DoD's $59M Advanced Technology Support Program for Radar Microelectronics Awarded to Raytheon

Contract Overview

Contract Amount: $59,040,267 ($59.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-04-03

End Date: 2026-01-31

Contract Duration: 668 days

Daily Burn Rate: $88.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SERVICES: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR RADAR.

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75070

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $59.0 million to RAYTHEON COMPANY for work described as: ENGINEERING SERVICES: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR RADAR. Key points: 1. Contract focuses on critical defense microelectronics for radar systems. 2. Raytheon Company is the sole awardee for this specific contract. 3. Potential risks include reliance on a single vendor for advanced capabilities. 4. Spending falls within the Defense sector, specifically microelectronics engineering.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar advanced microelectronics contracts is difficult due to the specialized nature of the work.

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. However, the award type is a Delivery Order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle where the initial competition occurred.

Taxpayer Impact: Taxpayer funds are being used to acquire advanced technological capabilities essential for national defense, with the expectation of a return on investment through enhanced radar performance.

Public Impact

Enhances national security through advanced radar technology. Supports innovation in microelectronics critical for defense applications. Potential for technological advancements to spill over into commercial sectors. Ensures U.S. military maintains a technological edge in radar systems.

Waste & Efficiency Indicators

Waste Risk Score: 88 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Sole awardee for this delivery order
Long contract duration (668 days)

Positive Signals

Full and open competition initially
Acquisition of critical advanced technology
Supports defense modernization efforts

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) within the Defense sector, focusing on specialized microelectronics for radar systems. Spending benchmarks for such niche, high-technology defense contracts are highly variable and depend on the specific technological advancements required.

Small Business Impact

The data indicates the awardee is Raytheon Company, a large business. There is no explicit mention of small business participation in this specific delivery order, suggesting opportunities for subcontracting may exist but are not detailed here.

Oversight & Accountability

The Department of Defense, through its Defense Microelectronics Activity, is responsible for overseeing this contract. Standard oversight mechanisms for cost-plus contracts and delivery orders would apply to ensure performance and cost control.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Microelectronics Activity Programs

Risk Flags

Cost Plus Fixed Fee contract type can lead to cost overruns.
Reliance on a single awardee for critical technology.
Potential for scope creep in 'progressive' solutions.
Long contract duration may outpace technological evolution.
Lack of explicit small business participation details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.0 million to RAYTHEON COMPANY. ENGINEERING SERVICES: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR RADAR.

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 $59.0 million.

What is the period of performance?

Start: 2024-04-03. End: 2026-01-31.

What is the specific definition of 'progressive microelectronic capability solutions' and how does it differ from standard microelectronics?

Progressive microelectronic capability solutions likely refer to cutting-edge, next-generation technologies in microelectronics tailored for advanced radar applications. This could encompass areas like higher frequencies, increased processing power, reduced size/weight/power, enhanced resilience to electronic warfare, or novel materials and architectures beyond current standard offerings. The 'progressive' nature implies a focus on innovation and future-proofing.

Given the Cost Plus Fixed Fee structure, what are the primary cost control mechanisms in place to mitigate potential overruns?

Cost Plus Fixed Fee (CPFF) contracts require robust oversight. Key control mechanisms include detailed cost tracking and auditing, regular performance reviews against milestones, clear definition of allowable costs, and potentially incentive fees tied to performance or cost savings. The Defense Microelectronics Activity must actively monitor expenditures and contractor performance to ensure the fixed fee remains justified and costs stay within reasonable bounds.

How will the effectiveness of these advanced microelectronic solutions be measured in terms of radar performance enhancement?

Effectiveness will likely be measured through a combination of technical performance metrics (TPMs) defined in the contract, system integration testing, and operational field evaluations. Specific metrics could include improvements in radar range, resolution, signal-to-noise ratio, target detection probability, electronic counter-countermeasure (ECCM) capabilities, and overall system reliability under various operating conditions. Successful demonstration of these improvements against baseline or previous systems will indicate effectiveness.

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: $59,040,267

Exercised Options: $59,040,267

Current Obligation: $59,040,267

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $5,528,428

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