DoD Awards Raytheon $135.6M for C-RAM and C-UAS System Enhancements

Contract Overview

Contract Amount: $135,627,536 ($135.6M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2017-05-19

End Date: 2022-08-29

Contract Duration: 1,928 days

Daily Burn Rate: $70.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF CET 17-750, ENHANCED KU RADIO FREQUENCY SYSTEM (KRFS) CAPABILITY AND LONGEVITY BATTLEFIELD RESET (EKSCALBR) THE PURPOSE OF THIS TASK IT TO PROVIDE OPERATIONAL SYSTEM ENHANCEMENTS, BASED ON THE ADAPTING THREAT ENVIRONMENT AND MULTI-MISSION CAPABILITY NEEDS FOR EXISTING COUNTER ROCKET ARTILLERY MORTAR (C-RAM) SYSTEMS, INCLUDING MAINTAINING THE SENSE AND WARN MISSION CAPABILITY WHILE ALSO PROVIDING A COUNTER UNMANNED AIRCRAFT SYSTEM (C-UAS) AIR SITUATIONAL AWARENESS PICTURE AND ADDRESSING THE LAND-BASED PHALANX WEAPON SYSTEM (LPWS) INTERCEPT MISSION.

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $135.6 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF CET 17-750, ENHANCED KU RADIO FREQUENCY SYSTEM (KRFS) CAPABILITY AND LONGEVITY BATTLEFIELD RESET (EKSCALBR) THE PURPOSE OF THIS TASK IT TO PROVIDE OPERATIONAL SYSTEM ENHANCEMENTS, BASED ON THE ADAPTING THREAT ENVIRONMENT AND MULTI-MISSION CAPABILITY NEEDS FOR EXISTI… Key points: 1. The contract focuses on upgrading Counter Rocket, Artillery, and Mortar (C-RAM) systems to counter evolving threats, including Unmanned Aircraft Systems (C-UAS). 2. Raytheon Company, a major defense contractor, received the award. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The spending is categorized under Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract value of $135.6 million for a 1928-day duration (approximately 5.3 years) appears reasonable for complex defense system enhancements. Benchmarking against similar C-RAM/C-UAS upgrade contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently, with pricing driven by market forces rather than sole-source arrangements.

Public Impact

Enhances battlefield security against evolving threats like drones. Supports critical C-RAM capabilities for protecting military bases. Improves situational awareness for ground-based defense systems. Contributes to the modernization of U.S. defense technology.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Potential for scope creep in adapting to 'adapting threat environment'.
Cost-plus fixed fee contract type can incentivize higher costs if not managed closely.

Positive Signals

Addresses critical national defense needs.
Utilizes full and open competition.
Focuses on enhancing existing, proven systems.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on advanced electronic systems and weapon platform upgrades. Spending benchmarks for similar C-RAM and C-UAS development and sustainment contracts would be relevant for a detailed comparison.

Small Business Impact

The data indicates that this contract was awarded to Raytheon Company and does not mention any specific subcontracting goals or awards to small businesses. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Department of Defense through the Defense Microelectronics Activity. Oversight would typically involve program management reviews, performance monitoring, and financial audits to ensure contract compliance and effective use of funds.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Microelectronics Activity Programs

Risk Flags

Cost-plus fixed fee contract type.
Potential for evolving threat landscape to impact scope and cost.
Reliance on a single prime contractor for critical system upgrades.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $135.6 million to RAYTHEON COMPANY. IGF::OT::IGF CET 17-750, ENHANCED KU RADIO FREQUENCY SYSTEM (KRFS) CAPABILITY AND LONGEVITY BATTLEFIELD RESET (EKSCALBR) THE PURPOSE OF THIS TASK IT TO PROVIDE OPERATIONAL SYSTEM ENHANCEMENTS, BASED ON THE ADAPTING THREAT ENVIRONMENT AND MULTI-MISSION CAPABILITY NEEDS FOR EXISTING COUNTER ROCKET ARTILLERY MORTAR (C-RAM) SYSTEMS, INCLUDING MAINTAINING THE SENSE AND WARN MISSION CAPABILITY WHILE ALSO PROVIDING A COUNTER UNMANNED AIRCRAFT SYSTEM (C-UAS) AIR SITUATIONAL AWARENESS PICTURE AND ADDRES

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Microelectronics Activity).

What is the total obligated amount?

The obligated amount is $135.6 million.

What is the period of performance?

Start: 2017-05-19. End: 2022-08-29.

What specific technological advancements are being implemented in the KRFS system enhancements?

The contract aims to integrate capabilities for Counter Unmanned Aircraft Systems (C-UAS) and enhance the Land-Based Phalanx Weapon System (LPWS) intercept mission, alongside maintaining existing Counter Rocket, Artillery, and Mortar (C-RAM) sense and warn functions. This suggests advancements in sensor fusion, target tracking, and potentially directed energy or advanced projectile integration for C-UAS threats.

What are the primary risks associated with the 'adapting threat environment' mentioned in the contract's purpose?

The primary risks stem from the dynamic nature of evolving threats, particularly from unmanned systems and advanced adversary tactics. This necessitates continuous adaptation and potential re-scoping of the system's capabilities, which could lead to schedule delays, cost overruns, and the risk of the system becoming obsolete if threat evolution outpaces development.

How effectively will these enhancements improve the military's ability to counter drone threats compared to current systems?

The contract explicitly aims to provide Counter Unmanned Aircraft System (C-UAS) air situational awareness, indicating a direct effort to bolster drone defense. By integrating this with existing C-RAM systems and the LPWS, the enhancements are intended to offer a more comprehensive, layered defense. The effectiveness will depend on the successful integration and performance validation of the new sensor and engagement capabilities against a range of drone threats.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ072715R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245

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: $135,627,536

Exercised Options: $135,627,536

Current Obligation: $135,627,536

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ072716D0006

IDV Type: IDC

Timeline