DoD Awards Raytheon $52.4M for Advanced Battle Management System Digital Infrastructure
Contract Overview
Contract Amount: $52,374,417 ($52.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2022-06-10
End Date: 2027-06-05
Contract Duration: 1,821 days
Daily Burn Rate: $28.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 28
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: DIGITAL INFRASTRUCTURE CONSORTIUM FOR ADVANCED BATTLE MANAGEMENT SYSTEM
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75071
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $52.4 million to RAYTHEON COMPANY for work described as: DIGITAL INFRASTRUCTURE CONSORTIUM FOR ADVANCED BATTLE MANAGEMENT SYSTEM Key points: 1. Significant investment in R&D for critical defense technology. 2. Raytheon Company is a major defense contractor, indicating established capabilities. 3. Full and open competition suggests a robust price discovery process. 4. Focus on digital infrastructure highlights modernization efforts within the Air Force.
Value Assessment
Rating: good
The award amount of $52.4 million for a 5-year contract appears reasonable for advanced digital infrastructure development. Benchmarking against similar R&D contracts for complex systems is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to competitive pricing. The use of a delivery order mechanism allows for phased funding and flexibility.
Taxpayer Impact: Taxpayer funds are being used for critical defense modernization, aiming for long-term technological advantage and security.
Public Impact
Enhances national security through advanced military communication and data processing. Supports technological innovation and R&D within the defense sector. Potential for job creation in high-tech fields related to defense contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of the Advanced Battle Management System may lead to cost overruns.
- Long contract duration (5 years) introduces potential for scope creep or changing requirements.
- Reliance on a single prime contractor (Raytheon) for a critical system.
Positive Signals
- Investment in cutting-edge digital infrastructure.
- Competitive award process likely secured favorable pricing.
- Focus on interoperability and data sharing for improved battlefield awareness.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority but can be subject to long development cycles and evolving requirements.
Small Business Impact
While the prime contractor is Raytheon Company, the contract details do not specify any subcontracting goals for small businesses. Further investigation into subcontracting plans would be beneficial.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The delivery order structure allows for phased oversight and milestone tracking throughout the contract's life.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High R&D cost intensity.
- Long-term contract duration.
- Complexity of integrating advanced digital systems.
- Potential for scope creep.
- Cybersecurity vulnerabilities.
Tags
research-and-development-in-the-physical, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.4 million to RAYTHEON COMPANY. DIGITAL INFRASTRUCTURE CONSORTIUM FOR ADVANCED BATTLE MANAGEMENT SYSTEM
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 $52.4 million.
What is the period of performance?
Start: 2022-06-10. End: 2027-06-05.
What are the key performance metrics for the Advanced Battle Management System, and how will their achievement be measured?
Key performance metrics likely include data processing speed, network reliability, system interoperability, and cybersecurity resilience. Measurement will probably involve rigorous testing, simulations, and operational deployments, with specific benchmarks defined in the contract's statement of work and subsequent delivery orders.
What are the primary risks associated with the long-term development and integration of this digital infrastructure?
Primary risks include technological obsolescence, integration challenges with existing systems, cybersecurity threats, and potential cost overruns due to the complexity and evolving nature of digital infrastructure. Effective risk mitigation will require continuous monitoring, adaptive management, and strong collaboration between the government and contractor.
How will the effectiveness of this investment be evaluated in terms of improving battlefield command and control capabilities?
Effectiveness will be evaluated through operational assessments, war game simulations, and feedback from end-users in combat scenarios. Success will be measured by demonstrable improvements in situational awareness, decision-making speed, and the ability to coordinate diverse military assets in complex operational environments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 28
Pricing Type: FIRM FIXED PRICE (J)
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: $86,071,734
Exercised Options: $76,676,757
Current Obligation: $52,374,417
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $144,989
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA861220D0022
IDV Type: IDC
Timeline
Start Date: 2022-06-10
Current End Date: 2027-06-05
Potential End Date: 2027-06-05 00:00:00
Last Modified: 2026-01-08
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