DoD Awards $36.3M Competitive Contract to Raytheon for Early Warning Radar Upgrade
Contract Overview
Contract Amount: $360,442,101 ($360.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2012-07-24
End Date: 2022-07-29
Contract Duration: 3,657 days
Daily Burn Rate: $98.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: R&D
Official Description: IGF::CL,CT::IGF AWARD OF A COMPETITIVE CONTRACT. OBLIGATION AMOUNT OF $36,356,570 FOR THE UPGRADE OF THE EARLY WARNING RADAR (UEWR).
Place of Performance
Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801
Plain-Language Summary
Department of Defense obligated $360.4 million to RAYTHEON COMPANY for work described as: IGF::CL,CT::IGF AWARD OF A COMPETITIVE CONTRACT. OBLIGATION AMOUNT OF $36,356,570 FOR THE UPGRADE OF THE EARLY WARNING RADAR (UEWR). Key points: 1. Contract awarded to Raytheon Company for $36.3M. 2. Purpose: Upgrade of the Early Warning Radar (UEWR). 3. Competition: Full and open competition. 4. Sector: Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: good
The obligation amount of $36.3M for the UEWR upgrade appears reasonable given the nature of advanced radar system development. Benchmarking against similar large-scale defense R&D contracts would provide further context.
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 typically leads to more competitive pricing by allowing all eligible sources to submit proposals.
Taxpayer Impact: The competitive nature of this award is expected to yield a fair price for taxpayers, ensuring value for money in a critical defense capability.
Public Impact
Enhances national security through improved early warning capabilities. Supports advanced technological development in radar systems. Potential for follow-on contracts for maintenance and further upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is extensive (10 years).
- Fixed Price Incentive contract type can lead to cost overruns if not managed closely.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical defense need for early warning.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Missile Defense Agency is responsible for overseeing this contract. Standard oversight mechanisms for large R&D contracts should be in place to ensure performance and cost control.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Long contract duration (10 years) increases exposure to changing technological landscapes and potential obsolescence.
- Fixed Price Incentive contracts carry inherent risks of cost overruns if performance targets are challenging or scope creep occurs.
- Dependence on a single contractor (Raytheon) for a critical defense system.
- Potential for integration challenges with existing or future defense systems.
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $360.4 million to RAYTHEON COMPANY. IGF::CL,CT::IGF AWARD OF A COMPETITIVE CONTRACT. OBLIGATION AMOUNT OF $36,356,570 FOR THE UPGRADE OF THE EARLY WARNING RADAR (UEWR).
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 $360.4 million.
What is the period of performance?
Start: 2012-07-24. End: 2022-07-29.
What is the projected return on investment for this radar upgrade in terms of enhanced threat detection capabilities?
The projected return on investment for the UEWR upgrade is primarily measured by its enhanced ability to detect and track a wider range of threats with greater accuracy and lead time. This directly contributes to national security by allowing for more effective defensive responses and strategic planning, thereby mitigating potential damages from adversary actions.
What are the key performance metrics and associated incentives within the Fixed Price Incentive contract to manage cost and schedule risks?
The Fixed Price Incentive (FPI) contract likely includes specific performance metrics related to radar functionality, detection range, accuracy, and reliability. Incentives would be tied to achieving or exceeding these metrics, while penalties or cost-sharing mechanisms would apply if targets are missed. Close monitoring of cost and schedule against established baselines is crucial to mitigate risks inherent in FPI agreements.
How does the upgraded UEWR system integrate with other elements of the Ballistic Missile Defense System to improve overall effectiveness?
The upgraded UEWR system is designed to provide critical early warning data that feeds into the broader Ballistic Missile Defense System (BMDS). Its improved capabilities in detecting and tracking ballistic missile launches allow for more precise targeting information to be passed to interceptor systems and command and control elements, thereby enhancing the overall effectiveness and responsiveness of the entire defense architecture.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ014711R0002
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
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: $362,378,596
Exercised Options: $362,200,534
Current Obligation: $360,442,101
Actual Outlays: $7,101,249
Subaward Activity
Number of Subawards: 800
Total Subaward Amount: $361,585,094
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-07-24
Current End Date: 2022-07-29
Potential End Date: 2022-07-29 00:00:00
Last Modified: 2025-07-30
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