Raytheon Awarded $17.8M for MK30 Mobile Target System by Naval Sea Systems Command

Contract Overview

Contract Amount: $17,871,748 ($17.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 1996-12-06

End Date: 2011-05-26

Contract Duration: 5,284 days

Daily Burn Rate: $3.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 199703!1700!1511!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002496C6106 !A!*!P00001 !19961206!20010930!001463090!001463090!001339159!N!94404!RAYTHEON COMPANY INC !1847 W MAIN RD !PORTSMOUTH !RI!02871!57700!005!44!PORTSMOUTH !NEWPORT !RHODE ISLD!0001!+000002819863!N!N!000000000000!AD94!RDTE/OTHER DEFENSE-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION !2FTB!MK30 MOBILE TARGET !3812!3!*!*!C!B!A!*!D !N!R!1!001!N!1A!A!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to RAYTHEON COMPANY for work described as: 199703!1700!1511!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002496C6106 !A!*!P00001 !19961206!20010930!001463090!001463090!001339159!N!94404!RAYTHEON COMPANY INC !1847 W MAIN RD !PORTSMOUTH !RI!02871!57700!005!44!PORTSMOUTH !NEWPOR… Key points: 1. The contract, valued at $17.8 million, is for the MK30 Mobile Target System. 2. Awarded to Raytheon Company, this contract falls under the Defense sector. 3. The contract was not competed, raising potential concerns about price discovery. 4. The primary sector for this spending is Defense, specifically electronics and communication systems.

Value Assessment

Rating: fair

The contract's total value is $17.8 million. Without comparable contracts or detailed cost breakdowns, a precise pricing assessment is difficult. However, the duration of the contract (over 14 years) suggests a potentially high per-unit cost if the quantity is low.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices as there is less pressure from market competition to drive down costs.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the MK30 Mobile Target System.

Public Impact

The MK30 Mobile Target System is a defense asset, impacting military readiness and technological advancement. Raytheon Company, a major defense contractor, benefits from this significant award. The long contract duration suggests a sustained need for this technology within the Navy. Spending in the defense sector, particularly on specialized systems, reflects national security priorities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
Cost Plus Award Fee structure

Positive Signals

Award to established defense contractor
Supports defense technology development

Sector Analysis

This contract falls within the Defense sector, specifically for electronics and communication systems. Defense spending benchmarks vary widely, but contracts for specialized target systems can be substantial, reflecting the high cost of advanced military technology.

Small Business Impact

There is no explicit indication of small business participation in this contract data. Large defense contracts often involve prime contractors like Raytheon, with subcontracting opportunities potentially flowing down to smaller businesses, but this is not detailed here.

Oversight & Accountability

The contract was awarded by the Naval Sea Systems Command, part of the Department of Defense. Oversight would typically involve contract management by the Defense Contract Management Agency (DCMA) to ensure performance and adherence to terms.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Cost Plus Award Fee contract type
Long contract duration
Lack of detailed performance metrics
No small business set-aside indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to RAYTHEON COMPANY. 199703!1700!1511!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002496C6106 !A!*!P00001 !19961206!20010930!001463090!001463090!001339159!N!94404!RAYTHEON COMPANY INC !1847 W MAIN RD !PORTSMOUTH !RI!02871!57700!005!44!PORTSMOUTH !NEWPORT !RHODE ISLD!0001!+000002819863!N!N!000000000000!AD94!RDTE/OTHER DEFENSE-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION !2FTB!MK30 MOBILE TARGET !3812!3!*!*!C!B!A!*!D !N!R!1!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 $17.9 million.

What is the period of performance?

Start: 1996-12-06. End: 2011-05-26.

What is the specific quantity of MK30 Mobile Target Systems being procured under this contract, and how does this influence the per-unit cost assessment?

The provided data does not specify the quantity of MK30 Mobile Target Systems. The total award value is $17.8 million over a duration of 5284 days (approximately 14.5 years). Without the quantity, calculating a meaningful per-unit cost is impossible. A low quantity would make the per-unit cost very high, while a high quantity would suggest a more reasonable unit price.

Given the 'Cost Plus Award Fee' (CPAF) structure and lack of competition, what are the primary risks to cost control and potential for overspending?

The CPAF structure inherently carries a risk of cost overruns, as the contractor is reimbursed for allowable costs plus an award fee based on performance. When combined with a sole-source award, the lack of competitive pressure significantly increases the risk of inflated costs and reduced incentive for the contractor to achieve efficiencies. Oversight is crucial to mitigate these risks.

How effective is the MK30 Mobile Target System in meeting its intended military objectives, and has its performance justified the investment?

The provided data focuses on the financial and contractual aspects of the award and does not contain information regarding the effectiveness or performance of the MK30 Mobile Target System. Assessing its effectiveness would require access to operational reports, user feedback, and independent evaluations of its capabilities in fulfilling its role.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 1847 W MAIN RD, PORTSMOUTH, RI, 01

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline