Raytheon Missile Systems Awarded $79.5M for Guided Missiles in 1997
Contract Overview
Contract Amount: $46,075,679 ($46.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 1997-01-03
End Date: 2008-12-31
Contract Duration: 4,380 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 199704!1700!1847!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002495C5400 !A!*!P00014 !19970103!19991031!794598573!147354161!005356613!N!15090!RAYTHEON MISSILE SYSTEMS COMPA!1151 E HERMANS RD !TUCSON !AZ!85706!77000!019!04!TUCSON !PIMA !ARIZONA !0001!+000001010892!N!N!000000000000!1410!GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !2CNA!RIM 7-H-2 NATO SEA SPARROW !3761!3!*!*!C!B!A!*!A !N!R!2!002!N!1A!Z!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $46.1 million to RAYTHEON COMPANY for work described as: 199704!1700!1847!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002495C5400 !A!*!P00014 !19970103!19991031!794598573!147354161!005356613!N!15090!RAYTHEON MISSILE SYSTEMS COMPA!1151 E HERMANS RD !TUCSON !AZ!85706!77000!019!04!TUCSON !PIMA … Key points: 1. The contract for guided missiles was awarded to Raytheon Missile Systems. 2. The total value of the contract is $79,459,857.30. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The sector is Defense, specifically for guided missiles.
Value Assessment
Rating: good
The contract's value of $79.5 million for guided missiles appears reasonable given the duration and the nature of defense procurement. Benchmarking against similar missile system contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the guided missiles procured.
Public Impact
Procurement of guided missiles supports national defense capabilities. The contract involves a significant financial commitment from the Department of Defense. Raytheon Missile Systems, a major defense contractor, is the recipient of this award. The contract duration spans over a decade, indicating a long-term need for these systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to cost overruns or obsolescence.
- Reliance on a single contractor for critical defense components.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense infrastructure.
Sector Analysis
This contract falls within the Defense sector, specifically for the procurement of guided missiles. Spending in this area is critical for national security and often involves complex, high-value systems.
Small Business Impact
The data does not provide specific information on small business participation in this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was managed by the Naval Sea Systems Command and the Defense Contract Management Agency, indicating established oversight mechanisms. However, the long duration warrants continuous monitoring for performance and cost.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (over 11 years).
- Potential for cost overruns in Cost Plus Award Fee contracts.
- Specific missile system details are limited.
- No explicit mention of small business subcontracting goals.
Tags
department-of-defense, az, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.1 million to RAYTHEON COMPANY. 199704!1700!1847!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002495C5400 !A!*!P00014 !19970103!19991031!794598573!147354161!005356613!N!15090!RAYTHEON MISSILE SYSTEMS COMPA!1151 E HERMANS RD !TUCSON !AZ!85706!77000!019!04!TUCSON !PIMA !ARIZONA !0001!+000001010892!N!N!000000000000!1410!GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !2CNA!RIM 7-H-2 NATO SEA SPARROW !3761!3!*!*!C!B!A!*!A !N!R!2!0
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 $46.1 million.
What is the period of performance?
Start: 1997-01-03. End: 2008-12-31.
What was the specific type of guided missile procured and its intended use?
The data indicates the product service code is 1410 for Guided Missiles and the specific item is 'RIM 7-H-2 NATO SEA SPARROW'. This missile is a surface-to-air missile system used for air defense, particularly against anti-ship threats, and is a key component of naval warfare capabilities.
What were the key performance metrics and evaluation criteria used during the competition?
The provided data does not detail the specific performance metrics or evaluation criteria used in the competition. Typically, such procurements would consider factors like technical capability, reliability, cost-effectiveness, delivery schedule, and past performance of the offerors.
How did the final contract price compare to the initial estimates or bids received?
The data shows a final award amount of $79,459,857.30. Without access to the initial estimates or the bids submitted by competing companies, it is impossible to determine how the final price compares. However, the 'Cost Plus Award Fee' contract type suggests incentives for performance and cost control.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 1151 E HERMANS RD, TUCSON, AZ, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1997-01-03
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2011-02-16
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)