DoD Awards $147.8M Javelin Support Contract to Raytheon/Lockheed Martin JV, Undisclosed Competition

Contract Overview

Contract Amount: $147,808,411 ($147.8M)

Contractor: Raytheon/Lockheed Martin Javelin JV

Awarding Agency: Department of Defense

Start Date: 2019-02-28

End Date: 2025-05-31

Contract Duration: 2,284 days

Daily Burn Rate: $64.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LIFE CYCLE CONTRACTOR SUPPORT SERVICES FOR THE JAVELIN WEAPON SYSTEM.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $147.8 million to RAYTHEON/LOCKHEED MARTIN JAVELIN JV for work described as: LIFE CYCLE CONTRACTOR SUPPORT SERVICES FOR THE JAVELIN WEAPON SYSTEM. Key points: 1. Contract value: $147.8 million over 5.5 years. 2. Sole contractor: Raytheon/Lockheed Martin Javelin JV. 3. Risk: Lack of competition may lead to suboptimal pricing. 4. Sector: Defense - Guided Missile and Space Vehicle Manufacturing.

Value Assessment

Rating: questionable

The contract value of $147.8 million for contractor support services for the Javelin weapon system is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential alternatives or previous contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to the Raytheon/Lockheed Martin Javelin JV. This lack of competition limits price discovery and may result in higher costs for the government.

Taxpayer Impact: The absence of competition raises concerns about taxpayer value, as potentially lower prices achievable through a competitive process may not be realized.

Public Impact

Ensures continued operational readiness of the Javelin weapon system. Supports a critical defense asset for the U.S. Army. Potential for higher costs due to lack of competitive bidding. Limited transparency into the justification for sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Supports critical defense system
Long-term contract provides stability

Sector Analysis

This contract falls within the Defense sector, specifically guided missile and space vehicle manufacturing. Spending in this area is critical for national security, but often involves high-value, specialized contracts.

Small Business Impact

The data indicates no small business participation in this contract. This is common for highly specialized defense manufacturing and support, but represents a missed opportunity for small business engagement.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the justification is robust and that appropriate oversight is in place to monitor performance and costs.

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
No small business participation
Potential for price escalation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $147.8 million to RAYTHEON/LOCKHEED MARTIN JAVELIN JV. LIFE CYCLE CONTRACTOR SUPPORT SERVICES FOR THE JAVELIN WEAPON SYSTEM.

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 $147.8 million.

What is the period of performance?

Start: 2019-02-28. End: 2025-05-31.

What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or the inability of other firms to meet requirements. Robust oversight, including independent cost analysis and performance monitoring, is crucial to ensure fair pricing in such scenarios. The government should also explore opportunities for future competition if feasible.

What are the long-term risks associated with relying on a single contractor for essential weapon system support?

Long-term reliance on a single contractor can lead to vendor lock-in, reduced innovation, and potential price escalation over time. It also concentrates risk, as any performance issues or financial instability with the sole provider could significantly impact the weapon system's readiness and operational capability.

How does the performance and cost of this sole-source contract compare to similar, competed contracts for weapon system support?

Without competitive benchmarking, direct comparison is challenging. However, sole-source contracts often exhibit higher costs than competed ones due to the lack of price pressure. Performance metrics and cost trends should be closely monitored against internal benchmarks and industry averages for similar defense systems.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W31P4Q18R0059

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1151 E HERMANS RD BLDG 805 M\\S C6, TUCSON, AZ, 85756

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: $265,524,477

Exercised Options: $148,165,795

Current Obligation: $147,808,411

Actual Outlays: $556,171

Subaward Activity

Number of Subawards: 55

Total Subaward Amount: $10,786,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline