DoD Awards Raytheon $19.58M for SIGINT for DCGS Systems Under Full and Open Competition

Contract Overview

Contract Amount: $19,583,000 ($19.6M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $53.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SIGINT FOR DCGS

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.6 million to RAYTHEON COMPANY for work described as: SIGINT FOR DCGS Key points: 1. Contract awarded to Raytheon Company for SIGINT systems, a critical intelligence capability. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 364 days, indicating a short-term need or task order. 4. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services.

Value Assessment

Rating: good

The award amount of $19.58 million for engineering services is within a reasonable range for specialized intelligence systems. Benchmarking against similar complex system integration contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a specific task order.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely led to a more efficient price discovery and a cost-effective solution for critical intelligence capabilities.

Public Impact

Enhances national security through improved signals intelligence capabilities. Supports the Department of the Air Force's operational readiness. Potential for technological advancements in intelligence gathering and analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex engineering services.
Dependence on a single contractor for critical SIGINT systems.

Positive Signals

Awarded under full and open competition.
Clear contract duration and delivery order structure.
Supports a vital national security function.

Sector Analysis

The defense sector, particularly for intelligence, surveillance, and reconnaissance (ISR) systems, sees significant investment. Engineering services for specialized systems like SIGINT are crucial and often involve high-value contracts with a limited number of qualified providers.

Small Business Impact

While the prime contractor is Raytheon Company, a large defense firm, the use of full and open competition allows for subcontracting opportunities for small businesses. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Defense's contracting processes are subject to various oversight mechanisms, including the Government Accountability Office (GAO) and internal audit functions. The use of a delivery order under a potentially larger contract structure requires diligent tracking of performance and costs.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for cost overruns in complex engineering projects.
Risk of technology becoming outdated quickly in the SIGINT domain.
Dependence on a single contractor for critical system support.
Ensuring adequate cybersecurity measures for sensitive intelligence data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 million to RAYTHEON COMPANY. SIGINT FOR DCGS

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 $19.6 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What specific SIGINT capabilities does this contract aim to enhance or develop, and how do these align with current intelligence priorities?

This contract focuses on SIGINT (Signals Intelligence) for DCGS (Distributed Common Ground System). DCGS is a key platform for processing and disseminating intelligence from various ISR assets. Enhancements likely target improved data processing, analysis, and dissemination of signals intelligence, crucial for understanding adversary capabilities and intentions in a rapidly evolving threat landscape.

Given the specialized nature of SIGINT systems, what are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include technical obsolescence, potential security vulnerabilities in the systems, and contractor performance issues. Mitigation strategies likely involve stringent technical requirements, robust cybersecurity protocols, regular performance reviews, and contingency planning for potential disruptions. The competitive award process also helps mitigate some performance risks by selecting a capable provider.

How does this $19.58 million investment in SIGINT for DCGS contribute to the overall effectiveness of the Department of the Air Force's intelligence operations?

This investment directly enhances the effectiveness of the Air Force's intelligence operations by improving its ability to collect, process, and exploit signals intelligence. A more capable DCGS platform allows for faster and more accurate intelligence dissemination to warfighters and decision-makers, thereby improving situational awareness and enabling more informed operational planning and execution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: Rockwell Collins Australia PTY Limited

Address: 22260 PACIFIC BLVD, DULLES, VA, 20166

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: $19,583,000

Exercised Options: $19,583,000

Current Obligation: $19,583,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA852721D0003

IDV Type: IDC

Timeline