DoD Awards Raytheon $159.6M for Ukraine NASAMS II Rapid Fielding Program
Contract Overview
Contract Amount: $159,556,481 ($159.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2022-08-26
End Date: 2026-12-31
Contract Duration: 1,588 days
Daily Burn Rate: $100.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UKRAINE NASAMS 2 LOT EMERGENCY OPERATIONAL CAPABILITY RAPID FIELDING PROGRAM PHASE.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $159.6 million to RAYTHEON COMPANY for work described as: UKRAINE NASAMS 2 LOT EMERGENCY OPERATIONAL CAPABILITY RAPID FIELDING PROGRAM PHASE. Key points: 1. Significant investment in critical defense capabilities for Ukraine. 2. Sole-source award to Raytheon Company raises questions about price discovery. 3. Contract duration of nearly 4 years suggests a long-term operational need. 4. Focus on guided missile manufacturing highlights a key defense sector.
Value Assessment
Rating: questionable
The contract value of $159.6M for NASAMS II is substantial. Without competitive bidding, it's difficult to assess if this 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 lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition means taxpayers may not be receiving the best possible price for these critical defense systems.
Public Impact
Enhances Ukraine's air defense capabilities against ongoing threats. Supports the U.S. commitment to providing advanced military aid. Directly impacts the defense industrial base through a major contract award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to sole-source award
- Long contract duration
Positive Signals
- Addresses urgent operational needs for Ukraine
- Supports a key defense contractor
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of national defense. Spending in this area is often driven by geopolitical events and technological advancements.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this contract. The prime contractor is Raytheon Company, a large aerospace and defense firm.
Oversight & Accountability
Oversight will be crucial to ensure funds are used effectively and that Raytheon meets delivery timelines and performance standards, especially given the sole-source nature of the award.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Dependency on a single supplier
- Geopolitical risks impacting delivery and use
- Effectiveness in a dynamic combat environment
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 $159.6 million to RAYTHEON COMPANY. UKRAINE NASAMS 2 LOT EMERGENCY OPERATIONAL CAPABILITY RAPID FIELDING PROGRAM PHASE.
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 $159.6 million.
What is the period of performance?
Start: 2022-08-26. End: 2026-12-31.
What is the specific justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the urgency of supporting Ukraine's defense likely played a role. However, the Department of Defense should provide detailed documentation justifying the sole-source decision and outline any mechanisms in place, such as independent cost estimates or price negotiation strategies, to mitigate the risks associated with non-competitive procurement and ensure fair pricing.
How will the effectiveness of the NASAMS II systems be measured in the Ukrainian operational context?
Effectiveness will likely be measured through a combination of performance metrics and operational outcomes. This includes the system's ability to detect, track, and engage aerial threats, its reliability in diverse environmental conditions, and its integration with existing Ukrainian air defense infrastructure. Post-deployment reviews and feedback from Ukrainian forces will be critical in assessing the system's real-world impact and informing future support decisions.
What are the long-term implications of this sole-source award on future competition for similar defense systems?
Sole-source awards, especially for significant programs, can set precedents and potentially discourage future competition if not carefully managed. If Raytheon's system proves highly effective and indispensable, it could solidify their market position. Conversely, if the lack of competition leads to significantly higher costs or performance issues, it may prompt the DoD to seek more competitive strategies for future procurements of advanced air defense systems.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
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: RTX Corp
Address: 50 APPLE HILL DR, TEWKSBURY, MA, 01876
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: $252,527,101
Exercised Options: $159,556,481
Current Obligation: $159,556,481
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-08-26
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-12
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)