Raytheon Company awarded $33.1M contract for Air Force's 3DELRR PRE-EMD TD PHASE, a key navigation system

Contract Overview

Contract Amount: $33,104,291 ($33.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2012-08-20

End Date: 2013-08-30

Contract Duration: 375 days

Daily Burn Rate: $88.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 3DELRR PRE-EMD TD PHASE

Place of Performance

Location: SUDBURY, MIDDLESEX County, MASSACHUSETTS, 01776

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to RAYTHEON COMPANY for work described as: 3DELRR PRE-EMD TD PHASE Key points: 1. Contract value represents a significant investment in advanced navigation technology. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Contract duration of 375 days indicates a focused, short-term project phase. 5. Awarded by the Department of the Air Force, highlighting its strategic importance. 6. The contract falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.

Value Assessment

Rating: good

The contract value of $33.1 million for the PRE-EMD TD PHASE of the 3DELRR program appears reasonable given the specialized nature of defense navigation systems. Benchmarking against similar complex system development contracts would provide further context, but the fixed-price structure suggests an effort to establish clear cost expectations. The award amount is within the expected range for early-stage development of advanced technological systems for the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 3 bidders participating, the competition level suggests a healthy interest in this defense contract. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive advanced navigation system capabilities. The services delivered are crucial for enhancing the operational effectiveness of Air Force assets. The geographic impact is primarily within the defense sector, supporting national security objectives. Workforce implications may include specialized engineering and technical roles within Raytheon Company and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during the TD phase.
Dependence on a single contractor for critical navigation system development could pose long-term supply chain risks.

Positive Signals

Fixed-price contract type mitigates financial risk for the government.
Full and open competition suggests a robust selection process.
Award to a well-established defense contractor like Raytheon implies technical expertise.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on navigation and guidance systems. The market for such specialized defense technology is characterized by high barriers to entry, significant R&D investment, and long procurement cycles. Comparable spending benchmarks would likely be found within other advanced weapon system development programs, where costs can range from tens to hundreds of millions of dollars for early-stage development phases.

Small Business Impact

While this contract was awarded to Raytheon Company, there is no explicit indication of a small business set-aside. However, large prime contractors like Raytheon are often required to meet subcontracting goals for small businesses. The extent to which small businesses will participate in fulfilling this contract will depend on Raytheon's subcontracting plan and the availability of specialized small business capabilities relevant to navigation system components.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified capabilities within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific technical details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Airborne Navigation Systems
Defense Electronics Manufacturing
Guidance, Navigation, and Control Systems
Military Aircraft Systems Development

Risk Flags

Potential for technical challenges in a new system development.
Reliance on a single contractor for critical technology demonstration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to RAYTHEON COMPANY. 3DELRR PRE-EMD TD PHASE

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 $33.1 million.

What is the period of performance?

Start: 2012-08-20. End: 2013-08-30.

What is the specific technical capability being developed under the 3DELRR PRE-EMD TD PHASE?

The 3DELRR PRE-EMD TD PHASE (Three-Dimensional Expeditionary Long-Range Radar Preliminary Engineering and Manufacturing Development, Technical Demonstration Phase) contract awarded to Raytheon Company focuses on the development and technical demonstration of a new long-range radar system. This system is intended to provide advanced search, detection, and navigation capabilities, likely for air and missile defense applications. The TD phase is critical for proving the system's core technologies and design concepts before proceeding to full-scale engineering and manufacturing development. It aims to reduce technical risks and validate performance parameters in a controlled environment, ensuring the system meets the demanding requirements of the Department of the Air Force.

How does the $33.1 million award compare to other similar defense system development contracts?

The $33.1 million award for the 3DELRR PRE-EMD TD PHASE is a moderate amount for an early-stage development contract within the defense sector. Preliminary Engineering and Manufacturing Development (EMD) phases for complex systems like radar or avionics can range significantly, often from tens to hundreds of millions of dollars. This specific award covers a technical demonstration phase, which is typically less expensive than full EMD. Comparing it directly requires access to data on similar radar system development contracts, but it appears to be a reasonable investment for proving key technologies before committing to full production. The fixed-price nature also suggests a defined scope for this particular phase.

What are the primary risks associated with this contract for the Department of the Air Force?

The primary risks for the Department of the Air Force associated with this contract include technical risks, schedule risks, and potential cost growth if the fixed-price contract is not managed effectively. Technical risks involve the possibility that the new radar technology may not perform as expected or meet all operational requirements during the technical demonstration. Schedule risks could arise from unforeseen development challenges that delay the completion of the TD phase, impacting subsequent program milestones. While a fixed-price contract aims to cap costs, scope creep or significant technical hurdles could still lead to contract modifications or disputes, potentially increasing the overall program expenditure beyond initial projections.

What is Raytheon Company's track record with similar navigation or radar system contracts?

Raytheon Company, now part of RTX, has an extensive and well-established track record in developing and producing advanced radar, navigation, and defense systems for military applications. They are a major prime contractor for numerous U.S. Department of Defense programs, including sophisticated radar systems for air defense, surveillance, and targeting. Their experience spans decades and includes delivering complex systems for various platforms, such as aircraft, ships, and ground-based installations. This history suggests a high level of technical expertise and program management capability relevant to the 3DELRR contract, although each new program presents unique challenges.

What are the potential long-term implications of this contract for future defense spending in this area?

The successful completion of the 3DELRR PRE-EMD TD PHASE could lead to significant follow-on contracts for full-scale engineering and manufacturing development (EMD) and eventual production of the radar system. This would represent substantial future defense spending in the area of advanced long-range radar technology. It could also influence future procurement strategies for similar capabilities across different military branches. Furthermore, the technological advancements demonstrated could spur further innovation and competition in the defense electronics market, potentially leading to upgrades or next-generation systems in the years to come.

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: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 528 BOSTON POST RD, SUDBURY, MA, 05

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: $33,104,291

Exercised Options: $33,104,291

Current Obligation: $33,104,291

Contract Characteristics

Cost or Pricing Data: NO

Timeline