DoD Awards Raytheon $54.1M for Radar Models & Simulations Amidst Full & Open Competition

Contract Overview

Contract Amount: $54,122,775 ($54.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2018-01-12

End Date: 2021-04-30

Contract Duration: 1,204 days

Daily Burn Rate: $45.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: MODELS AND SIMULATIONS SUPPORT IGF::OT::IGF CONTRACT PROVIDES THE SERVICES REQUIRED TO MEET THE AGENCY'S NEEDS FOR DEVELOPMENT OF MODELS AND SIMULATIONS FOR TESTING OF AN/TPY-2, UEWR, AND CD RADARS. IGF::OT::IGF

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $54.1 million to RAYTHEON COMPANY for work described as: MODELS AND SIMULATIONS SUPPORT IGF::OT::IGF CONTRACT PROVIDES THE SERVICES REQUIRED TO MEET THE AGENCY'S NEEDS FOR DEVELOPMENT OF MODELS AND SIMULATIONS FOR TESTING OF AN/TPY-2, UEWR, AND CD RADARS. IGF::OT::IGF Key points: 1. Significant contract value of $54.1M awarded to Raytheon Company. 2. Competition was full and open, suggesting a competitive bidding process. 3. Potential risk associated with the Cost Plus Award Fee contract type. 4. Services fall under Engineering Services (NAICS 541330), crucial for defense capabilities.

Value Assessment

Rating: good

The contract value of $54.1M for engineering services appears reasonable given the duration and scope. Benchmarking against similar large-scale defense engineering 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, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered in developing critical radar simulation models.

Public Impact

Enhances critical radar testing capabilities for the Missile Defense Agency. Supports advanced defense systems like AN/TPQ-2, UEWR, and CD radars. Ensures technological superiority in missile defense through robust modeling and simulation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure can incentivize cost overruns if not managed carefully.
Contract duration of 1204 days requires sustained oversight.

Positive Signals

Full and open competition promotes a competitive environment.
Award to a known entity (Raytheon) suggests established capability.

Sector Analysis

This contract falls within the Engineering Services sector, a critical area for the Department of Defense. Spending in this sector is often substantial due to the complexity and national security implications of defense projects.

Small Business Impact

The data indicates the prime contractor is Raytheon Company, a large business. There is no explicit information regarding small business participation in this specific delivery order, which warrants further investigation.

Oversight & Accountability

The contract's duration and cost-plus nature necessitate robust oversight from the Missile Defense Agency to ensure performance objectives are met and costs are controlled effectively.

Related Government Programs

Engineering Services
Department of Defense Contracting
Missile Defense Agency Programs

Risk Flags

Cost Plus Award Fee contract type.
Long contract duration requiring sustained oversight.
Lack of explicit small business participation data.
Potential for cost overruns if award fee criteria are not strictly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.1 million to RAYTHEON COMPANY. MODELS AND SIMULATIONS SUPPORT IGF::OT::IGF CONTRACT PROVIDES THE SERVICES REQUIRED TO MEET THE AGENCY'S NEEDS FOR DEVELOPMENT OF MODELS AND SIMULATIONS FOR TESTING OF AN/TPY-2, UEWR, AND CD RADARS. IGF::OT::IGF

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 $54.1 million.

What is the period of performance?

Start: 2018-01-12. End: 2021-04-30.

What specific performance metrics are tied to the award fee in this Cost Plus Award Fee contract, and how are they measured?

The specific performance metrics tied to the award fee are not detailed in the provided data. Typically, for Cost Plus Award Fee contracts, these metrics would relate to technical performance, schedule adherence, and cost control. The Missile Defense Agency would have established criteria and a process for evaluating Raytheon's performance against these metrics to determine the award fee amount.

How does the cost of developing these specific radar models and simulations compare to industry benchmarks for similar engineering services?

Without access to detailed cost breakdowns and specific industry benchmark data for AN/TPQ-2, UEWR, and CD radar modeling, a precise comparison is difficult. However, the $54.1M award over approximately 3.3 years suggests a significant investment. Further analysis would require comparing labor rates, overhead, and complexity factors against similar government or private sector contracts for advanced simulation development.

What is the potential impact on national security if the development of these models and simulations is delayed or does not meet performance requirements?

Delays or performance failures in developing these critical radar models and simulations could significantly impair the effectiveness of the Missile Defense Agency's testing and evaluation capabilities. This could lead to reduced confidence in the performance of key radar systems, potentially compromising the nation's missile defense posture and response readiness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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: HQ014716R0051

Pricing Type: COST PLUS AWARD FEE (R)

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: $55,571,626

Exercised Options: $55,571,626

Current Obligation: $54,122,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014718D0003

IDV Type: IDC

Timeline