Raytheon Company awarded $21.2M for Microwave Technology Testbed R&D by Missile Defense Agency

Contract Overview

Contract Amount: $21,197,999 ($21.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-09-24

End Date: 2025-12-31

Contract Duration: 1,924 days

Daily Burn Rate: $11.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MICROWAVE TECHNOLOGY TESTBED R&D

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to RAYTHEON COMPANY for work described as: MICROWAVE TECHNOLOGY TESTBED R&D Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. The contract duration is substantial at 1924 days, suggesting a long-term R&D effort. 3. No small business set-aside was applied, potentially limiting opportunities for smaller firms. 4. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 5. The primary location for performance is Arizona.

Value Assessment

Rating: questionable

Benchmarking the value of this R&D contract is challenging due to its specialized nature and lack of direct comparisons. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for R&D, carries inherent risks of cost escalation if not meticulously managed. Without more detailed cost breakdowns or performance metrics, it's difficult to definitively assess if the $21.2 million represents optimal value for the anticipated research outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is often used for highly specialized R&D where a specific contractor possesses unique capabilities or intellectual property. However, the lack of competition means there was no opportunity for price discovery through a bidding process, which could potentially lead to higher costs for the government.

Taxpayer Impact: Sole-source awards limit taxpayer benefit by removing the downward price pressure that competition typically provides. This means taxpayers may not be getting the most cost-effective solution available.

Public Impact

The primary beneficiary is the Missile Defense Agency, which will receive advanced microwave technology research. The services delivered are focused on research and development, aiming to enhance defense capabilities. The geographic impact is concentrated in Arizona, where the contractor will perform the work. The contract supports highly skilled R&D professionals within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation from other firms.
Cost-plus-fixed-fee structure introduces risk of cost overruns if not tightly managed.
Long contract duration (over 5 years) requires sustained oversight to ensure progress and value.
Lack of small business participation may limit broader economic impact and innovation.

Positive Signals

Focus on critical R&D for missile defense, a key national security priority.
Award to a known entity (Raytheon) suggests leveraging existing expertise in microwave technology.
Clear performance period defined, allowing for structured project management.

Sector Analysis

The defense R&D sector is characterized by long development cycles, high technical complexity, and significant government investment. Contracts like this, focused on specialized areas such as microwave technology, are crucial for maintaining technological superiority. The market for such advanced research is often concentrated among a few prime contractors with demonstrated capabilities, making sole-source or limited competition awards more common.

Small Business Impact

This contract does not appear to include a small business set-aside. While the prime contractor, Raytheon, is a large business, there is no explicit information provided regarding subcontracting plans for small businesses. The absence of a set-aside means opportunities for small businesses to directly participate in this specific contract are not guaranteed and would depend on Raytheon's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the Missile Defense Agency and the Department of Defense. Given the Cost Plus Fixed Fee structure, rigorous financial oversight and performance monitoring will be critical to manage costs and ensure progress. Transparency may be limited due to the sole-source nature and the classified or sensitive aspects of defense R&D. Inspector General jurisdiction would apply for any investigations into fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Advanced Radar Technology
Electronic Warfare Systems
Directed Energy Research

Risk Flags

Sole-source award limits competition.
CPFF contract type carries cost overrun risk.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to RAYTHEON COMPANY. MICROWAVE TECHNOLOGY TESTBED R&D

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $21.2 million.

What is the period of performance?

Start: 2020-09-24. End: 2025-12-31.

What is Raytheon Company's track record with similar R&D contracts for the Missile Defense Agency?

Raytheon Company has a significant history of contracting with the Department of Defense, including the Missile Defense Agency (MDA), for various research, development, and production efforts. They are a major defense contractor with extensive experience in areas relevant to missile defense, such as radar, sensors, and command and control systems. Analyzing their past performance on similar CPFF R&D contracts with the MDA would involve reviewing contract close-out data, performance evaluations (e.g., CPARS reports if publicly available), and any documented instances of cost overruns or schedule delays. Without specific access to these internal performance metrics for Raytheon on prior MDA R&D efforts, a definitive assessment is difficult, but their established presence suggests a baseline level of capability and experience.

How does the $21.2 million value compare to similar microwave technology R&D efforts?

Directly comparing the $21.2 million value of this specific 'Microwave Technology Testbed R&D' contract to similar efforts is challenging without more granular detail on the scope of work, deliverables, and duration. R&D costs can vary widely based on the complexity of the technology, the maturity of the research, and the specific objectives. However, for context, other advanced R&D contracts within the defense sector, particularly those involving specialized hardware development or complex system integration, can range from tens to hundreds of millions of dollars over several years. The value here appears to be within a moderate range for a focused R&D effort, but its true value-for-money can only be assessed against its specific technical goals and potential impact on missile defense capabilities.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses. This necessitates robust government oversight to ensure that costs are reasonable, allocable, and allowable. Additionally, there's a risk that the contractor might not be sufficiently incentivized to control costs, as their profit (the fixed fee) remains constant regardless of the final cost. Effective management and clear definition of work are crucial to mitigate these risks.

What is the expected program effectiveness or outcome of this R&D effort?

The expected outcome of this R&D effort is the development and testing of advanced microwave technologies that will serve as a 'testbed.' This implies the creation of a platform or environment where new microwave components, systems, or concepts can be evaluated, validated, and potentially integrated into future missile defense systems. The effectiveness will be measured by the successful demonstration of novel microwave capabilities, improved performance metrics (e.g., sensitivity, range, processing speed), and the potential for these technologies to enhance the overall effectiveness, survivability, or affordability of missile defense platforms. The specific metrics for effectiveness would be detailed in the contract's Statement of Work (SOW).

How has federal spending in microwave technology R&D evolved over the past five years?

Federal spending in microwave technology R&D has generally seen consistent investment, driven by national security requirements, advancements in communication, and emerging applications in areas like electronic warfare and sensing. While specific figures for 'microwave technology R&D' as a distinct category can be difficult to isolate from broader R&D spending in electronics, aerospace, and defense, trends indicate a sustained focus. Agencies like the Department of Defense (including DARPA, MDA, Air Force Research Lab), and others like the National Science Foundation, allocate significant funds to research in high-frequency electronics, phased arrays, and related fields. Spending often fluctuates based on technological breakthroughs, evolving threats, and strategic priorities, but the underlying need for advanced microwave capabilities ensures continued federal interest and investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1151 E HERMANS RD, TUCSON, AZ, 85756

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: $26,849,515

Exercised Options: $26,849,515

Current Obligation: $21,197,999

Actual Outlays: $13,596,595

Subaward Activity

Number of Subawards: 50

Total Subaward Amount: $13,609,433

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline