Navy awards Raytheon $15.8M for WBRS EMD design updates, software, and test equipment

Contract Overview

Contract Amount: $15,806,296 ($15.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2026-01-09

End Date: 2027-07-08

Contract Duration: 545 days

Daily Burn Rate: $29.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE SCOPE OF THIS ORDER IS TO UPDATE THE WIDEBAND RECEIVER SYSTEM (WBRS) ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD) DESIGN, UPDATE SPECIAL TEST EQUIPMENT (STE), UPDATE THE RADAR SOFTWARE, AND ADDRESS QUALIFICATION REQUIREMENTS.

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to RAYTHEON COMPANY for work described as: THE SCOPE OF THIS ORDER IS TO UPDATE THE WIDEBAND RECEIVER SYSTEM (WBRS) ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD) DESIGN, UPDATE SPECIAL TEST EQUIPMENT (STE), UPDATE THE RADAR SOFTWARE, AND ADDRESS QUALIFICATION REQUIREMENTS. Key points: 1. Contract focuses on critical system updates for the Wideband Receiver System (WBRS). 2. Engineering and Manufacturing Development (EMD) design updates are a key component. 3. Includes updates to special test equipment and radar software. 4. Addresses qualification requirements, suggesting a focus on compliance and readiness. 5. Contract type is Cost Plus Fixed Fee, which can allow for cost overruns. 6. Sole-source award raises questions about potential price competition. 7. Long performance period of 545 days indicates a substantial scope of work.

Value Assessment

Rating: fair

The contract value of $15.8 million for engineering services related to system updates appears reasonable given the scope. However, the Cost Plus Fixed Fee (CPFF) contract type introduces risk, as it allows for costs to exceed initial estimates, with the contractor receiving a fixed fee. Without comparable sole-source contracts for similar EMD updates, a precise value-for-money assessment is challenging. Benchmarking against industry standards for engineering services of this complexity would be beneficial.

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 specialized capabilities or when urgency dictates. The lack of competition means that the Department of the Navy did not benefit from a competitive bidding process, which could have potentially led to lower prices or more innovative solutions.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. Sole-source awards can sometimes result in higher costs compared to competed contracts.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel who rely on the updated Wideband Receiver System. Services delivered include critical engineering, software development, and equipment updates. The geographic impact is primarily within the contractor's facilities and potentially Navy testing sites. Workforce implications include specialized engineering and technical roles at Raytheon.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to higher costs if not managed closely.
Sole-source award limits price discovery and potential cost savings.
Scope of work includes complex EMD updates, which can be prone to unforeseen challenges.
Long performance period increases the duration of potential cost exposure.

Positive Signals

Focus on updating critical systems like WBRS ensures operational readiness.
Addressing qualification requirements suggests a commitment to meeting stringent standards.
Raytheon's established role as a defense contractor implies familiarity with Navy systems.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense systems. The market for specialized defense engineering and manufacturing development is dominated by a few large contractors with deep expertise and established relationships with government agencies. The value of this specific contract is modest within the broader defense spending landscape, but it represents a crucial investment in maintaining and upgrading essential military technology.

Small Business Impact

This contract does not appear to involve small business set-asides. As a sole-source award to a large prime contractor, Raytheon Company, the primary focus is on direct execution rather than subcontracting opportunities for small businesses. There is no indication of specific subcontracting plans for small businesses within the provided data.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the CPFF contract structure, requiring detailed cost reporting and performance monitoring. Transparency may be limited due to the sole-source nature of the award, but contract details and performance reports are typically available through federal procurement databases.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Defense Engineering Services
Radar Systems Modernization
Electronic Warfare Systems

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type carries cost overrun risk.
Scope includes complex EMD updates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to RAYTHEON COMPANY. THE SCOPE OF THIS ORDER IS TO UPDATE THE WIDEBAND RECEIVER SYSTEM (WBRS) ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD) DESIGN, UPDATE SPECIAL TEST EQUIPMENT (STE), UPDATE THE RADAR SOFTWARE, AND ADDRESS QUALIFICATION REQUIREMENTS.

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 $15.8 million.

What is the period of performance?

Start: 2026-01-09. End: 2027-07-08.

What is Raytheon Company's track record with similar Wideband Receiver System (WBRS) contracts or updates?

Raytheon Company, now part of RTX, has a long history of developing and supporting complex defense systems, including radar and electronic warfare capabilities. While specific details on prior WBRS EMD updates awarded to Raytheon are not provided in this data, their extensive experience with similar engineering and manufacturing development projects for the Department of Defense suggests a strong capability. Their track record typically involves delivering complex technical solutions under various contract types. Further investigation into their past performance on related naval aviation or radar programs would provide a more comprehensive understanding of their suitability for this specific task.

How does the $15.8 million value compare to similar EMD updates for defense systems?

Benchmarking the $15.8 million value for this EMD update is challenging without more specific comparable data. Engineering and Manufacturing Development (EMD) phases for complex systems like radar receivers can vary significantly in cost depending on the scope, technological complexity, and required testing. Given that this is a sole-source award for updates to an existing system, the cost is likely influenced by specialized knowledge and integration requirements. A comprehensive comparison would necessitate analyzing other sole-source or competed EMD contracts for similar radar or electronic warfare components within the Department of Defense, considering factors like system criticality, technological maturity, and contractor overhead.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of work?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for this type of engineering work is the potential for cost overruns. While the contractor's fee is fixed, the total cost of performing the work is not capped. If the contractor incurs higher-than-expected costs due to unforeseen technical challenges, scope creep, or inefficiencies, the government bears the burden of these increased costs. This necessitates robust government oversight to monitor expenditures, ensure efficient performance, and prevent unnecessary costs. The fixed fee provides some incentive for the contractor to control costs, but the government assumes the majority of the cost risk.

What is the expected impact of these WBRS updates on the Navy's operational capabilities?

The updates to the Wideband Receiver System (WBRS) engineering and manufacturing development (EMD) design, special test equipment, and radar software are expected to enhance the Navy's operational capabilities by improving the performance, reliability, and potentially the functionality of the WBRS. An updated system is likely to offer better signal processing, increased accuracy, or improved resistance to countermeasures, all of which are critical for effective naval operations, particularly in electronic warfare and intelligence gathering. Addressing qualification requirements suggests the updates are necessary to meet current or future operational demands and standards, ensuring the system remains effective and compliant.

How has spending on engineering services for radar systems evolved within the Department of the Navy?

Spending on engineering services for radar systems within the Department of the Navy has generally trended upwards, driven by the continuous need to modernize aging platforms, counter evolving threats, and integrate new technologies. This includes significant investments in research, development, testing, and evaluation (RDT&E) for next-generation radar capabilities, as well as sustainment and upgrade contracts for existing systems. The Navy consistently allocates substantial portions of its budget to maintaining its technological edge in areas like radar, electronic warfare, and command and control. Contracts like this one, focused on EMD updates, are a typical component of this ongoing modernization effort.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $15,966,879

Exercised Options: $15,966,879

Current Obligation: $15,806,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6893623D0034

IDV Type: IDC

Timeline