DoD Awards Raytheon $39.5M for Advanced Microelectronics Software for Patriot System

Contract Overview

Contract Amount: $39,524,810 ($39.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2022-09-23

End Date: 2026-09-30

Contract Duration: 1,468 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SERVICES: STUDY, ANALYZE, DESIGN, DEVELOP, TEST AND INTEGRATE ADVANCED TECHNOLOGY SOFTWARE AND ALGORITHM SOLUTIONS TO IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED GROUND SEGMENT OF THE PATRIOT AIR AND MISSILE DEFENSE SYSTEM

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $39.5 million to RAYTHEON COMPANY for work described as: ENGINEERING SERVICES: STUDY, ANALYZE, DESIGN, DEVELOP, TEST AND INTEGRATE ADVANCED TECHNOLOGY SOFTWARE AND ALGORITHM SOLUTIONS TO IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED GROUND SEGMENT OF THE PATRIOT AIR AND MISSILE DEFENSE SYSTEM Key points: 1. Significant investment in critical defense technology for the Patriot system. 2. Raytheon Company, a major defense contractor, secured the award. 3. Potential for performance improvements in the ground segment's microelectronics. 4. Focus on advanced software and algorithm solutions highlights technological advancement.

Value Assessment

Rating: good

The contract is a Delivery Order under a larger contract, making direct price comparisons difficult. However, the Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can be effective for R&D but requires careful oversight.

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 promotes price discovery and aims for the best value for the government.

Taxpayer Impact: Taxpayer funds are being used for advanced technology development to enhance a key defense system, aiming for improved national security capabilities.

Public Impact

Enhances the capabilities of the Patriot Air and Missile Defense System, a crucial component of national defense. Supports the development of advanced software and algorithms, driving innovation in microelectronics. Invests in the U.S. defense industrial base and technological superiority. The project duration of nearly four years indicates a substantial and complex undertaking.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

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

Positive Signals

Awarded through full and open competition.
Focus on advanced technology development.
Aims to improve performance of a key defense system.

Sector Analysis

This contract falls within Engineering Services, a broad category often associated with defense and technology development. Spending in this sector is driven by the need for innovation and modernization of complex systems like the Patriot missile defense.

Small Business Impact

The awardee is Raytheon Company, a large business. There is no indication that small businesses were specifically involved in this particular delivery order, though they may be subcontractors.

Oversight & Accountability

As a Delivery Order under a larger contract, oversight likely falls under the Defense Microelectronics Activity and the Department of Defense. The CPFF structure necessitates robust financial oversight to manage costs and ensure the fixed fee is justified.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Microelectronics Activity Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Potential for cost escalation.
Reliance on a single large contractor.
Lack of specific performance metrics in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.5 million to RAYTHEON COMPANY. ENGINEERING SERVICES: STUDY, ANALYZE, DESIGN, DEVELOP, TEST AND INTEGRATE ADVANCED TECHNOLOGY SOFTWARE AND ALGORITHM SOLUTIONS TO IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED GROUND SEGMENT OF THE PATRIOT AIR AND MISSILE DEFENSE 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 $39.5 million.

What is the period of performance?

Start: 2022-09-23. End: 2026-09-30.

What is the specific performance improvement expected from the advanced software and algorithm solutions?

The specific performance improvements are not detailed in the provided data. However, the focus on 'advanced technology software and algorithm solutions' suggests aims such as increased processing speed, enhanced threat detection accuracy, improved targeting capabilities, or greater resilience against electronic warfare for the microelectronics-based ground segment of the Patriot system.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this project?

The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for allowable costs. While a fixed fee provides some incentive for efficiency, the government bears the risk of cost increases. Effective oversight is crucial to ensure costs remain reasonable and the fixed fee is appropriate for the scope of work.

How will the effectiveness of the developed software and algorithms be measured and validated?

The effectiveness measurement and validation process is not detailed. Typically, such contracts would include specific testing and integration phases, performance metrics, and acceptance criteria. The 'TEST AND INTEGRATE' in the description suggests formal validation will occur, likely involving simulations and real-world testing scenarios relevant to the Patriot system's operational environment.

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: $77,780,894

Exercised Options: $77,780,894

Current Obligation: $39,524,810

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $334,265

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