DoD Awards Raytheon $77M for UAE Modernization Phase 1 Missile Parts
Contract Overview
Contract Amount: $77,027,263 ($77.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2023-12-08
End Date: 2028-11-11
Contract Duration: 1,800 days
Daily Burn Rate: $42.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UNITED ARAB EMIRATES MODERNIZATION PHASE 1
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $77.0 million to RAYTHEON COMPANY for work described as: UNITED ARAB EMIRATES MODERNIZATION PHASE 1 Key points: 1. Significant award to Raytheon Company for specialized defense components. 2. Lack of competition raises questions about price discovery and value. 3. Long-term contract (2023-2028) suggests a sustained need for these parts. 4. Focus on 'Other Guided Missile and Space Vehicle Parts' indicates a niche but critical sector.
Value Assessment
Rating: questionable
The contract's firm fixed price structure is standard, but without competition, it's difficult to assess if the $77M award represents optimal value. Benchmarking against similar sole-source contracts for specialized missile parts would be necessary.
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 compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential defense components.
Public Impact
Supports modernization efforts for a key international partner (UAE). Ensures availability of critical components for guided missile and space vehicles. Potential for follow-on phases or related contracts in the future.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Supports allied defense capabilities
- Firm fixed price contract
Sector Analysis
This contract falls within the Defense sector, specifically manufacturing parts for guided missiles and space vehicles. Spending in this niche area is driven by national security needs and international partnerships, often involving high-value, specialized components.
Small Business Impact
The data indicates this contract was awarded to Raytheon Company, a large defense contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would focus on contract performance, delivery schedules, and ensuring adherence to the firm fixed price, especially given the sole-source nature.
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
- Sole-source award limits competition
- Potential for price escalation
- Supply chain dependency on one vendor
- Lack of transparency in price negotiation
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 $77.0 million to RAYTHEON COMPANY. UNITED ARAB EMIRATES MODERNIZATION PHASE 1
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 $77.0 million.
What is the period of performance?
Start: 2023-12-08. End: 2028-11-11.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent requirements where only one source can meet the need. Agencies must still conduct market research and negotiate pricing to ensure it is fair and reasonable, often comparing to historical data or independent cost estimates. Without competition, the burden of proof for fair pricing rests heavily on the contracting officer's diligence.
What are the specific risks associated with relying on a single supplier for these critical missile parts?
Risks include potential supply chain disruptions if the sole supplier faces production issues, price escalation due to lack of competitive pressure, and limited innovation. Dependence on one source can also create strategic vulnerabilities if geopolitical factors impact the supplier's ability to deliver or if the technology becomes obsolete without alternative development.
How does this contract contribute to the overall modernization goals of the UAE, and what is the long-term strategic value?
This contract directly supports Phase 1 of the UAE's modernization program by providing essential components for their defense systems. The long-term strategic value lies in strengthening a key regional partner's defense capabilities, which can contribute to regional stability and align with U.S. foreign policy objectives. It also solidifies a relationship with a major defense contractor for future needs.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
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: 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: $77,027,263
Exercised Options: $77,027,263
Current Obligation: $77,027,263
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $484,825
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-12-08
Current End Date: 2028-11-11
Potential End Date: 2028-11-11 12:11:00
Last Modified: 2025-07-16
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