DoD awards Raytheon $28.9M for Kuwait Patriot Missile Kits, a sole-source contract
Contract Overview
Contract Amount: $28,940,500 ($28.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2025-09-25
End Date: 2028-10-31
Contract Duration: 1,132 days
Daily Burn Rate: $25.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF KUWAIT COUNTRY UNIQUE KITS IN SUPPORT OF THE MD6 PATRIOT MISSILE SYSTEM .
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $28.9 million to RAYTHEON COMPANY for work described as: PROCUREMENT OF KUWAIT COUNTRY UNIQUE KITS IN SUPPORT OF THE MD6 PATRIOT MISSILE SYSTEM . Key points: 1. High-value award for critical defense system components. 2. Sole-source nature raises questions about price competition. 3. Long-term contract duration suggests sustained need. 4. Focus on specialized missile system support.
Value Assessment
Rating: fair
The contract value of $28.9M for specialized kits appears reasonable given the nature of advanced defense systems. However, without competitive bidding, it's difficult to definitively assess if this represents the best possible price.
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 potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for these essential missile system kits may result in a higher expenditure of taxpayer funds than if multiple vendors had vied for the contract.
Public Impact
Ensures operational readiness of Patriot missile systems in Kuwait. Supports a key U.S. ally's defense capabilities. Contributes to regional stability through advanced defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Long contract duration
Positive Signals
- Supports critical defense system
- Ensures allied security
- Long-term sustainment
Sector Analysis
This contract falls within the Defense Logistics Agency's purview for specialized equipment. Spending in this sector is often characterized by high unit costs and limited vendor pools due to technological complexity and security requirements.
Small Business Impact
There is no indication that small businesses were involved in this specific procurement, which is common for large, specialized defense contracts awarded to prime contractors like Raytheon.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Accountability would involve ensuring timely delivery, adherence to specifications, and proper financial management.
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
- Potential for price inflation
- Limited vendor options
- Dependency on a single supplier
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 $28.9 million to RAYTHEON COMPANY. PROCUREMENT OF KUWAIT COUNTRY UNIQUE KITS 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 $28.9 million.
What is the period of performance?
Start: 2025-09-25. End: 2028-10-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. The Department of Defense should have conducted a thorough market research and justification process to ensure no other sources could meet the need. Fair pricing is often assessed through cost analysis, historical pricing, or comparison to similar systems, though competition remains the most robust method for price discovery.
What are the long-term risks associated with relying on a single supplier for critical missile system components?
Long-term reliance on a sole-source supplier for critical components like these Patriot missile kits presents several risks. These include potential price escalation over time, vulnerability to supply chain disruptions if the sole provider faces issues, and a lack of innovation driven by competitive pressure. It also limits the government's leverage in negotiations and could hinder the development of alternative solutions or upgrades.
How does this procurement contribute to the overall effectiveness and readiness of the Patriot missile system for allied forces?
This procurement is crucial for maintaining the operational effectiveness and readiness of the Patriot missile system, particularly for allied forces in Kuwait. By providing unique country kits, it ensures the system is properly configured and equipped to meet specific operational requirements and threats in that region. This directly supports the system's ability to perform its defensive functions, thereby enhancing the security posture of the partner nation and U.S. interests.
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: 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: $28,940,500
Exercised Options: $28,940,500
Current Obligation: $28,940,500
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $91,488
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: 2025-09-25
Current End Date: 2028-10-31
Potential End Date: 2028-10-31 12:10:00
Last Modified: 2025-12-10
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