success rate, maintenance costs, and the evolving threat landscape. Further analysis would require data on deployment frequency, interception success rates, and the cost of alternative defensive measures.

What are the primary risks associated with relying on Raytheon Company for the modification and production of these advanced interceptors?

The primary risks include potential vendor lock-in, limiting future competitive pricing for upgrades or sustainment. Dependence on a single supplier can also create vulnerabilities if Raytheon faces production issues, supply chain disruptions, or significant price increases. Ensuring continuous innovation and competitive pressure through strategic contract management is crucial.

How will the effectiveness of the enhanced Coyote interceptors be measured and validated to ensure optimal taxpayer value?

Effectiveness will likely be measured through rigorous testing and evaluation protocols, including live-fire exercises and simulated combat scenarios. Key performance indicators will probably focus on interception rates, response times, and operational reliability under various conditions. Independent verification and validation by the Department of Defense will be essential to confirm the system meets its intended objectives and provides value.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ072715R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245

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: $207,271,116

Exercised Options: $207,271,116

Current Obligation: $207,271,116

Subaward Activity

Number of Subawards: 74

Total Subaward Amount: $17,504,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ072716D0006

IDV Type: IDC

Timeline