DoD Awards Raytheon $197.8M for Expeditionary Vehicle Radar Prototypes

Contract Overview

Contract Amount: $197,798,217 ($197.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2018-09-24

End Date: 2025-06-30

Contract Duration: 2,471 days

Daily Burn Rate: $80.0K/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 18-896, FORWARD EXPEDITIONARY ADVANCED VEHICLE RADAR PROGRAM (FEAVR). THE PURPOSE OF THIS TASK IS TO BUILD PROTOTYPE EXPEDITIONARY KU BAND SYSTEMS FOR MINE RESISTANT AMBUSH PROTECTED (MRAP) ALL-TERRAIN VEHICLE (M-ATV) PLATFORMS.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $197.8 million to RAYTHEON COMPANY for work described as: ENGINEERING SERVICES, CET 18-896, FORWARD EXPEDITIONARY ADVANCED VEHICLE RADAR PROGRAM (FEAVR). THE PURPOSE OF THIS TASK IS TO BUILD PROTOTYPE EXPEDITIONARY KU BAND SYSTEMS FOR MINE RESISTANT AMBUSH PROTECTED (MRAP) ALL-TERRAIN VEHICLE (M-ATV) PLATFORMS. Key points: 1. Significant investment in advanced radar technology for MRAP vehicles. 2. Raytheon Company is the sole awardee for this specific contract. 3. Potential risks include program delays and cost overruns for prototype development. 4. Spending falls within the Engineering Services sector, with a focus on defense applications.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type allows for flexibility but can lead to higher costs if not managed tightly. Benchmarking against similar advanced radar prototype contracts is difficult due to the specialized nature of the technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a delivery order, it may represent a specific phase or requirement within a larger framework, impacting the overall price discovery for the entire program.

Taxpayer Impact: Taxpayer funds are being allocated for the development of critical defense technology, aiming to enhance vehicle survivability and operational effectiveness.

Public Impact

Enhances survivability of troops in MRAP vehicles through advanced radar. Supports the Forward Expeditionary Advanced Vehicle (FEAVR) program's technological advancement. Potential for future production contracts if prototypes are successful. Invests in domestic defense manufacturing capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Long contract duration with potential for scope creep
Sole awardee for this specific delivery order

Positive Signals

Awarded under full and open competition
Focus on critical defense technology
Supports existing vehicle platforms

Sector Analysis

This contract falls under Engineering Services, specifically for defense applications. Spending benchmarks for advanced prototype development in this niche sector can vary widely based on technological complexity and program scope.

Small Business Impact

The contract was awarded to Raytheon Company, a large business. There is no indication of small business participation in this specific delivery order, which could be an area for future consideration.

Oversight & Accountability

The Department of Defense, through the Defense Microelectronics Activity, is overseeing this contract. Standard oversight mechanisms for prototype development and acquisition should be in place to ensure accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Microelectronics Activity Programs

Risk Flags

Cost overrun potential due to CPFF structure
Technical challenges in prototype development
Long-term program sustainment costs are unknown
Dependence on a single large business prime contractor
Potential for schedule delays impacting operational readiness

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $197.8 million to RAYTHEON COMPANY. ENGINEERING SERVICES, CET 18-896, FORWARD EXPEDITIONARY ADVANCED VEHICLE RADAR PROGRAM (FEAVR). THE PURPOSE OF THIS TASK IS TO BUILD PROTOTYPE EXPEDITIONARY KU BAND SYSTEMS FOR MINE RESISTANT AMBUSH PROTECTED (MRAP) ALL-TERRAIN VEHICLE (M-ATV) PLATFORMS.

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 $197.8 million.

What is the period of performance?

Start: 2018-09-24. End: 2025-06-30.

What is the projected cost efficiency of the Cost Plus Fixed Fee structure for this prototype development?

The Cost Plus Fixed Fee (CPFF) structure is often used for research and development where costs are uncertain. While it provides flexibility, it can incentivize contractors to incur higher costs to increase their fee, which is a percentage of the costs. Effective oversight and clear performance metrics are crucial to ensure cost efficiency and prevent unnecessary expenditures in this prototype phase.

What are the primary technical risks associated with developing expeditionary Ku band radar systems for MRAP vehicles?

Key technical risks include achieving the required performance in harsh expeditionary environments, ensuring electromagnetic compatibility with other vehicle systems, miniaturizing the system to fit MRAP constraints, and meeting stringent reliability and durability standards. Integration challenges with existing vehicle power and data systems also pose significant risks.

How will the success of these prototypes impact future spending on the FEAVR program?

Successful prototypes are critical for the FEAVR program's progression. They will validate the technology's feasibility and performance, likely leading to follow-on production contracts and further development phases. Conversely, prototype failures could result in program delays, redesign efforts, or even cancellation, significantly altering future spending trajectories.

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: $197,798,217

Exercised Options: $197,798,217

Current Obligation: $197,798,217

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