Raytheon Company awarded $90.5M for COBRA DANE TWTR-P, a critical radar system upgrade

Contract Overview

Contract Amount: $90,527,677 ($90.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-01-15

End Date: 2026-09-30

Contract Duration: 623 days

Daily Burn Rate: $145.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: COBRA DANE (CD) TRAVELING WAVE TUBE REDESIGN PROCUREMENT (TWTR-P)

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $90.5 million to RAYTHEON COMPANY for work described as: COBRA DANE (CD) TRAVELING WAVE TUBE REDESIGN PROCUREMENT (TWTR-P) Key points: 1. Contract value represents a significant investment in maintaining and enhancing advanced radar capabilities. 2. The procurement focuses on redesigning a Traveling Wave Tube, a key component of the COBRA DANE radar. 3. Performance period spans over 1.5 years, indicating a substantial effort for the redesign and potential integration. 4. The award to Raytheon Company suggests confidence in their established expertise in defense electronics. 5. This contract is essential for ensuring the continued operational effectiveness of a vital national security asset. 6. The nature of the upgrade implies a need to adapt to evolving technological requirements or address obsolescence.

Value Assessment

Rating: good

The contract value of $90.5 million for the redesign of a Traveling Wave Tube for the COBRA DANE radar appears reasonable given the specialized nature of the technology and the contractor's expertise. Benchmarking against similar complex electronic component redesigns is challenging due to proprietary information and unique system requirements. However, the cost-plus-fixed-fee (CPFF) contract type suggests that costs will be closely monitored, and the fixed fee provides incentive for the contractor to manage expenses effectively. The duration of the contract (623 days) also provides a basis for evaluating labor and overhead costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment was sought.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation among potential bidders.

Public Impact

The primary beneficiaries are the Department of the Air Force and national security interests, ensuring the continued functionality of the COBRA DANE radar system. The services delivered include the redesign and potential manufacturing of a critical component for an advanced radar system. The geographic impact is likely concentrated around the operational site of the COBRA DANE radar, which is located in the Mississippi Test Facility. Workforce implications may include specialized engineering and technical roles within Raytheon Company, contributing to high-skill employment in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in complex engineering redesigns, even with CPFF contracts.
Dependence on a single contractor for a critical component could pose long-term supply chain risks.
Ensuring the redesigned component meets all stringent performance and interoperability requirements.
The long-term sustainment and maintenance strategy for the redesigned component needs clear definition.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Raytheon Company's established track record in defense electronics provides a degree of confidence in execution.
The contract specifies a clear performance period, aiding in project management and oversight.
The focus on redesigning a specific component allows for targeted technical expertise application.

Sector Analysis

The defense electronics sector is characterized by high barriers to entry, significant R&D investment, and long product lifecycles. Contracts for specialized components like Traveling Wave Tubes are crucial for maintaining the operational readiness of advanced radar and electronic warfare systems. The COBRA DANE radar is a significant asset for missile warning and space surveillance, and its components are subject to rigorous performance standards. Spending in this area is driven by national security priorities and the need to stay ahead of technological advancements.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the specialized nature of the work involving the redesign of a critical radar component, it is likely that the prime contractor, Raytheon Company, will perform the majority of the work. However, there may be opportunities for small businesses to participate as subcontractors, particularly in areas requiring specialized materials, testing, or support services, depending on Raytheon's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, with specific program management offices responsible for monitoring progress, cost, and performance. The Cost Plus Fixed Fee (CPFF) contract type necessitates close financial oversight to ensure costs remain within projected bounds. Transparency will be maintained through regular reporting requirements from the contractor. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

COBRA DANE Radar System
Missile Warning Systems
Space Surveillance Systems
Traveling Wave Tube Technology
Defense Electronics Procurement
Air Force Radar Modernization

Risk Flags

Potential for cost overruns
Supply chain dependency
Technical performance risk
Long-term sustainment planning

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.5 million to RAYTHEON COMPANY. COBRA DANE (CD) TRAVELING WAVE TUBE REDESIGN PROCUREMENT (TWTR-P)

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 $90.5 million.

What is the period of performance?

Start: 2025-01-15. End: 2026-09-30.

What is the historical spending trend for the COBRA DANE radar system and its components?

Historical spending data for the COBRA DANE radar system and its specific components, such as Traveling Wave Tubes, is not readily available in the public domain. However, it is understood that systems of this nature require continuous investment for maintenance, upgrades, and component replacements to ensure operational readiness. Such systems typically have long lifecycles, necessitating ongoing funding for sustainment. The current award of $90.5 million for a redesign signifies a significant, albeit periodic, investment in maintaining the system's technological relevance and performance capabilities. Without access to classified or internal Air Force budget documents, a precise historical spending trend cannot be established, but it can be inferred that consistent, substantial funding is allocated to such critical national security assets.

How does the cost of this Traveling Wave Tube redesign compare to similar procurements or industry benchmarks?

Directly comparing the $90.5 million cost for this specific Traveling Wave Tube (TWT) redesign to similar procurements is challenging due to the highly specialized nature of the COBRA DANE radar system and its components. TWTs are advanced vacuum electronic devices used in high-frequency applications, and their redesign for a specific, critical radar system involves unique engineering challenges and proprietary knowledge. Industry benchmarks for TWT redesigns are not publicly available, as pricing is highly dependent on the specific technical requirements, performance specifications, and the complexity of the redesign. The contract type (Cost Plus Fixed Fee) suggests that the government is paying for the actual costs incurred plus a negotiated fixed fee, which implies that the final cost is subject to the efficiency of the contractor, Raytheon Company. Without more specific technical details or comparable contract data, a precise value-for-money assessment against benchmarks is difficult.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

While specific Key Performance Indicators (KPIs) are typically detailed within the contract's Statement of Work (SOW) and are not publicly disclosed, the success of this contract for the COBRA DANE Traveling Wave Tube Redesign Procurement (TWTR-P) will likely be measured against several critical criteria. These would include the successful redesign and delivery of a functional Traveling Wave Tube that meets or exceeds all specified technical performance requirements, such as frequency range, power output, efficiency, and reliability. Timely completion of contract milestones and adherence to the budget will also be crucial. Furthermore, the long-term performance and reliability of the redesigned component in the operational environment of the COBRA DANE radar system will be a key indicator of success. The government will likely conduct rigorous testing and validation throughout the contract period to ensure these objectives are met.

What is Raytheon Company's track record with similar complex defense electronics procurements?

Raytheon Company, now part of RTX, has an extensive and well-established track record in developing and producing complex defense electronics, including radar systems, electronic warfare systems, and advanced components like Traveling Wave Tubes. They are a major prime contractor for the U.S. Department of Defense and have been involved in numerous large-scale, technologically sophisticated projects across various military branches. Their experience spans decades, encompassing research, development, manufacturing, and sustainment of critical defense hardware. Given their significant presence and history in the defense sector, Raytheon is generally considered to possess the technical expertise, manufacturing capabilities, and program management experience necessary to undertake complex projects such as the COBRA DANE TWT redesign. Their past performance on similar contracts would be a key factor in the government's decision-making process.

What are the potential risks associated with the obsolescence of the current Traveling Wave Tube technology, and how does this redesign mitigate them?

The primary risk associated with the obsolescence of current Traveling Wave Tube (TWT) technology is the potential degradation of the COBRA DANE radar's performance and reliability. As components age and manufacturers cease production of older parts, maintaining operational readiness becomes increasingly difficult and expensive. This can lead to increased downtime, higher repair costs, and a reduced ability to meet mission requirements. This redesign contract directly addresses these risks by seeking to develop a modern, potentially more efficient and reliable TWT. The new design aims to leverage current technological advancements, ensure a more stable supply chain for components, and potentially improve the overall performance and lifespan of the radar system, thereby mitigating the risks posed by obsolescence.

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: RTX Corp

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: $138,807,043

Exercised Options: $138,807,043

Current Obligation: $90,527,677

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