Raytheon's $228M FAB-T CPT Contract: Air Force Seeks Advanced Beyond Line-of-Sight Terminals
Contract Overview
Contract Amount: $228,445,760 ($228.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2012-09-07
End Date: 2020-09-30
Contract Duration: 2,945 days
Daily Burn Rate: $77.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF DESIGN, DEVELOP, AND TEST THE FAMILY OF ADVANCED BEYOND LINE-OF-SIGHT TERMINAL (FAB-T) COMMAND POST TERMINAL (CPT) WITH PRESIDENTIAL NATIONAL VOICE CONFERENCING (PNVC)
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $228.4 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF DESIGN, DEVELOP, AND TEST THE FAMILY OF ADVANCED BEYOND LINE-OF-SIGHT TERMINAL (FAB-T) COMMAND POST TERMINAL (CPT) WITH PRESIDENTIAL NATIONAL VOICE CONFERENCING (PNVC) Key points: 1. Contract awarded to Raytheon Company for FAB-T CPT development. 2. Focus on Presidential National Voice Conferencing (PNVC) capabilities. 3. Significant investment in advanced communications equipment. 4. Potential for high impact on national security communications infrastructure.
Value Assessment
Rating: good
The contract value of $228.4M for the FAB-T CPT program appears reasonable given the complexity and advanced nature of the technology being developed. Benchmarking against similar complex defense communication system development contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This approach may have impacted price discovery, potentially leading to higher costs than a fully open competition.
Taxpayer Impact: Taxpayer funds are being used for the development of critical national security communication systems. The effectiveness and efficiency of this spending will determine the ultimate value for taxpayers.
Public Impact
Enhances secure communication capabilities for high-level government officials. Supports national defense by providing reliable command and control links. Contributes to the modernization of military communication infrastructure. Ensures continuity of government operations during critical events.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have inflated costs.
- Long contract duration (2945 days) increases risk of cost overruns.
- Firm Fixed Price contract with potential for scope creep.
Positive Signals
- Development of advanced, critical communication technology.
- Supports national security and continuity of government.
- Awarded to a known defense contractor with relevant expertise.
Sector Analysis
This contract falls within the 'Other Communications Equipment Manufacturing' sector, specifically for advanced military communication systems. Spending in this sector is often characterized by high R&D costs, long development cycles, and significant government oversight due to national security implications.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the prime contractor is Raytheon Company. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract is managed by the Department of the Air Force, a component of the Department of Defense, which typically has robust oversight mechanisms for major defense acquisitions. However, the long duration and complexity of the program warrant continuous monitoring.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to long contract duration.
- Limited competition may have resulted in a higher price.
- Technological obsolescence risk over the program's lifecycle.
- Dependence on a single contractor for critical technology.
- Complexity of integrating advanced communication systems.
Tags
other-communications-equipment-manufactu, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $228.4 million to RAYTHEON COMPANY. IGF::OT::IGF DESIGN, DEVELOP, AND TEST THE FAMILY OF ADVANCED BEYOND LINE-OF-SIGHT TERMINAL (FAB-T) COMMAND POST TERMINAL (CPT) WITH PRESIDENTIAL NATIONAL VOICE CONFERENCING (PNVC)
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 Air Force).
What is the total obligated amount?
The obligated amount is $228.4 million.
What is the period of performance?
Start: 2012-09-07. End: 2020-09-30.
What is the specific technological advancement this terminal provides over existing systems, and how does it justify the $228M investment?
The FAB-T CPT with PNVC aims to provide a highly secure, reliable, and advanced beyond line-of-sight communication capability, specifically incorporating Presidential National Voice Conferencing. This likely involves enhanced encryption, redundancy, and integration with existing secure networks, justifying the investment through improved national security, continuity of government, and strategic command and control resilience.
Given the 'limited competition' award, what measures are in place to ensure Raytheon is not overcharging for the FAB-T CPT development?
While limited competition can reduce price discovery, the Department of Defense typically employs stringent cost analysis and auditing processes. This includes reviewing Raytheon's cost proposals, comparing them to historical data and industry benchmarks, and potentially negotiating profit margins. Continuous oversight and performance monitoring also help mitigate risks associated with cost overruns.
How will the effectiveness of the FAB-T CPT be measured post-development to ensure it meets the critical communication needs it was designed for?
Effectiveness will be measured through rigorous testing and evaluation (T&E) phases, including system integration tests, operational performance assessments, and user acceptance trials. Key performance parameters related to reliability, security, bandwidth, and successful PNVC functionality will be tracked. Post-deployment, ongoing performance metrics and user feedback will ensure sustained effectiveness.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752
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: $445,900,478
Exercised Options: $229,454,486
Current Obligation: $228,445,760
Actual Outlays: $7,712,052
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-09-07
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-11-26
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