DoD Awards Raytheon $88M for Microelectronic & Software Solutions to Enhance Sensor System Capability

Contract Overview

Contract Amount: $87,964,878 ($88.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-08-03

End Date: 2025-05-09

Contract Duration: 1,740 days

Daily Burn Rate: $50.6K/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 20-051 MICROELECTRONIC AND SOFTWARE PROTOTYPE SOLUTIONS TO ADD NEW CAPABILITY AND IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED WIDE AREA SEARCH&MULTI-MISSION SENSOR SYSTEM.

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $88.0 million to RAYTHEON COMPANY for work described as: ENGINEERING SERVICES - CET 20-051 MICROELECTRONIC AND SOFTWARE PROTOTYPE SOLUTIONS TO ADD NEW CAPABILITY AND IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED WIDE AREA SEARCH&MULTI-MISSION SENSOR SYSTEM. Key points: 1. Contract aims to improve performance of a critical sensor system through advanced microelectronics and software. 2. Raytheon Company, a major defense contractor, secured this award. 3. The award is a delivery order under a larger contract, indicating ongoing program needs. 4. Spending is concentrated in the Defense sector, specifically microelectronics and sensor technology.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This can be appropriate for R&D or complex projects where costs are uncertain, but requires careful oversight to manage expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible sources to submit proposals.

Taxpayer Impact: Taxpayer funds are being used for advanced defense technology development, aiming for improved national security capabilities.

Public Impact

Enhances national security through advanced sensor technology. Supports innovation in microelectronics and software for defense applications. Investment in critical defense infrastructure and capabilities. Potential for technological advancements with broader applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Reliance on a single large contractor for critical technology development.

Positive Signals

Awarded under full and open competition.
Aims to improve performance and add new capabilities.
Long-term contract duration suggests sustained need and potential for follow-on work.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on engineering services for advanced microelectronic and software solutions. Spending benchmarks for similar R&D and engineering services contracts in defense can vary widely based on technological complexity and program scope.

Small Business Impact

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

Oversight & Accountability

As a delivery order under a larger contract, oversight likely falls under the Defense Microelectronics Activity. The Cost Plus Fixed Fee structure necessitates diligent financial oversight and performance monitoring to ensure cost-effectiveness and adherence to project goals.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Microelectronics Activity Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for cost overruns.
Lack of specific performance metrics in summary data.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.0 million to RAYTHEON COMPANY. ENGINEERING SERVICES - CET 20-051 MICROELECTRONIC AND SOFTWARE PROTOTYPE SOLUTIONS TO ADD NEW CAPABILITY AND IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED WIDE AREA SEARCH&MULTI-MISSION SENSOR SYSTEM.

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 $88.0 million.

What is the period of performance?

Start: 2020-08-03. End: 2025-05-09.

What is the specific performance improvement expected from these microelectronic and software solutions, and how will it be measured?

The contract aims to add new capability and improve performance of the microelectronics-based wide area search & multi-mission sensor system. Specific metrics for performance improvement are not detailed in the provided data but would typically be outlined in the contract's statement of work. Measurement would likely involve comparative testing against baseline performance, operational assessments, and potentially user feedback from relevant military units.

What are the potential risks associated with the Cost Plus Fixed Fee contract type for this advanced technology development?

Cost Plus Fixed Fee contracts carry risks of cost overruns if the contractor's estimated costs are inaccurate or if unforeseen technical challenges arise, increasing expenses. The fixed fee provides incentive for efficiency, but the government bears the risk of higher-than-expected costs. Robust government oversight is crucial to monitor expenditures, validate costs, and ensure the contractor remains focused on achieving the defined objectives within reasonable financial parameters.

How does this investment align with broader DoD strategies for sensor technology and microelectronics modernization?

This investment appears to align with DoD's strategic emphasis on modernizing sensor capabilities and leveraging advanced microelectronics for enhanced situational awareness and mission effectiveness. Improving existing systems through software and hardware upgrades is a common approach to maintaining technological superiority. The focus on 'new capability' suggests an effort to stay ahead of adversaries and adapt to evolving threats.

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: $87,964,878

Exercised Options: $87,964,878

Current Obligation: $87,964,878

Subaward Activity

Number of Subawards: 119

Total Subaward Amount: $15,001,803

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