Raytheon Awarded $794.6M for Guided Missiles Engineering Services by Naval Air Systems Command
Contract Overview
Contract Amount: $193,382,553 ($193.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2003-02-21
End Date: 2011-01-13
Contract Duration: 2,883 days
Daily Burn Rate: $67.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200307!000001!1700!AA423 !NAVAL AIR SYSTEMS COMMAND !N0001903C0003 !A!N! !N! !20030221!20050331!794598573!794598573!001339159!N!RAYTHEON COMPANY !1151 EAST HERMANS ROAD !TUCSON !AZ!85706!77000!019!04!TUCSON !PIMA !ARIZONA !+000026350183!N!N!000026350183!1410!GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !3AAA!A-1 SKYRAIDER !541330!E! !1! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1G!A!N!Z! ! !N!C!N! ! ! !B!B!A!A!000!A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85734, UNITED STATES OF AMERICA
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $193.4 million to RAYTHEON COMPANY for work described as: 200307!000001!1700!AA423 !NAVAL AIR SYSTEMS COMMAND !N0001903C0003 !A!N! !N! !20030221!20050331!794598573!794598573!001339159!N!RAYTHEON COMPANY !1151 EAST HERMANS ROAD !TUCSON !AZ!85706!77000!019!04!TUCSON !PIMA … Key points: 1. Significant contract value of $794.6 million for engineering services. 2. Awarded to Raytheon Company, a major defense contractor. 3. Classified as 'NOT COMPETED', raising potential concerns about price discovery. 4. Sector: Defense (specifically Naval Air Systems Command).
Value Assessment
Rating: questionable
The contract value of $794.6 million is substantial. Without comparable contracts for similar guided missile engineering services, it is difficult to definitively assess if this pricing is competitive. The 'NOT COMPETED' status further complicates a direct value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for the government compared to a competitive bidding process.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these engineering services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on Raytheon for critical guided missile engineering. Potential for reduced innovation and efficiency without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award process
Positive Signals
- Award to established defense contractor
- Specific engineering service requirement
Sector Analysis
This contract falls within the Defense sector, specifically for engineering services related to guided missiles. Spending in this area is critical for national security, but often involves complex, specialized requirements that can limit competition.
Small Business Impact
This award went to a large prime contractor, Raytheon Company. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification for avoiding a competitive process. Further review would be needed to ensure proper procedures were followed.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of transparency in justification
- Potential for overpricing
- Limited small business participation
Tags
engineering-services, department-of-defense, az, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $193.4 million to RAYTHEON COMPANY. 200307!000001!1700!AA423 !NAVAL AIR SYSTEMS COMMAND !N0001903C0003 !A!N! !N! !20030221!20050331!794598573!794598573!001339159!N!RAYTHEON COMPANY !1151 EAST HERMANS ROAD !TUCSON !AZ!85706!77000!019!04!TUCSON !PIMA !ARIZONA !+000026350183!N!N!000026350183!1410!GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !3AAA!A-1 SKYRAIDER !541330!E! !1! ! ! ! ! !99990909!B
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 $193.4 million.
What is the period of performance?
Start: 2003-02-21. End: 2011-01-13.
What was the specific justification for not competing this significant engineering services contract?
The provided data indicates the contract was 'NOT COMPETED'. A detailed justification, such as unique technical requirements, urgency, or lack of qualified sources, would typically be required for such sole-source awards. Without this justification, it's difficult to assess the necessity of bypassing the competitive process.
How does the awarded price compare to industry benchmarks for similar guided missile engineering services?
Direct comparison is challenging due to the sole-source nature of this award and the proprietary nature of specific engineering services. Benchmarking would require access to cost data from Raytheon and potentially other defense contractors performing similar, albeit not identical, work. The lack of competition inherently makes a definitive price assessment difficult.
What is the long-term strategic impact of relying on a sole-source provider for critical guided missile engineering?
Sole-source reliance can stifle innovation and create vendor lock-in, potentially increasing long-term costs and reducing flexibility. It also concentrates critical knowledge within one company, posing a risk if that company faces financial or operational difficulties. Diversifying sources or fostering competition where possible is generally advisable for long-term strategic advantage.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 1151 EAST HERMANS ROAD, TUCSON, AZ, 85706
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-02-21
Current End Date: 2011-01-13
Potential End Date: 2011-01-13 00:00:00
Last Modified: 2015-06-26
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