DoD awards $75.6M letter contract to Raytheon for Griffin munitions support
Contract Overview
Contract Amount: $75,656,506 ($75.7M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2010-05-10
End Date: 2016-02-29
Contract Duration: 2,121 days
Daily Burn Rate: $35.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LETTER CONTRACT FOR GRIFFIN MUNITIONS AND ENGINEERING SERVICES SUPPORT FOR USMC.
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $75.7 million to RAYTHEON COMPANY for work described as: LETTER CONTRACT FOR GRIFFIN MUNITIONS AND ENGINEERING SERVICES SUPPORT FOR USMC. Key points: 1. Significant contract value for specialized defense services. 2. Raytheon is a major defense contractor, indicating potential market concentration. 3. Risk of limited competition due to specialized nature of services. 4. Spending falls within the Defense sector, specifically guided missile manufacturing.
Value Assessment
Rating: fair
The contract type is Firm Fixed Price, which is generally good for cost control. However, without more data on the specific services and deliverables, a direct pricing comparison is difficult. The award amount is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' suggesting a sole-source or limited competition award. This method can lead to higher prices as competitive pressure is absent. The specific justification for not competing is not provided.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these munitions and engineering services.
Public Impact
Ensures continued support for USMC Griffin munitions, critical for operational readiness. Potential for cost overruns due to non-competitive award. Impacts the defense industrial base, specifically in guided missile manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost escalation
- Sole-source award
Positive Signals
- Firm Fixed Price contract type
- Supports critical USMC operations
Sector Analysis
This contract falls within the Defense sector, specifically the Guided Missile and Space Vehicle Manufacturing industry. Spending in this area is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.
Small Business Impact
The data indicates this contract was awarded to Raytheon Company, a large defense contractor. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. However, the 'NOT COMPETED' status warrants closer scrutiny regarding the justification and pricing.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for price inflation
- Limited transparency in award process
- Reliance on a single large contractor
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.7 million to RAYTHEON COMPANY. LETTER CONTRACT FOR GRIFFIN MUNITIONS AND ENGINEERING SERVICES SUPPORT FOR USMC.
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $75.7 million.
What is the period of performance?
Start: 2010-05-10. End: 2016-02-29.
What was the specific justification for not competing this contract, and were alternative solutions considered?
The justification for not competing this contract is not detailed in the provided data. Typically, non-competitive awards are made when only one source can fulfill the requirement due to unique capabilities, urgent needs, or specific program requirements. A thorough review would involve examining the contracting officer's justification and approval (J&A) to ensure alternatives were explored and that the chosen source was indeed the only viable option.
How does the per-unit cost of the Griffin munitions under this contract compare to similar systems or previous awards?
Without specific per-unit cost data or benchmarks for comparable munitions, it is impossible to definitively assess value. The total award amount of $75.6 million covers engineering services and munitions over a significant period. A detailed cost analysis, including comparison with historical data for the Griffin system and similar missile platforms, would be necessary to determine if the pricing is reasonable and reflects fair market value.
What measures are in place to ensure effective oversight and accountability for this non-competed contract?
Oversight is primarily handled by the Defense Contract Management Agency (DCMA). Given the non-competed nature, enhanced oversight is crucial. This should include rigorous monitoring of performance metrics, detailed cost tracking, verification of deliverables, and regular reviews of the contractor's performance against the contract terms to mitigate risks associated with limited competition and ensure taxpayer funds are used efficiently.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q10R0098
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 1151 E HERMANS RD, TUCSON, AZ, 85756
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: $91,325,343
Exercised Options: $75,656,506
Current Obligation: $75,656,506
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-05-10
Current End Date: 2016-02-29
Potential End Date: 2016-02-29 00:00:00
Last Modified: 2020-12-04
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