Army awards $43.3M contract for modern man station requirement to Raytheon Company
Contract Overview
Contract Amount: $43,277,328 ($43.3M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2013-09-23
End Date: 2016-03-31
Contract Duration: 920 days
Daily Burn Rate: $47.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: US MODERN MAN STATION REQUIREMENT
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $43.3 million to RAYTHEON COMPANY for work described as: US MODERN MAN STATION REQUIREMENT Key points: 1. The contract value is $43.3 million. 2. Raytheon Company is the sole awardee. 3. The contract is for guided missile and space vehicle manufacturing. 4. This is a definitive contract with a firm fixed price. 5. The contract duration is 920 days.
Value Assessment
Rating: fair
The contract value of $43.3 million for a 920-day duration appears reasonable given the specialized nature of guided missile and space vehicle manufacturing. However, without specific unit details or performance metrics, a precise benchmark is difficult.
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 may result in a higher cost to taxpayers than if the requirement had been bid upon by multiple vendors.
Public Impact
Taxpayers may be paying a premium due to the sole-source nature of the award. The defense sector relies on specialized contractors like Raytheon for advanced weapon systems. The contract supports the development and manufacturing of critical military hardware.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency in the procurement process.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Contract awarded to a known defense contractor.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The Department of Defense frequently procures complex weapon systems, including guided missiles and space vehicles. Spending in this sector is substantial, driven by national security needs and technological advancements. Benchmarks are highly specific to the system's complexity and capabilities.
Small Business Impact
This contract was awarded to Raytheon Company, a large defense contractor. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price paid is fair and reasonable. Further oversight is needed to understand why the requirement was not competed.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.3 million to RAYTHEON COMPANY. US MODERN MAN STATION REQUIREMENT
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 $43.3 million.
What is the period of performance?
Start: 2013-09-23. End: 2016-03-31.
What specific capabilities or technologies does this 'modern man station requirement' entail, and how do they justify a sole-source award?
The 'modern man station requirement' likely refers to advanced control or operational interfaces for guided missile and space vehicles. Justification for a sole-source award typically involves unique capabilities, proprietary technology, or essential integration with existing systems that only one contractor can provide. Without detailed documentation, the specific justification remains unclear, but it's presumed to be based on Raytheon's specialized expertise in this niche area of defense manufacturing.
What is the potential risk to program cost and schedule given the lack of competition?
The primary risk associated with a sole-source award is the potential for inflated costs due to the absence of competitive pressure. Raytheon may not have the same incentive to optimize costs as they would in a competed environment. Schedule risks are generally lower if the contractor is already familiar with the technology, but delays can still occur if unforeseen technical challenges arise, and the government has less leverage to expedite without competitive alternatives.
How effective is this contract in meeting the Army's long-term strategic goals for guided missile and space vehicle capabilities?
The effectiveness hinges on whether the 'modern man station' technology is truly cutting-edge and essential for the Army's future operational needs. If it represents a critical advancement, the contract could be highly effective in enhancing warfighter capabilities. However, without competition, there's a risk that the chosen solution might not be the most innovative or cost-effective available on the market, potentially limiting long-term strategic advantage.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $43,277,328
Exercised Options: $43,277,328
Current Obligation: $43,277,328
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-09-23
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 12:03:00
Last Modified: 2015-12-03
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