Raytheon Company awarded $11.26M for Army's CENTAUR III sustainment and modernization

Contract Overview

Contract Amount: $11,261,147 ($11.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-08-08

End Date: 2026-08-07

Contract Duration: 364 days

Daily Burn Rate: $30.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TASK ORDER W56KGY25F0099 IS ISSUED ON CROSS-DOMAIN ENTERPRISE ALL-SOURCE USER REPOSITORY (CENTAUR III) SUSTAINMENT & MODERNIZATION SERVICES.

Place of Performance

Location: RICHARDSON, COLLIN County, TEXAS, 75082

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to RAYTHEON COMPANY for work described as: TASK ORDER W56KGY25F0099 IS ISSUED ON CROSS-DOMAIN ENTERPRISE ALL-SOURCE USER REPOSITORY (CENTAUR III) SUSTAINMENT & MODERNIZATION SERVICES. Key points: 1. Contract awarded as a delivery order under an existing contract. 2. Focus on sustainment and modernization of the CENTAUR III system. 3. Engineering services are a key component of this task order. 4. Contract duration is one year, with potential for extensions. 5. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 6. No small business set-aside was applied to this award.

Value Assessment

Rating: fair

This task order for CENTAUR III sustainment and modernization is a delivery order under a larger contract. The Cost Plus Fixed Fee (CPFF) contract type introduces a degree of risk for cost overruns, as the government pays the actual costs plus a fixed fee. Benchmarking the value is difficult without knowing the specific services rendered and comparing them to similar sustainment and modernization efforts for complex defense systems. The raw dollar amount of $11.26 million for a one-year period for sustainment and modernization of a critical system suggests a moderate investment, but the true value for money depends heavily on the scope and efficiency of the work performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was not competed and was awarded on a sole-source basis. This indicates that the Department of the Army likely determined that Raytheon Company was the only responsible source capable of performing the required sustainment and modernization services for the CENTAUR III system. The lack of competition means that the government did not benefit from a competitive bidding process, which could have potentially led to lower prices or more innovative solutions from multiple vendors.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. The sole-source nature limits opportunities for cost savings that could arise from market competition.

Public Impact

The U.S. Army benefits from the continued sustainment and modernization of its CENTAUR III system, ensuring operational readiness. Engineering services will be delivered to enhance the capabilities and lifespan of critical defense infrastructure. The primary geographic impact is within the Department of the Army's operational theaters. Workforce implications include specialized engineering and technical roles required for system sustainment and upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Lack of transparency on specific modernization scope makes value assessment challenging.

Positive Signals

Awarded to a known contractor with existing knowledge of the CENTAUR III system.
Focus on sustainment ensures continued operational capability of a critical defense asset.
Task order is for a defined one-year period, allowing for reassessment of future needs.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense systems. The market for defense sustainment and modernization is characterized by long-term relationships between government agencies and specialized contractors. Companies like Raytheon are key players in this domain, providing critical support for complex military platforms. Benchmarking spending is challenging as it's highly specific to the system being supported, but sustainment and modernization of major defense IT and intelligence systems often represent significant, multi-year investments.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means that opportunities for small businesses to participate in this specific task order are limited. The absence of a small business set-aside or subcontracting plan suggests that the primary focus was on the prime contractor's capabilities for this particular requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the performance metrics outlined in the base contract and this delivery order. Transparency is limited by the sole-source nature of the award and the proprietary aspects of defense system modernization. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Intelligence Systems
Defense IT Modernization Programs
All-Source Intelligence Platforms
CENTAUR System Sustainment

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of detailed scope of work in public data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to RAYTHEON COMPANY. TASK ORDER W56KGY25F0099 IS ISSUED ON CROSS-DOMAIN ENTERPRISE ALL-SOURCE USER REPOSITORY (CENTAUR III) SUSTAINMENT & MODERNIZATION SERVICES.

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 $11.3 million.

What is the period of performance?

Start: 2025-08-08. End: 2026-08-07.

What is the specific scope of modernization for the CENTAUR III system under this task order?

The provided data does not detail the specific scope of modernization for the CENTAUR III system. It broadly states 'Sustainment & Modernization Services.' To understand the modernization efforts, one would need to review the detailed statement of work (SOW) associated with task order W56KGY25F0099. This SOW would outline the specific upgrades, enhancements, or technological insertions planned for the system. Without this detail, it's impossible to assess the technological advancements or the specific value proposition of the modernization component beyond general sustainment.

How does the $11.26 million cost compare to previous sustainment and modernization efforts for CENTAUR III?

Direct comparison of the $11.26 million cost to previous sustainment and modernization efforts for CENTAUR III is not possible with the provided data alone. Historical spending data for this specific system and task order would be required. Factors such as inflation, evolving technological requirements, and the scope of work in previous years would significantly influence any comparison. A comprehensive analysis would involve examining annual spending trends, the nature of services procured in prior periods, and any major upgrade cycles to determine if the current investment is in line with historical patterns or represents a significant shift.

What are the key performance indicators (KPIs) for Raytheon Company under this contract?

The provided data does not specify the key performance indicators (KPIs) for Raytheon Company under task order W56KGY25F0099. Typically, KPIs for sustainment and modernization contracts are detailed within the contract's Performance Work Statement (PWS) or Statement of Work (SOW). These might include metrics related to system uptime, response times for maintenance, successful implementation of upgrades, adherence to modernization schedules, and cybersecurity compliance. Without access to the PWS/SOW, assessing Raytheon's performance obligations and the government's ability to measure success is not feasible.

What is the track record of Raytheon Company in providing sustainment and modernization for similar defense intelligence systems?

Raytheon Company has a significant track record in providing a wide range of services to the Department of Defense, including sustainment and modernization for complex defense systems. They are a major defense contractor involved in numerous programs that require sophisticated engineering, integration, and lifecycle support. While specific details on their work with the CENTAUR III system are not provided here, their broader portfolio includes areas like command and control systems, intelligence, surveillance, and reconnaissance (ISR) platforms, and electronic warfare systems, all of which involve similar sustainment and modernization challenges. Their extensive experience suggests a capability to handle such requirements.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type, like the one used for this task order, is the potential for cost overruns. While the contractor is paid their actual allowable costs plus a predetermined fixed fee, there is less incentive for the contractor to control costs compared to fixed-price contracts. If the project's costs exceed initial estimates, the government bears the burden of these increased expenses, although the contractor's profit (the fee) remains fixed. This necessitates robust government oversight to ensure costs are reasonable and allocable to the contract. The fixed fee also means the contractor's profit is not directly tied to cost savings.

Are there any known issues or performance concerns with the CENTAUR III system that this contract aims to address?

The provided data does not specify any known issues or performance concerns with the CENTAUR III system that this contract aims to address. The description simply states 'Sustainment & Modernization Services.' To identify specific issues, one would need to consult program documentation, threat assessments, or previous performance reviews related to the CENTAUR III system. Modernization efforts often aim to address obsolescence, enhance capabilities to meet new mission requirements, improve cybersecurity, or increase efficiency. Without further context, the exact drivers for this modernization are unclear.

Industry Classification

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

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: 1727 CITYLINE DR, RICHARDSON, TX, 75082

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: $11,673,247

Exercised Options: $11,673,247

Current Obligation: $11,261,147

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56KGY23D0005

IDV Type: IDC

Timeline