DoD awards Raytheon $5.7M for AI-assisted targeting and airspace management tech
Contract Overview
Contract Amount: $5,783,645 ($5.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2024-07-19
End Date: 2029-08-07
Contract Duration: 1,845 days
Daily Burn Rate: $3.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DEVELOPMENT, MATURATION, AND INTEGRATION OF TECHNOLOGY FOR ARTIFICIAL INTELLIGENCE (AI)-ASSISTED TARGETING, RAPID FIRES DECONFLICTION, AND DYNAMIC AIRSPACE MANAGEMENT
Place of Performance
Location: TEWKSBURY, MIDDLESEX County, MASSACHUSETTS, 01876
Plain-Language Summary
Department of Defense obligated $5.8 million to RAYTHEON COMPANY for work described as: DEVELOPMENT, MATURATION, AND INTEGRATION OF TECHNOLOGY FOR ARTIFICIAL INTELLIGENCE (AI)-ASSISTED TARGETING, RAPID FIRES DECONFLICTION, AND DYNAMIC AIRSPACE MANAGEMENT Key points: 1. Focus on advanced AI for critical military functions like targeting and airspace management. 2. Raytheon Company, a major defense contractor, is the awardee. 3. Contract aims to improve operational efficiency and reduce risks in dynamic combat environments. 4. Spending falls under Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This is common for R&D where final costs are uncertain. Pricing will be assessed against similar R&D contracts for AI technologies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The investment aims to enhance military capabilities, potentially leading to more effective operations and reduced costs in the long run through technological advancement.
Public Impact
Enhances national defense capabilities through advanced AI. Supports technological innovation in critical military applications. Potential for improved battlefield awareness and decision-making. Contributes to the modernization of military systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to higher costs if not managed carefully.
- Reliance on a single large contractor for critical AI development.
Positive Signals
- Awarded under full and open competition.
- Focus on cutting-edge AI technology.
- Addresses key military operational needs.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced technologies like AI. Spending benchmarks for similar R&D contracts in defense are highly variable but this award is moderate in size for such specialized work.
Small Business Impact
The contract was awarded to Raytheon Company, a large business. There is no explicit indication of small business participation in this specific award, which is common for prime contracts of this nature.
Oversight & Accountability
The contract is managed by the Department of the Army. Oversight will focus on the progress of R&D, adherence to the fixed fee, and the successful development and integration of the AI technologies.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost overrun potential with CPFF contract type.
- Technical feasibility and performance risks.
- Integration challenges with existing systems.
- Cybersecurity risks of AI systems.
- Pace of technological obsolescence.
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.8 million to RAYTHEON COMPANY. DEVELOPMENT, MATURATION, AND INTEGRATION OF TECHNOLOGY FOR ARTIFICIAL INTELLIGENCE (AI)-ASSISTED TARGETING, RAPID FIRES DECONFLICTION, AND DYNAMIC AIRSPACE MANAGEMENT
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 $5.8 million.
What is the period of performance?
Start: 2024-07-19. End: 2029-08-07.
What is the projected return on investment for this AI technology development?
The return on investment is difficult to quantify precisely at this R&D stage. However, successful development could lead to significant long-term cost savings through increased efficiency, reduced personnel needs in certain roles, and improved mission success rates, thereby justifying the initial investment.
What are the primary risks associated with the development and integration of this AI system?
Key risks include technical challenges in achieving desired AI performance, potential cybersecurity vulnerabilities in the AI system, integration issues with existing military platforms, and the possibility of the technology becoming obsolete quickly due to the rapid pace of AI advancement. Ethical considerations and potential for unintended consequences also pose risks.
How will the effectiveness of the AI-assisted targeting and airspace management be measured?
Effectiveness will likely be measured through rigorous testing and evaluation phases, including simulations and field exercises. Key performance indicators will probably focus on accuracy improvements in targeting, reduction in deconfliction errors, increased airspace management efficiency, and overall impact on mission success rates compared to current systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 50 APPLE HILL DR, TEWKSBURY, MA, 01876
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: $18,281,479
Exercised Options: $18,281,479
Current Obligation: $5,783,645
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $314,317
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-07-19
Current End Date: 2029-08-07
Potential End Date: 2029-08-07 00:00:00
Last Modified: 2025-12-23
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