DoD's $207M Barracuda Contract with Raytheon: Search Systems for Navy
Contract Overview
Contract Amount: $206,619,674 ($206.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2018-04-17
End Date: 2026-04-18
Contract Duration: 2,923 days
Daily Burn Rate: $70.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: BARRACUDA DEVELOPMENT
Place of Performance
Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871
Plain-Language Summary
Department of Defense obligated $206.6 million to RAYTHEON COMPANY for work described as: BARRACUDA DEVELOPMENT Key points: 1. Significant investment in advanced search and navigation systems. 2. Raytheon Company is a major defense contractor, indicating established capabilities. 3. Potential for cost overruns given the Cost Plus Incentive Fee structure. 4. The sector focuses on critical defense technology manufacturing.
Value Assessment
Rating: fair
The contract value of $206.6M over approximately 8 years suggests a substantial investment. Benchmarking against similar complex system development contracts is difficult without more granular cost data, but the duration and CPIF structure warrant close monitoring.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the bidding process and how Raytheon's price was determined relative to other potential bidders are not provided.
Taxpayer Impact: Taxpayer funds are being used for advanced defense systems. The CPIF contract type aims to incentivize cost control, but effective oversight is crucial to ensure value for money.
Public Impact
Enhances U.S. Navy's operational capabilities with advanced search and navigation technology. Supports high-tech manufacturing jobs within the defense industrial base. Contributes to national security through improved maritime domain awareness and operational effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Cost Plus Incentive Fee (CPIF) can lead to cost overruns if not managed tightly.
- Long contract duration (approx. 8 years) increases exposure to changing requirements and economic factors.
- Lack of specific performance metrics makes it hard to assess efficiency.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Raytheon is a reputable defense contractor with proven experience.
- Contract aims to provide critical technological advancements for the Navy.
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, a critical area for defense. Spending in this niche is driven by technological advancement and national security needs, often involving significant R&D.
Small Business Impact
The data indicates this is a large contract awarded to Raytheon Company, a major prime contractor. There is no explicit information on subcontracting opportunities for small businesses within this award, which is a common practice in large defense contracts.
Oversight & Accountability
The Department of the Navy is the contracting agency, responsible for oversight. The Cost Plus Incentive Fee structure necessitates robust monitoring of costs and performance to ensure the government receives value and that contractor incentives align with program goals.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) contract type.
- Long contract duration (approx. 8 years).
- Limited public information on specific performance metrics.
- No explicit mention of small business subcontracting goals.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ri, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $206.6 million to RAYTHEON COMPANY. BARRACUDA DEVELOPMENT
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 Navy).
What is the total obligated amount?
The obligated amount is $206.6 million.
What is the period of performance?
Start: 2018-04-17. End: 2026-04-18.
What specific technological advancements does the Barracuda contract aim to deliver, and how do these compare to current capabilities?
The Barracuda contract focuses on enhancing the Navy's Search, Detection, Navigation, Guidance, Aeronautical, and Nautical systems. While specific technological advancements are not detailed, the contract's objective is to equip naval assets with state-of-the-art instruments, likely improving situational awareness, targeting accuracy, and operational range compared to existing systems. This ensures the fleet maintains a technological edge.
Given the CPIF structure, what are the primary risks associated with cost control and potential overruns?
The primary risk with a Cost Plus Incentive Fee (CPIF) contract is that the contractor may incur higher costs than anticipated, even with incentive targets. If the cost targets are too lenient or the incentive structure is not sufficiently motivating, Raytheon could achieve its fee with less cost efficiency. Close monitoring of expenditures, regular audits, and clear performance metrics are essential to mitigate these risks.
How will the effectiveness of these new systems be measured post-deployment to ensure they meet the Navy's operational needs?
Effectiveness will likely be measured through a combination of contractor-reported data, operational testing and evaluation (OT&E) by the Navy, and user feedback from deployed units. Key performance parameters (KPPs) defined in the contract, alongside mission success rates and system reliability metrics, will be crucial indicators. Post-deployment reviews and potential follow-on contracts will also assess the systems' long-term value and impact.
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: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002417R6300
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 1847 W MAIN RD, PORTSMOUTH, RI, 02871
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: $254,537,218
Exercised Options: $215,075,694
Current Obligation: $206,619,674
Actual Outlays: $17,338,612
Subaward Activity
Number of Subawards: 173
Total Subaward Amount: $247,834,360
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-04-17
Current End Date: 2026-04-18
Potential End Date: 2026-04-18 00:00:00
Last Modified: 2025-11-24
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