Raytheon Company awarded $90.8M for Rapid Technical Insertion (RTI) Weight Reduction Initiative Phase I by DoD

Contract Overview

Contract Amount: $90,817,757 ($90.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2015-07-20

End Date: 2023-12-15

Contract Duration: 3,070 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RAPID TECHNICAL INSERTION (RTI) WEIGHT REDUCTION INITIATIVE, PHASE I

Place of Performance

Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $90.8 million to RAYTHEON COMPANY for work described as: RAPID TECHNICAL INSERTION (RTI) WEIGHT REDUCTION INITIATIVE, PHASE I Key points: 1. Contract value of $90.8M over 8 years suggests significant investment in advanced technology development. 2. Full and open competition indicates a potentially competitive bidding process for this significant award. 3. Cost Plus Fixed Fee contract type may incentivize contractor efficiency while managing risk. 4. The contract duration of 3070 days points to a long-term strategic objective for weight reduction. 5. Focus on weight reduction in aerospace systems is critical for performance and fuel efficiency. 6. The North American Industry Classification System (NAICS) code 334511 points to a specialized manufacturing sector.

Value Assessment

Rating: good

The contract value of $90.8M for Phase I of the RTI Weight Reduction Initiative appears substantial, reflecting the complexity and potential impact of the program. Benchmarking against similar advanced materials or aerospace system development contracts would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, requires careful oversight to ensure costs remain reasonable and the fixed fee aligns with performance expectations. Without specific cost breakdowns or comparisons to industry standards for weight reduction technologies, a definitive value assessment is challenging, but the scale suggests a significant commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This approach is generally favored for maximizing competition and potentially achieving better pricing and innovation. The number of bidders is not specified, but the 'full and open' designation implies a robust process. The competitive nature of the bidding is expected to drive down costs and encourage the most capable contractor to offer the best technical solution for weight reduction.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, potentially leading to more cost-effective outcomes for the Department of Defense.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will receive advanced technologies aimed at improving aircraft or system performance through weight reduction. Services delivered include research, development, and potentially prototyping of new materials or design methodologies for weight reduction. The geographic impact is likely concentrated around Raytheon's facilities and potentially DoD research centers, with broader implications for national defense capabilities. Workforce implications may include employment for engineers, scientists, technicians, and manufacturing personnel involved in advanced aerospace development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The long duration of the contract may present challenges in adapting to rapidly evolving technologies.
Dependence on a single contractor for a critical initiative could pose supply chain or innovation risks.

Positive Signals

Awarding under full and open competition suggests a strong initial vetting of potential solutions and contractors.
Focus on weight reduction is a key enabler for enhanced performance and operational efficiency in defense systems.
The significant investment indicates a strategic priority for the Department of Defense.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on system and instrument manufacturing (NAICS 334511). This sector is characterized by high R&D investment, long product development cycles, and stringent performance requirements. Spending in this area is often driven by national security needs and technological advancement. Comparable spending benchmarks would involve looking at other major defense contracts for system upgrades, new platform development, or advanced materials research within the aerospace industry.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. While Raytheon is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on the specific technical requirements and Raytheon's subcontracting strategy. The absence of a set-aside means the primary focus was on full and open competition among all eligible entities.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is typically maintained through contract databases and reporting requirements, though specific project details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Materials Research Programs
Aerospace System Development Contracts
Defense Research and Development
Weight Reduction Initiatives
Naval Systems Development
Aircraft Modernization Programs

Risk Flags

Cost Overrun Risk
Technological Obsolescence
Integration Challenges
Performance Specification Adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.8 million to RAYTHEON COMPANY. RAPID TECHNICAL INSERTION (RTI) WEIGHT REDUCTION INITIATIVE, PHASE I

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $90.8 million.

What is the period of performance?

Start: 2015-07-20. End: 2023-12-15.

What is Raytheon Company's track record with similar large-scale defense technology development contracts, particularly those involving weight reduction or advanced materials?

Raytheon Company, now part of RTX, has a long and extensive history of developing and delivering complex defense systems and technologies. They have been a prime contractor on numerous large-scale programs for the Department of Defense and other government agencies, encompassing areas such as radar, missiles, command and control systems, and advanced electronics. Their experience includes significant R&D efforts and integration of new technologies into existing platforms. While specific details on past weight reduction initiatives may not be publicly detailed, their broad expertise in aerospace engineering, materials science, and system integration suggests a strong capability to undertake such a project. Performance on previous contracts, as reflected in contract award histories and performance ratings (if publicly available), would provide further insight into their reliability and effectiveness in delivering complex technological solutions.

How does the $90.8M contract value compare to other federal spending on aerospace R&D or weight reduction initiatives?

The $90.8 million contract value for Phase I of the Rapid Technical Insertion (RTI) Weight Reduction Initiative is a substantial investment, placing it within the upper tier of federal spending for specific R&D projects. To benchmark this, one would compare it against other contracts awarded for advanced materials development, aerospace system design, or technology insertion programs within the Department of Defense and NASA. For instance, major aircraft development programs or research into novel propulsion systems often involve hundreds of millions or even billions of dollars. However, for a focused initiative like weight reduction, $90.8M for an initial phase suggests a significant scope and a high expectation for impactful results. It indicates that the government views weight reduction as a critical factor warranting considerable financial commitment, likely due to its direct impact on performance, fuel efficiency, and payload capacity.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a project like this, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. The 'fixed fee' provides a profit margin, but if costs escalate significantly, the government might end up paying more than initially anticipated, even though the fee remains constant. Mitigation strategies employed by the government include rigorous oversight, detailed cost accounting and auditing, performance metrics, and clear definition of allowable costs. The contracting officer must actively monitor expenditures and ensure that costs are reasonable, allocable, and necessary for the contract's performance. For a complex R&D effort like weight reduction, CPFF is often chosen because the scope and final costs are difficult to define precisely upfront, allowing flexibility while still providing a defined profit target for the contractor.

What are the potential program effectiveness indicators for the RTI Weight Reduction Initiative, and how might they be measured?

Program effectiveness for the RTI Weight Reduction Initiative can be measured through several key indicators. The most direct measure would be the quantifiable reduction in weight achieved for the targeted systems or components, expressed as a percentage or absolute value. Performance improvements directly attributable to weight reduction, such as increased speed, range, fuel efficiency, or payload capacity, would be critical indicators. Technical maturity and readiness levels (TRLs) of the developed technologies are also important, indicating how close the solutions are to practical implementation. Furthermore, the successful integration of these weight-saving solutions into existing or future platforms, and the associated cost-benefit analysis of their implementation, would demonstrate effectiveness. Feedback from end-users (e.g., pilots, maintenance crews) on the operational benefits and reliability of the modified systems would also contribute to assessing overall program success.

How has federal spending on aerospace system manufacturing and R&D evolved over the past decade, and where does this contract fit in?

Federal spending on aerospace system manufacturing and R&D has historically been substantial, driven by national defense requirements and space exploration initiatives. Over the past decade, spending patterns have fluctuated based on geopolitical events, budget priorities, and the lifecycle of major defense platforms. While overall defense budgets may see shifts, investment in advanced technologies like materials science, stealth capabilities, and system efficiency (including weight reduction) remains a consistent priority. This $90.8M contract for the RTI Weight Reduction Initiative fits within this trend of sustained investment in technological superiority. It represents a specific allocation towards enhancing existing or future platforms through critical performance improvements enabled by reduced weight, aligning with the broader strategic goals of maintaining a technological edge in aerospace capabilities.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6660414R1120

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

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: $168,508,380

Exercised Options: $91,646,197

Current Obligation: $90,817,757

Actual Outlays: $9,386,789

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline