Army's $46.5M 3GEN FLIR Contract to Enhance Target Acquisition Capabilities

Contract Overview

Contract Amount: $46,505,453 ($46.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2016-03-15

End Date: 2021-05-10

Contract Duration: 1,882 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: IGF::OT::IGF THE PURPOSE OF THIS CONTRACT, W909MY-16-C-0010, FOR THIRD GENERATION FORWARD LOOKING INFRARED (3GEN FLIR) IS TO DESIGN, DEVELOP, FABRICATE AND QUALIFY A PRODUCIBLE DEWAR COOLER BENCH (DCB) TO IMPROVE THE U.S. ARMY'S EXISTING FLIR SENSOR TECHNOLOGY AND PROVIDE ENHANCED CAPABILITIES FOR RECONNAISSANCE, SURVEILLANCE AND TARGET ACQUISITION. THE U.S. ARMY REQUIRES SENSOR TECHNOLOGY WITH THE CAPABILITY TO CORRECTLY IDENTIFY DETECTED GROUND TARGETS BEYOND THE MAXIMUM EFFECTIVE RANGE OF ENEMY WEAPONS SYSTEMS. THE END-STATE OBJECTIVES ARE TO HAVE INTERCHANGEABLE COMPONENTS FOR THE DCB, AFOCAL, IMAGER AND CIRCUIT CARD ASSEMBLIES (CCA) SIMILAR TO THE ARCHITECTURE OF SECOND GENERATION FLIR.

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $46.5 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF THE PURPOSE OF THIS CONTRACT, W909MY-16-C-0010, FOR THIRD GENERATION FORWARD LOOKING INFRARED (3GEN FLIR) IS TO DESIGN, DEVELOP, FABRICATE AND QUALIFY A PRODUCIBLE DEWAR COOLER BENCH (DCB) TO IMPROVE THE U.S. ARMY'S EXISTING FLIR SENSOR TECHNOLOGY AND PROVIDE ENHANCE… Key points: 1. The contract aims to improve the Army's FLIR sensor technology for reconnaissance and target acquisition. 2. Raytheon Company is the sole awardee, indicating a specific technological capability or existing relationship. 3. The project addresses a critical need for identifying ground targets beyond enemy weapon ranges. 4. This technology is crucial for maintaining battlefield superiority and soldier safety.

Value Assessment

Rating: good

The contract value of $46.5M for a definitive contract with a Cost Plus Incentive Fee structure suggests a complex development and fabrication effort. Benchmarking against similar advanced sensor development contracts would be necessary for a precise assessment.

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. However, the definitive contract type and specific requirements may have limited the number of capable bidders.

Taxpayer Impact: The investment aims to enhance military effectiveness, potentially reducing costs associated with misidentification or engagement failures, and improving soldier survivability.

Public Impact

Enhances soldier's ability to detect and identify threats at greater distances. Improves situational awareness on the battlefield for reconnaissance and surveillance missions. Contributes to the modernization of U.S. Army's sensor technology. Potential for improved accuracy in targeting, reducing collateral damage.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in a Cost Plus Incentive Fee contract.
Dependence on a single contractor (Raytheon) for critical technology development.
Long contract duration (1882 days) may introduce risks related to technological obsolescence.

Positive Signals

Addresses a clear and critical military requirement.
Focus on interoperability and interchangeable components for future upgrades.
Awarded under full and open competition, suggesting a competitive initial process.

Sector Analysis

This contract falls within the defense sector, specifically focusing on advanced sensor technology manufacturing. Spending in this area is driven by the need for technological superiority and force protection, with significant government investment in R&D and procurement of sophisticated systems.

Small Business Impact

The data does not indicate any specific provisions or subcontracting opportunities for small businesses within this contract. The focus appears to be on a large prime contractor with specialized capabilities.

Oversight & Accountability

The contract is managed by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for defense acquisitions. The Inspector General (IG) may provide further oversight.

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

Cost Plus Incentive Fee structure can lead to cost overruns.
Sole awardee to Raytheon Company.
Long contract duration.
Potential for technological obsolescence over the contract period.
Dependency on specific manufacturing capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.5 million to RAYTHEON COMPANY. IGF::OT::IGF THE PURPOSE OF THIS CONTRACT, W909MY-16-C-0010, FOR THIRD GENERATION FORWARD LOOKING INFRARED (3GEN FLIR) IS TO DESIGN, DEVELOP, FABRICATE AND QUALIFY A PRODUCIBLE DEWAR COOLER BENCH (DCB) TO IMPROVE THE U.S. ARMY'S EXISTING FLIR SENSOR TECHNOLOGY AND PROVIDE ENHANCED CAPABILITIES FOR RECONNAISSANCE, SURVEILLANCE AND TARGET ACQUISITION. THE U.S. ARMY REQUIRES SENSOR TECHNOLOGY WITH THE CAPABILITY TO CORRECTLY IDENTIFY DETECTED GROUND TARGETS BEYOND THE MAXIMUM EFFECTIVE RANGE OF ENE

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 $46.5 million.

What is the period of performance?

Start: 2016-03-15. End: 2021-05-10.

What is the projected return on investment for improved target acquisition capabilities in terms of reduced operational costs or enhanced mission success rates?

Quantifying the ROI for improved target acquisition is complex, involving factors like reduced friendly fire incidents, more efficient resource allocation, and decreased mission abort rates due to target misidentification. Enhanced soldier survivability also translates to long-term cost savings by reducing medical care and casualty support expenses. The long-term strategic advantage gained by maintaining technological superiority is invaluable.

What are the specific risks associated with relying on Raytheon Company for the sole development and fabrication of this critical 3GEN FLIR technology?

Sole reliance on Raytheon introduces risks such as potential price increases due to lack of competition post-award, dependency on their production capacity and quality control, and vulnerability if Raytheon faces financial or operational disruptions. It also limits opportunities for other innovative companies to contribute to this vital defense capability, potentially stifling broader technological advancement.

How effectively will the interchangeable component architecture ensure the long-term adaptability and cost-effectiveness of the 3GEN FLIR system against evolving threats?

The interchangeable component architecture is designed to enhance long-term adaptability by allowing for easier upgrades and replacements of specific modules without redesigning the entire system. This should improve cost-effectiveness by reducing the need for full system overhauls and enabling modular upgrades to counter evolving threats. However, successful implementation depends on robust interface standards and continued investment in component development.

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: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W909MY15RD002

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 75 COROMAR DR, GOLETA, CA, 93117

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: $48,716,142

Exercised Options: $48,716,142

Current Obligation: $46,505,453

Actual Outlays: $-198,233

Subaward Activity

Number of Subawards: 98

Total Subaward Amount: $8,762,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline