Raytheon Awarded $562M for Electronics & Communication Eq-Demo/Valid by NAVAL SEA SYSTEMS COMMAND
Contract Overview
Contract Amount: $56,228,051 ($56.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 1999-10-01
End Date: 2011-09-27
Contract Duration: 4,379 days
Daily Burn Rate: $12.8K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: 200002!1700!001139!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002499C6337 !A!*!* !19990930!20001001!001463090!001339159!001339159!N!94404!RAYTHEON COMPANY INC !1847 W MAIN RD !PORTSMOUTH !RI!02871!57700!005!44!PORTSMOUTH !NEWPORT !RHODE ISLD!0001!+000001500000!N!N!000000000000!AC64!RDTE/ELECTRONICS & COMMUNICATION EQ-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !3812!1!*!*!*!B!A!*!C !N!V!1!001!N!1G!Z!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871
Plain-Language Summary
Department of Defense obligated $56.2 million to RAYTHEON COMPANY for work described as: 200002!1700!001139!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002499C6337 !A!*!* !19990930!20001001!001463090!001339159!001339159!N!94404!RAYTHEON COMPANY INC !1847 W MAIN RD !PORTSMOUTH !RI!02871!57700!005!44!PORTSMOUTH !NEW… Key points: 1. Significant contract value of $562M for advanced electronics and communication systems. 2. Awarded to Raytheon Company, a major defense contractor. 3. Contract type is Cost Plus Incentive Fee, indicating potential for cost overruns. 4. Sector focus is Defense, specifically Research, Development, Test, and Evaluation (RDTE).
Value Assessment
Rating: questionable
The Cost Plus Incentive Fee (CPIF) contract type can lead to higher costs than fixed-price contracts if not managed closely. The final cost of $562M is substantial for R&D.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was a follow-on to a competed action, but the specific competition method for this award is not detailed. This lack of transparency could impact price discovery.
Taxpayer Impact: The substantial value of this contract represents a significant taxpayer investment in defense technology development.
Public Impact
Taxpayers fund advanced defense electronics development. Potential for cost overruns due to CPIF contract type. Supports Raytheon Company's role in defense contracting. Impacts the technological capabilities of the US Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type
- Lack of detailed competition information
- Long contract duration (over 12 years)
Positive Signals
- Awarded to a known defense contractor
- Follow-on to a competed action
Sector Analysis
This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDTE) for electronics and communication equipment. Spending in this area is critical for maintaining technological superiority.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract award. The focus appears to be on a large prime contractor.
Oversight & Accountability
The contract was managed by the NAVAL SEA SYSTEMS COMMAND and awarded by the Department of Defense. Oversight would typically involve contract management by the Defense Contract Management Agency (DCMA).
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Incentive Fee contract type can lead to higher costs.
- Lack of detailed competition information for this specific award.
- Long contract duration (over 12 years) increases risk of scope creep and cost escalation.
- Potential for cost overruns due to the nature of R&D projects.
Tags
department-of-defense, ri, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.2 million to RAYTHEON COMPANY. 200002!1700!001139!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002499C6337 !A!*!* !19990930!20001001!001463090!001339159!001339159!N!94404!RAYTHEON COMPANY INC !1847 W MAIN RD !PORTSMOUTH !RI!02871!57700!005!44!PORTSMOUTH !NEWPORT !RHODE ISLD!0001!+000001500000!N!N!000000000000!AC64!RDTE/ELECTRONICS & COMMUNICATION EQ-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !3812!1!*!*!*!B!A!*!C !N!V!
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 $56.2 million.
What is the period of performance?
Start: 1999-10-01. End: 2011-09-27.
What were the specific performance metrics that triggered the incentive fee for Raytheon?
The incentive fee structure for a Cost Plus Incentive Fee (CPIF) contract is designed to reward the contractor for meeting or exceeding specific performance targets, such as cost savings, schedule adherence, or technical performance. Without access to the contract's Statement of Work and the detailed incentive clauses, it's impossible to determine the exact metrics that would have influenced Raytheon's final profit margin on this $562M award.
How did the 'follow on to competed action' status impact the final negotiated price?
While being a follow-on to a competed action suggests some level of prior competition, the specific impact on the final negotiated price for this award is unclear. It could imply that the initial competition established a baseline, but the follow-on nature might have allowed for less aggressive negotiation if the incumbent contractor (Raytheon) was deemed the only viable option for continuity or specialized knowledge.
What is the projected return on investment for this $562M expenditure in electronics and communication R&D?
Quantifying the return on investment (ROI) for defense R&D is inherently challenging due to the long-term and often classified nature of its benefits. The investment aims to enhance naval capabilities, maintain technological superiority, and ensure national security. The ROI is measured not just in direct financial returns but in strategic advantage, mission effectiveness, and deterrence, which are difficult to assign a monetary value to.
Competition & Pricing
Extent Competed: FOLLOW ON TO COMPETED ACTION
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Address: 1847 W MAIN RD, PORTSMOUTH, RI, 02871
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1999-10-01
Current End Date: 2011-09-27
Potential End Date: 2011-09-27 00:00:00
Last Modified: 2022-09-02
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