Raytheon Company awarded $15.2M contract for Patriot Missile Support Center services by Defense Logistics Agency

Contract Overview

Contract Amount: $15,196,270 ($15.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2028-02-01

Contract Duration: 858 days

Daily Burn Rate: $17.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROCUREMENT OF PATRIOT MISSILE SUPPORT CENTER (PMSC) SERVICES.

Place of Performance

Location: SEMINOLE, PINELLAS County, FLORIDA, 33777

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $15.2 million to RAYTHEON COMPANY for work described as: PROCUREMENT OF PATRIOT MISSILE SUPPORT CENTER (PMSC) SERVICES. Key points: 1. Contract awarded to a single, established provider of missile defense systems. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is over 3 years, indicating a need for sustained support. 4. The geographic location of performance is Florida. 5. This contract falls under the Guided Missile and Space Vehicle Manufacturing NAICS code.

Value Assessment

Rating: fair

The contract value of $15.2 million for Patriot Missile Support Center services appears to be within a reasonable range for specialized defense support. However, without specific benchmarks for similar support contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as the government pays costs plus a fixed fee, potentially leading to higher total costs if the contractor's expenses exceed initial estimates. Benchmarking against other CPFF contracts for similar support functions would be necessary for a more definitive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might have emerged from a competitive bidding process.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. The government may have paid a premium due to the absence of alternative offers.

Public Impact

The primary beneficiaries are the Department of Defense, specifically units relying on the Patriot missile system for defense. The services delivered will ensure the operational readiness and maintenance of the Patriot missile support infrastructure. The contract's performance is located in Florida, potentially impacting the local workforce and economy in that region. This contract supports the sustainment of critical national defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type carries a risk of cost escalation.
Sole-source award limits price discovery and potential cost savings.
Long contract duration may not adapt to evolving technological needs without modification.

Positive Signals

Award to Raytheon Company, a known expert in missile defense systems, suggests a high likelihood of technical capability.
Contract ensures continued support for a critical defense asset.
Defined performance period provides a clear scope for service delivery.

Sector Analysis

This contract falls within the defense sector, specifically focusing on the sustainment and support of guided missile systems. The market for such specialized defense services is dominated by a few large, established aerospace and defense contractors. Spending in this area is driven by national security requirements and geopolitical factors. Comparable spending benchmarks would likely involve other sustainment contracts for complex weapon systems, which often represent significant long-term investments.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the specialized nature of Patriot missile support, it is unlikely that small businesses would be primary awardees for the prime contract. However, Raytheon Company may engage small businesses as subcontractors for specific components or services, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) and potentially the Department of Defense's Inspector General. The CPFF contract type necessitates robust financial oversight to monitor costs and ensure the fixed fee is justified. Transparency will depend on DLA's reporting practices and any public disclosures related to contract performance and expenditures.

Related Government Programs

Patriot Missile System Procurement
Missile Defense Agency Programs
Defense Logistics Agency Support Contracts
Aerospace and Defense Manufacturing

Risk Flags

Sole-source award may lead to higher costs.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Lack of competition limits potential for innovative solutions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.2 million to RAYTHEON COMPANY. PROCUREMENT OF PATRIOT MISSILE SUPPORT CENTER (PMSC) SERVICES.

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $15.2 million.

What is the period of performance?

Start: 2025-09-26. End: 2028-02-01.

What is Raytheon Company's track record with similar Patriot missile support contracts?

Raytheon Company, now RTX, has a long-standing and extensive history as the prime contractor for the Patriot missile defense system. They are responsible for the design, development, manufacturing, and sustainment of the system. Their track record with Patriot support contracts is characterized by deep technical expertise and a continuous role in ensuring the system's operational readiness. This includes providing logistics, maintenance, training, and upgrades. While specific details of past contract values and performance metrics are often proprietary, their consistent role as the sole provider for critical sustainment phases indicates a strong, albeit non-competitive, performance history in meeting the government's requirements for this specific weapon system.

How does the $15.2 million contract value compare to historical spending on Patriot missile support?

The $15.2 million contract value represents a specific, defined period of support for the Patriot Missile Support Center (PMSC). Historical spending on Patriot missile support is significantly higher when considering the entire lifecycle of the system, including procurement, upgrades, and sustainment over decades. This $15.2 million figure is likely for a discrete service period, possibly annual or multi-year, and should be viewed in that context. To provide a comprehensive comparison, one would need to aggregate annual spending on PMSC services over previous years and compare the average cost per year or per unit of service. Without that broader data, it's difficult to definitively state if this specific award is higher or lower than historical averages, but it reflects ongoing investment in maintaining this critical defense asset.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for missile support?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for missile support, such as the PMSC services, is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. If the contractor's actual costs exceed initial estimates, the government bears the burden of these increased expenses, while the contractor's profit remains fixed. This can incentivize less cost-consciousness on the part of the contractor. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are crucial to mitigate these risks and ensure the government receives good value. The government must diligently audit costs to ensure they are reasonable and allocable to the contract.

What is the expected program effectiveness based on this contract award?

Based on this contract award, the expected program effectiveness for the Patriot Missile Support Center (PMSC) is high in terms of ensuring continued operational capability. Awarding the contract to Raytheon Company, the original equipment manufacturer and long-term sustainment provider, leverages their deep expertise and established infrastructure. This continuity is crucial for maintaining the complex Patriot missile system. The contract's duration (over 3 years) suggests a commitment to sustained support, which is vital for readiness. While the sole-source nature limits competitive innovation, it ensures a predictable and reliable support framework, contributing to the overall effectiveness of the U.S. missile defense posture.

Are there any historical spending patterns that suggest this contract is an outlier?

Without access to detailed historical spending data specifically for the Patriot Missile Support Center (PMSC) services, it is difficult to determine if this $15.2 million award is an outlier. However, general trends in defense spending indicate a consistent and significant investment in missile defense systems like the Patriot. Factors such as inflation, system upgrades, changes in threat assessments, and the overall number of deployed systems can influence annual spending. If this contract represents a standard sustainment package for a defined period, it is likely in line with previous similar investments. An outlier would be suggested if the cost per year or per unit of service significantly deviates from established trends without a clear justification, such as a major system upgrade or expansion.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 350 LOWELL ST, ANDOVER, MA, 01810

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: $15,196,270

Exercised Options: $15,196,270

Current Obligation: $15,196,270

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline