Raytheon awarded $48M for ALR-69A Radar Warning Receiver Production, with a significant portion for delivery orders

Contract Overview

Contract Amount: $47,964,383 ($48.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2019-05-09

End Date: 2022-12-31

Contract Duration: 1,332 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ALR-69A RADAR WARNING RECEIVER PRODUCTION CONTRAC

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $48.0 million to RAYTHEON COMPANY for work described as: ALR-69A RADAR WARNING RECEIVER PRODUCTION CONTRAC Key points: 1. Contract value of $47.96 million over its period of performance. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract is for the production of ALR-69A Radar Warning Receivers. 4. Performance period spans from May 2019 to December 2022. 5. The contract type is Firm Fixed Price, providing cost certainty. 6. Raytheon Company is the sole awardee. 7. The North American Industry Classification System (NAICS) code is 334511.

Value Assessment

Rating: good

The contract value of $47.96 million appears reasonable for the production of specialized radar warning receiver systems. Benchmarking against similar defense electronics production contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the government has secured predictable costs for this procurement, which is a positive indicator for financial management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The Air Force's decision to use full and open competition indicates a belief that sufficient market capacity existed to meet the requirement.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among potential suppliers.

Public Impact

The primary beneficiaries are the U.S. Air Force, receiving advanced radar warning receiver systems. The contract supports the production of critical electronic warfare components for military aircraft. The geographic impact is primarily associated with the contractor's facilities in California. The contract supports jobs within the aerospace and defense manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if production complexities are underestimated.
Dependence on a single contractor for production could lead to supply chain vulnerabilities.
Risk of obsolescence if technology evolves rapidly beyond the ALR-69A's capabilities.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Full and open competition suggests a healthy market and potential for competitive pricing.
Award to an established defense contractor like Raytheon implies a degree of technical capability and experience.

Sector Analysis

This contract falls within the aerospace and defense electronics sector, specifically focusing on electronic warfare systems. The market for such specialized components is characterized by high barriers to entry due to technological complexity and stringent quality requirements. Comparable spending benchmarks would involve analyzing other procurements for similar radar warning receivers or electronic warfare suites across different military branches.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the specialized nature of radar warning receiver production, it is likely that prime contracting opportunities are concentrated among larger defense manufacturers. Subcontracting opportunities for small businesses may exist, but their extent and nature are not detailed in this award information.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated by the contract award data being publicly available, though detailed performance metrics may be internal.

Related Government Programs

Airborne Electronic Warfare Systems
Radar Systems Manufacturing
Defense Electronics Production
Military Aircraft Components

Risk Flags

Potential for supply chain disruption due to single-source production.
Risk of technological obsolescence in a rapidly evolving threat environment.
Dependence on contractor's ability to meet production schedules.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.0 million to RAYTHEON COMPANY. ALR-69A RADAR WARNING RECEIVER PRODUCTION CONTRAC

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 $48.0 million.

What is the period of performance?

Start: 2019-05-09. End: 2022-12-31.

What is Raytheon Company's track record with similar defense electronics contracts?

Raytheon Company, now part of RTX, has a long and extensive history of producing complex defense electronics, including radar systems, electronic warfare suites, and communication systems for various U.S. military branches and international allies. Their track record includes numerous large-scale production contracts and development programs. For instance, they are a key supplier for the F-35 fighter jet's sensor suite and have produced other radar warning receivers and electronic countermeasures systems. While specific performance metrics for past contracts are often proprietary, their sustained position as a prime contractor for critical defense systems suggests a generally reliable performance history. However, like any large defense contractor, they have faced scrutiny and challenges on specific programs related to cost, schedule, and technical performance, which are typical in the defense industry.

How does the $47.96 million contract value compare to other ALR-69A procurements or similar systems?

Direct comparison of the $47.96 million value for the ALR-69A Radar Warning Receiver Production Contract requires access to historical procurement data for this specific system and comparable systems. The ALR-69A is an upgrade to an existing system, suggesting that initial development costs may have been amortized. The value represents production runs over a period of approximately three and a half years (May 2019 - Dec 2022). Without specific unit costs or quantities, it's challenging to benchmark precisely. However, for specialized defense electronics, production contracts in the tens of millions of dollars are common, especially for systems integrated onto multiple aircraft platforms. If this contract covers a significant quantity of units or a complex integration effort, the value could be considered standard. A more thorough analysis would involve examining contract awards for previous ALR-69 variants or competing radar warning receiver systems to establish a more robust benchmark.

What are the primary risks associated with this specific contract for the government?

The primary risks for the government associated with this contract include potential schedule delays in production, which could impact operational readiness if the receivers are needed for specific fleet upgrades or replacements. Technical risks, though mitigated by the firm fixed-price structure, could still arise if unforeseen manufacturing challenges emerge, potentially leading to requests for contract modifications or impacting system performance. Furthermore, reliance on a single contractor, Raytheon Company, for the production phase introduces supply chain risk; any disruption at the contractor's facility or their key suppliers could halt deliveries. Lastly, the risk of technological obsolescence exists, as advancements in adversary capabilities or countermeasure technologies could diminish the effectiveness of the ALR-69A over its lifecycle, necessitating future upgrades or replacements.

How effective is the ALR-69A system likely to be, given its role in the Air Force's electronic warfare strategy?

The ALR-69A system is designed to detect and identify radar signals from threats, providing aircrews with crucial situational awareness and enabling them to take evasive action or employ countermeasures. As an upgrade to earlier versions, the ALR-69A likely incorporates improved processing capabilities, a wider frequency coverage, and enhanced identification features to counter evolving radar threats. Its effectiveness is tied to its integration within the broader electronic warfare (EW) strategy of the Air Force, which includes other systems like jammers, decoys, and threat libraries. When functioning as intended and kept updated, the ALR-69A contributes significantly to survivability by providing timely warnings. However, its ultimate effectiveness depends on the sophistication of the threats it is designed to detect, the accuracy of its threat library, and the crew's ability to interpret and act upon the warnings provided.

What are the historical spending patterns for radar warning receiver systems within the Department of Defense?

Historical spending patterns for radar warning receiver (RWR) systems within the Department of Defense (DoD) show a consistent and significant investment over decades, reflecting their critical role in aircrew survivability and mission success. Spending is driven by the need to counter increasingly sophisticated and diverse radar threats from potential adversaries. Procurement typically involves upgrades to existing platforms, integration onto new platforms, and sustainment/modernization efforts. Major defense contractors like Raytheon, Northrop Grumman, and BAE Systems are frequent recipients of these contracts. Spending fluctuates based on modernization cycles, geopolitical threats, and budget allocations. For example, periods of heightened international tension or the introduction of new adversarial radar technologies often spur increased investment in RWR capabilities. The total annual spending can range from hundreds of millions to over a billion dollars across all services, depending on the scale of modernization programs and the number of platforms being equipped.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 6380 HOLLISTER AVE, GOLETA, CA, 93117

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: $47,964,383

Exercised Options: $47,964,383

Current Obligation: $47,964,383

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $3,825,562

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA852318D0004

IDV Type: IDC

Timeline