DoD Awards Raytheon $60.5M for OPIR Payload Development Under Full and Open Competition
Contract Overview
Contract Amount: $60,544,583 ($60.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2020-06-12
End Date: 2024-04-30
Contract Duration: 1,418 days
Daily Burn Rate: $42.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BLACKJACK PHASE 2 AND 3 - DESIGN, ENGINEERING DEVELOPMENT, FABRICATION, TEST, AND DELIVERY OF AN OVERHEAD PERSISTENT INFRARED (OPIR) PAYLOAD.
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $60.5 million to RAYTHEON COMPANY for work described as: BLACKJACK PHASE 2 AND 3 - DESIGN, ENGINEERING DEVELOPMENT, FABRICATION, TEST, AND DELIVERY OF AN OVERHEAD PERSISTENT INFRARED (OPIR) PAYLOAD. Key points: 1. Significant investment in advanced infrared sensing technology for national security. 2. Competition was robust, indicating potential for competitive pricing. 3. Risk associated with complex R&D projects, but contract type aims to manage costs. 4. Spending falls within the R&D sector, crucial for technological advancement.
Value Assessment
Rating: good
The contract value of $60.5M for a complex R&D project like the OPIR payload appears reasonable given the scope. Benchmarking against similar advanced sensor development contracts would provide a more precise assessment, but the fixed-fee structure suggests a degree of cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is ideal for ensuring the government receives the best value and price. This method allows multiple qualified vendors to bid, fostering a competitive environment that drives down costs and encourages innovation.
Taxpayer Impact: Full and open competition generally leads to taxpayer savings by ensuring fair pricing and preventing inflated costs often associated with sole-source or limited competition contracts.
Public Impact
Enhances national security capabilities through advanced surveillance technology. Supports technological innovation in the defense sector. Potential for job creation in R&D and manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of R&D may lead to cost overruns.
- Long development timeline increases risk exposure.
- Reliance on a single prime contractor for critical components.
Positive Signals
- Awarded through full and open competition.
- Contract aims to develop critical defense technology.
- Experienced contractor with a history in defense systems.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is vital for maintaining a technological edge, with benchmarks varying widely based on project complexity and specific scientific focus.
Small Business Impact
While the prime contractor is Raytheon Company, a large entity, the contract details do not specify subcontracting opportunities for small businesses. Further investigation into subcontracting plans would be necessary to assess small business participation.
Oversight & Accountability
The Department of Defense, specifically DARPA, is responsible for overseeing this contract. The fixed-fee structure provides some cost control, but rigorous oversight of technical progress and financial expenditures is crucial given the R&D nature of the work.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Technical complexity of R&D.
- Long project duration.
- Potential for scope creep.
- Dependence on advanced technology development.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.5 million to RAYTHEON COMPANY. BLACKJACK PHASE 2 AND 3 - DESIGN, ENGINEERING DEVELOPMENT, FABRICATION, TEST, AND DELIVERY OF AN OVERHEAD PERSISTENT INFRARED (OPIR) PAYLOAD.
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 $60.5 million.
What is the period of performance?
Start: 2020-06-12. End: 2024-04-30.
What is the projected operational capability and strategic advantage gained from the OPIR payload upon successful completion?
The OPIR payload is expected to significantly enhance the United States' ability to detect and track overhead threats, providing critical intelligence for national security. Its advanced infrared sensing capabilities aim to offer superior resolution and broader coverage compared to existing systems, potentially offering a decisive strategic advantage in early warning and situational awareness.
What are the primary technical risks associated with the design, engineering, and testing phases of the BLACKJACK PHASE 2 AND 3 project?
Key technical risks include achieving the required sensitivity and resolution for the infrared sensors, ensuring system integration and compatibility with existing platforms, and successfully completing rigorous testing under various environmental conditions. Miniaturization challenges and power management for an overhead persistent system also present significant hurdles that could impact performance and schedule.
How does the cost-plus-fixed-fee contract structure balance incentivizing innovation with controlling taxpayer expenditure for this R&D effort?
The cost-plus-fixed-fee structure allows the contractor to recover allowable costs while earning a predetermined fixed fee. This incentivizes innovation by covering R&D expenses, but the fixed fee provides a ceiling on the contractor's profit, encouraging efficiency. However, close oversight is still needed to ensure costs remain reasonable and the fixed fee adequately compensates for the risks undertaken.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HR001118S0032
Offers Received: 12
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
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: $138,361,286
Exercised Options: $63,998,770
Current Obligation: $60,544,583
Actual Outlays: $8,892,487
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $5,824,764
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-06-12
Current End Date: 2024-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2023-08-03
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