Raytheon awarded $107M for Air and Missile Defense Radar technology development, focusing on S-Band Radar and Controller

Contract Overview

Contract Amount: $107,082,576 ($107.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2010-09-30

End Date: 2012-09-30

Contract Duration: 731 days

Daily Burn Rate: $146.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: AIR AND MISSILE DEFENSE RADAR SUITE (AMDR) S-BAND RADAR (AMDR-S) AND RADAR SUITE CONTROLLER (RSC) TECHNOLOGY DEVELOPMENT AND TECHNOLOGY DEMONSTRATION PROTOTYPE EQUIPMENT, HARDWARE AND SOFTWARE AWARD

Place of Performance

Location: SUDBURY, MIDDLESEX County, MASSACHUSETTS, 01776

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $107.1 million to RAYTHEON COMPANY for work described as: AIR AND MISSILE DEFENSE RADAR SUITE (AMDR) S-BAND RADAR (AMDR-S) AND RADAR SUITE CONTROLLER (RSC) TECHNOLOGY DEVELOPMENT AND TECHNOLOGY DEMONSTRATION PROTOTYPE EQUIPMENT, HARDWARE AND SOFTWARE AWARD Key points: 1. Contract value represents a significant investment in advanced radar technology. 2. Competition dynamics for this high-tech defense contract are crucial for price discovery. 3. Performance risk is moderate given the technology development and demonstration phase. 4. This contract supports the Navy's strategic air and missile defense capabilities. 5. The sector is characterized by high barriers to entry and specialized expertise. 6. The fixed-price incentive contract structure aims to balance cost control with performance.

Value Assessment

Rating: good

The $107 million award for the AMDR-S and RSC technology development appears reasonable for a complex defense system. Benchmarking against similar large-scale radar development programs is challenging due to the unique nature of these advanced systems. However, the fixed-price incentive structure suggests an effort to manage costs while encouraging contractor performance. Further analysis would require detailed cost breakdowns and comparisons to industry R&D investment levels for comparable technologies.

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. The presence of three bidders suggests a competitive environment for this specialized technology. A competitive process is expected to drive more favorable pricing and innovation for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and technological solution at a reasonable cost for a critical defense capability.

Public Impact

The primary beneficiaries are the U.S. Navy and the broader Department of Defense, enhancing air and missile defense capabilities. The contract delivers advanced radar technology development and demonstration prototypes. Geographic impact is national, supporting defense infrastructure and readiness. Workforce implications include highly skilled engineers, scientists, and technicians in the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in technology development phases.
Risk of schedule delays due to the complexity of advanced radar systems.
Dependence on a single prime contractor for critical technology integration.

Positive Signals

Awarded through full and open competition, suggesting robust market interest.
Fixed-price incentive contract type incentivizes performance and cost control.
Focus on technology development and demonstration mitigates some execution risks compared to full production.

Sector Analysis

The defense radar sector is a highly specialized and capital-intensive industry, dominated by a few large prime contractors. This contract for the Air and Missile Defense Radar (AMDR) S-Band Radar (AMDR-S) and Radar Suite Controller (RSC) fits within the broader market for advanced sensor and command and control systems. Spending in this area is driven by evolving geopolitical threats and the need for sophisticated defense capabilities. Comparable spending benchmarks are difficult to establish precisely due to the unique technological requirements and long development cycles inherent in such programs.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, as a large prime contract, Raytheon Company is likely to engage small businesses as subcontractors for specialized components or services, contributing to the small business ecosystem within the defense industrial base. The extent of subcontracting to small businesses would need further investigation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the contract's performance metrics and reporting requirements. Transparency is facilitated through contract award databases and potential reporting to Congress on major defense programs. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air and Missile Defense Systems
Naval Radar Technology
Advanced Sensor Development
Department of Defense Research and Development

Risk Flags

Technology Development Risk
Schedule Slippage Potential
Cost Overrun Risk
Integration Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $107.1 million to RAYTHEON COMPANY. AIR AND MISSILE DEFENSE RADAR SUITE (AMDR) S-BAND RADAR (AMDR-S) AND RADAR SUITE CONTROLLER (RSC) TECHNOLOGY DEVELOPMENT AND TECHNOLOGY DEMONSTRATION PROTOTYPE EQUIPMENT, HARDWARE AND SOFTWARE AWARD

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 $107.1 million.

What is the period of performance?

Start: 2010-09-30. End: 2012-09-30.

What is Raytheon Company's track record with similar large-scale defense technology development contracts?

Raytheon Company has a long and extensive track record in developing and producing advanced defense systems, including radar, missile defense, and command and control technologies. They have been a prime contractor on numerous complex programs for the Department of Defense and allied nations. Their experience spans the entire acquisition lifecycle, from basic research and technology development to full-rate production and sustainment. Specific to radar, Raytheon has been instrumental in developing systems like the Patriot missile defense radar and various airborne and ground-based surveillance and tracking radars. Their history suggests a strong capability in managing the technical and programmatic challenges associated with high-risk, high-reward technology development efforts like the AMDR program.

How does the $107 million award compare to the total lifecycle cost of the AMDR program?

The $107 million award represents the funding allocated for the Technology Development and Technology Demonstration phase of the Air and Missile Defense Radar (AMDR) program, specifically for the S-Band Radar (AMDR-S) and Radar Suite Controller (RSC). This phase is typically one of the earlier stages in a major defense acquisition program. The total lifecycle cost of the AMDR program, which includes development, procurement of multiple radar systems, deployment, operations, and sustainment over several decades, is expected to be significantly higher, likely in the tens of billions of dollars. Therefore, this $107 million award is a crucial but relatively small portion of the overall program's financial commitment.

What are the primary technical risks associated with the AMDR-S and RSC technology development?

The primary technical risks associated with the AMDR-S and RSC technology development revolve around achieving the required performance specifications for advanced radar capabilities, such as long-range detection, tracking of complex threats (including ballistic missiles and hypersonic vehicles), and integration with other combat system elements. Specific risks include the development of novel antenna technologies, advanced signal processing algorithms to handle clutter and countermeasures, power generation and cooling for high-power radar systems, and ensuring the reliability and maintainability of cutting-edge components. The transition from laboratory prototypes to operational systems also presents integration and interoperability challenges within the Navy's existing and future fleet architecture.

What is the expected impact of this contract on the future capabilities of the U.S. Navy's air and missile defense?

This contract is foundational for significantly enhancing the U.S. Navy's air and missile defense (AMD) capabilities. The AMDR-S and RSC are intended to replace the legacy SPY-1 radar system on Aegis-equipped destroyers and cruisers, providing substantially improved performance against a wider range of threats, including ballistic missiles, cruise missiles, and advanced aircraft. Successful development and deployment of this new radar suite will enable the Navy to maintain sea-based deterrence and defense against evolving threats, ensuring the survivability of naval assets and providing critical support to joint forces operating in contested environments. It represents a major modernization effort for the fleet's primary sensor system.

How has spending on naval radar technology evolved over the past decade?

Spending on naval radar technology has seen a consistent upward trend over the past decade, driven by increasing global threats and the need for more sophisticated detection and tracking capabilities. Investments have shifted towards systems capable of multi-mission operations, including ballistic missile defense, air defense, and surface surveillance. Programs like the AMDR represent a significant leap in this evolution, moving beyond incremental upgrades to entirely new radar architectures. Funding has also supported research into areas like gallium nitride (GaN) technology for more efficient and powerful radar systems, as well as advanced signal processing for improved performance in complex electronic warfare environments. Overall, the Navy's commitment to advanced radar reflects its strategic priorities.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

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: N0002410R5340

Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 528 BOSTON POST RD, SUDBURY, MA, 05

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: $112,357,802

Exercised Options: $112,357,802

Current Obligation: $107,082,576

Contract Characteristics

Cost or Pricing Data: NO

Timeline