Raytheon Company awarded $31.4M for Millimeter-Wave Digital Arrays (MIDAS) R&D by Air Force

Contract Overview

Contract Amount: $31,464,422 ($31.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2018-11-05

End Date: 2024-10-31

Contract Duration: 2,187 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 32

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MILLIMETER-WAVE DIGITAL ARRAYS (MIDAS) PROGRAM

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to RAYTHEON COMPANY for work described as: MILLIMETER-WAVE DIGITAL ARRAYS (MIDAS) PROGRAM Key points: 1. Contract focuses on advanced research and development in physical sciences. 2. Full and open competition suggests a potentially competitive bidding process. 3. Cost-plus-fixed-fee structure may present cost control challenges. 4. Long contract duration of nearly 6 years indicates a complex, multi-phase project. 5. The contract is categorized under Research and Development in Physical, Engineering, and Life Sciences. 6. Awarded by the Department of the Air Force, highlighting defense sector focus.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables or comparable projects. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, can lead to costs exceeding initial estimates if not managed tightly. The total award amount of $31.4 million over nearly six years suggests a moderate investment for a research program, but its true value will depend on the technological advancements achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally promotes a more competitive environment, potentially leading to better pricing and innovation. The number of bidders (32) suggests significant interest, which is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best value through a wider pool of potential contractors and more robust price negotiations.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will receive advancements in millimeter-wave digital array technology. This contract supports the development of cutting-edge defense capabilities. The geographic impact is primarily within California, where the contractor is located. Workforce implications include employment for researchers, engineers, and support staff involved in advanced R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur higher costs to achieve a fixed profit margin, potentially leading to cost overruns.
The long duration of the contract increases the risk of scope creep or changing technological requirements over time.
R&D contracts inherently carry a risk of not achieving desired technological breakthroughs within the allocated budget or timeframe.

Positive Signals

Full and open competition with a high number of bidders (32) suggests a robust and potentially efficient procurement process.
The contract is awarded to Raytheon Company, a well-established defense contractor with significant experience in advanced technologies.
The focus on R&D aligns with the Air Force's strategic goals for technological superiority.

Sector Analysis

This contract falls within the broader defense technology sector, specifically focusing on advanced electronics and radar systems. The market for millimeter-wave technology is growing, driven by applications in defense, telecommunications, and automotive sectors. Spending in this area is critical for maintaining technological advantage in national security. Comparable spending benchmarks would typically involve other R&D contracts for advanced sensor or communication systems within the defense industry.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale R&D effort awarded to a major defense contractor, it is unlikely to involve significant subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime contractor. The focus is on advanced research, which may require specialized capabilities not typically found in smaller firms.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the CPFF structure, requiring detailed cost reporting and progress reviews. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D details may be sensitive. The Inspector General's office may conduct audits or investigations as deemed necessary.

Related Government Programs

Advanced Radar Systems Research
Millimeter-Wave Technology Development
Defense Research and Development Programs
Air Force Science and Technology Investments

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Scope Creep Potential
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to RAYTHEON COMPANY. MILLIMETER-WAVE DIGITAL ARRAYS (MIDAS) PROGRAM

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 $31.5 million.

What is the period of performance?

Start: 2018-11-05. End: 2024-10-31.

What is Raytheon Company's track record with similar R&D contracts for the Department of Defense?

Raytheon Company, now part of RTX Corporation, has a long and extensive history of performing research and development contracts for the Department of Defense across various domains, including radar, sensors, and electronic warfare. They are a prime contractor on numerous large-scale defense programs. Analyzing their past performance on similar millimeter-wave or advanced radar R&D efforts would involve reviewing contract histories for cost performance, schedule adherence, and successful delivery of technological prototypes or advancements. Their established presence and capabilities suggest a strong capacity to undertake complex R&D projects, though specific outcomes vary by project.

How does the $31.4 million award compare to other R&D investments in millimeter-wave technology by the DoD?

The $31.4 million award for the MIDAS program represents a moderate investment within the broader spectrum of Department of Defense R&D spending. The DoD invests billions annually in science and technology, with specific allocations for advanced materials, sensors, and electronic systems. Millimeter-wave technology is a critical area for next-generation radar, communications, and electronic warfare, thus attracting significant funding. While $31.4 million is substantial for a single contract, it is likely part of a larger strategic initiative. Benchmarking requires comparing it against other contracts for similar technological advancements, considering factors like contract duration, scope, and the specific technological maturity sought.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D are twofold. For the government, the risk lies in potential cost overruns. Since the contractor is reimbursed for all allowable costs plus a fixed fee, there is less incentive to control costs aggressively if the fixed fee represents a small portion of the total expected cost. The contractor's incentive is to complete the work, but cost efficiency is not as paramount as in fixed-price contracts. For the contractor, the risk is that the estimated costs might be underestimated, leading to a lower profit margin if the fixed fee remains unchanged. Effective oversight, detailed cost tracking, and clear scope definition are crucial to mitigate these risks for the government.

What are the potential program effectiveness indicators for the MIDAS program?

Potential program effectiveness indicators for the MIDAS program would focus on the successful development and demonstration of key technological capabilities related to millimeter-wave digital arrays. This could include achieving specific performance metrics such as improved resolution, range, or signal processing capabilities compared to existing technologies. Other indicators might involve the successful integration of these arrays into prototype systems, positive test results in relevant operational environments, and the potential for transition to production or fielding. Ultimately, effectiveness will be measured by whether the developed technology enhances the Air Force's operational capabilities and provides a tangible technological advantage.

How has federal spending on millimeter-wave technology evolved over the past five years?

Federal spending on millimeter-wave (MMW) technology has likely seen a steady increase over the past five years, driven by its growing importance in defense applications, including advanced radar, electronic warfare, and secure communications. The DoD, in particular, has prioritized investments in technologies that offer enhanced performance, miniaturization, and superior detection capabilities. While specific aggregate spending figures for MMW technology are not readily available in public databases, trends in related categories like advanced sensors, electronic systems, and R&D for radar systems indicate a growing emphasis. Increased funding reflects the recognition of MMW's potential to address evolving threats and operational requirements.

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: BASIC RESEARCH

Solicitation ID: FA865019R7993

Offers Received: 32

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245

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: $36,479,586

Exercised Options: $31,464,422

Current Obligation: $31,464,422

Actual Outlays: $1,568,049

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,276,335

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline