DoD Awards Raytheon $19.2M for Advanced Atomic Level Deposition Coatings and Microwave Modules

Contract Overview

Contract Amount: $19,232,855 ($19.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2018-11-15

End Date: 2023-11-14

Contract Duration: 1,825 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENGINEERING SERVICES: ATOMIC LEVEL DEPOSITION (ALD) COATINGS AND CASCODE POWER AMPLIFIER (PA) TRANSMIT/RECEIVE INTEGRATED MICROWAVE MODULE (TRIMM)

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to RAYTHEON COMPANY for work described as: ENGINEERING SERVICES: ATOMIC LEVEL DEPOSITION (ALD) COATINGS AND CASCODE POWER AMPLIFIER (PA) TRANSMIT/RECEIVE INTEGRATED MICROWAVE MODULE (TRIMM) Key points: 1. Contract focuses on specialized engineering services for advanced defense technology. 2. Raytheon Company, a major defense contractor, secured the award. 3. The contract involves high-risk, high-reward technological development. 4. Spending is concentrated within the Defense sector, specifically IT/Engineering.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This is common for R&D or complex services where final costs are uncertain. Benchmarking against similar DoD engineering service contracts is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government compared to sole-source awards.

Taxpayer Impact: The competitive nature of the award suggests efforts to secure fair pricing, but the Cost Plus Fixed Fee structure warrants ongoing monitoring for cost efficiency.

Public Impact

Enhances U.S. military's technological superiority in communication and electronic warfare. Supports advanced manufacturing and R&D within the defense industrial base. Potential for spin-off technologies benefiting commercial sectors. Ensures critical component supply for advanced defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure requires diligent oversight to manage costs.
Long performance period (5 years) increases exposure to potential cost overruns or scope creep.
Specialized nature of technology may limit future competition if knowledge becomes concentrated.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Raytheon is a reputable contractor with a track record in defense systems.
Contract addresses critical national defense needs for advanced electronics.

Sector Analysis

This contract falls under Engineering Services, specifically supporting advanced defense electronics. Spending benchmarks for highly specialized R&D and manufacturing like ALD coatings and TRIMM modules are difficult to establish due to their unique nature and limited market.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the prime contractor is Raytheon Company, a large business. There is no information provided on small business subcontracting participation.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee structure necessitates robust oversight to control costs and verify deliverables.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (5 years).
Highly specialized technology.
Prime contractor is a large business.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to RAYTHEON COMPANY. ENGINEERING SERVICES: ATOMIC LEVEL DEPOSITION (ALD) COATINGS AND CASCODE POWER AMPLIFIER (PA) TRANSMIT/RECEIVE INTEGRATED MICROWAVE MODULE (TRIMM)

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 $19.2 million.

What is the period of performance?

Start: 2018-11-15. End: 2023-11-14.

What is the projected cost efficiency of the Cost Plus Fixed Fee structure for these advanced engineering services, given the inherent uncertainties in R&D?

The Cost Plus Fixed Fee (CPFF) structure is often used for R&D due to cost uncertainties. While it allows flexibility, its efficiency hinges on rigorous government oversight, clear performance metrics, and effective negotiation of the fixed fee. Without detailed cost breakdowns and performance data, it's challenging to definitively assess cost efficiency. Continuous monitoring of incurred costs against the base and fee is crucial to prevent overruns and ensure value.

What are the primary technical risks associated with developing and manufacturing atomic level deposition coatings and cascode power amplifier integrated microwave modules?

Key technical risks include achieving consistent atomic-level precision in deposition, ensuring the reliability and performance of the cascode power amplifiers under demanding operational conditions, and integrating these complex components into a functional microwave module. Challenges may arise from material science limitations, manufacturing process variability, and the stringent performance requirements for advanced defense applications. Thorough testing and validation at each stage are critical to mitigate these risks.

How effectively does this contract leverage competition to ensure the government receives optimal value for these specialized engineering services?

The contract was awarded under 'full and open competition,' which theoretically maximizes the potential for competitive pricing and innovation. However, the highly specialized nature of ALD coatings and advanced microwave modules might limit the number of capable bidders. The government's ability to secure optimal value depends on the thoroughness of the solicitation, the evaluation criteria used, and the government's negotiation strategy within the CPFF framework.

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: $19,232,855

Exercised Options: $19,232,855

Current Obligation: $19,232,855

Actual Outlays: $2,941,642

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $74,035,535

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