Raytheon Company awarded $263M for Receive-Only Cooperative Radar (ROCR) program by the Department of the Navy

Contract Overview

Contract Amount: $26,331,050 ($26.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-05-26

End Date: 2023-12-31

Contract Duration: 1,314 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE RECEIVE-ONLY COOPERATIVE RADAR (ROCR) PROGRAM DEVELOPS RECEIVE-ONLY CAPABILITY. COMMUNICATIONS OVER RADAR (COR) PROVIDES A DATA LINK BETWEEN SENSOR PLATFORMS

Place of Performance

Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to RAYTHEON COMPANY for work described as: THE RECEIVE-ONLY COOPERATIVE RADAR (ROCR) PROGRAM DEVELOPS RECEIVE-ONLY CAPABILITY. COMMUNICATIONS OVER RADAR (COR) PROVIDES A DATA LINK BETWEEN SENSOR PLATFORMS Key points: 1. Contract focuses on developing receive-only capability for communications over radar (COR). 2. This definitive contract was awarded under full and open competition. 3. The contract duration is over 1300 days, indicating a long-term development effort. 4. The primary NAICS code suggests research and development in physical sciences. 5. The contract type is Cost Plus Fixed Fee, common for R&D projects. 6. The awardee, Raytheon Company, is a major defense contractor. 7. The program aims to enhance data links between sensor platforms.

Value Assessment

Rating: fair

The contract value of $263.3 million for a multi-year R&D effort in advanced radar technology appears within a reasonable range for a major defense contractor like Raytheon. However, without specific benchmarks for similar COR system development or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee structure means costs can fluctuate, requiring diligent oversight to ensure efficiency. The fixed fee component provides some incentive for the contractor to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and innovation. The number of bidders is not specified, but the open competition suggests a robust market for this type of advanced technology.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, potentially leading to lower overall costs and higher quality solutions compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense and its sensor platforms, which will gain enhanced communication capabilities. The services delivered involve research and development of advanced radar communication systems. The geographic impact is primarily within the United States, where Raytheon operates and where the technology will be deployed. Workforce implications include highly skilled engineers and scientists in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
The long duration of the contract increases the risk of scope creep or technological obsolescence.
Reliance on a single large contractor for critical R&D may limit broader industry innovation.

Positive Signals

Award under full and open competition suggests a healthy market and potential for competitive pricing.
Raytheon's established expertise in radar systems provides a strong foundation for successful development.
The R&D focus on enhancing sensor platform communication is critical for modern defense capabilities.

Sector Analysis

The contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to advanced sensor and communication technologies. This is a highly specialized area within the broader aerospace and defense industry. Spending in this sector is driven by national security needs and technological advancement. Comparable spending benchmarks would typically involve other major defense R&D programs for sensor systems and advanced communication links.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. Given the nature of advanced R&D in radar technology and the prime contractor being Raytheon, a large defense firm, the primary focus is likely on large-scale development. Subcontracting opportunities for small businesses may exist, but they are not explicitly mandated by a set-aside provision in this award. The impact on the small business ecosystem would depend on Raytheon's subcontracting strategy.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and program managers, ensuring adherence to the contract terms and monitoring cost expenditures. Accountability measures are embedded in the fixed fee structure, incentivizing performance within budget. Transparency is generally maintained through contract reporting requirements, though detailed R&D progress and cost data may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Radar Systems Development
Sensor Network Communications
Defense Research and Development Programs
Electronic Warfare Systems
Naval Technology Modernization

Risk Flags

Long contract duration increases risk of obsolescence.
Cost Plus Fixed Fee requires diligent oversight to manage costs.
Technological complexity of advanced radar systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to RAYTHEON COMPANY. THE RECEIVE-ONLY COOPERATIVE RADAR (ROCR) PROGRAM DEVELOPS RECEIVE-ONLY CAPABILITY. COMMUNICATIONS OVER RADAR (COR) PROVIDES A DATA LINK BETWEEN SENSOR PLATFORMS

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 $26.3 million.

What is the period of performance?

Start: 2020-05-26. End: 2023-12-31.

What is the specific technological advancement expected from the Receive-Only Cooperative Radar (ROCR) program?

The Receive-Only Cooperative Radar (ROCR) program aims to develop a specialized receive-only capability for Communications Over Radar (COR). This technology is designed to enhance the data link between various sensor platforms by enabling them to receive and process radar signals more effectively without necessarily transmitting. The core advancement lies in improving situational awareness and data fusion by allowing platforms to passively 'listen' to radar transmissions from other sources, potentially increasing the range and fidelity of information gathered. This is crucial for modern military operations where seamless and robust data exchange between diverse assets is paramount for mission success.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact cost control for this R&D project?

The Cost Plus Fixed Fee (CPFF) structure for the R&D project means that Raytheon will be reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is common for R&D where the scope and final costs are difficult to estimate precisely upfront. While it allows flexibility to adapt to research challenges, it places a significant burden on the government to meticulously audit and approve all costs. The fixed fee provides some incentive for the contractor to manage costs efficiently, as the fee does not increase with higher costs, but the primary cost control mechanism relies on robust government oversight and clear definition of allowable expenses.

What are the potential risks associated with the long duration (1314 days) of this contract?

The contract's duration of approximately 3.6 years presents several potential risks. Firstly, technological obsolescence is a significant concern; the rapidly evolving field of radar and communication technology could render the developed system outdated before or shortly after its completion. Secondly, scope creep is a common issue in long-term R&D projects, where requirements may change or expand, leading to increased costs and delays. Thirdly, maintaining contractor focus and motivation over such an extended period can be challenging. Finally, the extended timeline increases the exposure to potential shifts in strategic priorities or budget allocations within the Department of Defense, which could impact the program's continuation or relevance.

Can Raytheon Company's track record in radar development be considered a positive indicator for this contract's success?

Yes, Raytheon Company's extensive track record in developing advanced radar systems and defense technologies is a significant positive indicator for the success of the ROCR program. As a major defense contractor with decades of experience, Raytheon possesses deep expertise in radar engineering, signal processing, and complex system integration. They have a history of delivering sophisticated solutions to the Department of Defense, including various radar platforms and communication systems. This established capability suggests a lower technical risk and a higher probability of meeting the program's objectives within the given timeframe and budget, assuming effective program management.

How does this contract align with broader trends in defense technology modernization?

This contract aligns directly with the broader trend in defense technology modernization focused on enhancing networked warfare and improving sensor data fusion. The development of advanced communication links between sensor platforms, as facilitated by the COR technology, is critical for achieving a common operating picture and enabling multi-domain operations. Modern defense strategies increasingly rely on the ability of disparate systems to share information seamlessly and rapidly. The ROCR program's focus on improving receive-only capabilities contributes to this by potentially increasing the volume and quality of data available to platforms, thereby supporting more informed decision-making and coordinated actions across the battlespace.

What is the significance of the NAICS code 541715 for this contract?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' signifies that this contract is primarily for research and development activities. This indicates that the core objective is innovation and the creation of new knowledge or capabilities rather than the procurement of existing goods or services. For this specific contract, it means the focus is on advancing the underlying science and engineering principles for the Receive-Only Cooperative Radar (ROCR) program, pushing the boundaries of radar communication technology. This classification often involves higher risk but also the potential for significant technological breakthroughs.

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: N0001419SB001

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 50 APPLE HILL DR, TEWKSBURY, MA, 01876

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: $47,513,260

Exercised Options: $27,686,764

Current Obligation: $26,331,050

Actual Outlays: $3,088,808

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $9,276,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline