Raytheon Company awarded $32.6M for LAU-115 D/A Missile Launcher, with no competition

Contract Overview

Contract Amount: $32,607,438 ($32.6M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-03-31

Contract Duration: 547 days

Daily Burn Rate: $59.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LAU-115 D/A MISSILE LAUNCHER DO#2

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46219

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $32.6 million to RAYTHEON COMPANY for work described as: LAU-115 D/A MISSILE LAUNCHER DO#2 Key points: 1. The contract value of $32.6 million represents a significant investment in missile launcher technology. 2. The sole-source nature of this award warrants scrutiny regarding potential price inflation and lack of market pressure. 3. The duration of 547 days suggests a substantial project timeline, requiring careful performance monitoring. 4. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' indicating a specialized niche. 5. The award is a Delivery Order under a larger contract, implying a phased or ongoing procurement strategy. 6. The fixed-firm price contract type offers cost certainty for the government, assuming the scope remains unchanged.

Value Assessment

Rating: questionable

Benchmarking the value of this specific missile launcher against comparable contracts is challenging due to the limited public data on such specialized defense equipment. However, the absence of competition raises concerns about whether the government secured the best possible price. Without competitive bids, it's difficult to ascertain if the $32.6 million represents fair market value or if a more competitive process could have yielded savings. The fixed-firm price offers some cost control, but the overall value proposition is weakened by the lack of competitive pressure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Raytheon Company, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple companies submitting proposals. While sole-source awards can be justified in specific circumstances, such as unique capabilities or urgent needs, they limit the government's ability to leverage market competition to drive down prices and ensure the best value. The lack of bidders means there was no direct comparison of offerings or pricing.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the most cost-effective solution available, as competitive pressures that typically lead to lower prices are absent. This can result in higher overall government spending for the same or similar goods.

Public Impact

The primary beneficiaries are the Department of the Navy, which will receive advanced missile launcher systems. The contract supports the production and delivery of LAU-115 D/A Missile Launchers, crucial for naval aviation capabilities. The geographic impact is primarily linked to Raytheon's manufacturing facilities, likely in Indiana (SN: INDIANA), and potentially naval bases where the equipment will be deployed. This contract supports specialized manufacturing jobs within the aerospace and defense sector, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency in pricing and value assessment.
Dependence on a single supplier could create future supply chain risks.
The specific technical capabilities of the LAU-115 D/A missile launcher are not detailed, making independent performance assessment difficult.

Positive Signals

The fixed-firm price contract provides cost certainty for the government.
The award supports a critical defense capability for the Department of the Navy.
The contractor, Raytheon Company, is a well-established defense manufacturer with significant experience.
The contract duration is clearly defined, allowing for project planning and oversight.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, significant R&D investment, and substantial government procurement. Contracts for components like missile launchers are critical to maintaining national security capabilities. The market for such specialized equipment is often concentrated among a few large prime contractors and their specialized suppliers. Benchmarking this specific component's cost against broader defense spending trends shows it as a relatively small but vital part of the overall defense budget, contributing to the readiness of naval air assets.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of missile launcher components and the sole-source award to a large prime contractor, it is unlikely that small businesses will be directly involved as the primary awardee. However, Raytheon Company may engage small businesses as subcontractors, though details on such subcontracting plans are not provided in this data. The absence of a set-aside means direct opportunities for small businesses to compete for this specific contract are limited.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. As a delivery order under a larger contract, existing oversight mechanisms for the parent contract would likely apply. Transparency is limited by the sole-source nature of the award. Accountability measures would be tied to the performance clauses within the fixed-firm price contract, with potential for penalties if Raytheon fails to meet delivery schedules or specifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Aviation Procurement
Missile Systems
Defense Logistics Agency
Air-to-Air Missile Components
Department of Defense Contracts
Aircraft Armament Systems

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to RAYTHEON COMPANY. LAU-115 D/A MISSILE LAUNCHER DO#2

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 $32.6 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-03-31.

What is Raytheon Company's track record with the Department of the Navy for similar missile launcher components?

Raytheon Company, now part of RTX, has a long and extensive history of supplying complex defense systems, including missile launchers and related components, to the Department of the Navy and other military branches. Their track record includes numerous contracts for various missile systems, such as the AIM-9 Sidewinder and AIM-120 AMRAAM, which utilize launchers like the LAU-115. While specific performance metrics for past contracts are often not publicly detailed, Raytheon is generally considered a reliable, albeit expensive, supplier of advanced aerospace and defense technology. Their experience suggests a high level of technical proficiency, but also highlights a potential for higher price points due to their established market position and the specialized nature of their products.

How does the $32.6 million value compare to other missile launcher procurements?

Directly comparing the $32.6 million value for the LAU-115 D/A Missile Launcher is difficult without more specific details on the quantity of units procured and the exact specifications. Missile launcher costs can vary significantly based on complexity, technology integration (e.g., targeting systems, power requirements), and the specific missile types they are designed to carry. However, for specialized defense components, this figure is within a plausible range for a sole-source award to a major defense contractor. Broader defense spending analyses show that individual component procurements can range from hundreds of thousands to tens of millions of dollars, depending on the criticality and technological sophistication. The lack of competition here prevents a definitive value-for-money assessment against potential alternatives.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract are related to cost and potential lack of innovation. Without competition, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to overpayment by the government. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, a sole-source award can stifle innovation, as the government is reliant on a single provider's technological advancements rather than benefiting from the diverse solutions that multiple bidders might offer. There's also a risk of vendor lock-in, making it difficult and costly to switch suppliers in the future if performance issues arise or better alternatives become available.

How effective is the LAU-115 D/A Missile Launcher in enhancing naval aviation capabilities?

The LAU-115 D/A Missile Launcher is a critical component for naval aviation, designed to carry and deploy air-to-air and air-to-ground missiles from various aircraft platforms, including carrier-based jets. Its effectiveness is measured by its reliability, compatibility with different missile types, integration with aircraft systems, and the ability to withstand the stresses of flight and combat. As a standard or widely used launcher, it contributes to the versatility and combat readiness of naval air wings by enabling them to employ a range of munitions. While specific performance data is classified or proprietary, its continued procurement suggests it meets the operational requirements and effectiveness standards set by the Department of the Navy for its intended missions.

What are the historical spending patterns for LAU-115 D/A Missile Launchers or similar components?

Historical spending patterns for the LAU-115 D/A Missile Launcher specifically are not readily available in the public domain, as such detailed procurement data is often sensitive. However, general trends in defense spending show consistent investment in aircraft armament systems and missile components. The Department of Defense procures thousands of such items annually, with costs fluctuating based on technological upgrades, production volumes, and geopolitical demands. Awards for similar aircraft parts and auxiliary equipment can range from thousands to millions of dollars per contract. The $32.6 million for this delivery order suggests a significant procurement quantity or a high unit cost, consistent with specialized defense hardware.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001920R0010

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 6125 E 21ST ST, INDIANAPOLIS, IN, 46219

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: $32,665,436

Exercised Options: $32,607,438

Current Obligation: $32,607,438

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001921D0021

IDV Type: IDC

Timeline