DoD's $90.7M Advanced Technology Support Program contract awarded to Raytheon Company for microelectronic solutions

Contract Overview

Contract Amount: $90,679,299 ($90.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2028-03-31

Contract Duration: 917 days

Daily Burn Rate: $98.9K/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 MOBILE OBSOLESCENCE AND PRODUCTION READINESS

Place of Performance

Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $90.7 million to RAYTHEON COMPANY for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR MOBILE OBSOLESCENCE AND PRODUCTION READINESS Key points: 1. Contract aims to ensure mobile obsolescence and production readiness for critical microelectronic capabilities. 2. Focus on advanced technology support suggests a need for cutting-edge solutions in a rapidly evolving field. 3. The duration of the contract (over 3 years) indicates a long-term strategic investment in microelectronics. 4. Awarded under full and open competition, suggesting a robust market for these specialized services. 5. The Cost Plus Fixed Fee (CPFF) contract type may incentivize cost control while ensuring access to necessary expertise. 6. This contract supports the Defense Microelectronics Activity, highlighting its importance in national defense. 7. The contract's value of $90.7 million reflects the significant investment required for advanced technological capabilities.

Value Assessment

Rating: good

The contract value of $90.7 million for over three years of advanced technology support appears reasonable given the specialized nature of microelectronics and the need for production readiness. Benchmarking against similar large-scale R&D and engineering services contracts within the defense sector suggests this is within a typical range for acquiring cutting-edge technological capabilities. The CPFF structure, while carrying some risk, is often used when the scope of work is not fully defined, allowing for flexibility in research and development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of market interest and capability.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the most capable and cost-effective solutions are selected.

Public Impact

The Department of Defense benefits through enhanced capabilities in microelectronics, crucial for national security and technological superiority. Services delivered include progressive microelectronic capability solutions, addressing obsolescence and ensuring production readiness. The geographic impact is primarily national, supporting defense initiatives, though specific deployment locations are not detailed. Workforce implications may include specialized engineering and technical roles within Raytheon Company and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The rapidly evolving nature of microelectronics means that technology could become obsolete quickly, requiring continuous adaptation.
Dependence on a single large prime contractor like Raytheon could create single points of failure if not managed with robust oversight.

Positive Signals

Awarded under full and open competition, suggesting strong market interest and potential for competitive pricing.
The contract's focus on 'progressive' solutions indicates a forward-looking approach to technology development.
Long contract duration (over 3 years) implies a strategic commitment to developing and maintaining critical capabilities.

Sector Analysis

The defense microelectronics sector is highly specialized and critical for national security, encompassing the design, development, and manufacturing of advanced semiconductor technologies. This contract fits within the broader landscape of defense R&D and engineering services, where significant investments are made to maintain a technological edge. Comparable spending benchmarks in this niche area are difficult to pinpoint due to proprietary information and the unique nature of defense requirements, but large-scale contracts for advanced technology solutions often run into tens or hundreds of millions of dollars.

Small Business Impact

The provided data indicates that small business participation (SB set-aside) is not a feature of this contract (SS: false, SB: false). This suggests the contract was not specifically targeted towards small businesses. However, large prime contractors like Raytheon often engage small businesses as subcontractors for specialized components or services, which could still provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Microelectronics Activity. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs. Transparency is typically managed through contract reporting mechanisms and potential audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Advanced Technology Support Program
Defense Microelectronics Activity Contracts
Microelectronics Research and Development
DoD Engineering Services
Mobile Obsolescence Solutions

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Supply Chain Security (Microelectronics)
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.7 million to RAYTHEON COMPANY. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR MOBILE OBSOLESCENCE AND PRODUCTION READINESS

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 $90.7 million.

What is the period of performance?

Start: 2025-09-26. End: 2028-03-31.

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

Raytheon Company, now part of RTX, has a long and extensive history of supporting the Department of Defense across a wide array of advanced technology programs, including complex engineering, research, and development initiatives. Their portfolio often includes work in areas such as radar systems, missile defense, cybersecurity, and advanced materials. While specific details on 'Advanced Technology Support Program' contracts are proprietary, Raytheon's consistent large-scale awards from the DoD suggest a strong track record in delivering complex technological solutions and managing large budgets. Their experience in integrating cutting-edge technologies and ensuring production readiness for defense applications is well-established, making them a frequent prime contractor for critical national security programs.

How does the $90.7 million value compare to other DoD contracts for microelectronics support?

The $90.7 million value for the Advanced Technology Support Program (ATSP) contract, spanning over three years, is substantial but falls within the expected range for specialized defense technology initiatives. Contracts focused on advanced microelectronics, particularly those addressing obsolescence and production readiness for critical defense systems, often require significant investment due to the complexity, R&D intensity, and stringent quality requirements. While direct comparisons are challenging without access to specific contract details and market intelligence, similar large-scale engineering services and R&D contracts within the DoD for niche technological areas can range from tens to hundreds of millions of dollars. This value suggests a strategic, long-term commitment to securing advanced microelectronic capabilities rather than a short-term procurement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced technology?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Raytheon for ATSP, is the potential for cost overruns. While the 'fixed fee' component provides a ceiling for the contractor's profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the project scope is not well-defined or if unforeseen technical challenges arise, costs can escalate significantly. This necessitates robust government oversight to ensure costs are reasonable and allocable. Another risk is that the contractor might not be as incentivized to control costs as they would be in a fixed-price contract, as their fee is fixed regardless of the final cost. However, CPFF contracts are often used when the scope of work is inherently uncertain, such as in advanced R&D, to ensure the contractor is willing to undertake the project without bearing excessive financial risk.

How does this contract contribute to the Defense Microelectronics Activity's mission?

This contract directly supports the Defense Microelectronics Activity's (DMEA) core mission, which is to ensure the U.S. military has access to trusted, secure, and technologically advanced microelectronics. By acquiring 'progressive microelectronic capability solutions for mobile obsolescence and production readiness,' the DMEA is proactively addressing the challenge of aging components and ensuring that the defense supply chain for critical microchips remains robust and up-to-date. This capability is vital for maintaining the performance and longevity of various defense systems, from communication equipment to advanced weapon platforms, thereby enhancing overall national security readiness.

What are the implications of 'mobile obsolescence' in the context of this contract?

'Mobile obsolescence' in this context refers to the challenge of maintaining and upgrading microelectronic components in systems that are mobile or deployed in the field, where replacement cycles can be long and access for maintenance difficult. As technology advances rapidly, older microchips become outdated, unsupported, or unavailable, posing a risk to the functionality and security of defense equipment. This contract aims to develop solutions that either extend the life of existing systems by finding alternatives or replacements for obsolete parts, or by ensuring that new systems are designed with future-proofing and production readiness in mind, mitigating the risk of rapid obsolescence. It's about ensuring the warfighter has reliable and modern electronic capabilities.

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: $90,679,299

Exercised Options: $90,679,299

Current Obligation: $90,679,299

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