Raytheon Company awarded $37.76M for E-4B Advanced Extremely High Frequency (AEHF) Integration, Phase 2

Contract Overview

Contract Amount: $37,760,039 ($37.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2017-09-20

End Date: 2022-04-30

Contract Duration: 1,683 days

Daily Burn Rate: $22.4K/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 ENGINEERING SERVICES, CET 17-788, E-4B ADVANCED EXTREMELY HIGH FREQUENCY (AEHF) INTEGRATION, PHASE 2 (E-4B INTEGRATION PHASE 2). THE PURPOSE OF THIS TASK IS TO DEVELOP AN INTEGRATED SOLUTION FOR FAB-T AND PNVC CAPABILITY INCLUDING HARDWARE AND SOFTWARE DESIGN ON THE E-4B PLATFORM INCLUDING CORRESPONDING TIME CHANGE TECHNICAL ORDERS (TCTOS), MODIFICATION KIT DEVELOPMENT, AND PROTOTYPE AIRCRAFT INSTALLATION.

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $37.8 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF ENGINEERING SERVICES, CET 17-788, E-4B ADVANCED EXTREMELY HIGH FREQUENCY (AEHF) INTEGRATION, PHASE 2 (E-4B INTEGRATION PHASE 2). THE PURPOSE OF THIS TASK IS TO DEVELOP AN INTEGRATED SOLUTION FOR FAB-T AND PNVC CAPABILITY INCLUDING HARDWARE AND SOFTWARE DESIGN ON THE… Key points: 1. Contract focuses on integrating advanced communication hardware and software onto the E-4B platform. 2. The task includes developing technical orders, modification kits, and prototype aircraft installation. 3. This contract represents a significant investment in modernizing critical command and control capabilities. 4. The duration of the contract spans over 1600 days, indicating a complex and lengthy integration process. 5. The chosen contract type (Cost Plus Fixed Fee) suggests potential for cost overruns if not managed carefully. 6. The project is situated in California, a hub for aerospace and defense contracting.

Value Assessment

Rating: fair

The contract value of $37.76 million for engineering services related to E-4B platform integration appears reasonable given the complexity and duration. However, without specific benchmarks for similar E-4B upgrade projects or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure introduces inherent risks for cost control, as contractor profit is tied to costs incurred. This necessitates robust oversight to ensure efficiency and prevent unnecessary expenditures.

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 submit proposals. This competitive process is generally expected to yield fair pricing and encourage innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages contractors to offer their best value propositions.

Public Impact

The primary beneficiaries are the U.S. Air Force and its personnel who rely on the E-4B platform for national command and control. The services delivered include the design, development, and installation of advanced communication systems. The geographic impact is concentrated within the United States, specifically where the E-4B aircraft are based and maintained. Workforce implications include specialized engineering, technical, and installation roles, likely supporting high-skilled jobs in the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed diligently.
Long contract duration (over 1600 days) increases the risk of scope creep and schedule delays.
Integration of complex systems on a legacy platform like the E-4B presents technical challenges.
Reliance on a single contractor for a critical integration phase may limit future flexibility.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Focus on advanced technology integration for a critical national asset (E-4B).
Contractor (Raytheon Company) is a major defense contractor with relevant experience.
Clear definition of scope including hardware, software, technical orders, and installation.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on advanced communication systems integration for military aircraft. The market for such specialized engineering services is dominated by large defense contractors. Spending in this area is driven by the need to maintain and upgrade aging platforms with modern capabilities to ensure operational readiness and technological superiority. Comparable spending benchmarks would typically involve other major aircraft modification and integration programs.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests the contract was awarded based on technical capability and price rather than a specific small business goal. While large prime contractors often utilize small business subcontractors, the direct award to Raytheon Company implies that the primary focus was on the prime's capabilities. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract would likely be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to monitor costs and prevent overruns. Transparency is typically maintained through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

E-4B National Airborne Operations Center
Advanced Extremely High Frequency (AEHF) Satellite System
Military Aircraft Modernization Programs
Aerospace Engineering Services Contracts
Defense Communication Systems Integration

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent cost overrun risk.
Long contract duration increases potential for schedule slippage and scope creep.
Integration complexity on a legacy platform presents technical challenges.
Potential for reliance on a single vendor for critical system integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.8 million to RAYTHEON COMPANY. IGF::OT::IGF ENGINEERING SERVICES, CET 17-788, E-4B ADVANCED EXTREMELY HIGH FREQUENCY (AEHF) INTEGRATION, PHASE 2 (E-4B INTEGRATION PHASE 2). THE PURPOSE OF THIS TASK IS TO DEVELOP AN INTEGRATED SOLUTION FOR FAB-T AND PNVC CAPABILITY INCLUDING HARDWARE AND SOFTWARE DESIGN ON THE E-4B PLATFORM INCLUDING CORRESPONDING TIME CHANGE TECHNICAL ORDERS (TCTOS), MODIFICATION KIT DEVELOPMENT, AND PROTOTYPE AIRCRAFT INSTALLATION.

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $37.8 million.

What is the period of performance?

Start: 2017-09-20. End: 2022-04-30.

What is Raytheon Company's track record with similar E-4B platform modifications or complex aerospace integration projects?

Raytheon Company, now part of RTX, has a long history of providing advanced defense systems and integration services for military platforms. While specific details on their E-4B modification track record require deeper research into historical contracts and performance reviews, the company is a major player in aerospace and defense. They have experience with complex system integration, including communications, avionics, and command and control systems across various aircraft types. Their involvement in programs like the AEHF system itself suggests a foundational understanding of the technologies being integrated. However, the success of this specific Phase 2 integration would depend on detailed project management, technical execution, and adherence to budget and schedule, which are assessed through ongoing contract performance metrics.

How does the $37.76 million cost compare to similar E-4B upgrade or integration projects?

Directly comparing the $37.76 million cost to similar E-4B upgrade projects is challenging without access to proprietary contract data for comparable efforts. The E-4B platform is unique and aging, making upgrades complex and potentially costly. Factors influencing cost include the specific systems being integrated (advanced communications in this case), the scope of hardware and software development, the number of aircraft affected, and the duration of the integration effort. Given the contract duration of over 1600 days and the nature of integrating advanced communication capabilities, the cost appears within a plausible range for such specialized military aerospace work. However, a definitive value assessment would require benchmarking against other major platform modernization programs with similar technical complexities and contract types.

What are the primary risks associated with integrating advanced communication systems onto the E-4B platform, and how are they mitigated?

Key risks include technical integration challenges due to the age and architecture of the E-4B platform, potential compatibility issues between new hardware/software and existing systems, schedule delays from unforeseen technical hurdles, and cost overruns, particularly with the Cost Plus Fixed Fee (CPFF) contract type. Mitigation strategies typically involve rigorous systems engineering and integration planning, phased development and testing (including prototyping and installation), robust project management with clear milestones, and close oversight by the contracting agency (DCMA). The contract's full and open competition also aims to mitigate risks by selecting a contractor with proven capabilities. Continuous risk assessment and proactive problem-solving are crucial throughout the project lifecycle.

What is the expected impact of this integration on the E-4B's operational effectiveness and mission capabilities?

The integration of Advanced Extremely High Frequency (AEHF) communication capabilities is expected to significantly enhance the E-4B's operational effectiveness by providing more secure, robust, and higher-bandwidth communication links. This is critical for the E-4B's role as a survivable airborne command post, enabling reliable command and control under adverse conditions. Improved communication ensures better connectivity with strategic forces, national leadership, and global assets. The upgrade aims to modernize the platform's communication suite, ensuring it can interface with next-generation satellite networks and maintain its relevance as a strategic asset in a rapidly evolving threat environment.

How has spending on E-4B platform sustainment and upgrades evolved over the past decade?

Historical spending data on E-4B platform sustainment and upgrades over the past decade would reveal a trend of increasing investment necessary to maintain the operational readiness of these aging aircraft. As the E-4B fleet approaches its end-of-life, significant funds are allocated towards modernization efforts, including avionics upgrades, communication system enhancements (like the AEHF integration), and structural repairs. This spending is driven by the critical national security mission the E-4B performs and the need to counter technological obsolescence. Detailed analysis would likely show fluctuating annual expenditures based on specific upgrade phases and sustainment needs, but an overall upward trend in modernization-focused spending is probable.

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: 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: Rockwell Collins Australia PTY Limited

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: $37,760,039

Exercised Options: $37,760,039

Current Obligation: $37,760,039

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $4,790,948

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