Raytheon Company awarded $13.5M for MAJIIC COALITION R&D, highlighting significant investment in defense technology

Contract Overview

Contract Amount: $13,511,170 ($13.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2009-04-16

End Date: 2011-04-30

Contract Duration: 744 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MAJIIC COALITION

Place of Performance

Location: STATE COLLEGE, CENTRE County, PENNSYLVANIA, 16803

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to RAYTHEON COMPANY for work described as: MAJIIC COALITION Key points: 1. Contract value represents a substantial investment in advanced research and development. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and innovation. 3. Performance risk indicators should be closely monitored given the R&D nature of the work. 4. This contract fits within the broader context of defense modernization and technological advancement. 5. The sector positioning is within the specialized R&D segment of the defense industry.

Value Assessment

Rating: good

The contract value of $13.5 million for MAJIIC COALITION R&D appears reasonable for a definitive contract of this nature. Benchmarking against similar R&D contracts within the Department of Defense for advanced technological development would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) structure suggests that costs are reimbursed, with a fixed fee negotiated upfront, which can incentivize efficiency but requires careful oversight of expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This level of competition is generally favorable for price discovery and encourages contractors to offer competitive terms. The specific number of bidders and the evaluation process would further illuminate the effectiveness of the competition in achieving the best value for the government.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are likely the Department of Defense and its operational units, receiving advancements in coalition information sharing capabilities. Services delivered include research and development aimed at enhancing interoperability and intelligence sharing among allied forces. The geographic impact is primarily national, supporting defense initiatives, with potential for international coalition benefits. Workforce implications include employment for highly skilled researchers, engineers, and technical staff within Raytheon Company and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in R&D projects if not managed tightly.
Ensuring the developed technology meets evolving operational requirements.
Managing intellectual property rights arising from the research.

Positive Signals

Awarded to a reputable contractor with a strong track record in defense R&D.
Full and open competition suggests a robust selection process.
The definitive contract structure provides a framework for project execution.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The defense R&D market is characterized by significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the Department of Defense for advanced systems and capabilities.

Small Business Impact

While the contract data does not explicitly mention small business set-asides or subcontracting goals, large R&D contracts often involve a complex supply chain. Raytheon, as a prime contractor, may engage small businesses for specialized services or components, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to assess the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and performance standards. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract awards databases and reporting requirements.

Related Government Programs

Defense Information Systems Agency (DISA) programs
Intelligence Community R&D initiatives
North Atlantic Treaty Organization (NATO) cooperative projects
Advanced Persistent Threats (APT) research

Risk Flags

Cost Overruns Potential
Scope Creep Risk
Technology Obsolescence
Interoperability Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to RAYTHEON COMPANY. MAJIIC COALITION

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2009-04-16. End: 2011-04-30.

What is Raytheon Company's track record with similar R&D contracts for the Department of Defense?

Raytheon Company, now part of RTX, has a long and extensive history of performing complex research and development contracts for the Department of Defense across various domains, including aerospace, defense, and intelligence systems. They are a major defense contractor known for innovation in areas such as radar, missiles, cybersecurity, and command and control systems. Their track record includes numerous successful R&D efforts that have led to fielded capabilities. However, like any large contractor, they have also faced scrutiny on specific contracts regarding cost, schedule, and performance. A detailed review of their past performance on contracts with similar scope, complexity, and value would be necessary to fully assess their suitability and historical success rate for this specific MAJIIC COALITION R&D effort.

How does the $13.5 million contract value compare to other MAJIIC COALITION-related spending?

The $13.5 million awarded to Raytheon Company for the MAJIIC COALITION R&D effort represents a specific investment in technological advancement for coalition information sharing. To contextualize this value, it's essential to compare it against the total lifecycle cost of the MAJIIC COALITION program, if publicly available, or against other contracts awarded under the same umbrella. The MAJIIC (Multisensor Aerospace-Ground Integration Collaboration) program aims to enhance intelligence, surveillance, and reconnaissance (ISR) data fusion and dissemination. Therefore, this $13.5 million could be a component of a much larger, multi-year initiative. Analyzing historical spending trends for MAJIIC and similar coalition-focused ISR R&D programs would reveal whether this award is typical, high, or low relative to past investments in achieving similar technological objectives.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for R&D?

Cost Plus Fixed Fee (CPFF) contracts, while common for R&D where scope can be uncertain, carry inherent risks for the government. The primary risk is that the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. If costs escalate beyond initial projections, the government bears the financial burden. For R&D, this risk is amplified because the technical challenges and the effort required to overcome them are often not fully predictable at the outset. Effective oversight is crucial to ensure that costs are reasonable, allocable, and allowable, and that the contractor exercises due diligence in managing expenses. The fixed fee, while intended to provide incentive, might not always align perfectly with the actual effort expended if unforeseen technical hurdles arise, potentially leading to a contractor receiving a disproportionately high fee relative to the ultimate success or complexity of the work.

What is the expected impact of this R&D on future defense capabilities and interoperability?

This R&D contract for the MAJIIC COALITION is expected to significantly impact future defense capabilities by advancing the integration and collaboration of multisensor intelligence, surveillance, and reconnaissance (ISR) data across allied forces. The goal is to improve the fusion of information from various sources (air, ground, space-based sensors) and make it more accessible and actionable for coalition partners. This enhanced interoperability can lead to better situational awareness, faster decision-making, and more effective joint operations. The successful development of technologies under this contract could pave the way for next-generation ISR systems, improved data analytics, and more seamless information sharing architectures, ultimately strengthening collective security and operational effectiveness in complex, multinational environments.

How does the 'full and open competition' award mechanism influence the cost-effectiveness of this contract?

The 'full and open competition' award mechanism is designed to maximize cost-effectiveness by allowing any responsible source to submit an offer. This broad solicitation encourages a wider range of potential contractors to compete, fostering a more robust marketplace. The increased number of bidders typically drives down prices as companies vie for the contract. Furthermore, competition incentivizes offerors to propose innovative and efficient solutions to meet the government's requirements. In the context of this $13.5 million R&D contract, full and open competition suggests that the Department of Defense sought the best possible value by leveraging the competitive landscape. While the CPFF structure itself has cost risks, the competitive bidding process aims to establish a fair and reasonable baseline for both the costs and the fixed fee, ensuring that taxpayer funds are utilized efficiently in pursuit of advanced technological development.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 300 SCIENCE PARK RD, STATE COLLEGE, PA, 16803

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,836,649

Exercised Options: $14,836,649

Current Obligation: $13,511,170

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline