Navy awards $30M contract for MK54 LWT common parts to Raytheon Company
Contract Overview
Contract Amount: $29,977,779 ($30.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2023-12-29
End Date: 2027-11-29
Contract Duration: 1,431 days
Daily Burn Rate: $20.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION MK54 LWT COMMON PARTS
Place of Performance
Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871
Plain-Language Summary
Department of Defense obligated $30.0 million to RAYTHEON COMPANY for work described as: PRODUCTION MK54 LWT COMMON PARTS Key points: 1. Contract awarded to Raytheon Company for production of MK54 LWT common parts. 2. The contract is valued at $29,977,779 and has a duration of 1431 days. 3. Full and open competition was utilized for this procurement. 4. The sector is Defense, specifically Ammunition Manufacturing.
Value Assessment
Rating: good
The contract value of $29.98 million for ammunition manufacturing parts appears reasonable given the scope and duration. Benchmarking against similar defense component contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The use of full and open competition is expected to yield fair pricing, maximizing taxpayer value for these essential defense components.
Public Impact
Ensures continued availability of critical components for the MK54 Lightweight Torpedo. Supports defense readiness and naval capabilities. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential supply chain disruptions for specialized parts.
- Long contract duration could lead to price escalation if not managed.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost overruns.
- Experienced contractor (Raytheon Company).
Sector Analysis
This contract falls within the Defense sector, specifically ammunition manufacturing. Spending in this area is critical for national security and is often subject to rigorous oversight.
Small Business Impact
No specific indication of small business participation was provided in the data. Future analysis should explore opportunities for small business involvement in the supply chain.
Oversight & Accountability
The contract is managed by the Department of the Navy, which has established oversight mechanisms for defense procurements. Monitoring performance and adherence to contract terms is crucial.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- Potential for supply chain vulnerabilities.
- Dependence on a single contractor for production.
- Complexity of defense manufacturing.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ri, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.0 million to RAYTHEON COMPANY. PRODUCTION MK54 LWT COMMON PARTS
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 $30.0 million.
What is the period of performance?
Start: 2023-12-29. End: 2027-11-29.
What is the historical cost performance of Raytheon Company on similar defense component contracts?
Historical cost performance data for Raytheon on similar defense component contracts is essential for a comprehensive value assessment. Analyzing past contract execution, including adherence to budget and delivery schedules, can reveal trends in cost efficiency and potential risks. This information helps determine if the current contract's pricing is competitive and if Raytheon has a track record of delivering within expectations.
What are the specific risks associated with the supply chain for these MK54 LWT common parts?
Specific risks in the supply chain for MK54 LWT common parts could include reliance on single-source suppliers for critical raw materials or specialized components, geopolitical instability affecting international sourcing, or manufacturing capacity limitations. Understanding these risks allows for proactive mitigation strategies, such as identifying alternative suppliers, maintaining strategic inventory levels, or diversifying the manufacturing base to ensure uninterrupted production and delivery.
How does the performance of these common parts impact the overall effectiveness of the MK54 Lightweight Torpedo?
The effectiveness of these common parts directly influences the reliability and operational readiness of the MK54 Lightweight Torpedo. Any defects or failures in these components could lead to mission aborts, reduced system performance, or increased maintenance requirements, ultimately impacting the torpedo's ability to successfully engage targets. Ensuring high-quality, durable parts is therefore paramount to maintaining the warfighting capability of the platform.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0025319R0015
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 1847 W MAIN RD BLDG 1, PORTSMOUTH, RI, 02871
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: $29,977,779
Exercised Options: $29,977,779
Current Obligation: $29,977,779
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $6,947,431
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-12-29
Current End Date: 2027-11-29
Potential End Date: 2027-12-28 00:00:00
Last Modified: 2026-01-06
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