Raytheon Company awarded $6.5M contract for CMBRE STORM MAP DEVELOPMENT by the Department of the Navy

Contract Overview

Contract Amount: $6,509,499 ($6.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2022-07-20

End Date: 2026-03-04

Contract Duration: 1,323 days

Daily Burn Rate: $4.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CMBRE STORM MAP DEVELOPMENT

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to RAYTHEON COMPANY for work described as: CMBRE STORM MAP DEVELOPMENT Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract was not competed, raising questions about potential price discovery and value for money. 3. A single award indicates limited market engagement and potentially missed opportunities for competitive pricing. 4. The contract duration of over three years suggests a significant, ongoing requirement for these services. 5. The specific nature of 'STORM MAP DEVELOPMENT' implies a critical function, likely related to weather or operational planning. 6. The contract's value, while substantial, needs to be benchmarked against similar development contracts for a true value assessment.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure necessitates close oversight to ensure costs remain reasonable. Without a competitive bidding process, it is difficult to definitively benchmark the pricing against market rates or similar contracts. The total award value of $6.5 million for 'CMBRE STORM MAP DEVELOPMENT' is a significant investment. Further analysis would require comparing this to the cost of similar map development projects, factoring in complexity and scope, to determine if the fixed fee is appropriate and if the overall value is good.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary unique capabilities, or in urgent situations. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing bids, the government cannot be assured it received the best possible price for the services rendered.

Public Impact

The Department of the Navy benefits from the development of critical storm map capabilities, likely for operational planning and safety. This contract supports the development of specialized software or data products related to weather and environmental modeling. The geographic impact is primarily within the Department of the Navy's operational areas, potentially worldwide. The contract may have implications for a specialized workforce in areas like meteorological data analysis, software development, and geospatial information systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contract type requires diligent oversight to prevent cost overruns.
Lack of transparency in the procurement process due to sole-source award.

Positive Signals

Award to a known entity (Raytheon Company) may indicate a reliance on established expertise for critical functions.
The contract addresses a specific need for 'STORM MAP DEVELOPMENT', suggesting a focused and important requirement.

Sector Analysis

The defense sector, particularly within the Department of the Navy, often requires specialized software and data development for operational intelligence and planning. Contracts for meteorological data, geospatial analysis, and advanced mapping tools are common. The market for such services is competitive, but specific, niche requirements can sometimes lead to sole-source awards. Benchmarking this $6.5 million contract would involve looking at similar R&D or IT development contracts within the defense industry, considering the complexity and proprietary nature of the technology involved.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, Raytheon Company, is a large defense contractor. There is no explicit information regarding subcontracting plans for small businesses within the provided data. This means that opportunities for small businesses to participate in this specific contract may be limited unless Raytheon proactively includes them in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, scrutiny on the justification for this procurement method is crucial. The cost-plus-fixed-fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency regarding the development progress and expenditures would be expected, though the extent of public disclosure may be limited due to the nature of defense contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Meteorology and Oceanography Command programs
Defense Meteorological Satellite Program (DMSP)
Weather and Climate Research Programs
Geospatial Intelligence Support Contracts

Risk Flags

Sole-source procurement
Cost-plus-fixed-fee contract type
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to RAYTHEON COMPANY. CMBRE STORM MAP DEVELOPMENT

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 $6.5 million.

What is the period of performance?

Start: 2022-07-20. End: 2026-03-04.

What is the specific nature of 'CMBRE STORM MAP DEVELOPMENT' and its intended use by the Department of the Navy?

The term 'CMBRE STORM MAP DEVELOPMENT' likely refers to the creation or enhancement of specialized mapping systems designed to track, predict, and visualize weather phenomena, particularly storms. This could involve developing advanced algorithms for meteorological forecasting, integrating various data sources (satellite imagery, sensor data, historical patterns), and presenting this information in a user-friendly map interface for naval operations. The intended use by the Department of the Navy could range from tactical planning in combat zones, where weather significantly impacts operations, to strategic logistical planning, ensuring the safety of personnel and assets, and supporting maritime domain awareness. The 'CMBRE' acronym might denote a specific program, system, or technology within the Navy's intelligence or operational support framework.

What is the justification for awarding this contract on a sole-source basis to Raytheon Company?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs that only a specific contractor can fulfill. For Raytheon Company, this could be due to possessing patented algorithms for storm prediction, exclusive access to critical data feeds, or a long-standing, integrated role in existing Navy systems that would make switching contractors prohibitively expensive or operationally disruptive. The Department of the Navy would have had to formally document the rationale, likely citing factors such as specialized technical expertise, prior successful performance on related systems, or the unavailability of other sources capable of meeting the stringent requirements within the necessary timeframe. Without this documentation, the sole-source nature raises concerns about fair competition.

How does the cost-plus-fixed-fee (CPFF) contract type compare to other contract types for similar R&D or development projects?

Cost-plus-fixed-fee (CPFF) contracts are common for research and development (R&D) or complex projects where the scope is not fully defined at the outset, making it difficult to establish a firm fixed price. In a CPFF contract, the contractor is reimbursed for all allowable costs plus a predetermined fixed fee representing profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, incentivizing contractor efficiency but carrying higher risk for the contractor if costs escalate. Cost-plus-incentive-fee (CPIF) contracts offer shared cost savings or overruns between the government and contractor, encouraging cost control. For 'STORM MAP DEVELOPMENT,' CPFF allows flexibility for evolving requirements but requires rigorous government oversight to manage costs and prevent contractor inefficiencies from inflating the final price.

What are the potential risks associated with a sole-source, CPFF contract for a critical development project?

Sole-source, Cost-Plus-Fixed-Fee (CPFF) contracts present several risks. The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced innovation, as the contractor faces no direct market alternatives. The CPFF structure itself carries the risk of cost overruns, as the contractor is reimbursed for all allowable costs, potentially reducing the incentive to control expenses. Without strong government oversight, contractors might incur higher costs than necessary. For a critical development project like 'STORM MAP DEVELOPMENT,' these risks are amplified, potentially impacting budget adherence, project timelines, and the ultimate effectiveness or value of the delivered system. Ensuring robust contract management and performance monitoring is paramount.

What historical spending patterns exist for similar 'map development' or meteorological software contracts within the Department of Defense?

Historical spending on 'map development' and meteorological software within the Department of Defense (DoD) is substantial and varied. Agencies like the Navy, Air Force, and Army frequently procure services and systems for weather forecasting, environmental monitoring, and geospatial intelligence. These contracts can range from small, specialized software licenses to large-scale system development efforts. Spending patterns are influenced by technological advancements, evolving operational requirements, and the number of competitive bids received. Sole-source awards for highly specialized or integrated systems tend to be more expensive per unit or per development hour compared to competed contracts. Analyzing past spending on similar projects, considering factors like contract type, duration, and scope, is crucial for benchmarking the current $6.5 million award to Raytheon.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $6,509,499

Exercised Options: $6,509,499

Current Obligation: $6,509,499

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001920G0007

IDV Type: BOA

Timeline