DoD's $14.4M Raytheon Contract for Cyber Security & Software System Enhancements Under Full and Open Competition

Contract Overview

Contract Amount: $14,416,346 ($14.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-08-15

End Date: 2026-02-28

Contract Duration: 562 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONICS CAPABILITY SOLUTIONS FOR ENGINEERING SERVICES TO DEVELOP, BUILD, ENHANCE, AND TEST UPDATES TO A CYBER SECURITY AND SOFTWARE SYSTEM.

Place of Performance

Location: ANNAPOLIS JUNCTION, ANNE ARUNDEL County, MARYLAND, 20701

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to RAYTHEON COMPANY for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONICS CAPABILITY SOLUTIONS FOR ENGINEERING SERVICES TO DEVELOP, BUILD, ENHANCE, AND TEST UPDATES TO A CYBER SECURITY AND SOFTWARE SYSTEM. Key points: 1. Contract focuses on advanced microelectronics and cyber security software development. 2. Raytheon Company is the prime contractor, indicating a large, established vendor. 3. The contract is a Delivery Order under a larger award, suggesting phased execution. 4. Engineering Services sector spending is significant, with this contract representing a small portion.

Value Assessment

Rating: good

The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility but requires careful oversight to manage costs. Benchmarking CPFF contracts in engineering services is challenging due to variable scope, but the total value appears reasonable for the described services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and innovation. The use of a Delivery Order suggests a structured procurement process that likely involved price discovery at the task order level.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bidders and potentially driving down costs through market forces.

Public Impact

Enhances critical cyber security and software systems for the Department of Defense. Supports advanced microelectronics capabilities, crucial for national security. The contract duration of 562 days indicates a focused, medium-term project. Awarded to Raytheon Company, a major defense contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not managed tightly.
Lack of specific performance metrics in provided data makes outcome assessment difficult.
Potential for scope creep in complex engineering services contracts.

Positive Signals

Awarded under full and open competition.
Focus on critical cyber security and advanced technology.
Clear end dates for delivery and performance.

Sector Analysis

This contract falls within the Engineering Services sector, which is a substantial part of federal IT and defense spending. Benchmarks for similar microelectronics and cyber security engineering services can vary widely based on complexity and technology readiness.

Small Business Impact

The data indicates the prime contractor is Raytheon Company, a large business. There is no explicit information on small business subcontracting participation in the provided details.

Oversight & Accountability

The contract is managed by the Defense Microelectronics Activity. Oversight will be critical to ensure cost control under the CPFF structure and to verify the successful development and testing of the cyber security and software system updates.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Microelectronics Activity Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Complexity of cyber security and microelectronics development.
Potential for scope creep.
Reliance on a single large prime contractor.
Limited visibility into specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to RAYTHEON COMPANY. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONICS CAPABILITY SOLUTIONS FOR ENGINEERING SERVICES TO DEVELOP, BUILD, ENHANCE, AND TEST UPDATES TO A CYBER SECURITY AND SOFTWARE 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 $14.4 million.

What is the period of performance?

Start: 2024-08-15. End: 2026-02-28.

What specific performance metrics will be used to evaluate the success of the progressive microelectronics capability solutions and software system updates?

The provided data does not specify performance metrics. Effective oversight would require clearly defined metrics tied to the development, enhancement, and testing phases. These should include measures of system functionality, security robustness, and adherence to technical specifications to ensure the delivered solutions meet the DoD's evolving cyber security needs.

How will the Cost Plus Fixed Fee structure be managed to mitigate risks of cost overruns, particularly given the complexity of cyber security and microelectronics development?

Managing a CPFF contract for complex R&D requires robust financial tracking and regular audits. The Defense Microelectronics Activity must implement stringent controls on allowable costs, closely monitor labor hours and material expenses, and conduct frequent reviews of progress against milestones. Clear communication channels with Raytheon are essential to address potential cost drivers proactively.

What is the anticipated long-term impact of these software system updates on the DoD's overall cyber security posture?

The anticipated impact is a strengthened cyber security posture through updated defenses against emerging threats. By enhancing and testing the system, the DoD aims to improve resilience, reduce vulnerabilities, and ensure the integrity of sensitive data and operations. The success of this contract directly contributes to maintaining a technological advantage in cyber warfare.

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: 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: $14,416,346

Exercised Options: $14,416,346

Current Obligation: $14,416,346

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $2,779,211

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