DoD Awards Raytheon $190M for Coyote Interceptors, Lacking Competition

Contract Overview

Contract Amount: $190,250,000 ($190.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-09-26

End Date: 2027-09-30

Contract Duration: 1,099 days

Daily Burn Rate: $173.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COYOTE INTERCEPTORS

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $190.3 million to RAYTHEON COMPANY for work described as: COYOTE INTERCEPTORS Key points: 1. Significant investment in advanced defense technology. 2. Sole-source award to Raytheon raises competition concerns. 3. Long-term contract duration suggests sustained need. 4. Focus on search and navigation systems highlights technological advancement.

Value Assessment

Rating: questionable

The contract value of $190.25 million for Coyote Interceptors is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or potential alternatives.

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 lack of competition limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had bid.

Taxpayer Impact: The absence of competition for this significant contract could lead to inflated costs, directly impacting taxpayer funds.

Public Impact

Enhances military capabilities with advanced interceptor technology. Supports a major defense contractor, potentially impacting jobs. Raises questions about the efficiency of defense procurement processes. Long-term contract may signal future reliance on this specific system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Cost-plus contract type

Positive Signals

Acquisition of critical defense technology
Long-term contract provides stability

Sector Analysis

The Department of Defense frequently procures advanced systems in the IT and Defense sectors. Spending benchmarks for similar interceptor systems are difficult to ascertain without competitive data, but $190 million is a significant sum.

Small Business Impact

The contract was awarded to Raytheon Company, a large prime contractor. There is no indication in the provided data whether small businesses will be involved as subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received the best possible value. Further oversight is needed to confirm the necessity of a non-competitive procurement.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for inflated costs
Limited transparency in pricing
Sole-source award may not represent best value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $190.3 million to RAYTHEON COMPANY. COYOTE INTERCEPTORS

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 $190.3 million.

What is the period of performance?

Start: 2024-09-26. End: 2027-09-30.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without further details, it's unclear if these conditions apply to the Coyote Interceptors, necessitating a review of the procurement rationale to ensure taxpayer funds are used efficiently.

What are the specific performance metrics and expected outcomes for these Coyote Interceptors?

The provided data does not detail the specific performance metrics or expected outcomes for the Coyote Interceptors. Understanding these parameters is crucial for evaluating the effectiveness of the investment and ensuring the system meets the Department of the Army's operational requirements.

How does the cost-plus-fixed-fee structure impact overall cost control and potential overruns?

A cost-plus-fixed-fee (CPFF) contract allows the contractor to recover costs plus a fixed fee. While it incentivizes completion, it can lead to cost overruns if not closely monitored, as the contractor's profit is fixed regardless of final costs. Robust oversight is essential to manage this risk.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 22260 PACIFIC BLVD, STERLING, VA, 20166

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: $196,719,957

Exercised Options: $190,250,000

Current Obligation: $190,250,000

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $3,120,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline