DoD's $20.5M Advanced Technology Support Program contract for microelectronics capability solutions awarded to Raytheon Company

Contract Overview

Contract Amount: $20,514,387 ($20.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-06-12

End Date: 2026-11-30

Contract Duration: 536 days

Daily Burn Rate: $38.3K/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 FOR AN/APG-79(V)1 WIDE BAND RECEIVER UPGRADE PROGRAM

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to RAYTHEON COMPANY for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR AN/APG-79(V)1 WIDE BAND RECEIVER UPGRADE PROGRAM Key points: 1. Contract aims to enhance the AN/APG-79(V)1 Wide Band Receiver Upgrade Program with progressive microelectronic capabilities. 2. The award to Raytheon Company suggests a focus on established defense contractors with proven expertise in advanced electronics. 3. Performance risk appears moderate given the specialized nature of microelectronics and upgrade programs. 4. The contract duration of 536 days indicates a focused effort on specific technological advancements. 5. This contract falls within the broader defense electronics sector, supporting critical radar system upgrades.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and comparable microelectronic development projects. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, but it also allows for flexibility in research and development. The total award amount of $20.5 million over approximately 18 months suggests a significant investment in specialized technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally promotes competitive pricing and encourages a wider range of technical solutions. The use of full and open competition suggests the government sought the best value and technical approach available in the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs and fosters innovation, leading to better value for the investment in advanced defense technologies.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the personnel operating and maintaining the AN/APG-79(V)1 radar system. The contract delivers advanced microelectronic capability solutions essential for upgrading a critical component of military aircraft. The geographic impact is primarily within the United States, supporting defense manufacturing and technological development. Workforce implications include specialized engineering and technical roles within Raytheon Company and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns are a potential concern with CPFF contracts if scope creep or unforeseen technical challenges arise.
Dependence on a single contractor for critical microelectronic upgrades could pose long-term supply chain risks.
Ensuring the 'progressive' nature of the microelectronics meets evolving threats and technological advancements requires continuous oversight.

Positive Signals

Awarding through full and open competition suggests a robust vetting process and potential for competitive pricing.
The focus on advanced technology development aligns with maintaining a technological edge for defense systems.
The specific upgrade program (AN/APG-79(V)1) indicates a clear requirement and strategic importance.

Sector Analysis

This contract operates within the defense electronics sector, a highly specialized and competitive market. The defense electronics industry is characterized by long development cycles, high R&D costs, and stringent performance requirements. Spending in this area is driven by the need for technological superiority in military systems. Comparable spending benchmarks would typically involve other advanced radar, avionics, or electronic warfare system development contracts, often in the multi-million dollar range.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract (ss: false, sb: false). This suggests that the primary award was not targeted towards small businesses. However, Raytheon Company, as a large prime contractor, may engage small businesses as subcontractors to fulfill specific components or services, contributing to the broader small business ecosystem within the defense supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Defense, potentially through the Defense Microelectronics Activity (DMEA) or a designated contracting officer's representative. Accountability measures are inherent in the CPFF contract structure, requiring detailed reporting and justification of costs. Transparency is typically managed through contract reporting mechanisms and potential audits. Inspector General jurisdiction would apply if fraud, waste, or abuse is suspected.

Related Government Programs

AN/APG-79(V)1 Radar System Upgrade
Defense Microelectronics Activity (DMEA) Contracts
Advanced Technology Development Programs
Electronic Warfare Systems Procurement
Radar Systems Engineering Services

Risk Flags

Potential for cost overruns due to CPFF structure
Technical risks associated with cutting-edge microelectronics development
Integration challenges with existing radar systems
Long-term supply chain dependency on specialized components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to RAYTHEON COMPANY. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR AN/APG-79(V)1 WIDE BAND RECEIVER UPGRADE PROGRAM

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 $20.5 million.

What is the period of performance?

Start: 2025-06-12. End: 2026-11-30.

What is Raytheon Company's track record with similar advanced microelectronics development contracts for the Department of Defense?

Raytheon Company, now part of RTX, has a long and extensive history of developing and producing advanced electronic systems for the Department of Defense, including radar, electronic warfare, and command and control systems. Their experience with complex defense programs suggests a strong capability in managing intricate technological development. Specific to microelectronics, Raytheon has been involved in various initiatives related to integrated circuits, specialized processors, and secure hardware for defense applications. While detailed performance data on past microelectronics contracts is often proprietary, their consistent role as a prime contractor on major defense platforms indicates a generally positive track record in delivering complex technological solutions, though like any large contractor, specific project outcomes can vary.

How does the $20.5 million award compare to the typical cost of developing advanced microelectronic capabilities for military radar systems?

The $20.5 million award for the Advanced Technology Support Program (ATSP) contract appears to be within the expected range for specialized microelectronic capability development for a significant military system like the AN/APG-79(V)1 radar. Developing cutting-edge microelectronics often involves substantial research, design, fabrication, and testing, especially when tailored for specific military requirements such as radiation hardening, high-frequency operation, or extreme environmental resilience. Comparable contracts for similar R&D efforts in advanced defense electronics can range from tens to hundreds of millions of dollars, depending on the scope, complexity, and duration. This particular award suggests a focused effort on specific 'progressive' capabilities rather than a complete system redesign, making the figure reasonable for achieving defined technological advancements over the contract's period.

What are the primary technical risks associated with this contract, and how might they impact the project timeline and budget?

The primary technical risks associated with developing 'progressive microelectronic capability solutions' often stem from the inherent complexity and rapid evolution of microelectronics technology. These risks include challenges in achieving desired performance metrics (e.g., speed, power efficiency, size), integration issues with existing hardware (the AN/APG-79(V)1 receiver), potential for design flaws requiring costly redesigns, and the difficulty of manufacturing highly specialized components to stringent military specifications. Furthermore, the 'progressive' nature implies pushing technological boundaries, which inherently carries a higher risk of encountering unforeseen obstacles. These risks could lead to schedule delays if development takes longer than anticipated or if redesigns are necessary. Budget impacts could arise from increased labor hours, the need for specialized equipment or materials, and potential cost overruns if the Cost Plus Fixed Fee (CPFF) structure doesn't adequately account for unforeseen technical hurdles.

What does the contract's duration of 536 days (approximately 18 months) imply about the scope of work for the microelectronics upgrade?

A contract duration of 536 days for developing 'progressive microelectronic capability solutions' suggests a focused, albeit significant, scope of work rather than a complete overhaul of the AN/APG-79(V)1 Wide Band Receiver. This timeframe is typical for targeted research and development efforts, prototyping, or the refinement of specific technological components. It implies that the project likely aims to introduce specific advancements or enhancements to the existing microelectronic architecture, rather than undertaking a full system redesign or developing entirely new subsystems from scratch. The duration allows for iterative development, testing, and validation of the new capabilities within a defined period, balancing the need for technological progress with project manageability and cost control.

How does the 'Cost Plus Fixed Fee' (CPFF) contract type influence the government's financial exposure and the contractor's incentive structure?

The Cost Plus Fixed Fee (CPFF) contract type means the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee representing profit. This structure is often used for research and development or when the scope of work is not precisely defined at the outset, allowing for flexibility. For the government, the primary financial exposure is the total cost of performance, which can exceed initial estimates if costs escalate significantly, although the fee itself is fixed. The contractor is incentivized to control costs to protect their profit margin, as any savings below the estimated cost do not increase their fee, but significant cost overruns could strain the relationship and require negotiation. This contrasts with fixed-price contracts where the contractor bears more risk for cost overruns but also has a greater incentive to maximize profit through efficiency.

What is the strategic importance of upgrading the AN/APG-79(V)1 Wide Band Receiver with advanced microelectronics?

The AN/APG-79(V)1 is a key component of modern airborne radar systems, likely used on advanced fighter or bomber aircraft. Upgrading its wide band receiver with 'progressive microelectronic capability solutions' is strategically important for maintaining a technological edge in electronic warfare and situational awareness. Advanced microelectronics can lead to improved radar performance, such as enhanced detection ranges, better target discrimination, increased resistance to jamming, reduced power consumption, and smaller physical footprints. In the context of evolving threats and sophisticated adversary capabilities, these improvements are crucial for mission success, survivability of aircrews, and the overall effectiveness of the platforms equipped with this radar system. This investment underscores the DoD's commitment to modernizing critical defense systems.

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

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: $20,514,387

Exercised Options: $20,514,387

Current Obligation: $20,514,387

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