DoD Awards Raytheon $53.3M for KU Base Advancement Radar Program Engineering Services

Contract Overview

Contract Amount: $53,287,510 ($53.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-05-27

End Date: 2024-02-29

Contract Duration: 1,373 days

Daily Burn Rate: $38.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CET 20-032, KU BASE ADVANCEMENT RADAR PROGRAM

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $53.3 million to RAYTHEON COMPANY for work described as: CET 20-032, KU BASE ADVANCEMENT RADAR PROGRAM Key points: 1. Significant contract value for advanced radar technology. 2. Raytheon Company is a major defense contractor. 3. Potential for technological advancements in defense capabilities. 4. Engineering services sector is critical for defense modernization.

Value Assessment

Rating: good

The contract value of $53.3M for engineering services appears reasonable given the scope of a radar advancement program. Benchmarking against similar large-scale defense engineering contracts would provide further context.

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. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense systems.

Public Impact

Enhances national defense capabilities through advanced radar technology. Supports technological innovation in the aerospace and defense sector. Potential for job creation within Raytheon and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully.
Lack of small business participation noted.

Positive Signals

Awarded under full and open competition.
Supports critical defense infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications. Spending in this area is often driven by modernization efforts and national security priorities, with significant government investment.

Small Business Impact

The data indicates no specific small business participation in this contract. Efforts to include small businesses in defense contracting are crucial for economic diversity and innovation.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract to ensure performance and compliance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type.
No small business participation identified.
Long contract duration (1373 days).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.3 million to RAYTHEON COMPANY. CET 20-032, KU BASE ADVANCEMENT RADAR PROGRAM

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 $53.3 million.

What is the period of performance?

Start: 2020-05-27. End: 2024-02-29.

What is the projected return on investment for the KU Base Advancement Radar Program?

The return on investment for the KU Base Advancement Radar Program is primarily measured in enhanced national security capabilities and technological superiority. Quantifying this in direct financial terms is challenging, but the program's contribution to threat detection, surveillance, and response effectiveness is its core value proposition.

What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this radar program?

The primary risks with a Cost Plus Fixed Fee (CPFF) structure include potential cost overruns if the contractor's actual costs exceed estimates, as the government absorbs these. There's also a risk of reduced incentive for the contractor to control costs aggressively, as their fee is fixed regardless of the final cost.

How effectively will this radar system integrate with existing defense networks?

The effectiveness of integration depends on detailed technical specifications and adherence to interoperability standards during development. Successful integration requires robust testing and validation protocols to ensure seamless data exchange and command-and-control capabilities with current and future defense platforms.

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: 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: $53,287,510

Exercised Options: $53,287,510

Current Obligation: $53,287,510

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,226,784

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