DoD awards Raytheon $334.7M for DDG 113 AWS Ship Set production
Contract Overview
Contract Amount: $334,747,513 ($334.7M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2009-09-23
End Date: 2017-04-04
Contract Duration: 2,750 days
Daily Burn Rate: $121.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ADVANCED PROCUREMENT OF LONG LEAD MATERIALS, NON-RECURRING ENGINEERING AND CRITICAL WORK CENTER EFFORTS IN SUPPORT OF PRODUCTION OF THE DDG 113 AWS SHIP SET.
Place of Performance
Location: SUDBURY, MIDDLESEX County, MASSACHUSETTS, 01776
Plain-Language Summary
Department of Defense obligated $334.7 million to RAYTHEON COMPANY for work described as: ADVANCED PROCUREMENT OF LONG LEAD MATERIALS, NON-RECURRING ENGINEERING AND CRITICAL WORK CENTER EFFORTS IN SUPPORT OF PRODUCTION OF THE DDG 113 AWS SHIP SET. Key points: 1. Significant investment in critical naval systems production. 2. Sole-source award to Raytheon Company, a major defense contractor. 3. Long-term contract spanning production and engineering efforts. 4. Potential for cost efficiencies through advanced procurement.
Value Assessment
Rating: good
The contract value of $334.7M for advanced procurement and NRE appears reasonable for specialized naval systems. Benchmarking against similar complex defense systems production contracts would provide further context.
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 limits price discovery and competition, potentially leading to higher costs than a competitive process.
Taxpayer Impact: Taxpayer funds are committed without competitive bidding, emphasizing the need for strong oversight to ensure fair pricing and value.
Public Impact
Supports critical shipbuilding capabilities for the U.S. Navy. Ensures availability of advanced combat system components. Contributes to the defense industrial base and associated jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Long contract duration may mask cost overruns.
- Lack of competition could reduce innovation incentives.
Positive Signals
- Secures long-lead materials for critical defense asset.
- Supports established prime contractor with proven capabilities.
- Addresses specific, complex technical requirements.
Sector Analysis
This contract falls within the defense sector, specifically supporting naval shipbuilding. Spending on advanced procurement for complex systems like AWS is typical for major defense programs, often involving significant long-term investments.
Small Business Impact
No direct indication of small business participation is provided in the data. Prime contractors like Raytheon often subcontract, but the extent of small business involvement is not specified here.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Navy to ensure cost reasonableness and performance. Contract modifications and progress reports will be key accountability measures.
Related Government Programs
- Other Communication and Energy Wire Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost growth over contract duration
- Dependence on a single supplier
- Complexity of integrated systems
Tags
other-communication-and-energy-wire-manu, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $334.7 million to RAYTHEON COMPANY. ADVANCED PROCUREMENT OF LONG LEAD MATERIALS, NON-RECURRING ENGINEERING AND CRITICAL WORK CENTER EFFORTS IN SUPPORT OF PRODUCTION OF THE DDG 113 AWS SHIP SET.
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 $334.7 million.
What is the period of performance?
Start: 2009-09-23. End: 2017-04-04.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for compatibility with existing systems. Price reasonableness is usually determined through detailed cost analysis, comparison to historical data, or independent government cost estimates. Without specific documentation, it's difficult to assess the thoroughness of the price determination process in this case.
What are the key performance indicators (KPIs) and milestones for this long-term contract, and how is performance being tracked?
Key performance indicators would likely focus on timely delivery of long-lead materials, successful completion of non-recurring engineering, and adherence to work center schedules. Performance tracking would involve regular progress reports from the contractor, government inspections, and potentially earned value management (EVM) to monitor cost and schedule performance against the baseline.
How does the 'Other Communication and Energy Wire Manufacturing' PSC code relate to the AWS Ship Set, and are there alternative suppliers for these specific components?
The PSC code 'Other Communication and Energy Wire Manufacturing' likely refers to specialized cabling and wiring harnesses integral to the AWS system, which are critical for its communication and power distribution. While this code might suggest broader manufacturing capabilities, the specific nature of military-grade, integrated wiring for a complex system like AWS often limits the pool of qualified suppliers, potentially justifying a sole-source approach if Raytheon possesses unique expertise or designs.
Industry Classification
NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Other Communication and Energy Wire Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002409R5108
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 528 BOSTON POST RD, SUDBURY, MA, 01776
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $338,471,165
Exercised Options: $336,264,323
Current Obligation: $334,747,513
Actual Outlays: $8,020
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2009-09-23
Current End Date: 2017-04-04
Potential End Date: 2017-04-04 00:00:00
Last Modified: 2024-02-27
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