DoD Awards Raytheon $91.4M for Target Acquisition System Logistics Support
Contract Overview
Contract Amount: $91,391,351 ($91.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2019-04-01
End Date: 2022-09-30
Contract Duration: 1,278 days
Daily Burn Rate: $71.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACT IS FOR THE PROCUREMENT OF CONTRACTOR LOGISTICS SUPPORT FOR THE TUBE-LAUNCHED OPTICALLY-TRACKED WIRELESS-GUIDED IMPROVED TARGET ACQUISITION SYSTEM.
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $91.4 million to RAYTHEON COMPANY for work described as: CONTRACT IS FOR THE PROCUREMENT OF CONTRACTOR LOGISTICS SUPPORT FOR THE TUBE-LAUNCHED OPTICALLY-TRACKED WIRELESS-GUIDED IMPROVED TARGET ACQUISITION SYSTEM. Key points: 1. Significant contract value for specialized defense equipment. 2. Sole-source award raises questions about competition and price. 3. Long contract duration (1278 days) may indicate complex support needs. 4. Focus on 'Other Guided Missile and Space Vehicle Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $91.4M over approximately 3.5 years for specialized logistics support appears high given the lack of competitive bidding. Benchmarking is difficult without comparable sole-source contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for this significant contract may result in taxpayers paying more than necessary for logistics support.
Public Impact
Ensures operational readiness of critical defense systems. Supports advanced targeting capabilities for the U.S. Army. Potential for cost overruns due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Essential defense system support
- Long-term contract provides stability
Sector Analysis
This contract falls under the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector, which is a niche area within defense. Spending benchmarks for specialized logistics support in this specific sub-sector are not readily available.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award, as the prime contractor is Raytheon Company and the 'sb' field is false.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure fair pricing and effective delivery of logistics support. Accountability for performance and cost management is crucial.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for price gouging
- Limited transparency in cost structure
- Risk of contractor complacency
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.4 million to RAYTHEON COMPANY. CONTRACT IS FOR THE PROCUREMENT OF CONTRACTOR LOGISTICS SUPPORT FOR THE TUBE-LAUNCHED OPTICALLY-TRACKED WIRELESS-GUIDED IMPROVED TARGET ACQUISITION 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 $91.4 million.
What is the period of performance?
Start: 2019-04-01. End: 2022-09-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific documentation, it's difficult to ascertain the precise reason, but it likely relates to the specialized nature of the target acquisition system and its associated logistics.
What are the risks associated with a sole-source contract for logistics support?
Sole-source contracts carry inherent risks, including the potential for inflated pricing due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in cost build-up. This can lead to suboptimal value for taxpayer dollars and potential overspending.
How will the effectiveness of the contractor's logistics support be measured?
Effectiveness is typically measured through performance metrics outlined in the contract, such as on-time delivery of parts, system uptime, response times for technical support, and overall mission capability sustainment. Regular performance reviews and audits by the Department of the Army are essential to ensure the contractor meets these standards.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q17R0105
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75071
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: $559,520,669
Exercised Options: $181,808,263
Current Obligation: $91,391,351
Actual Outlays: $7,885,071
Subaward Activity
Number of Subawards: 47
Total Subaward Amount: $13,103,404
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-04-01
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2025-11-24
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