DoD Awards Raytheon $123M for MK 165 MOD 0 Launcher Frames, Delivery Order Under Existing Contract

Contract Overview

Contract Amount: $12,326,964 ($12.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2022-03-31

End Date: 2025-05-31

Contract Duration: 1,157 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MK 165 MOD 0 LAUNCHER FRAMES

Place of Performance

Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to RAYTHEON COMPANY for work described as: MK 165 MOD 0 LAUNCHER FRAMES Key points: 1. Significant contract value of $123.3 million for specialized defense components. 2. Sole-source award to Raytheon Company, limiting competitive pricing opportunities. 3. Potential risk associated with single-vendor reliance for critical missile parts. 4. Spending falls within the 'Other Guided Missile and Space Vehicle Parts' manufacturing sector.

Value Assessment

Rating: fair

The contract value of $123.3 million for launcher frames is substantial. Without comparable contract data or a competitive bidding process, it is difficult to definitively assess pricing against similar procurements. The 'NOT AVAILABLE FOR COMPETITION' status suggests limited transparency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This approach can lead to higher prices as there is no market pressure to offer the most cost-effective solution. The lack of competition limits price discovery.

Taxpayer Impact: Taxpayer funds are being used for a sole-source award, potentially at a non-competitive price. The absence of competition means taxpayers may not be receiving the best possible value for these critical defense components.

Public Impact

Ensures continued production of essential components for guided missile systems. Supports a major defense contractor, potentially impacting jobs and regional economy. Highlights reliance on established suppliers for specialized military hardware. Raises questions about the long-term strategy for sourcing such critical parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of transparency in pricing assessment.
Potential for overpayment due to non-competitive award.

Positive Signals

Award supports critical defense capabilities.
Contract with established, experienced manufacturer.
Firm Fixed Price contract provides some cost certainty.

Sector Analysis

This contract falls under the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area is often characterized by high technical requirements and limited supplier bases, which can influence contract types and pricing.

Small Business Impact

The awardee is Raytheon Company, a large prime contractor. There is no indication in the provided data that small businesses were involved as subcontractors or prime contractors in this specific delivery order. Further investigation would be needed to determine any small business participation.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is overseeing this contract. The sole-source nature of the award warrants close scrutiny to ensure fair pricing and value for taxpayer money, despite the lack of formal competition.

Related Government Programs

Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Lack of competitive pricing data
Potential for cost overruns
Reliance on a single supplier for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to RAYTHEON COMPANY. MK 165 MOD 0 LAUNCHER FRAMES

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2022-03-31. End: 2025-05-31.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's unclear if alternatives were explored. Agencies must demonstrate that competition is not feasible or not in the government's best interest to justify such awards, ensuring transparency and accountability in the procurement process.

How does the unit cost of these launcher frames compare to historical data or industry benchmarks, given the sole-source nature?

Assessing the unit cost is challenging without a competitive bidding process. Sole-source contracts often lack the price pressure inherent in open competition, potentially leading to higher unit costs. A thorough review of historical pricing for similar components, internal cost analyses by the agency, or independent government cost estimates would be necessary to benchmark this award effectively.

What is the long-term strategy for procuring these launcher frames to ensure future competition and cost-effectiveness?

The long-term strategy for procuring these launcher frames is crucial for ensuring future competition and cost-effectiveness. Agencies should explore options like developing second-source capabilities, investing in technology to broaden the supplier base, or re-evaluating requirements to allow for more competitive solicitations. Proactive planning can mitigate risks associated with sole-source reliance and optimize taxpayer investment.

Industry Classification

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

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $12,326,964

Exercised Options: $12,326,964

Current Obligation: $12,326,964

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,336,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002421G5421

IDV Type: BOA

Timeline