DoD Awards Raytheon $180M for AN/TPY-2 Radar Development, Extending Through 2026
Contract Overview
Contract Amount: $180,158,274 ($180.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2022-11-01
End Date: 2026-10-31
Contract Duration: 1,460 days
Daily Burn Rate: $123.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: US AN/TPY-2 DEVELOPMENT
Place of Performance
Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801
Plain-Language Summary
Department of Defense obligated $180.2 million to RAYTHEON COMPANY for work described as: US AN/TPY-2 DEVELOPMENT Key points: 1. Significant investment in advanced radar technology for missile defense. 2. Sole-source award to Raytheon Company, limiting competitive pricing. 3. Potential for cost overruns given Cost Plus Award Fee contract type. 4. Focus on critical defense capabilities within the aerospace and defense sector.
Value Assessment
Rating: questionable
The contract's Cost Plus Award Fee structure, while incentivizing performance, can lead to higher costs compared to fixed-price contracts. Benchmarking is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition on this sole-source contract may result in taxpayers paying a premium for the AN/TPY-2 radar system development.
Public Impact
Enhances national missile defense capabilities. Supports advanced radar technology crucial for threat detection. Impacts the defense industrial base and Raytheon's market position.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Award Fee contract type
- Lack of competition
Positive Signals
- Critical defense system development
- Long-term contract duration
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on advanced radar systems. Spending benchmarks for similar sole-source, cost-plus development contracts are highly variable but often exceed competitive bids.
Small Business Impact
There is no indication of small business participation in this sole-source award. Future subcontracting opportunities may exist, but the primary contract does not appear to involve small businesses.
Oversight & Accountability
The Department of Defense, specifically the Missile Defense Agency, is responsible for oversight. The Cost Plus Award Fee structure requires careful monitoring of performance and costs to ensure value for money.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency on performance metrics
- Sole-source dependency on Raytheon
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $180.2 million to RAYTHEON COMPANY. US AN/TPY-2 DEVELOPMENT
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 $180.2 million.
What is the period of performance?
Start: 2022-11-01. End: 2026-10-31.
What is the projected cost savings if this contract had been competed?
Quantifying exact savings from a sole-source award is challenging without a competitive bidding process. However, historical data suggests that competitive procurements can yield savings of 10-30% or more compared to sole-source arrangements, especially for complex systems where multiple vendors could offer innovative solutions and price efficiencies.
What are the specific performance metrics tied to the award fee?
The specific performance metrics for the award fee are not detailed in the provided data. Typically, for Cost Plus Award Fee contracts, these metrics relate to meeting technical specifications, adhering to schedules, managing costs effectively, and achieving specific performance milestones relevant to the AN/TPY-2 radar's development and operational readiness.
How does the AN/TPY-2 radar development align with current and future threat assessments?
The AN/TPY-2 radar is a critical component of the Ballistic Missile Defense System, designed for early warning and tracking of ballistic missiles. Its development aligns with ongoing global threat assessments concerning ballistic missile proliferation and evolving adversary capabilities, ensuring the US maintains a technological advantage in missile defense.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ014717R0012
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 225 PRESIDENTIAL WAY, WOBURN, MA, 01801
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: $208,762,880
Exercised Options: $181,706,670
Current Obligation: $180,158,274
Actual Outlays: $54,788,266
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $3,262,649
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ014718D0002
IDV Type: IDC
Timeline
Start Date: 2022-11-01
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2025-12-11
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