Raytheon Awarded $139M Missile Control Subsystem Contract by DoD
Contract Overview
Contract Amount: $13,903,050 ($13.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2009-05-29
End Date: 2012-01-31
Contract Duration: 977 days
Daily Burn Rate: $14.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MISSILE CONTROL SUBSYSTEM
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75071
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $13.9 million to RAYTHEON COMPANY for work described as: MISSILE CONTROL SUBSYSTEM Key points: 1. Significant contract value of $139 million for a critical defense component. 2. Raytheon Company, a major defense contractor, is the sole awardee. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans over 2.5 years, indicating a substantial project duration.
Value Assessment
Rating: good
The contract value of $139 million for a missile control subsystem appears reasonable given the complexity and specialized nature of such systems. Benchmarking against similar advanced defense electronics contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and fosters price discovery. This method suggests that the pricing is likely competitive, though specific bid details are not provided.
Taxpayer Impact: Taxpayer funds are being used for a critical defense procurement. The competitive nature of the award aims to ensure value for money, but the ultimate impact depends on the efficiency of the acquisition process and the final price.
Public Impact
Enhances national defense capabilities through advanced missile control technology. Supports high-tech manufacturing jobs within the defense industrial base. Ensures operational readiness of military assets requiring precise guidance systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex defense systems.
- Reliance on a single contractor for a critical subsystem.
Positive Signals
- Awarded through full and open competition.
- Contract aims to improve defense technology.
Sector Analysis
This contract falls within the Defense sector, specifically related to advanced weapon systems manufacturing. Spending in this area is driven by national security priorities and technological advancements in military hardware. Benchmarks for similar complex subsystem contracts can vary widely based on technological sophistication and scale.
Small Business Impact
The data indicates the award went to Raytheon Company, a large prime contractor. There is no explicit information on small business participation in this specific award, which is common for large, complex defense systems where prime contractors often manage subcontracting.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and performance, though specific oversight details are not provided.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for cost growth in complex defense contracts.
- Long-term sustainment and upgrade costs are not detailed.
- Dependence on a single supplier for critical technology.
- Geopolitical factors could impact supply chain or demand.
Tags
search-detection-navigation-guidance-aer, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.9 million to RAYTHEON COMPANY. MISSILE CONTROL SUBSYSTEM
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 $13.9 million.
What is the period of performance?
Start: 2009-05-29. End: 2012-01-31.
What is the specific technological advancement this missile control subsystem provides compared to previous systems?
The provided data does not detail the specific technological advancements. However, missile control subsystems are critical for guidance, targeting, and operational effectiveness. Advancements typically focus on improved accuracy, reduced collateral damage, enhanced countermeasures resistance, and integration with broader network-centric warfare systems.
How does the $139 million cost compare to the expected lifecycle cost of the missile systems utilizing this subsystem?
The provided data does not include lifecycle cost information. The $139 million represents the acquisition cost for the subsystem itself. A comprehensive analysis would require understanding the total cost of ownership, including maintenance, upgrades, and operational expenses over the lifespan of the associated missile systems.
What were the key performance metrics evaluated during the full and open competition that led to this award?
The data does not specify the key performance metrics used in the evaluation. Typically, for defense contracts involving complex systems like missile control subsystems, metrics would include technical capability, past performance, schedule adherence, management approach, and price. The 'best value' determination would weigh these factors.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 03
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,903,050
Exercised Options: $13,903,050
Current Obligation: $13,903,050
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-05-29
Current End Date: 2012-01-31
Potential End Date: 2012-01-31 00:00:00
Last Modified: 2010-09-09
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