DoD's $30.7M Joint Tactical Terminal Upgrade Kit Development Contract Awarded to Raytheon
Contract Overview
Contract Amount: $30,737,534 ($30.7M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2013-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $16.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: JOINT TACTICAL TERMINAL - SENIOR, UPGRADE KIT DEVELOPMENT
Place of Performance
Location: SEMINOLE, PINELLAS County, FLORIDA, 33777
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $30.7 million to RAYTHEON COMPANY for work described as: JOINT TACTICAL TERMINAL - SENIOR, UPGRADE KIT DEVELOPMENT Key points: 1. Awarded to a single, large defense contractor, Raytheon. 2. Contract focuses on R&D for physical and engineering sciences. 3. Significant duration of 1826 days suggests a complex development cycle. 4. No small business participation indicated.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. The total award value of $30.7M over five years needs to be benchmarked against similar R&D efforts for complex terminal systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for this R&D contract may result in a higher overall cost to taxpayers compared to a competitively awarded contract.
Public Impact
Enhances critical communication capabilities for military operations. Development of advanced technology could provide a strategic advantage. Long-term contract may impact future budget allocations for similar systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus-fixed-fee contract type carries inherent cost risk.
- No small business participation.
Positive Signals
- Addresses critical defense technology needs.
- Long-term development supports complex R&D.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight due to its inherent complexity and potential for cost escalation.
Small Business Impact
The contract data indicates no small business participation. This is a missed opportunity to leverage the innovation and agility of small businesses in the defense R&D sector.
Oversight & Accountability
The Department of Defense, specifically the Defense Contract Management Agency, is responsible for oversight. The long duration and cost-plus-fixed-fee structure necessitate robust monitoring to ensure cost control and adherence to development milestones.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of small business participation
- Long contract duration
- Research and Development focus
Tags
research-and-development-in-the-physical, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.7 million to RAYTHEON COMPANY. JOINT TACTICAL TERMINAL - SENIOR, UPGRADE KIT DEVELOPMENT
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 $30.7 million.
What is the period of performance?
Start: 2008-09-30. End: 2013-09-30.
What specific technological advancements does the Joint Tactical Terminal upgrade kit aim to achieve, and how do these justify the sole-source R&D investment?
The specific advancements are not detailed in the provided data. However, R&D contracts, especially sole-source ones, are typically justified by unique technological requirements, proprietary knowledge, or the need for specialized expertise that only one entity possesses. The justification would likely center on the critical nature of the terminal's function and the perceived inability of other firms to meet the demanding specifications within the required timeframe.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort, and what mitigation strategies are in place?
The primary risk with CPFF is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to cost overruns. Mitigation strategies typically involve stringent oversight, detailed cost tracking, performance metrics, and clear definition of allowable costs to prevent scope creep and ensure efficient resource utilization.
How will the effectiveness of the upgraded Joint Tactical Terminal be measured post-development, particularly given the R&D focus and lack of initial competition?
Effectiveness will be measured through rigorous testing and validation phases, likely involving operational assessments and performance benchmarks defined in the contract's statement of work. Despite the lack of initial competition, the contract should include clear deliverables and acceptance criteria. Post-deployment feedback and performance monitoring will also be crucial to gauge the system's real-world effectiveness and inform future upgrades or procurements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W15P7T08RT201
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 8333 BRYAN DAIRY RD, LARGO, FL, 33777
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: $61,494,824
Exercised Options: $61,494,824
Current Obligation: $30,737,534
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-09-30
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2018-05-15
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