DoD's $1.8B Next Generation Jammer EMD contract awarded to Raytheon faces scrutiny over competition and cost
Contract Overview
Contract Amount: $1,795,489,000 ($1.8B)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2016-04-13
End Date: 2026-09-30
Contract Duration: 3,822 days
Daily Burn Rate: $469.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: IGF::OT::IGF NEXT GENERATION JAMMER (NGJ) ENGINEERING&MANUFACTURING DEVELOPMENT (EMD) PHASE
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $1.80 billion to RAYTHEON COMPANY for work described as: IGF::OT::IGF NEXT GENERATION JAMMER (NGJ) ENGINEERING&MANUFACTURING DEVELOPMENT (EMD) PHASE Key points: 1. The $1.8 billion contract for the Next Generation Jammer (NGJ) Engineering & Manufacturing Development (EMD) phase was awarded to Raytheon Company. 2. This significant investment is for the Department of the Navy, aiming to enhance electronic warfare capabilities. 3. The contract was not competed, raising questions about potential price discovery and value for taxpayer money. 4. The R&D sector, specifically in physical and engineering sciences, is a critical area for defense modernization.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee (CPIF) structure allows for cost overruns to be shared, potentially impacting overall value. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the NGJ.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial $1.8 billion contract raises concerns about whether taxpayers are receiving the best possible value for their investment in advanced defense technology.
Public Impact
Enhances critical electronic warfare capabilities for naval aviation. Represents a significant investment in advanced defense technology. Potential for long-term strategic advantage in electronic countermeasures. Impacts the aerospace and defense industry's R&D landscape.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Addresses critical defense need
- Potential for technological advancement
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically for advanced electronic warfare systems. Defense R&D spending in this area is crucial for maintaining technological superiority, with significant government investment typical for such complex projects.
Small Business Impact
There is no indication of small business participation in this specific contract award. Future phases or subcontracts may offer opportunities, but the prime contract is with a large defense contractor.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost controls and performance metrics are rigorously monitored by the Department of the Navy to protect taxpayer interests.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns due to CPIF structure
- Long contract duration (2016-2026)
- Sole-source award limits price transparency
- High dollar value of the contract
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.80 billion to RAYTHEON COMPANY. IGF::OT::IGF NEXT GENERATION JAMMER (NGJ) ENGINEERING&MANUFACTURING DEVELOPMENT (EMD) PHASE
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 $1.80 billion.
What is the period of performance?
Start: 2016-04-13. End: 2026-09-30.
What is the projected total cost of the NGJ program beyond the EMD phase, and how will future competition be structured?
The total program cost beyond the EMD phase is not detailed in this data. However, the EMD phase alone is valued at $1.8 billion. Future competition strategies will be critical to ensure cost-effectiveness in subsequent production and sustainment phases, potentially involving competitive prototyping or phased procurements to mitigate sole-source risks.
How does the government plan to mitigate cost risks associated with the Cost Plus Incentive Fee (CPIF) contract structure for this R&D effort?
The CPIF structure incentivizes the contractor to control costs by sharing savings or overruns with the government. The Department of the Navy will likely employ robust program management, independent cost estimates, and performance reviews to monitor expenditures and ensure the contractor meets cost targets and performance milestones effectively.
What are the key performance metrics and milestones for the NGJ EMD phase, and how will their achievement be independently verified?
Key performance metrics and milestones for the NGJ EMD phase would typically include demonstrated technological capabilities, system integration, and readiness for subsequent phases. Independent verification will likely involve government testing, technical reviews, and potentially third-party assessments to ensure the contractor meets all contractual requirements and performance specifications.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001914R6002
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
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: $1,807,450,946
Exercised Options: $1,807,450,946
Current Obligation: $1,795,489,000
Actual Outlays: $113,486,005
Subaward Activity
Number of Subawards: 589
Total Subaward Amount: $1,453,828,306
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-04-13
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-16
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