Raytheon Company awarded $15.4M contract for AFTADS to Jordan, highlighting engineering services for foreign military sales

Contract Overview

Contract Amount: $15,401,144 ($15.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-12-17

End Date: 2028-12-30

Contract Duration: 1,109 days

Daily Burn Rate: $13.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TO PROCURE AFTADS FOR THE COUNTRY OF JORDAN.

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46808

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $15.4 million to RAYTHEON COMPANY for work described as: TO PROCURE AFTADS FOR THE COUNTRY OF JORDAN. Key points: 1. Contract awarded to a single, established defense contractor, suggesting specialized capabilities. 2. The firm-fixed-price structure aims to control costs for this specific procurement. 3. Foreign military sales contracts can be complex, involving intergovernmental agreements and specific end-use requirements. 4. The duration of the contract (over 3 years) indicates a significant, ongoing need. 5. The procurement is categorized under Engineering Services, pointing to technical and design support. 6. The absence of competition may warrant scrutiny regarding potential cost efficiencies and market alternatives.

Value Assessment

Rating: fair

Benchmarking the value of this specific foreign military sale (FMS) is challenging without direct comparable contracts for the same system to Jordan. However, the total contract value of $15.4 million for a system like AFTADS (likely an advanced tactical data system) over approximately three years appears within a reasonable range for specialized defense equipment and associated services. The firm-fixed-price contract type suggests that the government has negotiated a ceiling price, which can help manage cost overruns, but the ultimate value depends on the specific scope and performance requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, intellectual property, or is the sole authorized provider of a particular system or technology. While sole-source awards can ensure access to critical or proprietary systems, they limit the potential for price competition, which could lead to higher costs for the government compared to a fully competed procurement.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. This could result in a higher overall expenditure for this defense system.

Public Impact

The primary beneficiary is the country of Jordan, which will receive the AFTADS system, enhancing its defense capabilities. The contract delivers advanced tactical data processing and dissemination capabilities. The geographic impact is focused on Jordan, supporting U.S. foreign policy and security objectives in the region. The contract supports specialized engineering and technical roles within Raytheon Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Foreign military sales can involve complex logistical and political considerations that add risk.
The specific capabilities and performance metrics of AFTADS are not detailed, making independent value assessment difficult.

Positive Signals

Award to a known defense contractor like Raytheon suggests a level of established performance and reliability.
Firm-fixed-price contract type provides cost certainty for the government.
The contract supports a key U.S. ally, aligning with national security interests.

Sector Analysis

This contract falls within the Defense industry, specifically supporting foreign military sales of advanced defense systems. The market for such specialized tactical data systems is concentrated among a few large defense contractors. Spending in this sector is driven by geopolitical needs, technological advancements, and allied security requirements. Comparable spending benchmarks are difficult to establish due to the unique nature of FMS and specific system requirements, but large-scale defense procurements often run into tens or hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of advanced defense systems and the sole-source award to a large prime contractor, subcontracting opportunities for small businesses may be limited and dependent on the prime contractor's sourcing strategy. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting plans.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, with potential involvement from the Defense Contract Management Agency (DCMA). Inspector General (IG) oversight is standard for DoD contracts, ensuring compliance and investigating fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, though detailed performance metrics and specific end-use monitoring are often managed through separate FMS channels.

Related Government Programs

Foreign Military Sales Program
Defense Security Cooperation Agency (DSCA) Programs
Tactical Data Systems Procurement
Engineering Services Contracts
Department of the Army Procurement

Risk Flags

Sole-source award
Foreign Military Sale complexity
Potential for cost overruns
Technology transfer and end-use monitoring concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to RAYTHEON COMPANY. TO PROCURE AFTADS FOR THE COUNTRY OF JORDAN.

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 $15.4 million.

What is the period of performance?

Start: 2025-12-17. End: 2028-12-30.

What is the specific nature and function of the AFTADS system being procured?

AFTADS likely refers to an Advanced Field Tactical Data Automation System or a similar designation for a sophisticated command and control or intelligence processing system. These systems are crucial for modern military operations, enabling real-time data sharing, situational awareness, and decision-making on the battlefield. They integrate various sensor inputs, communication links, and analytical tools to provide commanders with a comprehensive operational picture. The specific functionalities would include data fusion, threat assessment, target tracking, and dissemination of intelligence to relevant units. The procurement for Jordan suggests a need to enhance their C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities.

What is Raytheon Company's track record with similar foreign military sales contracts?

Raytheon Company, now part of RTX, has an extensive history of supplying advanced defense systems and services to the U.S. military and numerous allied nations through foreign military sales (FMS). Their portfolio includes radar systems, missile defense, command and control systems, and electronic warfare capabilities. Raytheon has consistently been a major player in FMS, delivering complex platforms and integrated solutions. Their track record generally indicates a strong capability in managing large, technologically advanced defense contracts, including those involving international partners. Specific performance on past FMS contracts would require detailed review of program execution and customer satisfaction metrics.

How does the $15.4 million contract value compare to similar AFTADS procurements or related systems?

Direct comparisons for the AFTADS system to Jordan are difficult due to the proprietary nature of specific system configurations and the unique context of foreign military sales. However, the $15.4 million figure for a system expected to be delivered over approximately three years (1109 days) suggests a significant but not exceptionally large contract in the realm of advanced defense electronics and software. Larger, more complex C4ISR systems or platform integrations can easily reach hundreds of millions or even billions of dollars. This value appears reasonable for a specific system upgrade or initial fielding for a partner nation, especially considering it likely includes integration, training, and support services alongside the hardware/software.

What are the primary risks associated with this sole-source foreign military sale contract?

The primary risks include potential cost overruns due to the lack of competitive pricing, as the government is reliant on a single provider. There's also a risk related to technology transfer and end-use monitoring, ensuring the system is used as intended and does not fall into unauthorized hands or proliferate. Programmatic risks include potential delays in delivery, integration challenges with Jordan's existing infrastructure, and ensuring adequate training and sustainment support. Geopolitical risks in the region could also impact the program's execution or the system's long-term utility. Finally, ensuring adequate technical support and maintenance post-delivery is crucial.

What is the historical spending trend for Engineering Services (NAICS 541330) by the Department of the Army?

The Department of the Army consistently spends significant amounts on Engineering Services (NAICS 541330), which encompasses a broad range of activities including design, consulting, and project management for various infrastructure and defense systems. Historical data from sources like the Federal Procurement Data System (FPDS) shows billions of dollars obligated annually for these services. Spending fluctuates based on modernization efforts, infrastructure projects, and specific defense system development needs. While this $15.4 million contract is a specific instance, the Army's overall commitment to engineering services reflects its continuous need for technical expertise across its diverse operations and platforms.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract?

Specific performance metrics or Key Performance Indicators (KPIs) for this particular contract are not publicly detailed in the provided data. Typically, for defense procurements, especially those involving complex systems and foreign military sales, contracts will include clauses related to delivery schedules, system functionality, reliability, and potentially operational effectiveness benchmarks. These are often defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). The effectiveness of the AFTADS system in meeting Jordan's operational requirements would be the ultimate measure of performance, assessed through user feedback and mission outcomes.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 1010 PRODUCTION RD, FORT WAYNE, IN, 46808

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: $18,540,001

Exercised Options: $18,540,001

Current Obligation: $15,401,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline