DoD Awards Raytheon $35.7M for NSM Launch Units and Weapon Control Systems

Contract Overview

Contract Amount: $35,709,379 ($35.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2021-12-22

End Date: 2024-12-31

Contract Duration: 1,105 days

Daily Burn Rate: $32.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: QTY OF 10 - NSM LAUNCH UNIT AND WEAPON CONTROL SYSTEM - PRODUCTION REPRESENTATIVE MODELS

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $35.7 million to RAYTHEON COMPANY for work described as: QTY OF 10 - NSM LAUNCH UNIT AND WEAPON CONTROL SYSTEM - PRODUCTION REPRESENTATIVE MODELS Key points: 1. Significant investment in advanced missile technology for the Navy. 2. Sole-source award to Raytheon raises questions about competition and potential cost savings. 3. Long-term contract (2021-2024) suggests ongoing program needs. 4. Focus on Guided Missile and Space Vehicle Manufacturing sector.

Value Assessment

Rating: fair

The contract value of $35.7 million for 10 units is substantial. Without comparable contract data or a detailed breakdown of unit costs, it's difficult to definitively assess pricing against similar systems. The 'NOT AVAILABLE FOR COMPETITION' status further complicates a direct value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This approach may limit price discovery and potentially lead to higher costs for taxpayers compared to a fully competitive procurement.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be benefiting from the most competitive pricing achievable through open competition.

Public Impact

Enhances naval defense capabilities with advanced missile systems. Supports a major defense contractor, Raytheon Company. Procurement of weapon systems is critical for national security. Long-term contract duration implies sustained operational requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price transparency.
Lack of detailed cost breakdown hinders value assessment.
Long contract duration could mask inefficiencies if not closely monitored.

Positive Signals

Acquisition of critical defense technology.
Supports established defense industrial base.
Firm fixed price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the defense industry. Spending in this area is typically high due to the specialized nature and advanced technology involved in producing sophisticated weaponry.

Small Business Impact

The awardee is Raytheon Company, a large prime contractor. There is no indication in the provided data whether small businesses were involved as subcontractors or if opportunities were specifically sought for them in this sole-source procurement.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable. The Department of the Navy should have robust internal controls and justification processes in place for non-competitive procurements.

Related Government Programs

Guided Missile and Space Vehicle Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition.
Lack of transparency in pricing.
Potential for inflated costs due to lack of competitive pressure.
Long contract duration requires ongoing scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.7 million to RAYTHEON COMPANY. QTY OF 10 - NSM LAUNCH UNIT AND WEAPON CONTROL SYSTEM - PRODUCTION REPRESENTATIVE MODELS

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 Navy).

What is the total obligated amount?

The obligated amount is $35.7 million.

What is the period of performance?

Start: 2021-12-22. End: 2024-12-31.

What is the justification for the sole-source award, and what steps were taken to ensure the price is fair and reasonable without competition?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. The Department of the Navy would need to conduct a thorough price analysis, potentially using historical data, cost breakdowns from the contractor, or independent government cost estimates, to validate the reasonableness of the $35.7 million price.

How does the per-unit cost of these NSM Launch Units and Weapon Control Systems compare to similar systems procured competitively?

Without access to competitive benchmark data for comparable NSM Launch Units and Weapon Control Systems, a direct comparison is not possible. The sole-source nature of this award prevents an immediate assessment against potentially lower prices achieved through a competitive bidding process. Further analysis would require market research on similar systems.

What is the long-term strategic value and operational effectiveness of these NSM systems for the Department of the Navy?

The acquisition of NSM (Naval Strike Missile) systems is intended to significantly enhance the Navy's standoff strike capabilities against a wide range of targets. Their effectiveness is crucial for maintaining maritime superiority and projecting power. The long-term value lies in modernizing the fleet's offensive arsenal and deterring potential adversaries.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: M6785422R1000

Pricing Type: FIRM FIXED PRICE (J)

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: $36,838,881

Exercised Options: $36,838,881

Current Obligation: $35,709,379

Actual Outlays: $21,132,297

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $155,966

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785422D1000

IDV Type: IDC

Timeline