Raytheon Awarded $794.6M for Guided Missile Launchers, Facing Limited Competition
Contract Overview
Contract Amount: $27,193,375 ($27.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2005-04-20
End Date: 2009-09-30
Contract Duration: 1,624 days
Daily Burn Rate: $16.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200507!207544!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042105C0048 !A!N! !N! ! !20050420!20070501!794598573!794598573!001339159!N!RAYTHEON COMPANY !1151 E HERMANS RD !TUCSON !AZ!85706!77000!019!04!TUCSON !PIMA !ARIZONA !+000006100000!N!N!000006100000!1440!LAUNCHERS, GUIDED MISSILE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !549 !F/A-18 E/F !336419!E! !3! ! ! ! ! !20200930!B! ! !A! !D!U!J!1!001!N!1A!A!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!Y! ! ! !Y!1719!N00019!0001! !
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $27.2 million to RAYTHEON COMPANY for work described as: 200507!207544!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042105C0048 !A!N! !N! ! !20050420!20070501!794598573!794598573!001339159!N!RAYTHEON COMPANY !1151 E HERMANS RD !TUCSON !AZ!85706!77000!019!04!TUCSON !PIMA… Key points: 1. Significant contract value of $794.6 million for missile launchers. 2. Limited competition raises questions about price discovery and value. 3. Potential risk associated with sole-source or limited competition procurements. 4. Defense sector spending on advanced missile systems continues.
Value Assessment
Rating: questionable
The contract value of $794.6 million for guided missile launchers appears substantial. Without more data on unit costs and performance metrics, it's difficult to definitively assess value. However, the limited competition raises concerns about whether taxpayers received the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This method can sometimes lead to higher prices due to reduced market pressure and potentially less rigorous price negotiation compared to full and open competition.
Taxpayer Impact: The lack of robust competition may result in taxpayers paying a premium for these critical defense components.
Public Impact
Taxpayers may be overpaying due to limited competition on this defense contract. The acquisition of advanced missile components is crucial for national security. Raytheon Company, a major defense contractor, benefits from this award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price benchmark data
- Potential for cost overruns
Positive Signals
- Critical defense system procurement
- Award to established defense contractor
Sector Analysis
This contract falls within the defense sector, specifically focusing on electronics and communication equipment for military aircraft. Spending in this area is driven by modernization efforts and the need for advanced weaponry, with benchmarks often tied to specific weapon system costs.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this specific contract award. The prime contractor, Raytheon Company, is a large aerospace and defense firm.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and auditing mechanisms. The limited competition aspect warrants closer scrutiny to ensure fair pricing and performance.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Potential for inflated pricing
- Lack of transparency in justification for sole-source/limited competition
- Significant contract value without clear cost benchmarks
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, az, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.2 million to RAYTHEON COMPANY. 200507!207544!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042105C0048 !A!N! !N! ! !20050420!20070501!794598573!794598573!001339159!N!RAYTHEON COMPANY !1151 E HERMANS RD !TUCSON !AZ!85706!77000!019!04!TUCSON !PIMA !ARIZONA !+000006100000!N!N!000006100000!1440!LAUNCHERS, GUIDED MISSILE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !549 !F/A-18 E/F !336419!E! !3! ! ! ! ! !202
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 $27.2 million.
What is the period of performance?
Start: 2005-04-20. End: 2009-09-30.
What is the specific unit cost for these guided missile launchers, and how does it compare to similar systems procured through competitive means?
The provided data does not include specific unit cost breakdowns or comparable pricing from competitive contracts. To assess value accurately, a detailed analysis of the unit cost against industry benchmarks and prices from previously competed contracts for similar systems would be necessary. This information is crucial for determining if the $794.6 million award represents a fair market price.
What were the justifications for limiting competition on this significant defense procurement?
The justification for limiting competition is not detailed in the provided data. Typically, such decisions are based on factors like unique technical requirements, urgent needs, or the unavailability of alternative sources. A thorough review of the contracting officer's justification would be needed to understand the rationale and assess its validity.
How does the performance of these guided missile launchers meet the operational requirements of the F/A-18 E/F aircraft, and what is the long-term cost-effectiveness?
The data indicates the launchers are for the F/A-18 E/F, suggesting they meet specific operational needs. However, details on performance metrics and long-term cost-effectiveness, including maintenance and upgrade costs, are not provided. Assessing the true effectiveness and value requires evaluating the system's reliability, upgradeability, and overall contribution to mission success over its lifecycle.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1151 E HERMANS RD, TUCSON, AZ, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2005-04-20
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2010-03-13
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