DoD Awards Raytheon $20.9M for Submarine Missile Guidance Systems, Full & Open Competition
Contract Overview
Contract Amount: $20,912,012 ($20.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2018-09-14
End Date: 2023-09-30
Contract Duration: 1,842 days
Daily Burn Rate: $11.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CONTRACT IS FOR PROCUREMENT OF ENGINEERING&LOGISTICS SERVICES FOR THE TUBE-LAUNCHED OPTICALLY-TRACKED WIRELESS-GUIDED 2-SUBSYSTEM.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $20.9 million to RAYTHEON COMPANY for work described as: CONTRACT IS FOR PROCUREMENT OF ENGINEERING&LOGISTICS SERVICES FOR THE TUBE-LAUNCHED OPTICALLY-TRACKED WIRELESS-GUIDED 2-SUBSYSTEM. Key points: 1. Contract focuses on critical submarine missile guidance technology. 2. Raytheon Company is the sole awardee. 3. Full and open competition was conducted after excluding sources. 4. Spending is within the defense sector, specifically missile systems.
Value Assessment
Rating: good
The contract value of $20.9M for engineering and logistics services appears reasonable for specialized defense systems. Benchmarking against similar complex defense procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. This method aims to ensure fair pricing and access to the best available solutions.
Taxpayer Impact: The $20.9M expenditure supports national defense capabilities, with competition aiming to optimize taxpayer value.
Public Impact
Enhances U.S. submarine defense capabilities. Supports advanced missile guidance technology development. Ensures readiness of critical naval assets. Contributes to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex R&D.
- Reliance on a single contractor for critical components.
Positive Signals
- Awarded through competitive bidding.
- Supports advanced technological development.
- Long-term contract duration allows for stability.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced engineering and logistics for missile systems. Spending in this area is driven by national security requirements and technological advancements.
Small Business Impact
The data indicates that small businesses were not directly involved in this prime contract award. Further analysis would be needed to determine if small businesses are participating as subcontractors.
Oversight & Accountability
The Department of Defense oversees this contract, ensuring adherence to terms and performance standards. Accountability is maintained through contract milestones and reporting requirements.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-plus-fixed-fee structure
- Potential for cost overruns
- Sole awardee for critical technology
- Long contract duration
Tags
engineering-services, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.9 million to RAYTHEON COMPANY. CONTRACT IS FOR PROCUREMENT OF ENGINEERING&LOGISTICS SERVICES FOR THE TUBE-LAUNCHED OPTICALLY-TRACKED WIRELESS-GUIDED 2-SUBSYSTEM.
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 $20.9 million.
What is the period of performance?
Start: 2018-09-14. End: 2023-09-30.
What is the specific technological advantage gained by procuring these services?
The procurement aims to enhance the capabilities of the Tube-Launched Optically-Tracked Wire-Guided 2-Subsystem, likely involving upgrades or maintenance for advanced missile guidance. This ensures the U.S. maintains a technological edge in submarine warfare, crucial for national security and deterrence.
What are the primary risks associated with this contract's cost-plus-fixed-fee structure?
Cost-plus-fixed-fee contracts carry risks of potential cost overruns if the contractor's actual costs exceed estimates, as the government absorbs these. While the fixed fee provides contractor incentive for efficiency, careful monitoring is needed to prevent scope creep and manage expenses effectively.
How does this contract contribute to the overall effectiveness of U.S. naval defense?
By ensuring the engineering and logistics support for a critical submarine missile subsystem, this contract directly contributes to the operational readiness and effectiveness of U.S. naval assets. It guarantees that these advanced systems are maintained, updated, and deployable, bolstering national defense capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W31P4Q16R0020
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 2200 E IMPERIAL HWY, EL SEGUNDO, CA, 90245
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: $136,349,413
Exercised Options: $20,912,012
Current Obligation: $20,912,012
Actual Outlays: $346,699
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $6,104,860
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-09-14
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2025-09-24
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