DoD Awards Raytheon $268.5M for EHF Terminal Engineering Services
Contract Overview
Contract Amount: $268,534,769 ($268.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-04-28
End Date: 2027-03-31
Contract Duration: 2,163 days
Daily Burn Rate: $124.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CONTRACTUAL ENGINEERING TASK (CET) 21-108 FOR ENGINEERING SERVICES TO STUDY, DESIGN, PROTOTYPE, INTEGRATE, FABRICATE AND TEST EXTREMELY HIGH FREQUENCY (EHF) TERMINALS.
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $268.5 million to RAYTHEON COMPANY for work described as: CONTRACTUAL ENGINEERING TASK (CET) 21-108 FOR ENGINEERING SERVICES TO STUDY, DESIGN, PROTOTYPE, INTEGRATE, FABRICATE AND TEST EXTREMELY HIGH FREQUENCY (EHF) TERMINALS. Key points: 1. Significant investment in advanced EHF terminal technology. 2. Raytheon Company is the sole awardee for this specific task order. 3. Potential for long-term technology development and sustainment. 4. Engineering services sector sees substantial contract activity.
Value Assessment
Rating: good
The contract value of $268.5 million for engineering services appears substantial. Benchmarking against similar large-scale defense engineering contracts would be necessary for a precise assessment, but the scope suggests a significant undertaking.
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 is generally expected to yield fair pricing, though the specific cost-plus-fixed-fee structure requires careful monitoring of costs.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense technology development, aiming for advanced capabilities. The competitive award process is intended to ensure value for money.
Public Impact
Enhances national security through advanced communication capabilities. Supports technological innovation in the defense sector. Potential for job creation within Raytheon and its subcontractors. Contributes to the U.S. military's ability to operate in contested environments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type can lead to cost overruns if not managed tightly.
- Long performance period (2021-2027) requires sustained oversight.
- Sole awardee for this specific task order, limiting immediate alternative options.
- Focus on EHF terminals may not directly benefit small businesses unless they are subcontractors.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical defense need for advanced communication.
- Significant investment in R&D and technological advancement.
- Long-term contract provides stability for development and testing.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense microelectronics. Spending in this area is driven by the need for advanced technological capabilities and modernization within the military. Benchmarks for similar large-scale defense engineering projects are typically in the hundreds of millions.
Small Business Impact
The contract data indicates that small business participation was not a primary consideration for this specific award (ss: false, sb: false). While the prime contractor, Raytheon, may engage small businesses as subcontractors, there is no direct indication of small business set-aside or participation in the award itself.
Oversight & Accountability
The Department of Defense, through the Defense Microelectronics Activity, is responsible for oversight. The long duration and cost-plus-fixed-fee nature of the contract necessitate robust oversight to ensure cost control, adherence to scope, and timely delivery of the EHF terminals.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Cost Overruns Risk (CPFF contract)
- Schedule Slippage Risk (long duration)
- Technical Obsolescence Risk (rapid tech evolution)
- Sole Awardee Dependency Risk
- Integration Complexity Risk
Tags
engineering-services, department-of-defense, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $268.5 million to RAYTHEON COMPANY. CONTRACTUAL ENGINEERING TASK (CET) 21-108 FOR ENGINEERING SERVICES TO STUDY, DESIGN, PROTOTYPE, INTEGRATE, FABRICATE AND TEST EXTREMELY HIGH FREQUENCY (EHF) TERMINALS.
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 $268.5 million.
What is the period of performance?
Start: 2021-04-28. End: 2027-03-31.
What is the projected return on investment for this EHF terminal development in terms of enhanced operational capabilities or cost savings in the long run?
The return on investment is primarily measured by the enhanced operational capabilities and strategic advantage gained through advanced, secure, and resilient Extremely High Frequency (EHF) communication systems. These terminals are crucial for maintaining command and control in challenging electromagnetic environments, potentially reducing mission failures and increasing operational effectiveness, which indirectly translates to cost savings by avoiding mission aborts or compromised operations.
What are the key technical risks associated with developing and prototyping EHF terminals, and how are they being mitigated under this contract?
Key technical risks include achieving desired signal integrity and power efficiency in a compact form factor, ensuring compatibility with existing and future satellite constellations, and meeting stringent reliability requirements for military use. Mitigation strategies under the cost-plus-fixed-fee structure likely involve rigorous testing, phased prototyping, iterative design reviews with the government, and leveraging Raytheon's expertise in microelectronics and radio frequency engineering.
How will the effectiveness of the developed EHF terminals be measured and validated to ensure they meet the Department of Defense's operational requirements?
Effectiveness will be measured through a combination of laboratory testing, environmental stress testing, and field trials. This includes verifying performance metrics such as data throughput, signal-to-noise ratio, power consumption, and resistance to jamming or interference. Validation will involve demonstrating successful integration with military communication networks and confirming the terminals' ability to operate reliably under realistic combat scenarios as defined in the contract's performance work statement.
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: $297,150,546
Exercised Options: $297,150,546
Current Obligation: $268,534,769
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $108,035
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: 2021-04-28
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2025-08-28
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