DoD's $9.8M NCADE Contract with Raytheon: R&D for Missile Defense
Contract Overview
Contract Amount: $9,830,752 ($9.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2007-03-06
End Date: 2008-06-30
Contract Duration: 482 days
Daily Burn Rate: $20.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NET CENTRIC AIRBORNE DEFENSE ELEMENT (NCADE)
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85706
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $9.8 million to RAYTHEON COMPANY for work described as: NET CENTRIC AIRBORNE DEFENSE ELEMENT (NCADE) Key points: 1. Contract awarded to Raytheon Company for Net Centric Airborne Defense Element (NCADE). 2. Focuses on Research and Development in Physical, Engineering, and Life Sciences (NAICS 541710). 3. Awarded under Full and Open Competition, suggesting a competitive bidding process. 4. Contract duration was 482 days, ending June 30, 2008. 5. Total award amount was $9,830,752.
Value Assessment
Rating: fair
The contract was Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award amount of $9.8M for R&D is moderate.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under Full and Open Competition, indicating multiple bidders were allowed. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The $9.8M spent on R&D for missile defense aims to enhance national security, representing a strategic investment of taxpayer funds.
Public Impact
Enhances national defense capabilities through advanced missile defense technology. Supports technological advancement in the aerospace and defense sector. Potential for spin-off technologies benefiting other industries. Invests in specialized R&D, contributing to scientific and engineering progress.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractor inefficiency.
- R&D projects inherently carry risk of not achieving desired outcomes.
- Contract duration was relatively short for complex R&D.
Positive Signals
- Awarded through full and open competition.
- Focuses on critical national security area (missile defense).
- Contract awarded to a reputable defense contractor.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this contract.
Oversight & Accountability
Oversight would typically be managed by the Missile Defense Agency. The contract type and competitive award suggest a structured process, but specific oversight details are not provided.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- R&D inherently carries technical risk.
- Limited duration for complex research.
- No explicit mention of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, az, dca, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.8 million to RAYTHEON COMPANY. NET CENTRIC AIRBORNE DEFENSE ELEMENT (NCADE)
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $9.8 million.
What is the period of performance?
Start: 2007-03-06. End: 2008-06-30.
What were the specific R&D outcomes and technological advancements achieved by the NCADE project?
The specific R&D outcomes and technological advancements achieved by the NCADE project are not detailed in the provided data. Further investigation into project reports or agency documentation would be required to ascertain the tangible results and their impact on missile defense capabilities.
How did the Cost Plus Fixed Fee structure impact the final cost and contractor performance compared to other contract types for similar R&D?
Cost Plus Fixed Fee contracts aim to provide flexibility for R&D where costs are uncertain, but they can incentivize contractors to incur higher costs to increase their fixed fee profit margin. Without comparative data from similar contracts, it's difficult to definitively assess if this structure led to higher costs or impacted performance negatively or positively for this specific NCADE project.
What is the long-term strategic value and effectiveness of the NCADE technology developed under this contract for the Department of Defense?
The long-term strategic value and effectiveness of the NCADE technology are not explicitly stated. However, R&D in net-centric airborne defense is critical for modernizing military capabilities, enabling better situational awareness and response. The success of this contract would contribute to the DoD's overall objective of maintaining a technological edge in missile defense systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
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: 1151 E HERMANS RD, TUCSON, AZ, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,830,752
Exercised Options: $9,830,752
Current Obligation: $9,830,752
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-03-06
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2011-05-16
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