DoD Awards Raytheon $227M for COBRA DANE Depot and Sustainment Services

Contract Overview

Contract Amount: $227,470,665 ($227.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2018-03-16

End Date: 2026-03-31

Contract Duration: 2,937 days

Daily Burn Rate: $77.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::OT::IGF COBRA DANE DEPOT AND SUSTAINMENT

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $227.5 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF COBRA DANE DEPOT AND SUSTAINMENT Key points: 1. Significant contract value of $227.47 million for critical defense infrastructure. 2. Raytheon Company is the sole awardee, raising questions about competition. 3. Potential risk associated with single-source awards and long contract duration. 4. Engineering Services sector, with a focus on defense systems sustainment.

Value Assessment

Rating: fair

The contract type is Cost No Fee, which can lead to cost overruns if not managed carefully. The award amount is substantial, but without specific performance metrics or benchmarks, assessing its value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although listed as full and open competition, the award was a delivery order to Raytheon Company. This suggests a potential for limited actual competition at the delivery order level, impacting price discovery.

Taxpayer Impact: The substantial value of this contract represents a significant taxpayer investment in defense infrastructure sustainment.

Public Impact

Ensures continued operation and maintenance of the COBRA DANE radar system. Supports national security by maintaining critical early warning capabilities. Long-term sustainment contract may indicate a need for specialized expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost No Fee contract type.
Limited visibility into competition at the delivery order level.
Long contract duration (2018-2026) increases risk exposure.

Positive Signals

Award supports critical national security infrastructure.
Established contractor with likely relevant expertise.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense systems. Spending in this area is crucial for maintaining operational readiness of military assets.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award.

Oversight & Accountability

The contract's long duration and Cost No Fee structure warrant close oversight to ensure efficient use of taxpayer funds and effective performance.

Related Government Programs

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

Risk Flags

Cost overrun risk due to Cost No Fee structure.
Potential lack of robust competition at the delivery order level.
Long contract duration increases exposure to changing technological needs.
Dependence on a single contractor for critical infrastructure sustainment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $227.5 million to RAYTHEON COMPANY. IGF::OT::IGF COBRA DANE DEPOT AND SUSTAINMENT

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 $227.5 million.

What is the period of performance?

Start: 2018-03-16. End: 2026-03-31.

What is the justification for awarding this significant contract as a delivery order to Raytheon, given the 'full and open' competition designation?

The designation of 'full and open' competition typically applies to the initial contract vehicle. However, the award of a specific delivery order to a single contractor, even under such a vehicle, can limit actual competition for that particular task. Further investigation into the specific requirements of this delivery order and the availability of alternative solutions would be needed to fully assess the competitive landscape.

What are the key performance indicators (KPIs) and risk mitigation strategies in place for this Cost No Fee contract to ensure value for money?

For a Cost No Fee contract, robust oversight and clearly defined performance metrics are essential. The Department of Defense should have established KPIs related to system availability, maintenance effectiveness, and response times. Risk mitigation would likely involve stringent financial controls, regular performance reviews, and proactive identification of potential cost drivers to prevent budget overruns and ensure the sustainment objectives are met efficiently.

How does the sustainment of the COBRA DANE system contribute to broader national security objectives and early warning capabilities?

The COBRA DANE system is a critical component of the United States' ballistic missile early warning system. Its continuous sustainment ensures the radar's operational readiness, providing vital intelligence on missile launches. This capability is fundamental to strategic deterrence, allowing for timely response and contributing significantly to national security by maintaining situational awareness of potential threats.

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: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1330 INVERNESS DR STE 200, COLORADO SPRINGS, CO, 80910

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: $732,736,779

Exercised Options: $268,444,718

Current Obligation: $227,470,665

Actual Outlays: $17,579,371

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA872318D0003

IDV Type: IDC

Timeline