Raytheon Company awarded $11.1M for USCG GPSNTS, highlighting engineering services for defense

Contract Overview

Contract Amount: $11,064,372 ($11.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2021-04-20

End Date: 2026-04-19

Contract Duration: 1,825 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CET 21-118 GPSNTS FOR USCG II NEW TASK

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92123

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to RAYTHEON COMPANY for work described as: CET 21-118 GPSNTS FOR USCG II NEW TASK Key points: 1. Contract value represents a significant investment in critical navigation technology. 2. Competition dynamics suggest a robust market for specialized engineering services. 3. Performance risk is moderate, given the complexity of GPS integration. 4. This contract supports the Coast Guard's operational readiness and technological advancement. 5. The sector positioning is within defense microelectronics, a high-tech niche. 6. Contract type indicates a focus on cost control with a fixed fee component.

Value Assessment

Rating: good

The contract value of $11.1 million for engineering services appears reasonable for a five-year duration, supporting the USCG's GPSNTS program. Benchmarking against similar large-scale engineering contracts within the defense sector suggests this pricing is within expected ranges. The Cost Plus Fixed Fee (CPFF) structure provides some incentive for the contractor to manage costs while ensuring project completion. Further analysis would require detailed cost breakdowns and comparison to specific, comparable projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of interest and capability in the market for these specialized engineering services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at optimal pricing and quality, reducing the risk of overpayment for critical defense technology.

Public Impact

The U.S. Coast Guard benefits directly through enhanced navigation capabilities and operational effectiveness. Services delivered include critical engineering support for GPS navigation systems. Geographic impact is national, supporting Coast Guard operations across various regions. Workforce implications include specialized engineering roles within Raytheon Company and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Dependence on a single contractor for critical navigation system engineering could pose long-term risks.
Ensuring adequate technical expertise within the government to oversee complex engineering tasks.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Long-term contract duration allows for sustained development and integration of navigation technology.
Focus on critical GPS systems supports national security and maritime safety objectives.

Sector Analysis

The defense microelectronics sector is characterized by high technological complexity, significant R&D investment, and stringent security requirements. Contracts in this area often involve specialized engineering services for advanced systems like navigation, communication, and command and control. Spending benchmarks for similar engineering services within the Department of Defense can range from millions to billions of dollars, depending on the scope and duration. This contract fits within the broader landscape of defense modernization efforts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Raytheon Company is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Raytheon's procurement practices and the specific requirements of the engineering tasks. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Microelectronics Activity (DMEA) and the contracting officer's representative (COR) within the Department of Defense. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USCG Navigation Systems Modernization
DoD GPS Modernization Programs
Defense Microelectronics Research and Development
Advanced Navigation Technology Contracts

Risk Flags

Potential for cost overruns
Cybersecurity risks in navigation systems
Technology obsolescence
Dependence on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to RAYTHEON COMPANY. CET 21-118 GPSNTS FOR USCG II NEW TASK

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 $11.1 million.

What is the period of performance?

Start: 2021-04-20. End: 2026-04-19.

What is Raytheon Company's track record with similar GPS or navigation system contracts for the U.S. Coast Guard or Department of Defense?

Raytheon Company, now part of RTX, has a long and extensive history of providing advanced technology solutions to the U.S. military and Coast Guard, including significant work on GPS and navigation systems. They have been a prime contractor on numerous programs involving satellite navigation, guidance, and electronic warfare systems. For instance, Raytheon has been involved in developing and producing components for military GPS receivers and has supported various modernization efforts for navigation capabilities across different branches of the U.S. armed forces. Their experience typically encompasses system design, integration, testing, and sustainment, often involving complex engineering challenges and large contract values. Specific details on past performance for identical or highly similar USCG GPSNTS tasks would require deeper contract database analysis, but their general profile suggests substantial relevant experience.

How does the $11.1 million contract value compare to other engineering services contracts for navigation systems awarded by the DoD in the last five years?

The $11.1 million contract value for engineering services related to GPSNTS falls within a common range for specialized defense contracts of this nature. While the DoD awards contracts ranging from small, targeted efforts to multi-billion dollar programs, engineering services for critical systems like GPS often represent significant investments. For example, contracts for system upgrades, integration, or sustainment of navigation technologies can easily reach tens of millions of dollars over their performance periods. Comparing this specific contract requires looking at contracts with similar North American Industry Classification System (NAICS) codes (like 541330 for Engineering Services) and focusing on those related to navigation, aerospace, or electronic systems. Without direct comparative data points for identical services, it's reasonable to assess this as a mid-tier value contract for specialized engineering support within the defense sector, reflecting the complexity and importance of GPS technology.

What are the primary technical risks associated with this contract, and how are they being mitigated?

Primary technical risks for a contract involving GPSNTS engineering services often include integration challenges with existing or future platforms, obsolescence of components or technologies, cybersecurity vulnerabilities, and ensuring the accuracy and reliability of the navigation data under diverse operational conditions. The Cost Plus Fixed Fee (CPFF) contract type suggests that the government and Raytheon have identified significant uncertainties, potentially requiring flexibility in scope or approach. Mitigation strategies typically involve rigorous testing and validation phases, adherence to strict cybersecurity protocols, phased development to incorporate new technologies, and close collaboration between government engineers and the contractor. The contract's five-year duration also allows for iterative development and risk management over time. Specific mitigation plans would be detailed within the contract's statement of work and associated technical documentation.

What is the expected impact of this contract on the U.S. Coast Guard's operational capabilities?

This contract is expected to significantly enhance the U.S. Coast Guard's operational capabilities by ensuring the continued effectiveness and modernization of its Global Positioning System Navigation and Timing Systems (GPSNTS). Reliable and accurate navigation is fundamental to the Coast Guard's diverse missions, including maritime law enforcement, search and rescue, port security, and environmental protection. Upgraded or well-maintained GPS capabilities improve positional accuracy, enhance situational awareness for vessels and aircraft, and support the integration of advanced sensor and communication systems. This directly translates to improved mission success rates, increased safety for personnel and assets, and greater efficiency in resource deployment across all Coast Guard operations nationwide and potentially in international waters.

How has spending on engineering services for navigation systems evolved within the DoD over the past decade?

Spending on engineering services for navigation systems within the Department of Defense has generally seen a steady increase over the past decade, driven by several factors. These include the need to modernize aging systems, counter emerging threats (like GPS jamming and spoofing), integrate new technologies (such as multi-constellation receivers and resilient PNT solutions), and maintain operational readiness across all services. The increasing reliance on precise timing and positioning data for everything from missile guidance to drone operations has amplified the importance of robust navigation engineering. While specific figures fluctuate annually based on budget allocations and program priorities, the overall trend indicates sustained investment in ensuring the accuracy, reliability, and security of military navigation capabilities, including significant outlays for research, development, integration, and sustainment engineering services.

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: $11,064,372

Exercised Options: $11,064,372

Current Obligation: $11,064,372

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