DOD Awards Raytheon $163M for Qatar Patriot Technical Assistance and Training
Contract Overview
Contract Amount: $163,097,071 ($163.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2017-12-01
End Date: 2023-07-31
Contract Duration: 2,068 days
Daily Burn Rate: $78.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: QATAR PATRIOT TECHNICAL ASSISTANCE AND NEW EQUIPMENT TRAINING
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $163.1 million to RAYTHEON COMPANY for work described as: QATAR PATRIOT TECHNICAL ASSISTANCE AND NEW EQUIPMENT TRAINING Key points: 1. Significant contract value for specialized defense equipment and services. 2. Raytheon Company is the sole provider, indicating limited competition. 3. Potential risk associated with sole-source procurement and long contract duration. 4. Spending falls within the Guided Missile and Space Vehicle Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $163M over approximately 6 years suggests a substantial investment. Without comparable contracts for similar Patriot system support and training, a precise pricing assessment is difficult, but the duration implies significant ongoing costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the lack of competitive bidding.
Public Impact
Ensures operational readiness of critical air defense systems for a key ally. Supports advanced missile defense technology and specialized technical expertise. Long-term engagement highlights the complexity and ongoing needs of advanced weaponry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration (2068 days) may inflate costs.
- Reliance on a single contractor for critical technical assistance.
Positive Signals
- Provides essential training and technical support for advanced defense systems.
- Ensures continued operational capability of the Patriot missile system.
- Supports a key strategic partner's security.
Sector Analysis
This contract falls under the Guided Missile and Space Vehicle Manufacturing sector, which often involves high-value, specialized procurements. Spending benchmarks for similar technical assistance and training contracts are difficult to establish due to the unique nature of the Patriot system.
Small Business Impact
The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program managers ensuring delivery of services and adherence to contract terms, with potential for audits.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source procurement
- Long contract duration
- High contract value
- Reliance on single contractor for critical support
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $163.1 million to RAYTHEON COMPANY. QATAR PATRIOT TECHNICAL ASSISTANCE AND NEW EQUIPMENT TRAINING
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 $163.1 million.
What is the period of performance?
Start: 2017-12-01. End: 2023-07-31.
What is the cost per day for this contract?
The total contract value is $163,070,707.56 over 2068 days. This equates to approximately $78,854 per day. This figure represents the average daily cost and does not account for potential variations in service delivery or equipment provision throughout the contract period.
What are the risks associated with the sole-source nature of this award?
The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. It also creates a dependency on a single contractor, potentially impacting flexibility and responsiveness if issues arise with the provider.
How does this spending contribute to the effectiveness of the Patriot system?
This contract directly ensures the effectiveness of the Patriot system by providing essential technical assistance and new equipment training. This ensures that operators are proficient and that the system is maintained to a high standard, maximizing its defensive capabilities.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q17R0065
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $170,189,013
Exercised Options: $163,097,071
Current Obligation: $163,097,071
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $2,830,313
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-12-01
Current End Date: 2023-07-31
Potential End Date: 2027-03-27 12:03:00
Last Modified: 2024-03-27
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