DoD Awards Raytheon $154M Letter Contract for IAMD Plug and Fight A-Kit Design

Contract Overview

Contract Amount: $154,126,988 ($154.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2012-02-14

End Date: 2016-04-30

Contract Duration: 1,537 days

Daily Burn Rate: $100.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: LETTER CONTRACT FOR THE INTEGRATED AIR&MISSILE DEFENSE (IAMD) PLUG AND FIGHT A-KIT DESIGN IMPLEMENTATION PHASE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $154.1 million to RAYTHEON COMPANY for work described as: LETTER CONTRACT FOR THE INTEGRATED AIR&MISSILE DEFENSE (IAMD) PLUG AND FIGHT A-KIT DESIGN IMPLEMENTATION PHASE Key points: 1. Significant investment in Integrated Air & Missile Defense (IAMD) technology. 2. Sole-source award to Raytheon, limiting competitive pricing benefits. 3. Potential for cost overruns due to Cost Plus Incentive Fee structure. 4. Focus on design implementation suggests a critical phase for program success.

Value Assessment

Rating: questionable

The $154 million award is for a design implementation phase. Without comparable contracts for similar IAMD A-Kit designs, assessing value is difficult. The Cost Plus Incentive Fee (CPIF) structure can lead to higher-than-expected costs if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Raytheon. This lack of competition limits price discovery and potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for this critical defense system design.

Public Impact

Enhances national security by advancing missile defense capabilities. Supports advanced technology development within the defense sector. Potential impact on future defense procurement strategies for IAMD systems. Job creation within Raytheon and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a specialized area of defense spending. Benchmarks for similar design implementation phases are scarce due to the proprietary nature of defense technology.

Small Business Impact

No information is provided regarding small business participation in this contract. As a sole-source award to a large prime contractor, opportunities for small businesses may be limited unless subcontracted.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for oversight. The CPIF contract type requires careful monitoring to ensure cost control and contractor performance align with incentives.

Related Government Programs

Risk Flags

Tags

guided-missile-and-space-vehicle-manufac, department-of-defense, al, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $154.1 million to RAYTHEON COMPANY. LETTER CONTRACT FOR THE INTEGRATED AIR&MISSILE DEFENSE (IAMD) PLUG AND FIGHT A-KIT DESIGN IMPLEMENTATION PHASE

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $154.1 million.

What is the period of performance?

Start: 2012-02-14. End: 2016-04-30.

What is the projected total cost of the IAMD Plug and Fight A-Kit program beyond this design phase?

The provided data only covers the design implementation phase, totaling $154 million. Information regarding the full program lifecycle cost, including production and sustainment, is not available. Further analysis would require access to program baseline documents and future funding projections to understand the total taxpayer investment.

What are the specific performance metrics and incentive targets tied to the Cost Plus Incentive Fee structure?

The specific performance metrics and incentive targets for this Cost Plus Incentive Fee (CPIF) contract are not detailed in the provided data. CPIF contracts typically incentivize contractors to meet or exceed cost, schedule, and performance goals. Understanding these specific targets is crucial for assessing the government's ability to control costs and ensure desired outcomes.

How will the success of this design implementation phase be measured to ensure effective use of funds?

The effectiveness of this design implementation phase will likely be measured against defined technical specifications, milestones, and deliverables outlined in the contract. The DCMA's oversight role is critical in verifying that Raytheon meets these requirements. Success hinges on the successful completion of the design, its validation, and its readiness for subsequent production phases.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingGuided Missile and Space Vehicle Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W31P4Q11R0021

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 401 JAN DAVIS DR NW, HUNTSVILLE, AL, 35806

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: $154,446,007

Exercised Options: $154,126,988

Current Obligation: $154,126,988

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2012-02-14

Current End Date: 2016-04-30

Potential End Date: 2016-04-30 00:00:00

Last Modified: 2024-06-18

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