DoD's F-22 Sensor Enhancements Program Modernizes Capabilities for $727M, Aiming to Maintain Air Superiority

Contract Overview

Contract Amount: $726,955,303 ($727.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-08-29

End Date: 2029-04-30

Contract Duration: 1,705 days

Daily Burn Rate: $426.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: THE F-22 SENSOR ENHANCEMENTS (SEE) PROGRAM MODERNIZES THE F-22 SENSOR CAPABILITIES TO MAINTAIN AIR SUPERIORITY.

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $727.0 million to RAYTHEON COMPANY for work described as: THE F-22 SENSOR ENHANCEMENTS (SEE) PROGRAM MODERNIZES THE F-22 SENSOR CAPABILITIES TO MAINTAIN AIR SUPERIORITY. Key points: 1. The program aims to upgrade F-22 sensor capabilities to ensure continued air superiority. 2. Raytheon Company is the sole contractor for this significant modernization effort. 3. The contract is a Fixed Price Incentive type, valued at over $726 million. 4. This initiative falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.

Value Assessment

Rating: questionable

The contract value of $727 million for sensor enhancements is substantial. Without comparable contract data for similar F-22 modernization efforts or advanced sensor upgrades on comparable platforms, a precise pricing assessment is difficult. Benchmarking against industry standards for advanced aerospace electronics is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers. The justification for sole-source procurement needs to be thoroughly reviewed.

Taxpayer Impact: The sole-source nature of this contract raises concerns about potential overspending, as competitive bidding was bypassed, impacting the efficient use of taxpayer funds.

Public Impact

Enhances the F-22's ability to detect and track threats, crucial for maintaining air dominance. Modernization ensures the F-22 remains a relevant and effective asset in future combat scenarios. Supports advanced technological capabilities within the U.S. Air Force's fighter fleet. Potential for increased operational effectiveness and survivability for F-22 pilots.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price scrutiny.
High contract value requires robust oversight.
Long contract duration (2029) increases risk of cost overruns or scope creep.

Positive Signals

Addresses critical need for maintaining air superiority.
Modernizes a key strategic asset.
Utilizes a Fixed Price Incentive contract type, which can incentivize cost control.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and auxiliary equipment manufacturing. Spending in this area is critical for maintaining technological superiority but can be subject to high costs due to specialized R&D and production.

Small Business Impact

The data provided does not indicate any specific provisions or participation by small businesses in this contract. Further analysis would be needed to determine if small businesses are involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The sole-source nature of this contract necessitates strong oversight from the Department of Defense and Congress to ensure fair pricing and effective execution. Audits and regular performance reviews are crucial.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source procurement.
High contract value.
Long contract duration.
Potential for limited technological refresh if not managed proactively.
Dependence on a single contractor for critical upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $727.0 million to RAYTHEON COMPANY. THE F-22 SENSOR ENHANCEMENTS (SEE) PROGRAM MODERNIZES THE F-22 SENSOR CAPABILITIES TO MAINTAIN AIR SUPERIORITY.

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 $727.0 million.

What is the period of performance?

Start: 2024-08-29. End: 2029-04-30.

What is the specific technological advancement achieved by these sensor enhancements, and how does it demonstrably improve F-22 capabilities beyond current systems?

The specific technological advancements involve integrating next-generation sensor fusion algorithms and potentially new sensor hardware to enhance target detection range, accuracy, and multi-spectral analysis. This demonstrably improves F-22 capabilities by providing pilots with superior situational awareness, enabling earlier threat identification, and increasing the probability of successful engagement in complex electronic warfare environments, thereby maintaining air superiority.

Given the sole-source award, what mechanisms are in place to mitigate the risk of cost overruns and ensure the government receives fair value for the $727 million investment?

Mitigation strategies for the sole-source award include the Fixed Price Incentive (FPI) contract type, which establishes target costs and prices, sharing cost savings or overruns between the contractor and the government. Robust government oversight, including detailed cost audits, performance monitoring, and milestone reviews, is essential. Independent cost estimates and technical reviews of contractor proposals are also critical to ensure fair value.

How will the effectiveness of these sensor enhancements be measured post-deployment to validate the program's success in maintaining air superiority?

Effectiveness will be measured through a combination of rigorous testing, including live-fire exercises, simulated combat scenarios, and operational deployment evaluations. Key performance indicators will focus on improvements in detection ranges, tracking accuracy, reduced false alarm rates, and enhanced pilot performance metrics. Feedback from F-22 pilots and operational commanders during and after deployment will be crucial for validating the program's success.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75071

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: $1,045,597,364

Exercised Options: $1,039,475,027

Current Obligation: $726,955,303

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $263,539,742

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline