DoD Awards $45.3M Engineering Services Contract to Raytheon for Land Based Phalanx Weapon System

Contract Overview

Contract Amount: $45,267,143 ($45.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2022-06-28

End Date: 2024-01-31

Contract Duration: 582 days

Daily Burn Rate: $77.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FUNCTIONAL SERVICES FOR THE LAND BASED PHALANX WEAPON SYSTEM

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $45.3 million to RAYTHEON COMPANY for work described as: FUNCTIONAL SERVICES FOR THE LAND BASED PHALANX WEAPON SYSTEM Key points: 1. Contract awarded to a single, large defense contractor (Raytheon). 2. Focus on engineering services for a specific weapon system suggests specialized needs. 3. Cost-plus-fixed-fee contract type can lead to cost overruns if not managed closely. 4. No small business participation noted.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure requires careful monitoring to ensure value. Benchmarking against similar engineering services for complex weapon systems 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 potentially leads to higher costs compared to a competitive environment.

Taxpayer Impact: Taxpayer funds are committed without competitive pressure, potentially increasing the overall cost of the weapon system's lifecycle support.

Public Impact

Ensures continued support and development for a critical defense weapon system. Potential for increased costs due to lack of competition. Impacts the defense industrial base by awarding to a major contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus-fixed-fee contract type
No small business participation

Positive Signals

Supports critical defense infrastructure
Awarded to established prime contractor

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense systems. Spending in this area is often driven by national security requirements and can involve high-value, specialized contracts.

Small Business Impact

There is no indication of small business participation in this contract. This represents a missed opportunity to leverage small business capabilities and promote economic diversity within the defense supply chain.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure cost reasonableness and effective performance. The Department of Defense should document the justification for not competing this requirement.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition and price discovery.
Cost-plus-fixed-fee contract type carries inherent cost overrun risk.
No small business participation noted.
Lack of transparency regarding specific engineering tasks and deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.3 million to RAYTHEON COMPANY. FUNCTIONAL SERVICES FOR THE LAND BASED PHALANX WEAPON 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 $45.3 million.

What is the period of performance?

Start: 2022-06-28. End: 2024-01-31.

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

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure cost efficiency, the contracting officer must conduct thorough price analysis, potentially using historical data or independent government cost estimates. Robust oversight of the contractor's performance and expenditures is also crucial.

How does the cost-plus-fixed-fee structure impact the risk of cost overruns for this specific weapon system's engineering services?

Cost-plus-fixed-fee contracts shift some cost risk to the government, as the contractor is reimbursed for allowable costs plus a fixed fee. If the engineering effort is complex or unforeseen issues arise, costs can escalate beyond initial projections. Effective management involves detailed cost tracking, performance metrics, and clear scope definition to mitigate overruns.

What is the long-term strategic value of this engineering support contract for the Land Based Phalanx Weapon System?

This contract provides essential engineering services to maintain, upgrade, and potentially enhance the Land Based Phalanx Weapon System. Its strategic value lies in ensuring the system's operational readiness, adapting to evolving threats, and extending its service life. Continued engineering support is vital for the system's effectiveness and the overall defense posture.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1151 E HERMANS RD, TUCSON, AZ, 85756

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: $45,267,143

Exercised Options: $45,267,143

Current Obligation: $45,267,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q19D0015

IDV Type: IDC

Timeline