DoD's $37.5M MK-99 PBL POP 3 Contract Awarded to Raytheon Company
Contract Overview
Contract Amount: $37,457,457 ($37.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-11-28
End Date: 2022-11-27
Contract Duration: 364 days
Daily Burn Rate: $102.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MK-99 PBL POP 3
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $37.5 million to RAYTHEON COMPANY for work described as: MK-99 PBL POP 3 Key points: 1. Significant contract value of $37.5 million for the MK-99 PBL POP 3. 2. Awarded to a single, large defense contractor, Raytheon Company. 3. Potential risks associated with sole-source or limited competition awards. 4. Spending falls within the Defense sector, specifically Ship Building and Repairing.
Value Assessment
Rating: questionable
The contract value of $37.5 million is substantial. Without comparable contracts or detailed cost breakdowns, assessing its pricing against similar procurements is difficult. The lack of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure to offer the best price.
Taxpayer Impact: The lack of competition in this $37.5 million award may result in taxpayers paying more than necessary for the goods or services provided.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on Raytheon Company for critical defense systems. The duration of the contract (364 days) suggests ongoing operational needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Potential for Overpricing
- Sole-Source Award
Positive Signals
- Awarded to established contractor
- Clear contract duration
Sector Analysis
This contract falls under the Defense sector, specifically Ship Building and Repairing. Spending in this area is critical for national security, but often involves complex systems and specialized contractors, which can influence pricing and competition dynamics.
Small Business Impact
The award to Raytheon Company, a large prime contractor, does not indicate any direct benefit or subcontracting opportunities for small businesses in this specific award. Further investigation would be needed to determine if small businesses are involved further down the supply chain.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight is crucial to ensure the terms of this sole-source award are met and that the pricing remains fair, especially given the lack of competition.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for inflated costs due to lack of competitive pressure.
- Lack of transparency regarding specific cost breakdowns and per-unit pricing.
- Dependence on a single contractor may pose supply chain risks.
Tags
ship-building-and-repairing, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.5 million to RAYTHEON COMPANY. MK-99 PBL POP 3
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 $37.5 million.
What is the period of performance?
Start: 2021-11-28. End: 2022-11-27.
What specific goods or services does the MK-99 PBL POP 3 entail, and why was a sole-source award deemed necessary?
The MK-99 PBL POP 3 likely refers to a specific product or service within a larger program, possibly related to ship building and repairing, given the NAICS code. A sole-source award is typically justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent needs. Further documentation from the agency would clarify the exact nature and justification.
What is the benchmarked per-unit cost for the MK-99 PBL POP 3, and how does it compare to industry standards?
Without specific details on the 'unit' and its associated cost within the $37.5 million total, a direct per-unit cost benchmark is not possible from the provided data. The 'br' field shows 102905, which might be a benchmark or budget figure, but its context is unclear. A comprehensive analysis would require itemized cost data and comparison with similar procurements.
What measures are in place to ensure the effectiveness and value for money of this sole-source contract?
Given the sole-source nature, effectiveness and value rely heavily on robust contract management and oversight by the Defense Contract Management Agency. This includes performance monitoring, ensuring deliverables meet specifications, and potentially conducting post-award audits to validate costs. The agency should have established procedures to mitigate risks associated with non-competitive awards and ensure taxpayer funds are used efficiently.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752
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: $37,457,457
Exercised Options: $37,457,457
Current Obligation: $37,457,457
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $6,955,676
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038320DW801
IDV Type: IDC
Timeline
Start Date: 2021-11-28
Current End Date: 2022-11-27
Potential End Date: 2022-11-27 00:00:00
Last Modified: 2023-06-09
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