DoD Awards Raytheon $52.3M for Patriot GEM+ Missile Upgrades via Continuous Technology Refreshment
Contract Overview
Contract Amount: $52,339,022 ($52.3M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2011-12-23
End Date: 2015-02-28
Contract Duration: 1,163 days
Daily Burn Rate: $45.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS EFFORT IS FOR THE UPGRADE OF PATRIOT ADVANCED CAPABILITY-2 FOREBODIES AND SEEKERS TO THE PATRIOT GUIDANCE ENHANCED MISSILES PLUS (GEM+) THROUGH THE CONTINUOUS TECHNOLOGY REFRESHMENT (CTR) PROGRAM
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $52.3 million to RAYTHEON COMPANY for work described as: THIS EFFORT IS FOR THE UPGRADE OF PATRIOT ADVANCED CAPABILITY-2 FOREBODIES AND SEEKERS TO THE PATRIOT GUIDANCE ENHANCED MISSILES PLUS (GEM+) THROUGH THE CONTINUOUS TECHNOLOGY REFRESHMENT (CTR) PROGRAM Key points: 1. Contract awarded to Raytheon Company for critical Patriot missile system upgrades. 2. Focus on enhancing Patriot Advanced Capability-2 missiles to GEM+ standard. 3. Continuous Technology Refreshment (CTR) program aims to maintain system effectiveness. 4. Significant investment in air defense capabilities for the Department of the Army.
Value Assessment
Rating: good
The contract value of $52.3M for missile upgrades appears reasonable given the advanced technology involved. Benchmarking against similar defense modernization programs suggests this is within expected cost ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Raytheon. This limits price discovery and potentially increases costs compared to a competitive process.
Taxpayer Impact: Taxpayer funds are directed towards maintaining and enhancing a critical national defense asset, ensuring continued air defense capabilities.
Public Impact
Enhances national security by modernizing a key air defense missile system. Supports the readiness and effectiveness of U.S. Army air defense units. Ensures continued technological superiority of the Patriot missile system against evolving threats. Represents a significant investment in maintaining strategic defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potential cost savings.
- Contract duration is substantial, requiring ongoing oversight.
Positive Signals
- Addresses critical technology refresh for a vital defense system.
- Maintains U.S. air defense capabilities.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on guided missile manufacturing. Spending on advanced missile systems is a significant component of the DoD budget, driven by the need for technological superiority and threat deterrence.
Small Business Impact
The contract was awarded to Raytheon Company, a large defense contractor. There is no indication of small business participation in this specific award, which is common for highly specialized defense systems.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would involve monitoring contract performance, adherence to specifications, and ensuring timely delivery of upgraded missile components to maintain operational readiness.
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
- Long contract duration
- Reliance on a single contractor for critical upgrades
- Potential for cost overruns without competitive pressure
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.3 million to RAYTHEON COMPANY. THIS EFFORT IS FOR THE UPGRADE OF PATRIOT ADVANCED CAPABILITY-2 FOREBODIES AND SEEKERS TO THE PATRIOT GUIDANCE ENHANCED MISSILES PLUS (GEM+) THROUGH THE CONTINUOUS TECHNOLOGY REFRESHMENT (CTR) 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 $52.3 million.
What is the period of performance?
Start: 2011-12-23. End: 2015-02-28.
What is the projected lifespan extension or capability improvement for the Patriot GEM+ missiles resulting from this upgrade?
The upgrade to the Patriot GEM+ standard through the Continuous Technology Refreshment (CTR) program is intended to significantly extend the operational lifespan of the missiles and enhance their effectiveness against advanced threats. Specific metrics on lifespan extension are typically classified but are expected to be substantial, ensuring the system remains viable for many years.
What are the specific technological advancements incorporated in the GEM+ upgrade compared to previous versions?
The GEM+ upgrade focuses on enhancing the seeker and forebody components of the Patriot Advanced Capability-2 missiles. While specific technical details are often classified, these improvements generally aim to increase target acquisition range, improve accuracy, enhance resistance to countermeasures, and potentially expand the engagement envelope against a wider range of aerial threats.
How does the cost of this sole-source upgrade compare to potential costs if the technology had been competed?
Estimating the precise cost difference of a sole-source award versus a competed one is challenging without a competitive baseline. However, sole-source contracts typically lack the price pressure inherent in competition, potentially leading to higher costs for the government. The justification for sole-sourcing often rests on unique capabilities or urgency, where the benefits are deemed to outweigh the potential cost premium.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q11R0016
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
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: $52,339,022
Exercised Options: $52,339,022
Current Obligation: $52,339,022
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-12-23
Current End Date: 2015-02-28
Potential End Date: 2015-02-28 12:02:00
Last Modified: 2020-08-14
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)