DoD Awards $37.3M for Patriot Missile Parts, Sole-Sourced to Raytheon
Contract Overview
Contract Amount: $37,318,313 ($37.3M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2025-09-23
End Date: 2029-08-31
Contract Duration: 1,438 days
Daily Burn Rate: $26.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UCA TO PROCURE PARTS IN SUPPORT OF THE MD6 PATRIOT MISSILE SYSTEM.
Place of Performance
Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731
Plain-Language Summary
Department of Defense obligated $37.3 million to RAYTHEON COMPANY for work described as: UCA TO PROCURE PARTS IN SUPPORT OF THE MD6 PATRIOT MISSILE SYSTEM. Key points: 1. Significant contract value for critical defense system. 2. Sole-source award raises questions about price competition. 3. Long-term contract duration (2029) impacts future flexibility. 4. Focus on specialized missile system components.
Value Assessment
Rating: questionable
The contract value of $37.3M for Patriot missile parts appears high given the sole-source nature. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to potential alternatives or previous procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Raytheon Company. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for essential missile system parts.
Public Impact
Ensures continued operational readiness of the Patriot missile defense system. Supports a key component of national security infrastructure. Potential for cost overruns due to sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Supports critical defense system
- Ensures operational readiness
Sector Analysis
This contract falls within the Defense sector, specifically for the manufacturing of guidance and navigation systems for aeronautical and nautical applications. Spending in this area is critical for national security but often involves high costs due to specialized technology and limited suppliers.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this large sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense and the Defense Logistics Agency to ensure cost reasonableness and prevent potential waste, fraud, and abuse.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated costs due to lack of bidding.
- Long contract duration may lead to obsolescence.
- Limited transparency on cost justification.
- No indication of small business subcontracting.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.3 million to RAYTHEON COMPANY. UCA TO PROCURE PARTS IN SUPPORT OF THE MD6 PATRIOT MISSILE SYSTEM.
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 $37.3 million.
What is the period of performance?
Start: 2025-09-23. End: 2029-08-31.
What is the historical cost trend for these specific Patriot missile parts, and how does the current award compare?
Without access to historical pricing data for these specific components, a direct comparison is challenging. However, sole-source contracts often lack the downward price pressure that competition provides. It is crucial for the agency to have internal benchmarks or historical data to validate the reasonableness of this award against past expenditures or similar sole-source procurements.
Are there any viable alternative suppliers or technologies that could be considered for future procurements to introduce competition?
Investigating alternative suppliers or technologies for future procurements is essential to mitigate the risks associated with sole-source awards. The agency should conduct market research to identify potential competitors or alternative solutions that could offer better value and foster competition, thereby reducing long-term costs and enhancing supply chain resilience.
How will the long contract duration (ending in 2029) impact the government's ability to adapt to technological advancements or changing threat landscapes?
A contract extending to 2029 presents a risk of obsolescence if technology or threats evolve rapidly. The government should consider incorporating clauses for review, modification, or termination for convenience to allow flexibility. This ensures the Patriot system remains effective and adaptable without being locked into potentially outdated specifications or pricing.
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: ELECTRICAL/ELECTRONIC EQPT COMPNTS
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: 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: $37,318,313
Exercised Options: $37,318,313
Current Obligation: $37,318,313
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $768,046
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRBL115D0017
IDV Type: IDC
Timeline
Start Date: 2025-09-23
Current End Date: 2029-08-31
Potential End Date: 2029-08-31 00:00:00
Last Modified: 2025-11-18
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