DoD Awards Raytheon $17.7M for Advanced Microelectronics for APY10 Radar System
Contract Overview
Contract Amount: $17,715,348 ($17.7M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-02-22
End Date: 2026-02-21
Contract Duration: 1,825 days
Daily Burn Rate: $9.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ANALYZE, PRODUCE AND INTEGRATE ADVANCED TECHNOLOGY MICROELECTRONIC AND SOFTWARE SOLUTIONS OF THE MICROELECTRONICS BASED AN APY10 RADAR SYSTEM.
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $17.7 million to RAYTHEON COMPANY for work described as: ANALYZE, PRODUCE AND INTEGRATE ADVANCED TECHNOLOGY MICROELECTRONIC AND SOFTWARE SOLUTIONS OF THE MICROELECTRONICS BASED AN APY10 RADAR SYSTEM. Key points: 1. Significant investment in critical defense technology. 2. Raytheon Company is a major defense contractor, indicating established capabilities. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Spending falls within Engineering Services sector benchmarks.
Value Assessment
Rating: good
The Cost Plus Fixed Fee contract type allows for flexibility but carries inherent risk of cost escalation. Benchmarking against similar advanced technology integration contracts is necessary for a full assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a competitive bidding process that should drive price discovery. The award was a delivery order under an existing contract.
Taxpayer Impact: Taxpayer funds are being used for advanced defense capabilities, with competition aiming to ensure value for money.
Public Impact
Enhances radar system capabilities for national defense. Supports technological advancement in microelectronics. Contributes to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs.
- Long contract duration (5 years) increases exposure to market fluctuations.
Positive Signals
- Full and open competition utilized.
- Awarded to a reputable, established contractor.
Sector Analysis
This contract falls under Engineering Services, specifically related to advanced microelectronics for defense systems. Spending in this niche area is driven by technological requirements and national security priorities.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The contract is managed by the Department of Defense, which has established oversight mechanisms for defense procurements. The delivery order structure allows for phased oversight.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Cost Plus Fixed Fee contract.
- Long contract duration.
- Solely awarded to a large business.
- Specific performance metrics not detailed in summary.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.7 million to RAYTHEON COMPANY. ANALYZE, PRODUCE AND INTEGRATE ADVANCED TECHNOLOGY MICROELECTRONIC AND SOFTWARE SOLUTIONS OF THE MICROELECTRONICS BASED AN APY10 RADAR 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 $17.7 million.
What is the period of performance?
Start: 2021-02-22. End: 2026-02-21.
What is the projected return on investment for this advanced microelectronics upgrade in terms of enhanced radar performance and operational effectiveness?
The return on investment is primarily measured in enhanced national security capabilities. Improved radar performance translates to better threat detection, tracking, and response, directly impacting mission effectiveness. Quantifying this in monetary terms is challenging but crucial for long-term strategic value assessment.
What are the specific risks associated with integrating advanced microelectronic solutions into an existing radar system, and how are they being mitigated?
Risks include technical compatibility issues, performance degradation, and obsolescence of new components. Mitigation strategies likely involve rigorous testing, phased integration, robust quality assurance, and contingency planning for unforeseen technical challenges. The contract's structure should address these through defined milestones and acceptance criteria.
How does this investment align with the DoD's long-term strategy for modernizing its radar and surveillance capabilities?
This investment aligns with the DoD's strategic imperative to maintain technological superiority. Modernizing microelectronics is fundamental to enhancing radar capabilities, ensuring systems remain effective against evolving threats and can leverage next-generation technologies for improved situational awareness and operational advantage.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING
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: $17,715,348
Exercised Options: $17,715,348
Current Obligation: $17,715,348
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
Start Date: 2021-02-22
Current End Date: 2026-02-21
Potential End Date: 2026-02-21 00:00:00
Last Modified: 2025-12-18
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