DoD Awards Raytheon $1.12B for Ukraine NASAMS Lot Procurement
Contract Overview
Contract Amount: $1,121,234,585 ($1.1B)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2022-11-30
End Date: 2028-06-30
Contract Duration: 2,039 days
Daily Burn Rate: $549.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UKRAINE NASAMS 6 LOT PROCUREMENT
Place of Performance
Location: VALLEY HEAD, DE KALB County, ALABAMA, 35989
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $1.12 billion to RAYTHEON COMPANY for work described as: UKRAINE NASAMS 6 LOT PROCUREMENT Key points: 1. Significant investment in critical defense support for Ukraine. 2. Sole-source award to Raytheon Company raises questions about price discovery. 3. Long-term contract (2028) suggests sustained need and potential for future spending. 4. Focus on 'All Other Support Services' lacks specific detail on the nature of services.
Value Assessment
Rating: questionable
The contract value of $1.12 billion is substantial. Without competitive bidding, it is difficult to assess if this price represents fair market value compared to similar defense support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Raytheon Company. This limits price discovery and may result in a higher cost to taxpayers.
Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to inflated prices, impacting taxpayer funds allocated for defense and international aid.
Public Impact
Direct support for Ukraine's defense capabilities. Potential for long-term U.S. military industrial complex engagement. Impact on global defense supply chains and pricing. Questions regarding the transparency and efficiency of defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
- Vague service description
Positive Signals
- Supports a key U.S. foreign policy objective
- Procurement through a known defense contractor
Sector Analysis
This contract falls under 'All Other Support Services' within the broader defense sector. Benchmarking is challenging due to the broad NAICS code and specific nature of support for NASAMS systems.
Small Business Impact
The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost-effectiveness and accountability. Transparency regarding the justification for not competing the contract is crucial.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on service details
- Long-term commitment without clear performance metrics
- Significant taxpayer investment
Tags
all-other-support-services, department-of-defense, al, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.12 billion to RAYTHEON COMPANY. UKRAINE NASAMS 6 LOT PROCUREMENT
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 $1.12 billion.
What is the period of performance?
Start: 2022-11-30. End: 2028-06-30.
What is the specific breakdown of services included in this $1.12 billion contract, and how does it align with the needs of the NASAMS system for Ukraine?
The provided data classifies the contract under NAICS code 561990, 'All Other Support Services,' which is very broad. A detailed breakdown of services is not available, making it difficult to assess their specific relevance and necessity for the NASAMS systems in Ukraine. Further clarification from the Department of Defense is needed to understand the scope and justification for these services.
What is the justification for awarding this significant contract on a sole-source basis, and what measures are in place to mitigate potential cost overruns?
The justification for a sole-source award is not provided in the data. Typically, such justifications are based on factors like urgency, unique capabilities, or lack of viable alternatives. Without this information, it's impossible to assess the validity of the sole-source decision. Standard contract clauses and oversight mechanisms should be in place to manage costs, but their effectiveness is harder to gauge without competition.
How will the effectiveness of these support services be measured, and what are the key performance indicators (KPIs) for this contract?
The provided contract data does not specify the key performance indicators (KPIs) or methods for measuring the effectiveness of the support services. For a contract of this magnitude and importance, clear KPIs related to system readiness, operational support, and timely delivery of services are essential for accountability and ensuring taxpayer value. The Department of Defense should have defined metrics for this contract.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 50 APPLE HILL DR, TEWKSBURY, MA, 01876
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: $1,121,234,585
Exercised Options: $1,121,234,585
Current Obligation: $1,121,234,585
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $3,262,844
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-11-30
Current End Date: 2028-06-30
Potential End Date: 2028-06-30 12:06:00
Last Modified: 2025-11-12
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