DoD Awards Raytheon $11.5M for Secure Mobile Anti-Jam Tactical Terminals

Contract Overview

Contract Amount: $11,543,578 ($11.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2023-06-29

End Date: 2025-12-31

Contract Duration: 916 days

Daily Burn Rate: $12.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TOU FOR THE SECURE MOBILE ANTI-JAM RELIABLE TACTICAL-TERMINAL

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to RAYTHEON COMPANY for work described as: TOU FOR THE SECURE MOBILE ANTI-JAM RELIABLE TACTICAL-TERMINAL Key points: 1. Significant award to Raytheon for critical defense communication technology. 2. Sole-source award raises questions about price discovery and competition. 3. Long-term contract (2025) suggests ongoing need and potential for future spending. 4. Focus on secure, reliable tactical communication highlights national security importance.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the $11.5M price is optimal compared to market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Raytheon. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $11.5M award means taxpayers may be paying a premium for the secure mobile anti-jam tactical terminals.

Public Impact

Enhances battlefield communication security and reliability for U.S. Army personnel. Supports advanced navigation and guidance systems critical for military operations. Potential for technology spin-offs benefiting civilian communication sectors. Ensures U.S. military maintains a technological edge in contested environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price transparency.
Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration may not reflect current market efficiencies.

Positive Signals

Addresses critical need for secure, jam-resistant communication.
Supports advanced defense capabilities for the U.S. Army.
Awardee is a known defense contractor with relevant expertise.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for maintaining military technological superiority, with significant government investment typically seen in R&D and advanced manufacturing.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Future opportunities may exist for small businesses as subcontractors or in related technology development.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure cost reasonableness and performance standards are met. The Department of the Army should monitor expenditures closely under the Cost Plus Fixed Fee structure.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost overruns
Long contract duration
Limited transparency on pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to RAYTHEON COMPANY. TOU FOR THE SECURE MOBILE ANTI-JAM RELIABLE TACTICAL-TERMINAL

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 $11.5 million.

What is the period of performance?

Start: 2023-06-29. End: 2025-12-31.

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 urgent needs. The Department of Defense should provide detailed documentation for this decision. To ensure fair pricing, rigorous cost analysis, independent government cost estimates, and potentially post-award audits are essential to validate the reasonableness of the Cost Plus Fixed Fee arrangement.

What are the specific performance metrics and risk mitigation strategies for this contract?

Performance metrics should focus on the reliability, security, and anti-jamming capabilities of the tactical terminals under various operational conditions. Risk mitigation strategies should address potential technical failures, cybersecurity threats, and schedule delays. Regular progress reviews and clear deliverables are crucial for managing these risks effectively.

How does this technology contribute to the overall effectiveness of Army communication systems?

This technology is vital for maintaining secure and reliable command and control in contested electromagnetic environments. Its anti-jamming features ensure that critical communication links remain operational, preventing disruption of battlefield awareness and coordination. This directly enhances the effectiveness of Army operations by ensuring that commanders and soldiers can communicate under duress.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: 350 LOWELL ST, ANDOVER, MA, 01810

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: $11,543,578

Exercised Options: $11,543,578

Current Obligation: $11,543,578

Actual Outlays: $1,269,626

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRBL115D0017

IDV Type: IDC

Timeline