DoD's $101M JAWS Phase 3 contract awarded to Raytheon Company for R&D

Contract Overview

Contract Amount: $10,111,841 ($10.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2023-06-15

End Date: 2026-09-27

Contract Duration: 1,200 days

Daily Burn Rate: $8.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: JOINT ALL-DOMAIN WARFIGHTING SOFTWARE (JAWS) PHASE 3.

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to RAYTHEON COMPANY for work described as: JOINT ALL-DOMAIN WARFIGHTING SOFTWARE (JAWS) PHASE 3. Key points: 1. Contract focuses on advanced research and development in physical, engineering, and life sciences. 2. Significant investment in developing integrated warfighting capabilities. 3. Long-duration contract (1200 days) suggests a complex, multi-phase project. 4. Sole-source award raises questions about competition and potential cost efficiencies. 5. Contract type (Cost Plus Fixed Fee) may incentivize cost overruns. 6. High value indicates a critical program for national defense strategy.

Value Assessment

Rating: questionable

The contract's value of $101 million for R&D services is substantial. Without comparable contract data for similar 'Joint All-Domain Warfighting Software' initiatives, a direct value-for-money assessment is difficult. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to higher costs if not closely managed, as the contractor is reimbursed for all allowable costs plus a fixed fee. Benchmarking against other large-scale defense R&D contracts would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Raytheon Company was the only bidder considered. This approach bypasses the standard competitive bidding process, which typically yields multiple proposals and allows for price negotiation. While sole-source awards can be justified for specialized capabilities or urgent needs, they limit price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding, potentially leading to a less efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will receive advanced software capabilities. The contract aims to deliver integrated warfighting software, enhancing command and control across different military domains. Geographic impact is national, supporting U.S. military readiness and technological superiority. Workforce implications include highly skilled R&D professionals, software engineers, and systems integrators, primarily within Raytheon and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition, potentially increasing costs.
Cost Plus Fixed Fee contract type can incentivize higher spending.
Long contract duration (1200 days) requires sustained oversight to manage scope and budget.
Lack of public details on specific performance metrics makes assessing progress challenging.

Positive Signals

Award to a major defense contractor (Raytheon) suggests access to significant technical expertise.
Focus on 'Joint All-Domain Warfighting' aligns with current strategic defense priorities.
Phase 3 designation implies prior successful development stages, indicating a degree of program maturity.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on advanced software for defense applications. The market for defense R&D is characterized by high barriers to entry, significant government funding, and a focus on technological innovation. Comparable spending benchmarks would involve other large-scale R&D contracts awarded by the DoD for advanced systems development. The market size for defense software and systems integration is substantial, driven by continuous modernization efforts.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Raytheon proactively engages small businesses for specialized support. Further analysis of subcontracting plans would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA), which is responsible for overseeing cutting-edge R&D projects. Accountability measures would be embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting on costs and progress. Transparency may be limited due to the nature of classified or sensitive defense research, but contract milestones and financial expenditures should be subject to standard government oversight and reporting mechanisms.

Related Government Programs

Joint All-Domain Command and Control (JADC2)
Advanced Warfighting Capabilities
Defense Research and Development Programs
Software Development Contracts
Raytheon Company Contracts

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to RAYTHEON COMPANY. JOINT ALL-DOMAIN WARFIGHTING SOFTWARE (JAWS) PHASE 3.

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 $10.1 million.

What is the period of performance?

Start: 2023-06-15. End: 2026-09-27.

What is Raytheon's track record with similar large-scale R&D contracts for the Department of Defense?

Raytheon Company has a long and extensive history of contracting with the Department of Defense, particularly in areas of advanced research, development, and systems integration. They are a major defense contractor involved in numerous complex programs across various military branches. While specific details on past JAWS-related projects are not provided, Raytheon's portfolio includes significant work on command and control systems, sensor integration, and software development for platforms like aircraft, missiles, and communication networks. Their track record generally indicates a capacity to handle large, technically challenging R&D efforts, though like any large contractor, they have experienced both successes and challenges in delivering complex programs on time and within budget. A deeper dive into their performance on cost-plus contracts and R&D initiatives would provide more specific insights.

How does the $101 million value compare to other R&D contracts for similar warfighting software initiatives?

The $101 million value for the JAWS Phase 3 contract is substantial, reflecting the complexity and strategic importance of developing integrated warfighting software. Without direct comparisons to identical 'Joint All-Domain Warfighting Software' programs, benchmarking requires looking at analogous large-scale R&D efforts within the DoD. Contracts for developing advanced command and control systems, artificial intelligence integration for military applications, or next-generation communication networks often fall into this multi-million dollar range. For instance, significant investments are made in programs aimed at enhancing situational awareness and decision-making across domains. The specific value of this contract should be assessed against the scope of work, the technological advancements sought, and the duration of the development effort, considering that R&D projects can be highly variable in cost.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract for R&D?

A sole-source award for R&D carries inherent risks. Primarily, the lack of competition means the government does not benefit from the price discovery and potential cost reductions that multiple bidders might offer. This can lead to a higher overall cost for taxpayers. The Cost Plus Fixed Fee (CPFF) contract type, while suitable for R&D where costs can be uncertain, also presents risks. It reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee. This structure can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the actual expenses. Effective oversight, stringent cost controls, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

What are the expected program effectiveness and outcomes for JAWS Phase 3?

The expected program effectiveness for JAWS Phase 3 centers on enhancing the Department of Defense's ability to conduct 'Joint All-Domain Operations.' This involves creating software that enables seamless communication, data sharing, and coordinated action across land, sea, air, space, and cyber domains. The ultimate outcome is improved battlefield awareness, faster decision-making, and more effective military operations by integrating disparate systems and C2 capabilities. Phase 3 likely builds upon previous research and development, aiming to mature specific functionalities, integrate new technologies, and potentially move towards operational testing or initial deployment phases. Success will be measured by the software's ability to achieve interoperability, provide actionable intelligence, and contribute to a more cohesive and responsive military force.

How has the Department of Defense's spending on advanced R&D for software and C2 systems evolved over the past five years?

The Department of Defense's spending on advanced R&D for software and Command and Control (C2) systems has seen a significant and consistent increase over the past five years. This trend is driven by the recognition of the critical role of digital modernization, artificial intelligence, and networked capabilities in maintaining military superiority. Key areas of investment include cloud computing, cybersecurity, data analytics, AI/ML applications, and efforts to achieve Joint All-Domain Command and Control (JADC2). Agencies like DARPA, DISA, and various service-specific research labs have been at the forefront of funding these initiatives. The overall budget allocation reflects a strategic pivot towards information dominance and leveraging technological advancements to counter evolving threats, making programs like JAWS a priority.

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: 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: $14,324,484

Exercised Options: $13,530,934

Current Obligation: $10,111,841

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $312,955

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline