DoD's $219M MALD-N TMRR Contract Awarded to Raytheon Company
Contract Overview
Contract Amount: $219,159,511 ($219.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2018-03-14
End Date: 2023-12-31
Contract Duration: 2,118 days
Daily Burn Rate: $103.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MALD-N AIR VEHICLE TMRR
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $219.2 million to RAYTHEON COMPANY for work described as: MALD-N AIR VEHICLE TMRR Key points: 1. Significant investment in advanced missile technology. 2. Sole-source award to Raytheon raises questions about competition. 3. Potential for cost overruns with Cost Plus Fixed Fee contract type. 4. Focus on Guided Missile and Space Vehicle Manufacturing sector.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, while allowing for flexibility, can lead to higher costs if not managed tightly. Benchmarking against similar TMRR contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher price than if multiple vendors had competed.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding on this significant contract.
Public Impact
Advancement in defense technology could enhance national security capabilities. Raytheon's role as a sole-source provider could impact future market dynamics. The long duration of the contract (2018-2023) suggests a complex and ongoing development process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Sole-source award
Positive Signals
- Development of critical defense technology
- Long-term contract provides stability
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical area for defense spending. Benchmarks for similar TMRR programs are often proprietary or highly specialized.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the prime contractor is Raytheon Company, a large corporation. This suggests limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective program execution. Regular reviews of cost performance and adherence to contract milestones are crucial.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns due to CPFF contract
- Limited transparency on sole-source justification
- No small business participation noted
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 $219.2 million to RAYTHEON COMPANY. MALD-N AIR VEHICLE TMRR
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 $219.2 million.
What is the period of performance?
Start: 2018-03-14. End: 2023-12-31.
What was the justification for the sole-source award, and were any alternatives considered?
The justification for a sole-source award typically involves unique capabilities, critical national security needs, or lack of viable alternatives. Without specific documentation, it's difficult to ascertain the exact reasoning. However, the absence of competition suggests that either only Raytheon possessed the necessary technology or the government determined it was the most efficient path forward, potentially sacrificing cost savings.
How does the Cost Plus Fixed Fee structure impact the government's risk and Raytheon's incentive for cost control?
Under a Cost Plus Fixed Fee (CPFF) contract, the government bears the risk of cost overruns, as it reimburses the contractor for allowable costs plus a fixed fee. Raytheon's incentive for cost control is limited to protecting its fixed fee, which doesn't escalate with cost savings. This structure can lead to less aggressive cost management compared to fixed-price contracts.
What is the expected long-term strategic value of the MALD-N TMRR program for the Department of Defense?
The MALD-N TMRR (Miniature Air-Launched Decoy - Navy Technology Maturation and Risk Reduction) program is likely aimed at developing advanced decoy capabilities to enhance survivability and effectiveness of naval air platforms. Its strategic value lies in improving electronic warfare capabilities, confusing enemy air defenses, and potentially reducing the risk to manned aircraft during combat missions.
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: N0001918R0026
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $219,534,089
Exercised Options: $219,159,511
Current Obligation: $219,159,511
Actual Outlays: $31,978,191
Subaward Activity
Number of Subawards: 178
Total Subaward Amount: $40,280,296
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-03-14
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2023-10-27
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