DoD Awards Raytheon $34.8M for ANDVT Cryptologic Modernization, Full Rate Production
Contract Overview
Contract Amount: $34,780,196 ($34.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2023-12-21
End Date: 2026-07-31
Contract Duration: 953 days
Daily Burn Rate: $36.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VINSON/ADVANCED NARROWBAND DIGITAL VOICE TERMINA (ANDVT) CRYPTOLOGIC MODERNIZATION (VACM) FULL RATE PRODUCTION (RFP).
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46808
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $34.8 million to RAYTHEON COMPANY for work described as: VINSON/ADVANCED NARROWBAND DIGITAL VOICE TERMINA (ANDVT) CRYPTOLOGIC MODERNIZATION (VACM) FULL RATE PRODUCTION (RFP). Key points: 1. Significant contract for advanced communications modernization. 2. Raytheon Company is the sole awardee. 3. Potential risks associated with sole-source procurement. 4. Focus on secure radio and wireless communications equipment.
Value Assessment
Rating: fair
The award amount of $34.8 million for a modernization effort is substantial. Without comparable contract data for similar cryptographic modernization programs, it's difficult to definitively assess pricing against market benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Raytheon. This limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may not have secured the best possible price.
Public Impact
Ensures continued secure communication capabilities for the Air Force. Modernization of critical cryptographic systems enhances national security. Supports advanced radio and wireless communication technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Potential for cost overruns without competitive pressure.
- Long contract duration (953 days) increases exposure to market changes.
Positive Signals
- Addresses critical modernization needs for secure communications.
- Award to established prime contractor with relevant expertise.
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area is crucial for maintaining secure and advanced defense communication systems.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large prime contract.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost reasonableness and effective program execution. The Department of the Air Force is responsible for monitoring performance and expenditures.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source procurement.
- Lack of competitive bidding.
- Potential for cost overruns.
- Long contract duration.
- Limited visibility into price reasonableness without competition.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.8 million to RAYTHEON COMPANY. VINSON/ADVANCED NARROWBAND DIGITAL VOICE TERMINA (ANDVT) CRYPTOLOGIC MODERNIZATION (VACM) FULL RATE PRODUCTION (RFP).
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 $34.8 million.
What is the period of performance?
Start: 2023-12-21. End: 2026-07-31.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent requirements where only one source can meet the need. The government's contracting officers must still conduct a price analysis, comparing proposed costs to historical data, other government contracts, or commercial price lists, to ensure the price is fair and reasonable, even without direct competition.
What are the specific risks associated with modernizing cryptographic systems, and how are they being mitigated?
Risks in cryptographic modernization include technological obsolescence, integration challenges with existing systems, and potential vulnerabilities introduced during the upgrade process. Mitigation strategies involve rigorous testing and validation, phased implementation, robust cybersecurity protocols, and close collaboration between the contractor and government technical experts to address issues proactively.
How will the effectiveness of the ANDVT Cryptologic Modernization be measured to ensure it meets Air Force operational requirements?
Effectiveness will be measured through a combination of technical performance metrics, operational testing, and user feedback. Key performance indicators will likely include signal clarity, encryption strength, system reliability, interoperability with other platforms, and the successful completion of mission-critical communication tasks. Formal acceptance testing and post-deployment reviews will validate the system's performance.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
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: $34,780,196
Exercised Options: $34,780,196
Current Obligation: $34,780,196
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA830717D0017
IDV Type: IDC
Timeline
Start Date: 2023-12-21
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-09-25
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