Raytheon Company Awarded $964M for Operational Control Centers, Boosting Defense Electronics Sector

Contract Overview

Contract Amount: $233,045,341 ($233.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2001-05-11

End Date: 2010-12-31

Contract Duration: 3,521 days

Daily Burn Rate: $66.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200108!000358!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785401C2089 !A!N!*!N! !20010511!20020511!964265664!112820840!001339159!N!RAYTHEON COMPANY !8680 BALBOA AVE !SAN DIEGO !CA!92123!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000004999999!N!N!000000000000!AD95!RDTE/OTHER DEFENSE-ENG/MANUF DEVELOP !A7 !ELECTRONICS AND COMMUNICATION !2GYC!OPERATIONAL CONTROL CENTERS !541512!*!*!3! ! ! !*!*!*!B!*!*!A! !A !Y!U!2!003!B! !A!N!Z! ! !N!C!N! ! ! !A!D!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92123

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $233.0 million to RAYTHEON COMPANY for work described as: 200108!000358!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785401C2089 !A!N!*!N! !20010511!20020511!964265664!112820840!001339159!N!RAYTHEON COMPANY !8680 BALBOA AVE !SAN DIEGO !CA!92123!66000!073!06!SAN DIEGO !SAN D… Key points: 1. Significant contract awarded to Raytheon Company for operational control centers. 2. The contract falls under the 'Electronics and Communication' sector, indicating a focus on advanced defense systems. 3. Potential risk associated with long-term contracts and the complexity of operational control systems. 4. The award highlights the substantial government investment in defense technology and manufacturing.

Value Assessment

Rating: good

The contract value of $964,265,664 appears reasonable given the scope of operational control centers and the duration of the contract. Benchmarking against similar large-scale defense electronics systems contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. The use of a Cost Plus Fixed Fee (CPFF) contract type allows for flexibility but requires careful oversight to manage costs.

Taxpayer Impact: Taxpayers are impacted by the significant investment in defense infrastructure, which is intended to enhance national security capabilities.

Public Impact

Enhances national security through advanced operational control systems. Supports high-tech manufacturing jobs within the defense industry. Contributes to the technological advancement of military communication and command capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Cost overruns due to CPFF contract type.
Technological obsolescence over the contract's long duration.
Integration challenges with existing military systems.

Positive Signals

Strengthens U.S. defense capabilities.
Fosters innovation in defense electronics.
Provides long-term stability for the contractor.

Sector Analysis

This contract is within the Defense sector, specifically focusing on 'Electronics and Communication' and 'Operational Control Centers'. Spending in this area is critical for maintaining national security and involves complex, high-value systems.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this large prime contract award. Further analysis would be needed to determine if small businesses were involved in the supply chain.

Oversight & Accountability

The Cost Plus Fixed Fee (CPFF) contract type necessitates robust oversight from the Department of Defense to ensure costs are managed effectively and that the contractor meets performance requirements.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns with CPFF contract.
Risk of technological obsolescence over the contract's long duration.
Challenges in integrating new systems with legacy military infrastructure.
Dependence on a single contractor for critical operational capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $233.0 million to RAYTHEON COMPANY. 200108!000358!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785401C2089 !A!N!*!N! !20010511!20020511!964265664!112820840!001339159!N!RAYTHEON COMPANY !8680 BALBOA AVE !SAN DIEGO !CA!92123!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000004999999!N!N!000000000000!AD95!RDTE/OTHER DEFENSE-ENG/MANUF DEVELOP !A7 !ELECTRONICS AND COMMUNICATION !2GYC!OPERATIONAL CONTROL CENTERS !541512!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $233.0 million.

What is the period of performance?

Start: 2001-05-11. End: 2010-12-31.

What is the projected return on investment for this spending in terms of enhanced operational effectiveness and threat mitigation?

The projected return on investment is primarily measured by the enhanced operational effectiveness of military forces and improved threat mitigation capabilities. These advanced operational control centers are designed to provide real-time situational awareness, facilitate rapid decision-making, and improve command and control across various military branches, ultimately contributing to national security objectives.

What are the key performance indicators (KPIs) used to measure the success of this contract and mitigate risks?

Key performance indicators likely include system uptime and reliability, response times for critical alerts, successful integration with other defense systems, and adherence to cybersecurity protocols. Risk mitigation strategies would involve regular performance reviews, independent testing, and contingency planning for potential system failures or security breaches.

How does this investment align with the broader strategic goals of the Department of Defense regarding technological modernization?

This investment directly aligns with the Department of Defense's strategic goals for technological modernization by upgrading critical infrastructure for command and control. It supports the transition to more networked and data-centric warfare, ensuring that U.S. military forces maintain a technological edge and can effectively respond to evolving global threats.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 8680 BALBOA AVE, SAN DIEGO, CA, 92123

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline