DoD awards $26.5M contract for Patriot Missile technical publications to Raytheon Company
Contract Overview
Contract Amount: $26,491,974 ($26.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2016-05-06
End Date: 2021-05-05
Contract Duration: 1,825 days
Daily Burn Rate: $14.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF REQUIREMENT TO PROVIDE TECHNICAL PUBLICATIONS FOR THE PATRIOT MISSILE SYSTEM.
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $26.5 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF REQUIREMENT TO PROVIDE TECHNICAL PUBLICATIONS FOR THE PATRIOT MISSILE SYSTEM. Key points: 1. Contract awarded to a single, established vendor for critical missile system documentation. 2. High value contract for specialized technical publications suggests significant system complexity. 3. Lack of competition raises questions about potential overpricing and limited market exploration. 4. The sector is dominated by large defense contractors with specialized capabilities.
Value Assessment
Rating: questionable
The contract value of $26.5M for technical publications over five years is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to industry benchmarks for similar documentation services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Raytheon Company. This approach limits price discovery and may result in higher costs for taxpayers as there was no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition for this significant contract could lead to suboptimal use of taxpayer funds if pricing is not rigorously justified.
Public Impact
Ensures continued availability of essential technical documentation for the Patriot missile system. Supports the operational readiness and maintenance of a key defense asset. Potential for higher costs due to the absence of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- High contract value warrants scrutiny for cost-effectiveness.
- Contract duration is lengthy (5 years).
Positive Signals
- Ensures critical technical publications are provided for a vital defense system.
- Award to an established provider likely ensures quality and expertise.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area within defense. Spending in this niche is typically concentrated among a few large, experienced contractors like Raytheon.
Small Business Impact
The contract was awarded to Raytheon Company, a large business. There is no indication of small business participation in this specific award, which is common for sole-source contracts of this nature.
Oversight & Accountability
The sole-source nature of this award suggests limited opportunities for external oversight on pricing and competition. Robust internal DoD oversight is crucial to ensure fair pricing and value for money.
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
- Sole-source award
- High contract value
- Long contract duration
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 $26.5 million to RAYTHEON COMPANY. IGF::OT::IGF REQUIREMENT TO PROVIDE TECHNICAL PUBLICATIONS FOR THE PATRIOT MISSILE SYSTEM.
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 $26.5 million.
What is the period of performance?
Start: 2016-05-06. End: 2021-05-05.
What is the justification for the sole-source award and how is cost reasonableness being ensured?
The justification for a sole-source award typically stems from unique capabilities or proprietary data held by the contractor. Ensuring cost reasonableness would involve detailed cost analysis, benchmarking against similar contracts (if available), and rigorous negotiation by the contracting officer to validate the proposed costs against industry standards and the contractor's own cost structure.
What is the potential impact of the lack of competition on the long-term sustainment costs of the Patriot system?
The lack of competition for technical publications could lead to inflated long-term sustainment costs. Without competitive pressure, Raytheon may not have incentives to optimize documentation processes or pricing. This could result in higher lifecycle costs for the Patriot system, potentially impacting the overall defense budget allocated for its maintenance and upgrades.
How does the cost of these technical publications compare to similar contracts for other major weapon systems?
Benchmarking this contract's cost against similar technical publication contracts for other major weapon systems is challenging without access to detailed pricing data and contract specifics. However, the $26.5M value over five years suggests a significant investment. A thorough review would require comparing the scope, complexity, deliverable types, and vendor overhead rates across different defense contracts.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q15R0136
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $48,239,800
Exercised Options: $26,491,974
Current Obligation: $26,491,974
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $79,650
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-05-06
Current End Date: 2021-05-05
Potential End Date: 2021-05-05 12:05:00
Last Modified: 2024-10-03
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