Raytheon awarded $17.2M for Ground Soldier Ensemble prototypes and refined systems

Contract Overview

Contract Amount: $17,242,599 ($17.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2009-04-15

End Date: 2012-02-29

Contract Duration: 1,050 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: GROUND SOLDIER ENSEMBLE TECHNOLOGY DEVELOPMENT (TD) PHASE FOR THE PROCUREMENT OF TEN (10) GSE PROTOTYPE SYSTEMS FOR THE PROTOTYPE PHASE (APPROX. 7.5 MONTHS) AND SIXTY (60) REFINED GSE SYSTEMS FOR THE REFINEMENT PHASE (APPROX. 13.5 MONTHS). THIS CONTRACT ALSO INCLUDES AN OPTION TO SUPPORT A POTENTIAL MARINE CORPS REQUIREMENT OF FIVE (5) GSE REFINED SYSTEMS.

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.2 million to RAYTHEON COMPANY for work described as: GROUND SOLDIER ENSEMBLE TECHNOLOGY DEVELOPMENT (TD) PHASE FOR THE PROCUREMENT OF TEN (10) GSE PROTOTYPE SYSTEMS FOR THE PROTOTYPE PHASE (APPROX. 7.5 MONTHS) AND SIXTY (60) REFINED GSE SYSTEMS FOR THE REFINEMENT PHASE (APPROX. 13.5 MONTHS). THIS CONTRACT ALSO INCLUDES AN OPTION TO… Key points: 1. Contract focuses on technology development and procurement of prototype and refined soldier ensemble systems. 2. The award includes an option for potential Marine Corps requirements, indicating future scalability. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The duration of the contract is approximately 1050 days, covering both prototype and refinement phases. 5. The primary agency is the Department of Defense, with the Department of the Army as the specific service. 6. The North American Industry Classification System (NAICS) code 334119 suggests a focus on computer peripheral equipment manufacturing, though the application is for soldier systems.

Value Assessment

Rating: fair

The total contract value is $17.2 million for the development and procurement of soldier ensemble systems. Benchmarking this against similar defense technology development contracts is challenging due to the specific nature of the 'Ground Soldier Ensemble'. However, the Cost Plus Fixed Fee (CPFF) contract type suggests that the government is bearing the cost risk, and the fixed fee is intended to incentivize the contractor. Without detailed cost breakdowns or comparisons to similar prototype development efforts, it's difficult to definitively assess value for money. The pricing will depend heavily on the complexity and novelty of the technologies involved in the ensemble.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The solicitation resulted in 8 offers, suggesting a reasonably competitive environment for this defense technology development effort. A competitive process is generally expected to yield better pricing and innovative solutions for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of solutions and can drive down costs through market forces, ensuring that the government receives the best possible value.

Public Impact

The primary beneficiaries are soldiers who will be equipped with advanced ensemble systems designed to improve performance and survivability. The contract delivers prototype and refined systems for the Ground Soldier Ensemble technology development. The geographic impact is primarily within the Department of the Army and potentially the Marine Corps, with manufacturing likely occurring at contractor facilities. Workforce implications include specialized roles in defense technology development, engineering, manufacturing, and program management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost overruns if not closely monitored.
The specific technologies within the 'Ground Soldier Ensemble' are not detailed, making it hard to assess the true innovation and potential obsolescence.
The duration of the contract (1050 days) for prototype and refinement may be lengthy for rapidly evolving technology areas.

Positive Signals

Awarded under full and open competition with 8 offers, indicating a healthy competitive landscape.
Includes an option for additional systems for the Marine Corps, suggesting potential for broader adoption and follow-on work.
Focuses on technology development for soldier systems, which is critical for modern military effectiveness.

Sector Analysis

This contract falls within the defense sector, specifically focusing on advanced soldier systems. The market for military technology is characterized by long development cycles, significant R&D investment, and stringent performance requirements. Comparable spending benchmarks would typically involve other advanced technology development programs for individual warfighters, such as integrated communication systems, advanced body armor, or enhanced situational awareness tools. The total value of $17.2 million is moderate for a defense technology development contract of this scope.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). While Raytheon Company is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors in the development and manufacturing of components or specialized technologies for the Ground Soldier Ensemble. The extent of small business subcontracting will depend on Raytheon's sourcing strategy and the specific needs of the program.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee structure, where the contractor is reimbursed for allowable costs plus a fixed fee. Transparency is generally maintained through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or the Department of Defense's Inspector General, particularly if cost issues or performance concerns arise.

Related Government Programs

Future Soldier Systems
Integrated Soldier Systems
Tactical Communication Systems
Personal Protective Equipment Development
Advanced Warfighter Technology

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Lack of specific performance metrics makes value assessment difficult.
Technology obsolescence risk in long development cycles.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to RAYTHEON COMPANY. GROUND SOLDIER ENSEMBLE TECHNOLOGY DEVELOPMENT (TD) PHASE FOR THE PROCUREMENT OF TEN (10) GSE PROTOTYPE SYSTEMS FOR THE PROTOTYPE PHASE (APPROX. 7.5 MONTHS) AND SIXTY (60) REFINED GSE SYSTEMS FOR THE REFINEMENT PHASE (APPROX. 13.5 MONTHS). THIS CONTRACT ALSO INCLUDES AN OPTION TO SUPPORT A POTENTIAL MARINE CORPS REQUIREMENT OF FIVE (5) GSE REFINED SYSTEMS.

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 Army).

What is the total obligated amount?

The obligated amount is $17.2 million.

What is the period of performance?

Start: 2009-04-15. End: 2012-02-29.

What is the specific breakdown of costs between the prototype phase and the refinement phase?

The provided data does not include a specific cost breakdown between the prototype phase and the refinement phase. The total contract value of $17.2 million covers both. The prototype phase is estimated to last approximately 7.5 months, and the refinement phase approximately 13.5 months, for a total duration of about 21 months (1050 days). Understanding the allocation of funds to each phase would provide better insight into the investment in initial development versus scaling and improvement.

How does the per-unit cost of the refined GSE systems compare to similar soldier ensemble technologies?

A direct per-unit cost comparison for the refined GSE systems is not feasible with the provided data. The contract is for a total of 60 refined systems (plus an option for 5 more), and the total value is $17.2 million. This would suggest an average cost of approximately $286,000 per refined system ($17.2M / 60). However, this figure includes all development costs, not just the manufacturing cost of the final units. Benchmarking requires access to detailed cost structures of comparable systems, which are often proprietary or classified within defense procurement.

What are the key performance metrics for the Ground Soldier Ensemble (GSE) that will be evaluated?

The provided data does not specify the key performance metrics (KPMs) for the Ground Soldier Ensemble. Typically, for soldier systems, KPMs would relate to factors such as weight, power consumption, communication range and reliability, survivability (e.g., ballistic protection), situational awareness capabilities, ease of use, and interoperability with existing military networks and equipment. The success of the prototype and refinement phases will be judged against these unstated performance criteria.

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

Raytheon Company (now RTX) has a long and extensive track record in developing and producing advanced defense technologies for various military branches. They are a major prime contractor involved in numerous complex programs, including integrated defense systems, sensors, munitions, and command and control systems. While specific details on their performance for 'Ground Soldier Ensemble' technology development are not in the provided data, their general experience suggests a capability to handle such sophisticated R&D efforts. Past performance evaluations and contract awards would offer a more granular view of their specific successes and challenges in similar domains.

What is the historical spending trend for Ground Soldier Ensemble or similar soldier modernization programs within the Department of Defense?

The provided data focuses on a single contract award and does not offer historical spending trends for Ground Soldier Ensemble or similar soldier modernization programs. However, it is well-documented that the Department of Defense consistently invests billions of dollars annually in soldier modernization efforts. These programs aim to equip warfighters with advanced capabilities, including integrated communication, protection, and lethality systems. Spending in this area fluctuates based on strategic priorities, technological advancements, and ongoing conflicts, but it remains a significant and continuous area of investment.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this program?

The primary risk associated with a CPFF contract for the Ground Soldier Ensemble program is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses. While the fixed fee provides some incentive for efficiency, it does not cap the total cost to the government. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the program stays within budgetary expectations.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Other Computer Peripheral Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W56HZV09R0020

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 03

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,242,599

Exercised Options: $17,242,599

Current Obligation: $17,242,599

Contract Characteristics

Cost or Pricing Data: NO

Timeline