DoD's $90M Raytheon Contract for Missile Systems: Cost Plus Fixed Fee Awarded
Contract Overview
Contract Amount: $90,235,102 ($90.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2011-03-31
End Date: 2017-09-30
Contract Duration: 2,375 days
Daily Burn Rate: $38.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SYSTEM DEVELOPMENT AND INTEGRATION
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $90.2 million to RAYTHEON COMPANY for work described as: SYSTEM DEVELOPMENT AND INTEGRATION Key points: 1. Significant investment in defense systems, highlighting the importance of guided missile technology. 2. Sole-source award to Raytheon Company suggests limited market alternatives or specific expertise required. 3. Potential for cost overruns exists with Cost Plus Fixed Fee contracts, requiring close oversight. 4. The contract duration of nearly 4 years indicates a substantial, long-term project.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to higher costs if not managed effectively. Benchmarking against similar missile system development contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The 'NOT COMPETED' designation indicates a sole-source award, likely due to specialized technology or existing platform integration. This limits price discovery and competitive pressure.
Taxpayer Impact: Taxpayer funds are committed without competitive bidding, potentially leading to a higher overall cost than a competed contract.
Public Impact
Ensures continued development and production of critical missile and space vehicle technology for national defense. Supports advanced manufacturing capabilities within the defense industrial base. Potential for technological advancements in guided missile systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns due to CPFF structure
- Lack of competitive pricing pressure
- Reliance on a single contractor
Positive Signals
- Supports critical defense capabilities
- Long-term program stability
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of guided missile and space vehicles. Spending in this area is driven by national security requirements and technological advancements.
Small Business Impact
The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The CPFF structure necessitates robust oversight to control costs and ensure performance.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost escalation risk inherent in CPFF contracts.
- Limited transparency due to sole-source award.
- Potential for contractor lock-in.
- Dependency on a single supplier for critical defense components.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $90.2 million to RAYTHEON COMPANY. SYSTEM DEVELOPMENT AND INTEGRATION
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $90.2 million.
What is the period of performance?
Start: 2011-03-31. End: 2017-09-30.
What specific technological advancements or capabilities does this contract aim to achieve in guided missile and space vehicle manufacturing?
The provided data does not detail the specific technological advancements or capabilities targeted by this contract. Further analysis of contract line items and technical specifications would be required to understand the precise objectives related to guided missile and space vehicle manufacturing.
How does the 'NOT COMPETED' status impact the overall value for money compared to a potentially competed contract for similar systems?
A sole-source award typically results in less competitive pricing pressure, potentially leading to higher costs for the government compared to a fully competed contract. Without competition, the government may not achieve the best possible price or innovative solutions that could arise from a bidding process.
What are the key performance indicators (KPIs) and oversight mechanisms in place to manage the Cost Plus Fixed Fee structure and mitigate risks?
The data does not specify the KPIs or detailed oversight mechanisms. However, for CPFF contracts, agencies typically monitor cost accumulation, contractor performance against milestones, and adherence to technical requirements. Regular audits and reviews are standard practices to ensure accountability and control spending.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $93,227,084
Exercised Options: $91,872,891
Current Obligation: $90,235,102
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-03-31
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2021-07-13
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