Raytheon Company awarded $21.8M for Land-Based Phalanx Weapon System support, with a 375-day performance period

Contract Overview

Contract Amount: $21,801,826 ($21.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-06-27

End Date: 2026-07-07

Contract Duration: 375 days

Daily Burn Rate: $58.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UNDEFINITIZED CONTRACT ORDER (UCO), W31P4Q25F0157 ISSUED PURSUANT TO UNDEFINITIZED CONTRACT ACTION (UCA), W31P4Q-25-D- 0024, FIELD SUPPORT REPRESENTATIVE (FSR) AND PROGRAM EXECUTION SUPPORT FOR THE LAND-BASED PHALANX WEAPON SYSTEM (LPWS).

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to RAYTHEON COMPANY for work described as: UNDEFINITIZED CONTRACT ORDER (UCO), W31P4Q25F0157 ISSUED PURSUANT TO UNDEFINITIZED CONTRACT ACTION (UCA), W31P4Q-25-D- 0024, FIELD SUPPORT REPRESENTATIVE (FSR) AND PROGRAM EXECUTION SUPPORT FOR THE LAND-BASED PHALANX WEAPON SYSTEM (LPWS). Key points: 1. Contract provides essential field support and program execution for a critical defense system. 2. The award is a delivery order against an existing undefinitized contract action, indicating ongoing program needs. 3. Pricing appears to be firm-fixed-price, which shifts performance risk to the contractor. 4. The contract duration is over a year, suggesting a sustained need for these specialized services. 5. Support is focused on the Land-Based Phalanx Weapon System, a key component of air defense. 6. The contract is not competed, raising questions about potential cost efficiencies and market price discovery.

Value Assessment

Rating: fair

The contract value of $21.8 million for 375 days of support for the Land-Based Phalanx Weapon System is difficult to benchmark without more detailed service descriptions and comparable contract data. As a delivery order against an existing contract, it suggests a pre-negotiated framework, but the specific pricing for this order needs further scrutiny. The firm-fixed-price structure is standard for this type of support, but the absence of competition limits the ability to assess if the price represents the best value achievable in a competitive market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was issued as a delivery order against an existing undefinitized contract action (UCA) and was not competed. This suggests that the requirement may have been awarded under specific circumstances that precluded full and open competition, potentially due to the specialized nature of the support or a sole-source justification for the original contract action. The lack of competition means that multiple bidders were not evaluated, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. This sole-source award limits the government's ability to leverage market forces to drive down costs for essential defense support services.

Public Impact

The U.S. Army benefits from continued operational readiness and sustainment of the Land-Based Phalanx Weapon System. Field support representatives and program execution support ensure the weapon system's functionality and effectiveness. The services delivered are critical for national defense and air security. The contract's geographic impact is primarily within Arizona, where the contractor is located, but the system's deployment could be global. This contract supports specialized technical roles, potentially impacting a skilled workforce in engineering and defense support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs than a competed contract.
Award is against an undefinitized contract action, which carries inherent risks until fully defined.
Reliance on a single contractor for critical system support could pose supply chain or responsiveness risks.
Specific performance metrics and deliverables for this order are not detailed, making performance assessment challenging.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Award is against an existing contract vehicle, suggesting a streamlined process for an established need.
Contract supports a critical defense system, ensuring operational readiness.
Contractor is a known entity with experience in defense systems.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting defense weapon systems. The market for defense engineering and support services is substantial, often characterized by long-term relationships between government agencies and specialized contractors. Benchmarking this contract's value is challenging without detailed service scope, but it represents a portion of the broader U.S. defense spending on sustainment and readiness for complex weapon platforms. The Land-Based Phalanx Weapon System is a key component of naval and land-based air defense.

Small Business Impact

This contract does not appear to have a small business set-aside component (SS=false, SB=false). As a sole-source award to a large prime contractor, there is a potential for subcontracting opportunities for small businesses. However, the extent to which small businesses will be utilized is not specified in the provided data. Further analysis would be needed to determine if subcontracting plans exist and if they adequately support the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. As a delivery order against an existing contract, oversight may leverage existing mechanisms established for the parent UCA. Transparency is limited by the sole-source nature of the award and the lack of detailed public information regarding the specific services and pricing justification. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Phalanx Weapon System Sustainment
Naval Air Defense Systems
Army Air and Missile Defense Programs
Defense Engineering Services Contracts
Undefinitized Contract Actions (UCAs)

Risk Flags

Sole-source award
Award against Undefinitized Contract Action (UCA)
Lack of detailed public performance metrics
Potential for cost growth due to UCA status

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to RAYTHEON COMPANY. UNDEFINITIZED CONTRACT ORDER (UCO), W31P4Q25F0157 ISSUED PURSUANT TO UNDEFINITIZED CONTRACT ACTION (UCA), W31P4Q-25-D- 0024, FIELD SUPPORT REPRESENTATIVE (FSR) AND PROGRAM EXECUTION SUPPORT FOR THE LAND-BASED PHALANX WEAPON SYSTEM (LPWS).

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 $21.8 million.

What is the period of performance?

Start: 2025-06-27. End: 2026-07-07.

What is the track record of Raytheon Company in providing Field Support Representative (FSR) and Program Execution Support for defense weapon systems, particularly the Land-Based Phalanx Weapon System

Raytheon Company, now part of RTX Corporation, has a long-standing history of providing complex defense systems and support services to the U.S. military. Their involvement with the Phalanx Weapon System, a close-in weapon system primarily used for air defense, dates back decades. Raytheon has consistently been a primary contractor for the development, production, sustainment, and upgrade of various iterations of the Phalanx system. Their expertise in this area includes providing technical support, maintenance, training, and program management crucial for ensuring the operational readiness of such critical defense assets. The issuance of this delivery order against an existing contract structure suggests a continued reliance on Raytheon's established capabilities and institutional knowledge regarding the LPWS.

How does the $21.8 million contract value compare to historical spending on similar support services for the Land-Based Phalanx Weapon System?

Direct comparison of this $21.8 million delivery order to historical spending on similar support services for the Land-Based Phalanx Weapon System (LPWS) is challenging without access to detailed historical contract databases and specific service scope breakdowns. However, the value represents a significant investment for approximately 375 days of support. Historically, sustainment and support contracts for major defense platforms like the Phalanx system often run into tens or hundreds of millions of dollars over their lifecycle. This particular order, being a delivery order against an existing undefinitized contract action (UCA), suggests it's part of a larger, ongoing support arrangement. Without knowing the total value of the parent UCA or the specific services covered by this order versus previous ones, a precise historical benchmark is difficult to establish. It is reasonable to infer that such specialized technical support is costly and reflects the complexity of the weapon system.

What are the primary risks associated with this contract, given it's a sole-source award against an undefinitized contract action?

The primary risks associated with this contract stem from its sole-source nature and its issuance against an undefinitized contract action (UCA). A sole-source award means the government did not conduct a competitive bidding process, which increases the risk of paying a higher price than might be achieved through competition. It also limits the government's ability to leverage market dynamics for better terms or innovation. The fact that it's against a UCA introduces inherent risk because the contract terms, conditions, and final price have not yet been fully negotiated and definitized. This can lead to potential cost growth, scope creep, or disputes once the contract is finalized. Furthermore, reliance on a single contractor for critical support can create vulnerabilities if that contractor faces performance issues, financial instability, or supply chain disruptions.

How effective is the Land-Based Phalanx Weapon System (LPWS) likely to be with the support provided under this contract?

The effectiveness of the Land-Based Phalanx Weapon System (LPWS) is highly dependent on the quality and timeliness of the Field Support Representative (FSR) and Program Execution Support provided under this contract. The LPWS is designed as a critical, automated, short-range air defense system, often used to protect naval vessels and land-based assets from anti-ship missiles, aircraft, and other threats. Effective FSR and program execution support ensures that the system is properly maintained, calibrated, operated, and upgraded. This includes troubleshooting technical issues, providing on-site expertise, managing spare parts, and ensuring software updates are implemented correctly. Therefore, assuming Raytheon delivers competent support as per the contract's requirements, this contract is crucial for maintaining the LPWS's readiness and operational effectiveness, thereby contributing to the overall air defense capabilities of the U.S. Army.

What are the potential implications for future spending on the Land-Based Phalanx Weapon System based on this contract award?

This contract award suggests a continued need for sustainment and support for the Land-Based Phalanx Weapon System (LPWS) in the near future. As a delivery order against an existing undefinitized contract action (UCA), it indicates that the underlying program is active and requires ongoing specialized services. The $21.8 million value for a 375-day period points towards substantial annual sustainment costs. Future spending will likely depend on the system's operational tempo, planned upgrades or modernization efforts, and the overall strategic importance of the LPWS within the Army's air defense architecture. If the system remains a key asset, further contracts for sustainment, upgrades, or replacement parts can be anticipated. The sole-source nature of this award might also set a precedent for future sole-source actions if competition is not deemed feasible or necessary.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

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: $51,303,001

Exercised Options: $51,303,001

Current Obligation: $21,801,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q25D0024

IDV Type: IDC

Timeline