DoD awards Raytheon $139M for MK-99 PBL NRD Order #1, impacting Ship Building and Repairing
Contract Overview
Contract Amount: $139,350,476 ($139.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2024-11-28
End Date: 2028-12-18
Contract Duration: 1,481 days
Daily Burn Rate: $94.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MK-99 PBL NRD ORDER #1
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $139.4 million to RAYTHEON COMPANY for work described as: MK-99 PBL NRD ORDER #1 Key points: 1. Significant contract value of $139.35M awarded to a major defense contractor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract spans over four years, indicating a long-term commitment. 4. Focus on Ship Building and Repairing suggests critical defense infrastructure needs.
Value Assessment
Rating: questionable
The contract value of $139.35M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for ship building and repair services. Benchmarking is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there is no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a large contract like this could result in inefficient use of taxpayer funds if the price is not optimized.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract (over 4 years) means sustained potential for overpayment. Critical defense capabilities related to ship building and repair are dependent on this sole-source provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Supports critical defense infrastructure
- Firm Fixed Price contract type can offer cost certainty if priced correctly
Sector Analysis
This contract falls within the Ship Building and Repairing sector, a critical area for national defense. Spending in this sector can be substantial, and competitive procurement is vital to ensure value for money.
Small Business Impact
The data indicates this contract was awarded to Raytheon Company, a large prime contractor. There is no information provided to suggest any subcontracting opportunities for small businesses on this specific order.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable and that the government is receiving the best value. Further justification for the lack of competition should be reviewed.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of transparency in pricing
- Potential for cost overruns
- Long-term dependency on one supplier
Tags
ship-building-and-repairing, department-of-defense, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $139.4 million to RAYTHEON COMPANY. MK-99 PBL NRD ORDER #1
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 $139.4 million.
What is the period of performance?
Start: 2024-11-28. End: 2028-12-18.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or circumstances. Without this information, it's difficult to assess. Oversight bodies should scrutinize the pricing mechanisms and potentially conduct a cost analysis to ensure the $139.35M award represents fair value and that taxpayer funds are used efficiently.
What are the potential risks associated with relying on a single supplier for critical ship building and repair components over a four-year period?
The primary risk is a lack of leverage in price negotiations and potential complacency from the supplier, leading to inflated costs or reduced quality over time. Dependency also creates vulnerability if the supplier faces production issues or financial instability. The long duration exacerbates these risks.
How does the $139.35M contract value compare to industry benchmarks for similar ship building and repair services, considering the lack of competition?
Direct comparison is challenging without competitive data. However, the absence of competition for a contract of this magnitude ($139.35M) raises a red flag. A thorough cost and price analysis, potentially involving independent government estimates or benchmarking against historical data for comparable services, is crucial to validate the expenditure.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0038324R004C
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: $185,800,634
Exercised Options: $185,800,634
Current Obligation: $139,350,476
Subaward Activity
Number of Subawards: 99
Total Subaward Amount: $18,974,775
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038325DNE01
IDV Type: IDC
Timeline
Start Date: 2024-11-28
Current End Date: 2028-12-18
Potential End Date: 2029-04-01 00:00:00
Last Modified: 2025-12-17
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