DoD Awards $162.4M Firm Fixed Price Contract to Raytheon for Taiwan Patriot Program Technical Assistance
Contract Overview
Contract Amount: $162,429,976 ($162.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2011-09-29
End Date: 2018-08-31
Contract Duration: 2,528 days
Daily Burn Rate: $64.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS UNDEFINITIZED CONTRACT ACTION (UCA) IS AWARDED FOR RAYTHEON TO PROVIDE TECHNICAL ASSISTANCE AND TRAINING TO TAIWAN IN SUPPORT OF THE PATRIOT PROGRAM.
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $162.4 million to RAYTHEON COMPANY for work described as: THIS UNDEFINITIZED CONTRACT ACTION (UCA) IS AWARDED FOR RAYTHEON TO PROVIDE TECHNICAL ASSISTANCE AND TRAINING TO TAIWAN IN SUPPORT OF THE PATRIOT PROGRAM. Key points: 1. Contract awarded to Raytheon for technical assistance and training related to the Patriot missile defense system. 2. The contract is a Firm Fixed Price type, indicating a defined scope and cost. 3. Awarded by the Department of the Army, supporting foreign military sales. 4. The sector is manufacturing of guided missile and space vehicle parts and auxiliary equipment.
Value Assessment
Rating: good
The $162.4 million contract value appears reasonable for specialized technical assistance and training for a complex defense system like the Patriot. Benchmarking against similar foreign military sales support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the Patriot system and the need for direct support from the original equipment manufacturer, Raytheon. This limits price discovery through competitive bidding.
Taxpayer Impact: Taxpayer funds are utilized for foreign military sales support, which can enhance partner defense capabilities and contribute to geopolitical stability.
Public Impact
Enhances Taiwan's defense capabilities through technical assistance and training for the Patriot missile system. Supports U.S. foreign policy objectives by strengthening alliances and partnerships. Ensures the operational readiness and effectiveness of a key defense asset for an allied nation. Potential for follow-on contracts for sustainment, upgrades, and further training.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs.
- Reliance on a single contractor for critical technical support.
Positive Signals
- Supports a key U.S. ally.
- Firm Fixed Price contract provides cost certainty.
- Addresses a critical defense need for Taiwan.
Sector Analysis
This contract falls within the Defense Industrial Base sector, specifically focusing on missile systems and related support. Spending in this area is driven by national security needs and international defense cooperation.
Small Business Impact
This contract was awarded directly to Raytheon Company and does not indicate any subcontracting opportunities for small businesses within the provided data. The nature of specialized defense system support often involves prime contractors with extensive capabilities.
Oversight & Accountability
The Department of the Army is responsible for the oversight of this contract. Robust oversight is crucial to ensure the effective delivery of technical assistance and training, and to manage taxpayer funds appropriately, especially in sole-source procurements.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for cost overruns if scope is not tightly managed.
- Dependence on a single contractor for critical support.
- Geopolitical risks associated with the region.
- Ensuring effective knowledge transfer to the recipient nation.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $162.4 million to RAYTHEON COMPANY. THIS UNDEFINITIZED CONTRACT ACTION (UCA) IS AWARDED FOR RAYTHEON TO PROVIDE TECHNICAL ASSISTANCE AND TRAINING TO TAIWAN IN SUPPORT OF THE PATRIOT PROGRAM.
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $162.4 million.
What is the period of performance?
Start: 2011-09-29. End: 2018-08-31.
What is the specific breakdown of technical assistance versus training costs within this contract?
The provided data does not specify the cost breakdown between technical assistance and training. A detailed breakdown would allow for a more granular assessment of value for money and ensure that funds are allocated efficiently across both components of the contract. Further analysis would require access to the contract's detailed statement of work.
What are the key performance indicators (KPIs) for evaluating the success of the technical assistance and training provided to Taiwan?
Key performance indicators would likely include the successful transfer of technical knowledge, the proficiency of Taiwanese personnel in operating and maintaining the Patriot system, and the system's operational readiness post-training. Measuring the effectiveness of the training against predefined objectives and ensuring timely completion of technical assistance tasks are crucial for assessing contract success.
Are there any provisions for technology transfer or co-development opportunities with Taiwan within this contract?
The data indicates the contract is for technical assistance and training, not explicitly for technology transfer or co-development. While training may involve sharing technical knowledge, it does not necessarily equate to a formal transfer of intellectual property or a collaborative development effort. Such provisions would typically be outlined in separate agreements or specific contract clauses.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q11R0042
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
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: $162,429,976
Exercised Options: $162,429,976
Current Obligation: $162,429,976
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-09-29
Current End Date: 2018-08-31
Potential End Date: 2018-08-31 12:08:00
Last Modified: 2024-05-03
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