Raytheon Company awarded $56.9M for COBRA DANE operations and maintenance, supporting critical Air Force radar systems

Contract Overview

Contract Amount: $56,903,923 ($56.9M)

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: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::OT::IGF COBRA DANE OPERATIONS, MAINTENANCE AND SUPPORT

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $56.9 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF COBRA DANE OPERATIONS, MAINTENANCE AND SUPPORT Key points: 1. Contract value appears reasonable given the specialized nature of radar operations and maintenance. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Long contract duration (over 8 years) indicates a need for sustained support for a critical asset. 4. The contract supports a vital national security asset, the COBRA DANE radar system. 5. Performance is likely measured against strict operational readiness and maintenance standards for a defense system.

Value Assessment

Rating: good

The contract value of $56.9 million over approximately 8 years for operations, maintenance, and support of a complex radar system like COBRA DANE appears to be within a reasonable range. Benchmarking against similar large-scale, specialized defense system support contracts would be necessary for a definitive assessment, but the cost seems aligned with the technical expertise and sustained effort required. The 'COST NO FEE' contract type suggests that the government reimburses the contractor for allowable costs, with no additional fee, which can be a cost-control mechanism.

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. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the method of competition suggests a robust process aimed at achieving value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, thereby maximizing the value of federal dollars spent on critical defense infrastructure.

Public Impact

The primary beneficiaries are the U.S. Air Force and the Department of Defense, ensuring the continued operation of the COBRA DANE radar system. Services delivered include operations, maintenance, and support for a strategic radar system. The geographic impact is localized to the operational site of the COBRA DANE radar. Workforce implications include specialized technical roles for engineers, technicians, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if 'COST NO FEE' contract type leads to less stringent cost management by the contractor.
Dependence on a single contractor for a critical, long-term system could pose risks if performance degrades.
The long duration of the contract may not allow for periodic re-evaluation of market competitiveness.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should drive value.
Contract supports a critical national security asset, indicating high importance and likely rigorous oversight.
The long contract term suggests a stable, reliable partnership for essential services.

Sector Analysis

The contract falls within the Engineering Services sector, specifically supporting defense-related technology. The market for specialized radar operations and maintenance is niche, dominated by a few large defense contractors with the requisite expertise and security clearances. Spending in this area is driven by national security requirements and the lifecycle of advanced defense systems. Comparable spending benchmarks would typically involve contracts for the sustainment of other large-scale radar or surveillance systems.

Small Business Impact

There is no indication of a small business set-aside for this contract, and the prime contractor, Raytheon Company, is a large aerospace and defense firm. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The focus is on a large-scale, specialized requirement likely handled by established prime contractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Given the defense nature of the asset, Inspector General oversight is also probable. Accountability measures would be tied to performance metrics related to system availability, maintenance effectiveness, and operational readiness. Transparency is generally limited for defense contracts of this nature due to national security considerations.

Related Government Programs

Missile Defense Systems Support
Radar Systems Maintenance
Aerospace Engineering Services
National Security Surveillance Programs
Department of Defense IT and Engineering Services

Risk Flags

Long contract duration may limit flexibility.
Cost-plus contract type requires diligent oversight to manage spending.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.9 million to RAYTHEON COMPANY. IGF::OT::IGF COBRA DANE OPERATIONS, MAINTENANCE AND SUPPORT

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 $56.9 million.

What is the period of performance?

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

What is the historical spending trend for COBRA DANE operations and maintenance?

Historical spending data for COBRA DANE operations and maintenance prior to this contract award is not explicitly provided in the given data. However, the current contract, awarded in March 2018 with an end date in March 2026, represents a significant investment over its duration. To understand historical trends, one would need to access prior contract awards for the same or similar services for the COBRA DANE system. Typically, such specialized systems require consistent, substantial funding for ongoing operations and upkeep. Fluctuations in spending could be influenced by technological upgrades, changes in threat assessments, or shifts in defense priorities. Without prior data, it's difficult to establish a trend, but the current award suggests a sustained commitment to maintaining this capability.

How does the awarded amount compare to similar radar system maintenance contracts?

Comparing the $56.9 million awarded to Raytheon Company for COBRA DANE operations and maintenance requires access to data on similar large-scale, specialized radar system support contracts. Contracts for maintaining strategic assets like early warning radar, satellite tracking systems, or advanced air traffic control radars can vary significantly based on system complexity, age, geographic location, and the scope of services (e.g., full operations vs. maintenance only). Given that COBRA DANE is a significant component of U.S. space surveillance and missile defense capabilities, its maintenance costs are likely substantial. A preliminary assessment suggests the value is plausible for such a critical and complex system, but a definitive benchmark would necessitate a detailed analysis of comparable contracts within the defense sector.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators (KPIs) for a contract like IGF::OT::IGF COBRA DANE OPERATIONS, MAINTENANCE AND SUPPORT are not detailed in the provided summary data. However, for critical defense systems such as COBRA DANE, KPIs would typically focus on ensuring system availability, reliability, and operational readiness. This could include metrics like Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), system uptime percentages, and successful completion of diagnostic and maintenance tasks within specified timeframes. Performance would also likely be assessed against adherence to maintenance schedules, quality of repairs, and responsiveness to operational requirements. The 'COST NO FEE' contract type might imply that performance incentives are structured around cost control and efficient resource utilization, alongside technical performance.

What is Raytheon Company's track record with similar defense system support contracts?

Raytheon Company (now RTX) has an extensive track record in supporting complex defense systems for the U.S. military and allied nations. They are a major prime contractor involved in developing, manufacturing, and sustaining a wide array of aerospace and defense technologies, including radar systems, missile defense platforms, and command and control systems. Their experience likely encompasses operations, maintenance, upgrades, and lifecycle support for critical infrastructure similar to COBRA DANE. While specific performance details on past contracts are not provided here, Raytheon's position as a leading defense contractor suggests a history of managing large, technically demanding programs. Government contract databases and performance reports (like CPARS) would offer more granular insights into their past performance on comparable contracts.

What are the potential risks associated with the 'COST NO FEE' contract type?

The 'COST NO FEE' (CNF) contract type, while potentially beneficial for cost control by limiting contractor profit, carries specific risks. For the government, a primary risk is that the contractor may have less incentive to control costs rigorously, as their profit is not directly tied to cost savings. This can lead to less efficient operations or potential cost overruns if not managed carefully. The government bears the risk of all allowable costs. For the contractor, the risk lies in performing the work within the allowable costs without the added incentive of a fee. Effective oversight and robust auditing by the government are crucial to mitigate these risks and ensure that costs remain reasonable and allocable to the contract.

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: $182,320,219

Exercised Options: $62,048,254

Current Obligation: $56,903,923

Actual Outlays: $1,355,194

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