DoD Awards Raytheon $154M Letter Contract for IAMD Plug and Fight A-Kit Design
Contract Overview
Contract Amount: $154,126,988 ($154.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2012-02-14
End Date: 2016-04-30
Contract Duration: 1,537 days
Daily Burn Rate: $100.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: LETTER CONTRACT FOR THE INTEGRATED AIR&MISSILE DEFENSE (IAMD) PLUG AND FIGHT A-KIT DESIGN IMPLEMENTATION PHASE
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $154.1 million to RAYTHEON COMPANY for work described as: LETTER CONTRACT FOR THE INTEGRATED AIR&MISSILE DEFENSE (IAMD) PLUG AND FIGHT A-KIT DESIGN IMPLEMENTATION PHASE Key points: 1. Significant investment in Integrated Air & Missile Defense (IAMD) technology. 2. Sole-source award to Raytheon, limiting competitive pricing benefits. 3. Potential for cost overruns due to Cost Plus Incentive Fee structure. 4. Focus on design implementation suggests a critical phase for program success.
Value Assessment
Rating: questionable
The $154 million award is for a design implementation phase. Without comparable contracts for similar IAMD A-Kit designs, assessing value is difficult. The Cost Plus Incentive Fee (CPIF) structure can lead to higher-than-expected costs if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Raytheon. This lack of competition limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for this critical defense system design.
Public Impact
Enhances national security by advancing missile defense capabilities. Supports advanced technology development within the defense sector. Potential impact on future defense procurement strategies for IAMD systems. Job creation within Raytheon and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Critical defense technology
- Potential for innovation
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a specialized area of defense spending. Benchmarks for similar design implementation phases are scarce due to the proprietary nature of defense technology.
Small Business Impact
No information is provided regarding small business participation in this contract. As a sole-source award to a large prime contractor, opportunities for small businesses may be limited unless subcontracted.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The CPIF contract type requires careful monitoring to ensure cost control and contractor performance align with incentives.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPIF structure.
- Lack of competitive bidding limits price scrutiny.
- Dependency on a single contractor (Raytheon).
- Uncertainty regarding future program costs beyond the design phase.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, al, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $154.1 million to RAYTHEON COMPANY. LETTER CONTRACT FOR THE INTEGRATED AIR&MISSILE DEFENSE (IAMD) PLUG AND FIGHT A-KIT DESIGN IMPLEMENTATION PHASE
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 $154.1 million.
What is the period of performance?
Start: 2012-02-14. End: 2016-04-30.
What is the projected total cost of the IAMD Plug and Fight A-Kit program beyond this design phase?
The provided data only covers the design implementation phase, totaling $154 million. Information regarding the full program lifecycle cost, including production and sustainment, is not available. Further analysis would require access to program baseline documents and future funding projections to understand the total taxpayer investment.
What are the specific performance metrics and incentive targets tied to the Cost Plus Incentive Fee structure?
The specific performance metrics and incentive targets for this Cost Plus Incentive Fee (CPIF) contract are not detailed in the provided data. CPIF contracts typically incentivize contractors to meet or exceed cost, schedule, and performance goals. Understanding these specific targets is crucial for assessing the government's ability to control costs and ensure desired outcomes.
How will the success of this design implementation phase be measured to ensure effective use of funds?
The effectiveness of this design implementation phase will likely be measured against defined technical specifications, milestones, and deliverables outlined in the contract. The DCMA's oversight role is critical in verifying that Raytheon meets these requirements. Success hinges on the successful completion of the design, its validation, and its readiness for subsequent production phases.
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: W31P4Q11R0021
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 401 JAN DAVIS DR NW, HUNTSVILLE, AL, 35806
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: $154,446,007
Exercised Options: $154,126,988
Current Obligation: $154,126,988
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-02-14
Current End Date: 2016-04-30
Potential End Date: 2016-04-30 00:00:00
Last Modified: 2024-06-18
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