DoD Awards Raytheon $32.6M for A-Kits Engineering and Hardware Support
Contract Overview
Contract Amount: $32,600,916 ($32.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2019-03-01
End Date: 2020-02-29
Contract Duration: 365 days
Daily Burn Rate: $89.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES AND HARDWARE IN SUPPORT OF PLUG AND FLIGHT A-KITS. THIS TASK ORDER 0004 WITH A 12 MONTHS PERIOD OF PERFORMANCE
Place of Performance
Location: MADISON, MADISON County, ALABAMA, 35758
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $32.6 million to RAYTHEON COMPANY for work described as: ENGINEERING SERVICES AND HARDWARE IN SUPPORT OF PLUG AND FLIGHT A-KITS. THIS TASK ORDER 0004 WITH A 12 MONTHS PERIOD OF PERFORMANCE Key points: 1. Significant contract value for specialized engineering and hardware. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on guided missile and space vehicle manufacturing indicates a critical defense sector. 4. The contract's cost-plus-fixed-fee structure warrants close monitoring for cost efficiency.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering services for defense hardware is difficult without more detailed cost breakdowns.
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 may result in higher costs compared to a competitive environment.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, potentially leading to a less optimal price for the services and hardware provided.
Public Impact
Supports critical defense capabilities related to guided missiles and space vehicles. Ensures continued operational readiness for specific military platforms. Investment in specialized engineering and hardware development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Limited transparency on cost drivers
Positive Signals
- Supports critical defense systems
- Specific hardware and engineering expertise
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area of defense spending. Benchmarks are difficult to establish due to the unique nature of the A-Kits and associated engineering services.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or considered.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Army to ensure fair pricing and effective performance. Auditing of costs will be crucial.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Cost-plus contract type carries inherent cost escalation risk.
- Lack of detailed cost breakdown hinders value assessment.
- Potential for contractor to maximize profit through cost incurrence.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.6 million to RAYTHEON COMPANY. ENGINEERING SERVICES AND HARDWARE IN SUPPORT OF PLUG AND FLIGHT A-KITS. THIS TASK ORDER 0004 WITH A 12 MONTHS PERIOD OF PERFORMANCE
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 $32.6 million.
What is the period of performance?
Start: 2019-03-01. End: 2020-02-29.
What was the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear if other Raytheon contracts or similar offerings from competitors were evaluated. The absence of competition limits the government's ability to secure the best possible price and terms.
How will the cost-plus-fixed-fee structure be managed to ensure cost efficiency and prevent overruns?
Managing a cost-plus-fixed-fee contract requires stringent oversight, detailed cost tracking, and regular audits. The agency must closely monitor all incurred costs, ensure they are reasonable and allocable, and verify that the fixed fee remains appropriate. Performance metrics and clear deliverables are essential to ensure value for money.
What is the long-term strategic value of this specific A-Kit engineering and hardware support to the Department of Defense?
The long-term strategic value lies in maintaining and enhancing the capabilities of critical defense platforms, likely involving guided missiles or space vehicles. This support ensures operational readiness and potentially incorporates technological advancements. Understanding the specific A-Kits involved would clarify their role in broader defense strategies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 401 JAN DAVIS DR NW, HUNTSVILLE, AL, 35806
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: $36,089,916
Exercised Options: $36,089,916
Current Obligation: $32,600,916
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q16D0020
IDV Type: IDC
Timeline
Start Date: 2019-03-01
Current End Date: 2020-02-29
Potential End Date: 2020-02-29 12:02:00
Last Modified: 2020-01-16
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)