DoD Awards Raytheon $109.5M for AFATDS Software Development and Maintenance
Contract Overview
Contract Amount: $109,464,718 ($109.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2012-05-15
End Date: 2016-05-14
Contract Duration: 1,460 days
Daily Burn Rate: $75.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: AWARD OF TASK ORDER TO RAYTHEON COMPANY, FORT WAYNE, IN TO PROVIDE SERVICES FOR ADVANCED FIELD ARTILLERY TACTICAL DATA SYSTEM (AFATDS) VERSION 6.8X SOFTWARE DESIGN DEVELOPMENT AND INTERFACE AND MAINTENANCE.
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46808
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $109.5 million to RAYTHEON COMPANY for work described as: AWARD OF TASK ORDER TO RAYTHEON COMPANY, FORT WAYNE, IN TO PROVIDE SERVICES FOR ADVANCED FIELD ARTILLERY TACTICAL DATA SYSTEM (AFATDS) VERSION 6.8X SOFTWARE DESIGN DEVELOPMENT AND INTERFACE AND MAINTENANCE. Key points: 1. Significant investment in critical battlefield communication software. 2. Raytheon Company is a major defense contractor, indicating established capabilities. 3. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 4. Spending concentrated within the Defense sector, specifically IT services.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar software development contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may not incentivize the most aggressive pricing.
Taxpayer Impact: Taxpayers are funding the development and maintenance of a key military system, with the ultimate value dependent on its effectiveness and efficiency.
Public Impact
Enhances battlefield command and control for artillery units. Supports modernization of military communication and data systems. Ensures continued operational readiness of a critical software platform.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Software development projects are inherently prone to scope creep and delays.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical need for advanced tactical data systems.
Sector Analysis
This award falls within the Information Technology sector, specifically custom computer programming services. Defense IT spending is substantial, and this contract contributes to the modernization of military operational capabilities.
Small Business Impact
The awardee, Raytheon Company, is a large business. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial for managing costs and ensuring delivery of required software capabilities.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract structure.
- Potential for scope creep in software development.
- Reliance on a single large contractor.
- Long duration of the task order.
Tags
custom-computer-programming-services, department-of-defense, in, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $109.5 million to RAYTHEON COMPANY. AWARD OF TASK ORDER TO RAYTHEON COMPANY, FORT WAYNE, IN TO PROVIDE SERVICES FOR ADVANCED FIELD ARTILLERY TACTICAL DATA SYSTEM (AFATDS) VERSION 6.8X SOFTWARE DESIGN DEVELOPMENT AND INTERFACE AND MAINTENANCE.
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 $109.5 million.
What is the period of performance?
Start: 2012-05-15. End: 2016-05-14.
What is the projected total cost of ownership for AFATDS Version 6.8X throughout its lifecycle, considering ongoing maintenance and future upgrades?
The provided data only covers the initial award for software design, development, and maintenance. A comprehensive lifecycle cost analysis would be necessary to determine the total cost of ownership. This would include projected costs for future software updates, hardware compatibility, training, and potential system retirement or replacement.
How effectively has Raytheon managed Cost Plus Fixed Fee contracts in the past, and what mechanisms are in place to mitigate potential cost overruns for this specific award?
Assessing Raytheon's past performance on similar contracts would require a review of their historical contract data and performance reviews. For this award, effective mitigation of cost overruns would depend on stringent oversight from the Defense Contract Management Agency, clear performance metrics, and potentially incentive structures within the contract to reward cost efficiency.
What is the measurable impact of AFATDS Version 6.8X on artillery unit effectiveness and response times compared to previous versions?
Measuring the direct impact requires operational data and user feedback from the field. Key performance indicators could include reduced targeting times, improved accuracy of fire missions, enhanced situational awareness for commanders, and increased interoperability with other battlefield systems. Formal post-implementation reviews would be essential to quantify these benefits.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 1010 PRODUCTION RD, FORT WAYNE, IN, 46808
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $121,311,053
Exercised Options: $110,837,234
Current Obligation: $109,464,718
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T09DN005
IDV Type: IDC
Timeline
Start Date: 2012-05-15
Current End Date: 2016-05-14
Potential End Date: 2016-05-14 00:00:00
Last Modified: 2021-09-08
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