Raytheon Awarded $122M DoD Contract for Space Technology Research, Ending March 2029

Contract Overview

Contract Amount: $12,223,661 ($12.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-09-09

End Date: 2029-03-09

Contract Duration: 1,642 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SPACE TECHNOLOGY ADVANCED RESEARCH - FAST-TRACKING INNOVATIVE SOFTWARE AND HARDWARE (STAR-FISH) ADVANCED RESEARCH ANNOUNCEMENT (ARA) # FA9453-21-S-0001, CALL 01

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to RAYTHEON COMPANY for work described as: SPACE TECHNOLOGY ADVANCED RESEARCH - FAST-TRACKING INNOVATIVE SOFTWARE AND HARDWARE (STAR-FISH) ADVANCED RESEARCH ANNOUNCEMENT (ARA) # FA9453-21-S-0001, CALL 01 Key points: 1. Significant investment in advanced space technology R&D. 2. Raytheon Company, a major defense contractor, is the awardee. 3. Contract duration is over 5 years, indicating long-term project scope. 4. Focus on physical, engineering, and life sciences research.

Value Assessment

Rating: good

The contract value of $122.2 million for a 5-year R&D effort appears reasonable given the specialized nature of space technology. Benchmarking against similar advanced research contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, potentially leading to more competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for cutting-edge research with potential long-term national security benefits.

Public Impact

Advancement of US space capabilities. Potential for new technological breakthroughs. Support for high-tech R&D jobs. Long-term strategic investment in national defense.

Waste & Efficiency Indicators

Waste Risk Score: 74 / 10

Warning Flags

  • Contract duration may exceed immediate needs.
  • Cost-plus contracts can sometimes lead to cost overruns.
  • Limited visibility into specific R&D outcomes.

Positive Signals

  • Awarded through full and open competition.
  • Focus on critical R&D areas.
  • Long-term commitment to innovation.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority and national security.

Small Business Impact

The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of specific subcontracts or set-asides for small businesses in the provided data.

Oversight & Accountability

The Department of the Air Force is the awarding agency, implying oversight through their established R&D program management structures. Further oversight details would require examination of the contract's specific reporting requirements.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Long contract duration.
  • Large prime contractor awardee.
  • No explicit small business participation noted.

Tags

research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to RAYTHEON COMPANY. SPACE TECHNOLOGY ADVANCED RESEARCH - FAST-TRACKING INNOVATIVE SOFTWARE AND HARDWARE (STAR-FISH) ADVANCED RESEARCH ANNOUNCEMENT (ARA) # FA9453-21-S-0001, CALL 01

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 $12.2 million.

What is the period of performance?

Start: 2024-09-09. End: 2029-03-09.

What specific technological advancements are expected from this STAR-FISH ARA?

The STAR-FISH ARA aims to accelerate innovative software and hardware development for space applications. While specific outcomes are not detailed, the focus on physical, engineering, and life sciences suggests advancements in areas like satellite technology, space-based sensing, advanced materials, or novel propulsion systems, ultimately enhancing national security capabilities.

What are the primary risks associated with a Cost Plus Fixed Fee contract for advanced R&D?

The primary risks with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D include potential cost overruns if the contractor's estimated costs are inaccurate, and the fixed fee may not adequately incentivize efficiency if the base cost is too high. The government bears the risk of cost increases, while the contractor is incentivized to complete the work within the estimated cost to maximize their fee.

How does this investment align with broader DoD space strategy and potential effectiveness?

This investment likely aligns with the DoD's strategic imperative to maintain dominance in the space domain. By funding advanced research through competitive means, the DoD aims to foster innovation that can lead to more resilient, capable, and cost-effective space systems, thereby enhancing overall mission effectiveness and national security posture.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: FA945321S0001

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 75 COROMAR DR, GOLETA, CA, 93117

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: $26,452,690

Exercised Options: $26,452,690

Current Obligation: $12,223,661

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $37,081

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2024-09-09

Current End Date: 2029-03-09

Potential End Date: 2029-03-09 00:00:00

Last Modified: 2026-03-23

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