DoD's $11.9M R&D Contract for Air Operations Planning Software Enhancements Awarded to RTX BBN Technologies

Contract Overview

Contract Amount: $11,897,085 ($11.9M)

Contractor: RTX BBN Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-24

End Date: 2027-12-24

Contract Duration: 883 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: APEX GEAR: DRIVE - AIR PLAN ENVIRONMENT FOR EXECUTION, GAMING, EXPLORATION, ASSESSMENT, AND REFINEMENT: DATA REFINEMENT, INTEGRATION, AND VISUALIZATION ENHANCEMENTS TO DEVELOP AND TRANSITION SOFTWARE TOOLS TO SUPPORT AIR OPERATIONS PLANNING

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to RTX BBN TECHNOLOGIES, INC. for work described as: APEX GEAR: DRIVE - AIR PLAN ENVIRONMENT FOR EXECUTION, GAMING, EXPLORATION, ASSESSMENT, AND REFINEMENT: DATA REFINEMENT, INTEGRATION, AND VISUALIZATION ENHANCEMENTS TO DEVELOP AND TRANSITION SOFTWARE TOOLS TO SUPPORT AIR OPERATIONS PLANNING Key points: 1. Contract focuses on refining and visualizing data for air operations planning software. 2. Awarded under a Full and Open Competition, indicating broad market engagement. 3. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 4. Performance period spans over three years, suggesting a need for sustained development. 5. The North American Industry Classification System (NAICS) code 541715 points to significant R&D investment. 6. This contract is part of a larger trend in defense spending on advanced software and data analytics.

Value Assessment

Rating: fair

The contract value of $11.9 million for research and development in advanced software tools appears moderate for the defense sector. Benchmarking against similar R&D contracts for software development and data visualization within the Department of Defense is necessary for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in research, can sometimes lead to higher costs if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Without detailed cost breakdowns and comparisons to industry standards for similar R&D efforts, it is difficult to definitively assess the pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. A full and open competition is the preferred method for government contracting as it maximizes the pool of potential offerors and promotes a fair and transparent process. The level of competition achieved will influence the final price and the quality of the proposed solution.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by leveraging market competition to drive down costs and improve service delivery.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will receive enhanced software tools for air operations planning. The services delivered include data refinement, integration, and visualization, crucial for effective military strategy. The geographic impact is primarily within the defense sector, supporting national security objectives. Workforce implications may include specialized software engineers, data scientists, and R&D personnel at RTX BBN Technologies and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost overruns if not closely monitored.
The duration of the contract (over 3 years) requires sustained oversight to ensure milestones are met.
Reliance on a single contractor for critical software development could pose long-term dependency risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
RTX BBN Technologies is a known entity in defense contracting, implying a degree of established capability.
Focus on R&D for critical air operations planning indicates a strategic investment in future capabilities.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers physical, engineering, and life sciences R&D. This segment of the defense industry is characterized by significant government investment in innovation and technological advancement. The market for defense software and data analytics is highly competitive, with major defense contractors and specialized technology firms vying for contracts. Comparable spending benchmarks in this area are often in the millions of dollars for complex software development and integration projects, reflecting the specialized expertise and resources required.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, RTX BBN Technologies, may engage small businesses as subcontractors for specialized services or components, depending on their subcontracting plan and the nature of the work. The absence of a small business set-aside means the primary competition was open to all eligible large businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress against defined milestones. Transparency is expected through contract reporting mechanisms and potential reviews by the Government Accountability Office (GAO) or the Inspector General, particularly concerning cost management and performance. The fixed fee component provides a degree of financial accountability for the contractor's profit.

Related Government Programs

Air Force Command and Control Systems
Defense Intelligence Systems
Software Development Services
Data Analytics Platforms
Military Simulation and Training Software

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Technical Performance Uncertainty (R&D Nature)
Integration Challenges with Existing Systems
Data Security and Handling Protocols

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to RTX BBN TECHNOLOGIES, INC.. APEX GEAR: DRIVE - AIR PLAN ENVIRONMENT FOR EXECUTION, GAMING, EXPLORATION, ASSESSMENT, AND REFINEMENT: DATA REFINEMENT, INTEGRATION, AND VISUALIZATION ENHANCEMENTS TO DEVELOP AND TRANSITION SOFTWARE TOOLS TO SUPPORT AIR OPERATIONS PLANNING

Who is the contractor on this award?

The obligated recipient is RTX BBN TECHNOLOGIES, INC..

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 $11.9 million.

What is the period of performance?

Start: 2025-07-24. End: 2027-12-24.

What is RTX BBN Technologies' track record with similar Department of Defense software development contracts?

RTX BBN Technologies, a subsidiary of RTX Corporation (formerly Raytheon Technologies), has a substantial history of performing complex research, development, and engineering services for the Department of Defense and other government agencies. They have been involved in numerous projects related to advanced computing, artificial intelligence, signal processing, and communication systems. Their experience often includes developing and integrating sophisticated software solutions for command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) applications. Specific to air operations, their past work likely includes contributions to simulation, planning, and data analysis tools. A detailed review of their contract history, including past performance evaluations and any reported issues, would provide further insight into their reliability and capability for this specific "APEX GEAR" project.

How does the $11.9 million value compare to similar R&D contracts for air operations software?

The $11.9 million contract value for "APEX GEAR" is within a typical range for specialized R&D efforts in defense software development. Contracts for developing and enhancing complex software tools, particularly those involving data integration, visualization, and advanced algorithms for strategic planning, often fall into the multi-million dollar category. For instance, similar projects focusing on command and control systems, intelligence analysis platforms, or simulation software within the Air Force or other branches can range from a few million to tens of millions of dollars, depending on the scope, duration, and technological complexity. The "APEX GEAR" contract's focus on "DATA REFINEMENT, INTEGRATION, AND VISUALIZATION ENHANCEMENTS" suggests a significant but not exceptionally large undertaking compared to developing entirely new, large-scale weapon systems software.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for R&D like "APEX GEAR" is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing their profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses, while the contractor's profit remains fixed. This can disincentivize cost control if not managed rigorously. For the government, effective oversight is crucial to ensure that all costs claimed are reasonable, allocable, and necessary for the project. Scope creep, where the project's requirements expand beyond the original agreement, is another significant risk that can drive up costs under a CPFF arrangement.

How effective is the 'full and open competition' approach likely to be for this specialized R&D requirement?

A 'full and open competition' approach is generally considered the most effective method for ensuring the government receives the best value, especially for specialized R&D requirements like the "APEX GEAR" contract. This method maximizes the pool of potential offerors, allowing the government to solicit proposals from a wide range of qualified companies, including both large established contractors and potentially innovative smaller firms. The competition drives innovation and encourages offerors to present their most compelling technical solutions and competitive pricing. For specialized R&D, the key to effectiveness lies in the government's ability to clearly define the requirement and establish robust evaluation criteria that accurately assess technical merit, past performance, and price. The success of the competition hinges on attracting a sufficient number of qualified bidders who understand the technical nuances of air operations planning software.

What are the potential implications of this contract on future Air Force air operations planning capabilities?

This contract has the potential to significantly enhance future Air Force air operations planning capabilities by improving the software tools used for data refinement, integration, and visualization. Enhanced data handling and clearer visualization can lead to more informed and timely decision-making during planning phases, potentially improving mission effectiveness and reducing risks. The transition of developed software tools is critical; if successful, it could streamline complex planning processes, allow for more dynamic scenario modeling, and provide operators with a more comprehensive understanding of the operational environment. This investment in R&D signals a commitment to leveraging advanced technology to maintain a strategic advantage in air power projection and operational planning.

How does the NAICS code 541715 (Research and Development in Physical, Engineering, and Life Sciences) inform the nature of this contract?

The classification under NAICS code 541715 signifies that this contract is fundamentally focused on research and development activities within the physical, engineering, and life sciences domains, excluding specific areas like nanotechnology and biotechnology. For the "APEX GEAR" contract, this means the work involves systematic study and investigation to gain new knowledge and understanding, leading to the development of new or improved software tools and processes for air operations planning. It implies a degree of uncertainty and exploration inherent in R&D, where outcomes are not guaranteed and the process involves experimentation and iteration. This classification guides the type of work expected, the expertise required from the contractor (likely scientists and engineers), and the regulatory and reporting frameworks applicable to R&D contracts.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA875022S7001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 10 MOULTON ST, CAMBRIDGE, MA, 02138

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,708,763

Exercised Options: $33,708,763

Current Obligation: $11,897,085

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline