DoD Awards Raytheon $29.3M for Missile Vehicle Manufacturing Upgrades

Contract Overview

Contract Amount: $29,313,468 ($29.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2018-07-05

End Date: 2021-03-31

Contract Duration: 1,000 days

Daily Burn Rate: $29.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ST, TE UPGRADES&REFURBISHMENT (FMS)

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to RAYTHEON COMPANY for work described as: ST, TE UPGRADES&REFURBISHMENT (FMS) Key points: 1. Significant contract value for specialized manufacturing. 2. Sole-source award to Raytheon Company raises competition concerns. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Focus on guided missile and space vehicle manufacturing.

Value Assessment

Rating: questionable

The contract value of $29.3M for guided missile and space vehicle manufacturing is substantial. Without competitive benchmarks, assessing its value is difficult, especially given the sole-source nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Raytheon Company. This lack of competition limits price discovery and may lead to less favorable pricing for the government.

Taxpayer Impact: The absence of competition in this sole-source award could result in taxpayers paying a premium for these specialized manufacturing upgrades.

Public Impact

Impacts national defense capabilities through missile system upgrades. Supports advanced manufacturing jobs within the defense sector. Potential for technological advancements in guided missile systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in pricing

Positive Signals

Supports critical defense manufacturing
Long-term contract duration

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area of defense industrial base. Spending in this niche is often driven by national security requirements and can involve significant R&D investment.

Small Business Impact

The contract data indicates that small business participation was not a stated factor (sb: false). This suggests limited direct benefit to small businesses from this specific award, though Raytheon may subcontract.

Oversight & Accountability

As a sole-source award from the Department of the Navy, oversight is crucial to ensure cost control and performance. The Cost Plus Fixed Fee structure necessitates rigorous monitoring of expenditures and adherence to the fixed fee.

Related Government Programs

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

Risk Flags

Lack of competition
Cost overrun risk
Limited small business impact
Potential for price inefficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to RAYTHEON COMPANY. ST, TE UPGRADES&REFURBISHMENT (FMS)

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 $29.3 million.

What is the period of performance?

Start: 2018-07-05. End: 2021-03-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific documentation, it's difficult to ascertain the exact reason, but it implies a lack of readily available alternatives or a critical dependency on Raytheon's specific expertise for these ST, TE upgrades and refurbishment.

How does the Cost Plus Fixed Fee structure impact cost control for these missile vehicle upgrades?

The Cost Plus Fixed Fee (CPFF) structure means the contractor (Raytheon) is reimbursed for allowable costs plus a predetermined fixed fee. While the fee is fixed, the government bears the risk of cost overruns. Effective oversight is essential to scrutinize allowable costs and prevent inefficiencies, as the contractor has less incentive to control costs compared to a fixed-price contract.

What is the long-term strategic value of these missile vehicle upgrades for the Department of Defense?

These upgrades likely enhance the performance, reliability, and potentially the capabilities of existing or new guided missile and space vehicles. This contributes to maintaining a technological edge in national defense, ensuring readiness, and addressing evolving threats. The specific strategic value depends on the nature of the upgrades and their integration into broader defense systems.

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

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: $29,359,227

Exercised Options: $29,359,227

Current Obligation: $29,313,468

Actual Outlays: $2,781,923

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $80,184

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001918D0123

IDV Type: IDC

Timeline