DoD's 3DELRR Radar Contract Awarded to Raytheon for $38.4M, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $38,441,057 ($38.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2017-05-11
End Date: 2020-01-09
Contract Duration: 973 days
Daily Burn Rate: $39.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF THREE-DIMENSIONAL EXPEDITIONARY LONG-RANGE RADAR (3DELRR)
Place of Performance
Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801
Plain-Language Summary
Department of Defense obligated $38.4 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF THREE-DIMENSIONAL EXPEDITIONARY LONG-RANGE RADAR (3DELRR) Key points: 1. The contract for the 3DELRR system, awarded to Raytheon, is a significant investment in advanced radar technology. 2. Raytheon is a major defense contractor, indicating a competitive landscape for large-scale defense systems. 3. Potential cost overruns, as suggested by the 'br' value, represent a key risk to taxpayer value. 4. The sector is IT/Defense, specifically focusing on advanced sensor and navigation systems.
Value Assessment
Rating: questionable
The contract value of $38.4M for a definitive contract with a duration of 973 days needs further analysis against similar advanced radar systems. The 'br' value of 39508 suggests a potential budget overrun, raising concerns about initial pricing accuracy.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. However, the definitive contract type and the potential for overruns warrant scrutiny of the price discovery process.
Taxpayer Impact: The potential for cost overruns directly impacts taxpayer value, as increased spending may be required beyond the initial contract amount.
Public Impact
Enhances military's long-range surveillance and threat detection capabilities. Supports critical national defense objectives by providing advanced radar technology. Potential for follow-on contracts and upgrades, impacting long-term defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential cost overruns (br value)
- Long contract duration (973 days)
Positive Signals
- Awarded under full and open competition
- Supports critical defense capabilities
Sector Analysis
This contract falls within the defense sector, specifically focusing on advanced IT and sensor systems. Spending benchmarks for similar large-scale radar systems are highly variable, but the $38.4M award indicates a significant investment in specialized technology.
Small Business Impact
The data indicates the prime contractor is Raytheon Company, a large defense corporation. There is no explicit information provided regarding small business participation in this specific contract award.
Oversight & Accountability
The contract is managed by the Department of the Air Force. Oversight would focus on contract performance, adherence to schedule, and management of potential cost escalations to ensure accountability.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns
- Long contract duration
- Dependence on a single prime contractor for a critical system
- Complexity of advanced radar technology
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.4 million to RAYTHEON COMPANY. IGF::OT::IGF THREE-DIMENSIONAL EXPEDITIONARY LONG-RANGE RADAR (3DELRR)
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 $38.4 million.
What is the period of performance?
Start: 2017-05-11. End: 2020-01-09.
What specific factors contributed to the potential cost overrun indicated by the 'br' value?
The 'br' value of 39508 suggests a potential budget overrun. Further investigation is needed to determine if this is due to unforeseen technical challenges, scope creep, changes in material costs, or initial underestimation of project expenses. Understanding these factors is crucial for assessing the contract's financial management and future cost predictability.
How does the performance of the 3DELRR system compare to its predecessors or competing technologies in terms of effectiveness?
The effectiveness of the 3DELRR system is critical for its intended purpose of long-range radar detection. A comparative analysis against existing systems and emerging technologies would reveal its technological advantage, operational capabilities, and overall contribution to national security. This assessment is key to justifying the investment and identifying areas for future improvement.
What is the long-term strategic value of the 3DELRR system beyond its immediate operational deployment?
The long-term strategic value lies in its potential to enhance the U.S. military's situational awareness and deterrence capabilities. As a foundational technology, it could enable future advancements in defense systems and intelligence gathering. Its role in maintaining technological superiority in radar systems is paramount for national security and geopolitical stability.
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
Solicitation ID: FA873017R0018
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 225 PRESIDENTIAL WAY, WOBURN, MA, 01801
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: $539,233,523
Exercised Options: $38,441,057
Current Obligation: $38,441,057
Subaward Activity
Number of Subawards: 81
Total Subaward Amount: $34,070,072
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-05-11
Current End Date: 2020-01-09
Potential End Date: 2020-01-09 00:00:00
Last Modified: 2020-03-24
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