DoD Awards Raytheon $1.06 Billion for AMDR Integration and Production Support Through 2025
Contract Overview
Contract Amount: $1,057,024,778 ($1.1B)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2018-12-08
End Date: 2025-09-30
Contract Duration: 2,488 days
Daily Burn Rate: $424.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AIR AND MISSILE DEFENSE RADAR (AMDR) INTEGRATION AND PRODUCTION SUPPORT (I&PS).
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $1.06 billion to RAYTHEON COMPANY for work described as: AIR AND MISSILE DEFENSE RADAR (AMDR) INTEGRATION AND PRODUCTION SUPPORT (I&PS). Key points: 1. Significant contract value for a critical defense system. 2. Sole-source award to Raytheon raises questions about competition. 3. Long contract duration (2488 days) requires ongoing oversight. 4. Focus on radar integration and production suggests a mature program.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns. Benchmarking against similar complex defense system integration contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source award, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not be receiving the best possible price for these critical defense services.
Public Impact
Ensures continued operation and advancement of vital air and missile defense capabilities. Supports national security by maintaining readiness of advanced radar systems. Potential for technological advancements in radar systems through ongoing R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- CPFF contract type can lead to cost overruns.
- Long contract duration requires sustained oversight.
Positive Signals
- Critical defense capability.
- Long-term support ensures system readiness.
- Established contractor with relevant expertise.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced radar systems crucial for national security. Spending benchmarks for similar large-scale, sole-source defense integration contracts are typically in the hundreds of millions to billions of dollars.
Small Business Impact
The data indicates this is a large prime contract awarded to Raytheon Company. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Department of Defense to ensure cost control, performance, and adherence to contract terms throughout its duration.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition.
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for scope creep.
- Dependency on a single contractor.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.06 billion to RAYTHEON COMPANY. AIR AND MISSILE DEFENSE RADAR (AMDR) INTEGRATION AND PRODUCTION SUPPORT (I&PS).
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 $1.06 billion.
What is the period of performance?
Start: 2018-12-08. End: 2025-09-30.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The Department of Defense should have a documented rationale. To ensure fair pricing, they may conduct should-cost analyses, benchmark against historical data, or negotiate aggressively on the fixed fee component of the CPFF contract.
What are the key performance indicators (KPIs) for this contract, and how is Raytheon's performance being measured?
Key performance indicators would likely focus on system availability, reliability, upgrade integration timelines, and production defect rates. The Department of Defense would track these metrics through regular reporting, technical reviews, and potentially independent testing to ensure Raytheon meets its contractual obligations effectively.
What is the projected impact of this contract on the overall modernization of US air and missile defense capabilities?
This contract is crucial for the continued integration and production of the Air and Missile Defense Radar (AMDR), a key component of future naval air defense. It ensures the system remains operational and can be upgraded, directly contributing to the modernization and effectiveness of the US's ability to counter advanced threats.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002418R5394
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752
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: $1,179,507,257
Exercised Options: $1,179,507,257
Current Obligation: $1,057,024,778
Actual Outlays: $53,393,954
Subaward Activity
Number of Subawards: 225
Total Subaward Amount: $244,625,451
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-12-08
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-10
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