Raytheon Company awarded $10.5M for Navigation System Engineering Support, with a 730-day performance period

Contract Overview

Contract Amount: $10,540,870 ($10.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2026-04-01

Contract Duration: 730 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MOUNTED ASSURED POSITIONING, NAVIGATION, AND TIMING SYSTEM (MAPS) GENERATION (GEN) II NON-RECURRING ENGINEERING (NRE) AND ENGINEERING SUPPORT SERVICES.

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to RAYTHEON COMPANY for work described as: MOUNTED ASSURED POSITIONING, NAVIGATION, AND TIMING SYSTEM (MAPS) GENERATION (GEN) II NON-RECURRING ENGINEERING (NRE) AND ENGINEERING SUPPORT SERVICES. Key points: 1. Contract focuses on non-recurring engineering and support for a critical positioning, navigation, and timing system. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Engineering services are essential for maintaining and advancing complex defense systems. 4. The contract's duration of two years allows for sustained development and support. 5. Fixed-fee contract type provides some cost certainty for the government. 6. This award contributes to the broader defense technology sector's capabilities.

Value Assessment

Rating: good

The contract value of $10.5 million for two years of engineering services appears reasonable for specialized defense systems. Benchmarking against similar contracts for navigation system development and support would provide a more precise value assessment. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, requires careful oversight to ensure costs remain aligned with the fixed fee objectives. The award amount is within the expected range for non-recurring engineering efforts in this specialized field.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the open competition suggests a healthy market for these specialized engineering services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting price discovery and encouraging contractors to offer their best value proposals, potentially reducing overall program costs.

Public Impact

The Department of the Navy benefits from enhanced capabilities in positioning, navigation, and timing systems. This contract supports the development and engineering of advanced military technology. The services delivered are crucial for the operational effectiveness of naval assets. Workforce implications include specialized engineering roles within Raytheon Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
Reliance on a single contractor for critical engineering support could pose long-term dependency risks.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract specifies engineering services, indicating a focus on technical advancement and problem-solving.
The fixed fee component provides a degree of cost predictability for the government.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related technology. The market for advanced navigation and positioning systems is highly specialized, with a few key players dominating. Spending in this area is driven by the continuous need for technological superiority in defense applications. Comparable spending benchmarks would likely be found within other Department of Defense contracts for similar system development and sustainment.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While this specific award may not directly benefit small businesses through set-asides, Raytheon Company, as a large prime contractor, may engage small businesses as subcontractors for specialized components or services. The impact on the small business ecosystem would depend on Raytheon's subcontracting strategy for this project.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures will be tied to the achievement of engineering milestones and adherence to the fixed fee. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Positioning, Navigation, and Timing (PNT) Systems
Defense Engineering Services
Naval Systems Development
Non-Recurring Engineering Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Reliance on specialized engineering services may indicate a critical technology area.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to RAYTHEON COMPANY. MOUNTED ASSURED POSITIONING, NAVIGATION, AND TIMING SYSTEM (MAPS) GENERATION (GEN) II NON-RECURRING ENGINEERING (NRE) AND ENGINEERING SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-04-01.

What is the historical spending by the Department of the Navy on similar navigation system engineering contracts over the past five years?

Analyzing historical spending by the Department of the Navy on similar navigation system engineering contracts requires access to detailed federal procurement databases. However, general trends indicate consistent investment in PNT (Positioning, Navigation, and Timing) technologies due to their critical role in military operations. Spending fluctuates based on modernization cycles, new platform development, and upgrades to existing systems. Contracts for non-recurring engineering (NRE) and engineering support services, like the MAPS GEN II contract, are typically awarded to specialized defense contractors. The total annual expenditure can range from tens to hundreds of millions of dollars across various PNT-related projects, depending on the scale and complexity of the systems being developed or maintained. Specific figures for comparable contracts would need to be extracted from sources like FPDS or USAspending, filtering by agency, PSC code (e.g., 541330 for Engineering Services), and keywords related to navigation systems.

How does the awarded amount compare to the estimated value or ceiling of the contract, if applicable?

The provided data indicates an award amount of $10,540,869.81 for the MAPS GEN II NRE and Engineering Support Services contract. For Cost Plus Fixed Fee (CPFF) contracts, the 'award amount' typically represents the total estimated cost plus the fixed fee. The contract type (CPFF) implies that the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee. Without specific details on the initial estimated cost or the negotiated fixed fee, a direct comparison to a ceiling is not possible from the given data alone. However, the award amount represents the government's commitment for the specified period and scope of work. Further analysis would require examining the contract's Statement of Work (SOW) and the negotiated fee structure to understand how the award amount was derived and if it aligns with initial estimates or potential ceilings.

What are the key performance indicators (KPIs) or milestones associated with this contract, and how will performance be measured?

Key performance indicators (KPIs) and milestones for this contract, focused on Non-Recurring Engineering (NRE) and Engineering Support Services for the MAPS GEN II system, are not explicitly detailed in the provided summary data. However, for such engineering contracts, typical KPIs would likely revolve around the timely completion of design reviews, prototype development, testing phases, and the successful integration of the system. Milestones might include the delivery of specific engineering documentation, functional prototypes, or validated system performance data. Performance measurement for a Cost Plus Fixed Fee (CPFF) contract often involves assessing the contractor's ability to meet technical requirements within the agreed-upon scope, manage costs effectively (even though they are reimbursed), and adhere to the schedule. The government contracting officer and technical representatives would monitor progress against the Statement of Work (SOW) and any defined milestones to ensure successful contract execution.

What is Raytheon Company's track record with the Department of the Navy and specifically on navigation or positioning systems?

Raytheon Company, now part of RTX, has a long and extensive track record as a major defense contractor, frequently engaging with the Department of the Navy (DoN) across a wide array of programs. Their portfolio includes significant contributions to naval aviation, combat systems, sensors, and C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) capabilities. Specifically concerning navigation and positioning systems, Raytheon has been involved in developing and supplying technologies such as GPS receivers, inertial navigation systems, and integrated PNT solutions for various naval platforms, including ships, submarines, and aircraft. Their history with the DoN suggests a deep understanding of the service's requirements and operational environments. Past performance evaluations and contract awards would provide further detail on their success rates and capabilities in delivering complex navigation systems.

Are there any identified risks or challenges associated with the MAPS GEN II system or its development that could impact this contract?

The MAPS GEN II system, like many advanced defense technologies, may face inherent risks and challenges during its development and engineering phases. These could include technical complexity, integration issues with existing platforms, cybersecurity vulnerabilities, supply chain disruptions for specialized components, or evolving operational requirements from the Department of the Navy. For this specific NRE and engineering support contract, risks might also stem from the Cost Plus Fixed Fee (CPFF) structure, which requires careful cost management and oversight to prevent potential cost overruns beyond the initial estimates, even with a fixed fee component. The success of the contract hinges on Raytheon's ability to navigate these technical and programmatic challenges effectively, ensuring the system meets its intended performance specifications and operational needs within the defined schedule and budget.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M6785424R2106

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 22260 PACIFIC BLVD, STERLING, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,540,870

Exercised Options: $10,540,870

Current Obligation: $10,540,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU328

IDV Type: IDC

Timeline