DoD's $94.7M contract for radar system enhancements awarded to Raytheon Company

Contract Overview

Contract Amount: $94,744,029 ($94.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2018-06-29

End Date: 2022-12-15

Contract Duration: 1,630 days

Daily Burn Rate: $58.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SERVICES, CET 18-852, RANGE AMPLIFICATION FOR INDIRECT FIRE EXPEDITIONARY RADAR (RAPIER). THE PURPOSE OF THIS TASK IT TO PROVIDE OPERATIONAL SYSTEM ENHANCEMENTS FOR THE MULTI-MISSION RADAR (MMR) TO ENSURE PERFORMANCE FOR COUNTER ROCKET ARTILLERY MORTAR (C-RAM) SYSTEMS AND COUNTER UNMANNED AIRCRAFT SYSTEM (C-UAS) MISSIONS.

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $94.7 million to RAYTHEON COMPANY for work described as: ENGINEERING SERVICES, CET 18-852, RANGE AMPLIFICATION FOR INDIRECT FIRE EXPEDITIONARY RADAR (RAPIER). THE PURPOSE OF THIS TASK IT TO PROVIDE OPERATIONAL SYSTEM ENHANCEMENTS FOR THE MULTI-MISSION RADAR (MMR) TO ENSURE PERFORMANCE FOR COUNTER ROCKET ARTILLERY MORTAR (C-RAM) SYSTEMS… Key points: 1. Contract provides critical upgrades for counter-rocket, artillery, mortar, and counter-unmanned aircraft systems. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration of over 4 years indicates a significant, long-term need for these services. 4. Performance is tied to ensuring operational system enhancements for advanced radar capabilities. 5. The contract falls under engineering services, a broad category with diverse applications. 6. Awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The total award amount of $94.7 million for engineering services over approximately four years appears reasonable given the critical nature of the C-RAM and C-UAS missions. Benchmarking against similar complex defense system upgrade contracts suggests that pricing is within expected ranges for specialized engineering and integration services. The cost-plus-fixed-fee (CPFF) contract type allows for flexibility while providing a defined profit margin for the contractor, which can be efficient for evolving technical requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which can lead to better pricing and innovation. The use of full and open competition suggests that the Defense Microelectronics Activity sought the best value from a wide range of potential providers.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government is not limited to a single provider, potentially driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. military forces relying on advanced radar systems for defense against indirect fire and unmanned aerial threats. Services delivered include operational system enhancements and range amplification for the Multi-Mission Radar (MMR). The geographic impact is primarily within operational theaters where C-RAM and C-UAS capabilities are deployed. Workforce implications include specialized engineering and technical roles within Raytheon Company and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed diligently.
The complexity of radar system enhancements may introduce technical risks and potential delays.
Reliance on a single prime contractor for critical system upgrades warrants close oversight.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Focus on critical defense capabilities (C-RAM, C-UAS) addresses significant security needs.
Long contract duration allows for sustained development and integration of enhancements.

Sector Analysis

This contract falls within the broader Defense sector, specifically focusing on advanced radar and electronic warfare systems. The market for such specialized engineering services is characterized by high barriers to entry due to technical expertise, security clearances, and established relationships with government agencies. Spending in this area is driven by the continuous need to modernize military platforms and counter evolving threats, with significant government investment allocated to R&D and system upgrades.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. While the prime contractor, Raytheon Company, is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on Raytheon's procurement practices and the specific needs of the engineering services required for this program.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of Defense, likely through the Defense Microelectronics Activity. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may be considered sensitive.

Related Government Programs

Counter Rocket, Artillery, and Mortar (C-RAM) Systems
Counter Unmanned Aircraft Systems (C-UAS)
Multi-Mission Radar (MMR) Systems
Defense Radar Modernization Programs
Electronic Warfare Systems Engineering

Risk Flags

Potential for cost growth in CPFF contracts.
Technical complexity may lead to schedule delays.
Need for robust oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $94.7 million to RAYTHEON COMPANY. ENGINEERING SERVICES, CET 18-852, RANGE AMPLIFICATION FOR INDIRECT FIRE EXPEDITIONARY RADAR (RAPIER). THE PURPOSE OF THIS TASK IT TO PROVIDE OPERATIONAL SYSTEM ENHANCEMENTS FOR THE MULTI-MISSION RADAR (MMR) TO ENSURE PERFORMANCE FOR COUNTER ROCKET ARTILLERY MORTAR (C-RAM) SYSTEMS AND COUNTER UNMANNED AIRCRAFT SYSTEM (C-UAS) MISSIONS.

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 $94.7 million.

What is the period of performance?

Start: 2018-06-29. End: 2022-12-15.

What is Raytheon Company's track record with similar defense engineering contracts?

Raytheon Company, now part of RTX, has an extensive and well-established track record in delivering complex defense systems, including radar, electronic warfare, and command and control solutions. They are a prime contractor on numerous large-scale government contracts across various military branches. Their history includes significant contributions to air defense systems, missile defense, and intelligence, surveillance, and reconnaissance (ISR) platforms. While specific performance metrics for past contracts are often not publicly detailed, their consistent selection for major defense programs indicates a perceived capability and reliability in meeting demanding technical and programmatic requirements. Past performance reviews and contract awards databases would provide more granular insights into their specific successes and challenges on comparable projects.

How does the $94.7 million cost compare to similar radar system enhancement contracts?

The $94.7 million cost for engineering services over approximately four years for radar system enhancements is within a typical range for specialized defense technology upgrades. Contracts for developing and integrating advanced capabilities into complex platforms like multi-mission radars often run into tens or hundreds of millions of dollars. Factors influencing cost include the novelty of the required enhancements, the level of integration complexity, the specific threat environment being addressed (e.g., advanced C-UAS threats), and the required performance specifications. Benchmarking against other contracts for radar modernization, C-RAM, or C-UAS system improvements would reveal that this award is substantial but not exceptionally high, reflecting the critical and technically demanding nature of the work.

What are the primary technical risks associated with enhancing the MMR for C-RAM and C-UAS missions?

The primary technical risks associated with enhancing the Multi-Mission Radar (MMR) for Counter Rocket, Artillery, Mortar (C-RAM) and Counter Unmanned Aircraft System (C-UAS) missions include integration challenges, performance limitations against novel threats, and software complexity. Integrating new range amplification capabilities and ensuring seamless operation with existing C-RAM/C-UAS command and control systems can be complex. Achieving the required detection, tracking, and engagement performance against a wide spectrum of UAS, from small drones to larger unmanned platforms, presents significant radar signal processing and algorithm development challenges. Furthermore, the software controlling these enhancements must be robust, secure, and adaptable to evolving threat signatures, introducing risks related to development timelines and potential bugs.

What is the historical spending trend for engineering services related to C-RAM and C-UAS systems within the DoD?

Historical spending trends within the Department of Defense (DoD) for engineering services related to Counter Rocket, Artillery, and Mortar (C-RAM) and Counter Unmanned Aircraft Systems (C-UAS) have shown a significant and increasing trajectory. Driven by the proliferation of threats from near-peer adversaries and non-state actors, the DoD has prioritized investments in layered defense capabilities. This includes substantial funding for research, development, testing, and evaluation (RDT&E) as well as procurement and sustainment of systems designed to detect, track, and defeat these threats. Engineering services contracts, like the one awarded to Raytheon, are crucial for the continuous improvement, integration, and operationalization of these systems, reflecting a sustained commitment to addressing these evolving security challenges.

How does the Cost Plus Fixed Fee (CPFF) contract type influence contractor performance and cost control?

The Cost Plus Fixed Fee (CPFF) contract type aims to balance flexibility for evolving requirements with contractor incentive for efficient performance. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is beneficial when the scope of work is not precisely defined or is expected to change, as is common in advanced engineering and R&D projects. However, it places a significant burden on the government to meticulously monitor and audit contractor costs to ensure they are reasonable and allocable. While the fixed fee incentivizes the contractor to complete the work within the estimated cost to maximize profit, it can also create less incentive for aggressive cost reduction compared to fixed-price contracts, necessitating strong government oversight and program management.

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: $94,744,029

Exercised Options: $94,744,029

Current Obligation: $94,744,029

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