Raytheon awarded $304M for Next Generation Jammer development, a significant R&D investment

Contract Overview

Contract Amount: $304,068,395 ($304.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2013-07-08

End Date: 2017-12-28

Contract Duration: 1,634 days

Daily Burn Rate: $186.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: NEXT GENERATION JAMMER (NGJ) TECHNOLOGY DEVELOPMENT (TD) BASE CONTRACT AWARD

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $304.1 million to RAYTHEON COMPANY for work described as: NEXT GENERATION JAMMER (NGJ) TECHNOLOGY DEVELOPMENT (TD) BASE CONTRACT AWARD Key points: 1. This contract represents a substantial investment in advanced electronic warfare capabilities. 2. The competitive nature of the award suggests a robust market for this technology. 3. Performance will be closely monitored given the complexity and critical nature of the system. 4. The contract's duration indicates a long-term commitment to technology maturation. 5. This falls within the broader defense sector's focus on modernizing electronic warfare. 6. The cost-plus incentive fee structure aims to balance innovation with cost control.

Value Assessment

Rating: good

The contract value of over $304 million for technology development is substantial. Benchmarking against similar large-scale R&D efforts in defense electronics, this figure appears within a reasonable range for developing a complex system like the Next Generation Jammer. The cost-plus incentive fee (CPIF) structure allows for flexibility while incentivizing contractor performance and cost management, suggesting an effort to achieve value for money. However, detailed cost breakdowns and comparisons to specific, comparable technology development programs would be needed for a more precise value assessment.

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 vendors had the opportunity to bid. With three bidders identified, the competition level appears moderate for a program of this magnitude and technical complexity. This level of competition is generally positive for price discovery and encourages bidders to offer competitive terms. The specific details of the bidding process and the number of proposals received would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a more competitive bidding environment, which can lead to better pricing and more innovative solutions. This approach helps ensure that taxpayer funds are used efficiently by selecting the most capable and cost-effective offer.

Public Impact

The primary beneficiaries are the U.S. Navy and Air Force, who will gain advanced electronic warfare capabilities. The services delivered include research, development, and testing of the Next Generation Jammer system. The geographic impact is primarily within the defense industrial base, with potential for ripple effects in related technology sectors. Workforce implications include highly skilled engineering, research, and technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of the technology development may lead to cost overruns if not managed tightly.
Long development cycles inherent in defense R&D can pose risks to schedule adherence.
Reliance on a single prime contractor for core technology development requires robust oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Cost-plus incentive fee structure aligns contractor and government interests for performance and cost.
Significant investment in a critical defense capability addresses a known operational need.

Sector Analysis

The Next Generation Jammer (NGJ) program falls within the defense electronics and electronic warfare sector, a critical component of modern military operations. This sector is characterized by high R&D investment, long development cycles, and significant government procurement. The market is dominated by a few large defense contractors capable of undertaking such complex projects. The total addressable market for electronic warfare systems is substantial, driven by ongoing global military modernization efforts and the increasing threat landscape.

Small Business Impact

This contract does not appear to have a specific small business set-aside component, as indicated by 'sb': false. However, the prime contractor, Raytheon Company, is expected to engage small businesses through subcontracting opportunities. The extent to which small businesses will participate will depend on the specific subcontracting plan developed by Raytheon and the nature of the components and services required for the NGJ technology development. Analysis of subcontracting reports would be necessary to assess the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA) and the relevant program executive office within the Department of Defense. Accountability measures are embedded within the Cost Plus Incentive Fee (CPIF) contract structure, which links contractor profit to performance metrics. Transparency is typically managed through program reviews, milestone reporting, and contract data requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Electronic Warfare Systems
Naval Aviation Technology Development
Airborne Electronic Attack Programs
Defense Research and Development Contracts

Risk Flags

Technology Development Risk
Schedule Adherence
Cost Control
System Integration Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $304.1 million to RAYTHEON COMPANY. NEXT GENERATION JAMMER (NGJ) TECHNOLOGY DEVELOPMENT (TD) BASE CONTRACT AWARD

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 $304.1 million.

What is the period of performance?

Start: 2013-07-08. End: 2017-12-28.

What is Raytheon Company's track record with large-scale defense R&D contracts?

Raytheon Company, now part of RTX, has a long and extensive track record of successfully delivering complex defense systems and technologies. They are a major prime contractor on numerous large-scale research and development programs for the U.S. military, including advanced radar systems, missile defense technologies, and electronic warfare solutions. Their experience spans decades, and they have consistently demonstrated the capability to manage intricate projects, integrate sophisticated technologies, and meet stringent performance requirements. While specific performance metrics for all past contracts are not publicly detailed, their sustained position as a leading defense contractor suggests a generally positive history of execution on similar R&D endeavors. However, like any large defense contractor, they have faced scrutiny and challenges on specific programs, underscoring the importance of ongoing oversight for current contracts.

How does the value of this contract compare to other Next Generation Jammer (NGJ) program phases?

This contract, valued at approximately $304 million, specifically covers the Technology Development (TD) phase of the Next Generation Jammer (NGJ) program. The NGJ program is a multi-phase acquisition, and the TD phase is typically one of the earlier stages focused on proving the feasibility and core technologies of the system. Subsequent phases, such as Engineering and Manufacturing Development (EMD) and Low-Rate Initial Production (LRIP), often involve significantly higher contract values as the system matures and moves towards fielding. For instance, EMD contracts can run into hundreds of millions or even billions of dollars, and production contracts for a fleet-wide system would represent a much larger overall investment. Therefore, while $304 million is substantial for technology development, it represents only a portion of the total program cost.

What are the primary risks associated with the development of the Next Generation Jammer (NGJ)?

The primary risks associated with the development of the Next Generation Jammer (NGJ) are multifaceted, stemming from the program's technological complexity, long development timeline, and critical operational requirements. Technologically, integrating advanced electronic warfare capabilities, including sophisticated software and hardware, presents inherent risks of performance shortfalls, integration challenges, and potential obsolescence if development timelines are extended. Schedule risks are also significant, as defense R&D programs are prone to delays due to technical hurdles, testing issues, or evolving requirements. Cost risks are present, particularly with Cost Plus Incentive Fee (CPIF) contracts, where unforeseen technical challenges or scope changes could lead to budget overruns if not managed effectively. Furthermore, ensuring the system meets the demanding operational needs of the Navy and Air Force in rapidly evolving threat environments adds a layer of strategic risk.

What is the expected effectiveness of the Next Generation Jammer (NGJ) once fielded?

The Next Generation Jammer (NGJ) is expected to significantly enhance the electronic warfare capabilities of U.S. Navy and Air Force aircraft, providing a crucial advantage in contested electromagnetic spectrum environments. Its primary function is to disrupt, deny, and degrade enemy radar and communication systems, thereby protecting strike aircraft and enabling mission success. The NGJ is designed to be more capable, adaptable, and cost-effective over its lifecycle than legacy systems. It aims to counter advanced and emerging threats more effectively, offering improved range, power, and jamming techniques. Once fielded, it is anticipated to be a cornerstone of airborne electronic attack, improving survivability and lethality for aircrews operating in high-threat areas.

How has spending on electronic warfare technology development evolved over the past decade?

Spending on electronic warfare (EW) technology development has seen a consistent and significant increase over the past decade, driven by the recognition of the growing importance of the electromagnetic spectrum in modern warfare. As adversaries develop more sophisticated radar, communication, and electronic attack capabilities, the U.S. Department of Defense has prioritized investment in advanced EW systems to maintain a technological edge. This includes funding for research, development, and procurement of next-generation jammers, electronic support measures, electronic countermeasures, and cyber-enabled EW capabilities. Budgets for EW programs have generally trended upwards, reflecting a strategic shift towards prioritizing EW as a critical warfighting domain. This trend is evident across various military branches, with substantial investments allocated to programs like the NGJ.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001912R0035

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

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: $305,289,625

Exercised Options: $305,289,625

Current Obligation: $304,068,395

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $378,995

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline