Navy Awards Raytheon $2.59M for Guided Missile Repairs, Lacking Competition

Contract Overview

Contract Amount: $2,590,630 ($2.6M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-08-25

End Date: 2026-06-30

Contract Duration: 309 days

Daily Burn Rate: $8.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USG AUR 9X, 9X-2, & 9X-3 REPAIRS

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $2.6 million to RAYTHEON COMPANY for work described as: USG AUR 9X, 9X-2, & 9X-3 REPAIRS Key points: 1. Significant contract value for specialized missile repairs. 2. Sole-source award to Raytheon raises competition concerns. 3. Potential for higher costs due to limited market engagement. 4. Defense sector spending on missile maintenance is critical.

Value Assessment

Rating: questionable

The $2.59 million award for missile repairs lacks a clear benchmark due to its sole-source nature. Without competitive bids, it's difficult to assess if the pricing is optimal compared to potential market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Raytheon. This limits price discovery and may result in less favorable terms for the government compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to taxpayers potentially overpaying for these essential missile repair services.

Public Impact

Ensures readiness of critical naval defense assets. Supports specialized manufacturing and repair capabilities. Highlights reliance on a single contractor for specific defense needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for cost overruns

Positive Signals

Essential defense capability
Contract awarded to established provider

Sector Analysis

This contract falls within the defense sector, specifically focusing on guided missile manufacturing and repair. Spending in this area is crucial for national security, but often involves specialized, high-cost components and limited contractor pools.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small businesses were considered or had the capability to bid on this specialized work.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of the Navy obtained fair and reasonable pricing. Robust justification for the lack of competition is essential for accountability.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Dependency on a single contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.6 million to RAYTHEON COMPANY. USG AUR 9X, 9X-2, & 9X-3 REPAIRS

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 $2.6 million.

What is the period of performance?

Start: 2025-08-25. End: 2026-06-30.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of other qualified sources. For this specific contract, the Department of the Navy would need to provide documentation detailing why Raytheon was the only viable option for these particular missile repairs, ensuring no other contractor could fulfill the requirement.

What is the risk associated with relying on a single supplier for critical missile repairs?

Relying on a single supplier like Raytheon for critical missile repairs poses risks including potential price gouging, supply chain vulnerabilities if the sole provider faces disruptions, and a lack of innovation driven by competition. This dependency can also limit the government's flexibility in adapting to new technologies or seeking more cost-effective solutions.

How does this contract contribute to the overall effectiveness of naval defense systems?

This contract is vital for maintaining the operational readiness and effectiveness of naval defense systems by ensuring that guided missiles are properly repaired and maintained. The timely and accurate execution of these repairs directly impacts the Navy's ability to deploy and utilize its strategic assets, thereby upholding national security objectives.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001923R0114

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

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: $2,590,630

Exercised Options: $2,590,630

Current Obligation: $2,590,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001924D0114

IDV Type: IDC

Timeline