DoD Awards Raytheon $36.3M for POLAND RIU LITE and Spares, Ending 2029
Contract Overview
Contract Amount: $36,337,152 ($36.3M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2023-10-18
End Date: 2029-01-12
Contract Duration: 1,913 days
Daily Burn Rate: $19.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: POLAND RIU LITE AND SPARES
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $36.3 million to RAYTHEON COMPANY for work described as: POLAND RIU LITE AND SPARES Key points: 1. Significant award to a major defense contractor. 2. Long-term contract duration suggests critical need. 3. Lack of competition raises cost-efficiency questions. 4. Focus on specialized missile parts indicates niche market.
Value Assessment
Rating: fair
The contract value of $36.3M over nearly 6 years is difficult to assess without specific unit cost data. However, the 'Other Guided Missile and Space Vehicle Parts' category can be high-cost due to specialized manufacturing and R&D.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited or sole-source procurement. This significantly restricts price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this $36.3M contract means taxpayers may not be receiving the best possible price for these specialized missile parts.
Public Impact
Ensures continued availability of critical missile components for the Department of Defense. Supports a major defense contractor's operations and workforce. Long-term commitment provides stability for supply chain management. Potential for cost overruns due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Lack of unit cost data
Positive Signals
- Ensures supply of critical parts
- Supports established contractor
Sector Analysis
This contract falls within the Defense sector, specifically manufacturing parts for guided missiles and space vehicles. Spending in this niche area is often characterized by high R&D costs, specialized manufacturing, and limited supplier bases, leading to higher unit prices.
Small Business Impact
The contract is awarded to Raytheon Company, a large prime contractor. There is no indication that small businesses are involved as subcontractors in this specific award, which is common for highly specialized defense components.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the government is not overpaying. A review of the justification for limited competition would be prudent to confirm necessity and explore future competitive opportunities.
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 competition may lead to inflated prices.
- Long contract duration limits flexibility and potential cost savings.
- Absence of unit cost data hinders cost-effectiveness analysis.
- Potential for cost overruns under Fixed Price Incentive contract.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.3 million to RAYTHEON COMPANY. POLAND RIU LITE AND SPARES
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 $36.3 million.
What is the period of performance?
Start: 2023-10-18. End: 2029-01-12.
What is the specific justification for this contract being 'NOT AVAILABLE FOR COMPETITION'?
The justification for 'NOT AVAILABLE FOR COMPETITION' typically stems from factors such as unique technical requirements, proprietary technology, or the existence of only one responsible source. For specialized defense components like missile parts, this could be due to specific design requirements, existing integration with current systems, or the manufacturer holding necessary patents or certifications.
What is the projected cost per unit for the POLAND RIU LITE and spares?
The provided data does not include a per-unit cost breakdown. Given the contract type (Fixed Price Incentive) and the nature of specialized defense parts, the final cost per unit could fluctuate based on performance and cost targets. Without specific unit pricing, it's challenging to benchmark against industry standards or identify potential cost savings.
How does the long contract duration (1913 days) impact overall program effectiveness and cost?
A long contract duration can ensure supply chain stability and predictability for critical components, contributing to program effectiveness. However, it also ties the government to a specific supplier and pricing structure for an extended period. This can limit flexibility to adopt newer technologies or benefit from market price reductions, potentially increasing long-term costs if not managed carefully.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 350 LOWELL ST, ANDOVER, MA, 01810
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: $36,337,152
Exercised Options: $36,337,152
Current Obligation: $36,337,152
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $693,176
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-10-18
Current End Date: 2029-01-12
Potential End Date: 2029-01-12 12:01:00
Last Modified: 2025-09-30
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