DoD's $147M Advanced Technology Support Program aims to resolve microelectronic obsolescence for projectile receivers

Contract Overview

Contract Amount: $146,836,664 ($146.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-09-09

End Date: 2028-10-31

Contract Duration: 1,513 days

Daily Burn Rate: $97.0K/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 MICROELECTRONIC CAPABILITY SOLUTIONS TO RESOLVE OBSOLESCENCE ISSUES, IMPROVE PERFORMANCE, IMPROVE RELIABILITY OF THE RECEIVER REPLACEMENT FOR THE PROJECTILE.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $146.8 million to RAYTHEON COMPANY for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO RESOLVE OBSOLESCENCE ISSUES, IMPROVE PERFORMANCE, IMPROVE RELIABILITY OF THE RECEIVER REPLACEMENT FOR THE PROJECTILE. Key points: 1. Contract focuses on critical microelectronic solutions for defense systems. 2. Raytheon Company is the sole awardee, raising questions about competition. 3. Obsolescence resolution and performance improvement are key objectives. 4. The contract spans over 4 years, indicating a long-term need.

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 engineering services contracts is difficult without more detailed cost breakdowns.

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 specific awardee is Raytheon Company, and the nature of the 'delivery order' implies it might be against a broader contract vehicle.

Taxpayer Impact: Taxpayer funds are being used to address critical defense system obsolescence, aiming for improved performance and reliability, which is a necessary investment for national security.

Public Impact

Enhances the reliability and performance of essential defense equipment. Addresses the critical issue of microelectronic obsolescence in military hardware. Supports advanced technological capabilities within the Department of Defense. Ensures continued operational readiness of projectile systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of detailed cost breakdown makes robust value assessment challenging.
Sole awardee raises questions about the extent of competition realized.

Positive Signals

Addresses critical obsolescence issues.
Aims to improve performance and reliability.
Supports national defense objectives.

Sector Analysis

This contract falls under Engineering Services, a broad category often involving specialized technical expertise. Spending in this sector is driven by the need for innovation, modernization, and maintenance of complex systems, particularly within defense.

Small Business Impact

The data indicates this contract was awarded to Raytheon Company, a large business. There is no explicit mention of small business participation or subcontracting goals within the provided information.

Oversight & Accountability

The contract is managed by the Defense Microelectronics Activity, suggesting a specialized oversight body. Further details on performance metrics, reporting requirements, and audit protocols would be needed to fully assess accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Microelectronics Activity Programs

Risk Flags

Cost Plus Fixed Fee contract structure.
Potential for cost overruns.
Limited transparency on specific cost breakdowns.
Need for detailed performance metrics.
Questions regarding the realization of full competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $146.8 million to RAYTHEON COMPANY. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO RESOLVE OBSOLESCENCE ISSUES, IMPROVE PERFORMANCE, IMPROVE RELIABILITY OF THE RECEIVER REPLACEMENT FOR THE PROJECTILE.

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 $146.8 million.

What is the period of performance?

Start: 2024-09-09. End: 2028-10-31.

What specific microelectronic components are being addressed, and what is the projected cost savings from resolving obsolescence?

The provided data does not specify the exact microelectronic components. However, resolving obsolescence in critical defense systems like projectiles is vital for maintaining operational capability and avoiding costly emergency procurements or system redesigns. Quantifying savings requires detailed analysis of component lifecycles and alternative solutions.

How was the 'full and open competition' process structured, and what prevented other qualified firms from bidding or being selected?

While stated as 'full and open competition,' the award to a single entity, Raytheon Company, warrants further investigation. The structure might involve a broad agency announcement followed by specific proposals, or it could be a delivery order against an existing indefinite-delivery/indefinite-quantity (IDIQ) contract. Understanding the specific solicitation and evaluation criteria is key.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?

The contract aims to 'resolve obsolescence issues, improve performance, and improve reliability.' Effectiveness will likely be measured by the successful integration of new microelectronic solutions, documented improvements in system reliability metrics (e.g., mean time between failures), and enhanced performance benchmarks for the projectile receivers. Specific KPIs and measurement methodologies are not detailed here.

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: $146,836,664

Exercised Options: $146,836,664

Current Obligation: $146,836,664

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $10,584,947

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