DoD awards $180.5M for AGM-154C-1 JSOW System to Raytheon Company
Contract Overview
Contract Amount: $180,538,444 ($180.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2011-07-28
End Date: 2015-02-28
Contract Duration: 1,311 days
Daily Burn Rate: $137.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AGM-154C-1 JSOW SYSTEM
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $180.5 million to RAYTHEON COMPANY for work described as: AGM-154C-1 JSOW SYSTEM Key points: 1. The contract is for the AGM-154C-1 JSOW System, a key component in air-to-ground warfare. 2. Raytheon Company, a major defense contractor, is the sole awardee. 3. The contract was awarded as a definitive contract with a firm fixed price. 4. The total value of the contract is $180,538,443.67. 5. The contract duration is 1311 days.
Value Assessment
Rating: fair
The firm fixed price contract type suggests a defined scope and cost expectation. However, without comparable contract data for the AGM-154C-1 JSOW System, a precise pricing assessment against similar systems is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive procurement.
Taxpayer Impact: The lack of competition for this significant defense contract may result in taxpayers paying a premium for the AGM-154C-1 JSOW System.
Public Impact
Enhances air-to-ground strike capabilities for the Department of Defense. Supports the operational readiness of U.S. Air Force and Navy platforms. Contributes to the defense industrial base through a major prime contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of detailed cost breakdowns for a firm fixed price contract.
- Potential for cost overruns if initial estimates were inaccurate.
Positive Signals
- Firm fixed price contract provides cost certainty for the government.
- Award to a known prime contractor with established production capabilities.
- Long contract duration suggests sustained need and potential for economies of scale.
Sector Analysis
The defense sector, particularly guided missile manufacturing, involves high-value, technologically advanced procurements. Spending benchmarks for similar complex weapon systems can vary widely based on technology, quantity, and specific capabilities.
Small Business Impact
This contract was awarded to Raytheon Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract. Oversight would focus on contract performance, delivery schedules, and adherence to terms.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source procurement
- Lack of competitive pricing
- Potential for cost inefficiencies
- Limited transparency on cost drivers
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, az, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $180.5 million to RAYTHEON COMPANY. AGM-154C-1 JSOW SYSTEM
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 $180.5 million.
What is the period of performance?
Start: 2011-07-28. End: 2015-02-28.
What is the justification for the sole-source award of the AGM-154C-1 JSOW System contract?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the absence of other responsible sources capable of meeting the government's requirements. Without specific documentation, it's difficult to ascertain the precise reasons, but it implies a belief that only Raytheon could fulfill the need effectively at this time.
What are the potential risks associated with the firm fixed price contract for this advanced weapon system?
While firm fixed price offers cost certainty, risks include the contractor potentially cutting corners on quality or performance to maximize profit if the initial price was set too low. Conversely, if the price was set too high due to lack of competition, taxpayers bear the burden. Ensuring robust technical oversight is crucial to mitigate these risks.
How does the performance of the AGM-154C-1 JSOW System align with its acquisition cost and taxpayer investment?
Assessing the alignment requires performance metrics and operational effectiveness data, which are not provided. The $180.5 million investment suggests a significant capability. Taxpayer value is realized if the system effectively meets its intended mission requirements, enhances warfighter capabilities, and contributes to national security objectives without undue cost overruns.
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
Solicitation ID: N0001910R0067
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $180,539,079
Exercised Options: $180,538,444
Current Obligation: $180,538,444
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-07-28
Current End Date: 2015-02-28
Potential End Date: 2015-02-28 00:00:00
Last Modified: 2019-02-12
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