DoD's $121M MAD-FIRES Program with Raytheon Faces R&D Challenges
Contract Overview
Contract Amount: $121,128,225 ($121.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2015-06-16
End Date: 2024-04-26
Contract Duration: 3,237 days
Daily Burn Rate: $37.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF MULTI AZIMUTH DEFENSE FAST INTERCEPT ROUND ENGAGEMENT SYSTEM (MAD-FIRES) PROGRAM, PHASE 0
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $121.1 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF MULTI AZIMUTH DEFENSE FAST INTERCEPT ROUND ENGAGEMENT SYSTEM (MAD-FIRES) PROGRAM, PHASE 0 Key points: 1. Significant investment in advanced defense technology. 2. Raytheon Company is the sole contractor, raising competition concerns. 3. High R&D costs are inherent to developing novel systems. 4. Program duration suggests complex development cycles.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type for R&D can lead to cost overruns if not managed tightly. Benchmarking is difficult due to the unique nature of the MAD-FIRES system.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While the contract was awarded under full and open competition, Raytheon Company is the sole awardee. This limits price discovery and competitive pressure post-award.
Taxpayer Impact: Taxpayer funds are supporting cutting-edge defense research, with potential long-term national security benefits but also risks of inefficient spending.
Public Impact
Development of advanced interceptor technology for national defense. Potential for technological superiority in missile defense. Significant taxpayer investment in a high-risk, high-reward R&D project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole contractor (Raytheon) limits competition.
- Cost Plus Fixed Fee contract type can inflate costs.
- Long program duration (3237 days) increases risk.
- Lack of specific performance metrics in provided data.
Positive Signals
- Addresses critical national defense need.
- Potential for significant technological advancement.
- Awarded under full and open competition initially.
Sector Analysis
This program falls under Research and Development in Physical, Engineering, and Life Sciences. Defense R&D spending is substantial, but specific benchmarks for novel interceptor systems are hard to establish.
Small Business Impact
No information is available regarding small business participation in this contract. The focus appears to be on a large, established defense contractor.
Oversight & Accountability
Oversight is managed by the Department of Defense, specifically DARPA. The contract type and long duration necessitate robust oversight to ensure cost control and effective progress.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Sole contractor limits competitive pressure.
- Cost Plus Fixed Fee contract is prone to cost overruns.
- Long program duration increases risk of obsolescence or changing requirements.
- Lack of clear performance metrics in provided data.
- High R&D costs for novel technology.
Tags
research-and-development-in-the-physical, department-of-defense, az, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $121.1 million to RAYTHEON COMPANY. IGF::OT::IGF MULTI AZIMUTH DEFENSE FAST INTERCEPT ROUND ENGAGEMENT SYSTEM (MAD-FIRES) PROGRAM, PHASE 0
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $121.1 million.
What is the period of performance?
Start: 2015-06-16. End: 2024-04-26.
What is the projected return on investment for the MAD-FIRES program, considering its significant R&D costs and long development timeline?
Quantifying the ROI for advanced defense R&D is inherently challenging. The primary return is expected to be enhanced national security through technological superiority. However, the $121M investment and extended duration necessitate rigorous tracking of milestones and potential dual-use applications to justify the expenditure beyond immediate defense needs.
How will DARPA mitigate the risks associated with a sole-source contractor (Raytheon) and a Cost Plus Fixed Fee contract structure to ensure cost efficiency?
DARPA will likely employ stringent oversight, regular performance reviews, and detailed cost audits. They may also incentivize Raytheon through performance metrics tied to cost savings or accelerated delivery. Establishing clear, achievable milestones and requiring transparent reporting are crucial to managing the CPFF structure and ensuring value for taxpayer money.
What are the key performance indicators (KPIs) used to measure the effectiveness and success of the MAD-FIRES program throughout its development?
Key performance indicators would likely include successful demonstration of intercept capabilities against various threats, system reliability and accuracy rates, integration with existing defense networks, and adherence to technical specifications. DARPA would monitor progress against defined technical objectives and operational requirements to gauge program effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 5
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: $138,418,320
Exercised Options: $136,607,499
Current Obligation: $121,128,225
Actual Outlays: $4,579,053
Subaward Activity
Number of Subawards: 528
Total Subaward Amount: $105,696,589
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-06-16
Current End Date: 2024-04-26
Potential End Date: 2024-04-26 00:00:00
Last Modified: 2023-12-13
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