DoD's Raytheon Company Awarded $25.2M for Guided Missile Manufacturing in FY09
Contract Overview
Contract Amount: $25,228,715 ($25.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2009-03-24
End Date: 2014-06-30
Contract Duration: 1,924 days
Daily Burn Rate: $13.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FY09 ENGR TECH SVCS
Place of Performance
Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871
Plain-Language Summary
Department of Defense obligated $25.2 million to RAYTHEON COMPANY for work described as: FY09 ENGR TECH SVCS Key points: 1. Significant contract value of $25.2M awarded to a major defense contractor. 2. Limited competition due to the specialized nature of guided missile manufacturing. 3. Potential risk associated with cost-plus contracts requiring robust oversight. 4. Spending concentrated in the Defense sector, specifically missile manufacturing.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without specific benchmarks for similar guided missile manufacturing contracts, it's difficult to definitively assess pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited or sole-source award. This lack of competition may have impacted price discovery and potentially led to higher costs for the government.
Taxpayer Impact: The $25.2M awarded represents taxpayer funds allocated to defense procurement. The lack of competition raises concerns about whether the best possible price was achieved.
Public Impact
Taxpayers fund critical defense capabilities, including guided missile production. The contract supports advanced manufacturing and technological development in the defense industry. Award to a large corporation highlights the role of major defense contractors in national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Limited competition
- Lack of specific unit cost data
Positive Signals
- Supports critical defense manufacturing
- Award to established contractor
Sector Analysis
This contract falls within the Defense sector, specifically focusing on guided missile and space vehicle manufacturing. Spending in this area is driven by national security needs and technological advancements, often involving large, specialized contracts.
Small Business Impact
The data indicates this contract was awarded to Raytheon Company, a large corporation. There is no indication of small business participation in this specific award, suggesting opportunities may be limited for smaller entities in this specialized defense manufacturing area.
Oversight & Accountability
The contract type (Cost Plus Fixed Fee) necessitates strong government oversight to ensure costs are reasonable and the fixed fee is justified. Monitoring performance and expenditures is crucial for accountability.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Limited competition may result in suboptimal pricing.
- Lack of transparency on specific performance metrics.
- Long contract duration (1924 days) increases oversight burden.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ri, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.2 million to RAYTHEON COMPANY. FY09 ENGR TECH SVCS
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 $25.2 million.
What is the period of performance?
Start: 2009-03-24. End: 2014-06-30.
What is the typical profit margin for Cost Plus Fixed Fee contracts in guided missile manufacturing, and how does Raytheon's fee compare?
Profit margins for Cost Plus Fixed Fee contracts in specialized defense manufacturing can vary significantly based on contract complexity, risk, and market conditions. Without specific data on Raytheon's fee for this contract and industry-wide benchmarks, a direct comparison is not possible. However, agencies typically aim for fees that reflect the contractor's performance and the level of risk assumed.
What were the specific reasons for the limited competition on this guided missile manufacturing contract?
Limited competition often arises in defense contracts due to the highly specialized nature of the technology, proprietary manufacturing processes, or the need for specific expertise possessed by only a few contractors. For guided missile manufacturing, unique technical requirements, existing infrastructure, or prior development investments by a specific company could necessitate a limited or sole-source award.
How does the $25.2M contract value compare to other similar guided missile manufacturing contracts awarded by the Department of Defense around FY09?
Comparing this $25.2M contract requires access to historical spending data for similar guided missile manufacturing efforts. The value could be considered moderate to large depending on the specific type and quantity of missiles. Factors like technological sophistication, production volume, and contract duration would influence its relative size within the DoD's overall missile procurement budget.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002408R5405
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 1847 W MAIN RD, PORTSMOUTH, RI, 02871
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,962,040
Exercised Options: $25,516,002
Current Obligation: $25,228,715
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-03-24
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2024-09-17
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