Army & Marines Award $1.4B for Javelin Missiles to Raytheon/Lockheed Martin JV

Contract Overview

Contract Amount: $1,415,941,923 ($1.4B)

Contractor: Raytheon/Lockheed Martin Javelin JV

Awarding Agency: Department of Defense

Start Date: 2013-05-17

End Date: 2022-12-31

Contract Duration: 3,515 days

Daily Burn Rate: $402.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UCA AWARD FY13 BLOCK 1 TACTICAL ROUNDS: US ARMY AND USMC

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $1.42 billion to RAYTHEON/LOCKHEED MARTIN JAVELIN JV for work described as: UCA AWARD FY13 BLOCK 1 TACTICAL ROUNDS: US ARMY AND USMC Key points: 1. Significant investment in critical defense capabilities. 2. Dominated by two major defense contractors, limiting broader competition. 3. Long contract duration (2013-2022) may obscure current market pricing. 4. Focus on missile manufacturing places it within a specialized defense sector.

Value Assessment

Rating: fair

The total award value of $1.4 billion over nine years is substantial. Without specific per-unit pricing or comparison to similar missile systems, it's difficult to definitively assess value. The firm fixed-price contract type offers some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded to a joint venture of two primary contractors, indicating a limited competition scenario. This structure likely influences price discovery, potentially leading to higher costs than a fully open competition.

Taxpayer Impact: Taxpayer funds are directed towards essential defense procurement. The limited competition structure raises questions about whether the most cost-effective solution was secured.

Public Impact

Ensures continued supply of vital anti-tank missile systems for U.S. Army and Marine Corps. Supports advanced guided missile technology development and production. Potential for long-term sustainment and upgrade contracts related to this system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Long contract duration
Lack of detailed cost breakdown

Positive Signals

Essential defense procurement
Firm fixed-price contract

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized and capital-intensive area of defense industrial base. Spending benchmarks are difficult to establish due to the unique nature of such systems.

Small Business Impact

The contract was awarded to a joint venture of large, established defense contractors (Raytheon and Lockheed Martin). There is no indication of significant subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The contract spans a significant period (2013-2022), suggesting ongoing oversight was necessary. However, the 'NOT COMPETED' status warrants scrutiny regarding the justification for avoiding a competitive process.

Related Government Programs

Guided Missile and Space Vehicle Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for cost overruns due to limited bidding
Long contract duration may not reflect current market value
Limited transparency on specific cost components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $1.42 billion to RAYTHEON/LOCKHEED MARTIN JAVELIN JV. UCA AWARD FY13 BLOCK 1 TACTICAL ROUNDS: US ARMY AND USMC

Who is the contractor on this award?

The obligated recipient is RAYTHEON/LOCKHEED MARTIN JAVELIN JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $1.42 billion.

What is the period of performance?

Start: 2013-05-17. End: 2022-12-31.

What was the specific justification for not competing this large missile contract?

The provided data indicates the contract was 'NOT COMPETED'. Typically, this requires a formal justification, such as a sole-source requirement due to unique capabilities or urgent need. Without that justification, it's impossible to assess if taxpayer funds were used efficiently or if a competitive process could have yielded better pricing or innovation.

How does the per-unit cost of these Javelin rounds compare to similar systems or previous procurements?

The data does not provide per-unit cost information or benchmarks for comparison. The total award value of $1.4 billion over nine years for an unspecified number of rounds makes a direct cost-effectiveness assessment challenging. Further analysis would require access to detailed pricing data and market comparisons.

What is the long-term strategic value and potential obsolescence risk of the Javelin system procured under this contract?

The Javelin is a critical anti-tank weapon system, providing significant tactical value. However, defense technology evolves rapidly. The contract's end date in 2022 suggests that the procured rounds are intended for near-to-medium term use. Assessing obsolescence risk requires understanding the system's technological roadmap and the emergence of next-generation threats and countermeasures.

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: W31P4Q12R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 1151 E HERMANS RD BLDG 80, TUCSON, AZ, 85706

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,323,880,771

Exercised Options: $2,394,730,733

Current Obligation: $1,415,941,923

Actual Outlays: $5,928,926

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $142,367,613

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline