DoD's $11.6M R&D Contract with Raytheon Company: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $11,656,697 ($11.7M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2004-07-28
End Date: 2011-01-27
Contract Duration: 2,374 days
Daily Burn Rate: $4.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $11.7 million to RAYTHEON COMPANY for work described as: Key points: 1. Significant investment in R&D, indicating a focus on technological advancement. 2. Sole awardee, Raytheon Company, suggests specialized capabilities or limited market options. 3. Contract duration of 2374 days points to a long-term project with potential for evolving requirements. 4. Cost Plus Fixed Fee structure may incentivize cost overruns if not closely monitored. 5. Lack of small business participation noted.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risk. Without detailed cost breakdowns and performance metrics, assessing the value for the $11.6M awarded is challenging. Benchmarking against similar R&D contracts would be necessary for a more definitive 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 process. However, the fact that Raytheon Company was the sole awardee implies they possessed unique qualifications or were the only bidder meeting the stringent requirements for this specific R&D effort.
Taxpayer Impact: Taxpayer funds are being utilized for advanced research and development, the ultimate return on which depends on the successful application and innovation stemming from this contract.
Public Impact
Investment in advanced research potentially leading to future technological breakthroughs. Contract awarded to a major defense contractor, impacting the broader defense industrial base. Long-term nature of the contract suggests sustained government need for the R&D outcome.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Lack of small business participation
- Long contract duration
Positive Signals
- Full and open competition
- Award to established prime contractor
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is critical for maintaining technological superiority and innovation, often involving significant investment and long development cycles.
Small Business Impact
The contract data indicates no small business participation. This suggests that the specific R&D requirements may have favored large, established contractors with specialized expertise and resources, potentially limiting opportunities for smaller innovative firms.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring adherence to contract terms and monitoring performance. The CPFF structure necessitates robust oversight to manage costs effectively.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Lack of transparency on specific R&D outcomes
- No small business participation
- Long contract duration may indicate scope creep or evolving requirements
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.7 million to RAYTHEON COMPANY. See the official description on USAspending.
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 $11.7 million.
What is the period of performance?
Start: 2004-07-28. End: 2011-01-27.
What specific technological advancements or outcomes were achieved through this $11.6M R&D contract, and how do they align with the Department of Defense's strategic goals?
The specific technological advancements are not detailed in the provided data. However, R&D contracts of this magnitude typically aim to develop cutting-edge capabilities, improve existing systems, or explore novel scientific principles relevant to national security. Assessing alignment with strategic goals would require reviewing the contract's SOW and DoD's stated priorities during the award period.
Given the Cost Plus Fixed Fee structure and the long duration, what mechanisms were in place to mitigate cost overruns and ensure efficient use of taxpayer funds?
Cost Plus Fixed Fee contracts require diligent oversight. Mitigation mechanisms likely included detailed cost reporting requirements, regular performance reviews, established fee structures tied to performance milestones, and potentially independent cost audits. The fixed fee component provides some incentive for the contractor to manage costs efficiently to maximize profit.
How did the full and open competition process ensure that Raytheon Company was the most capable and cost-effective provider for this specific R&D requirement?
Full and open competition implies that all responsible sources were permitted to submit proposals. The evaluation criteria, not detailed here, would have assessed technical capability, past performance, and price. Raytheon's selection suggests they best met these criteria, demonstrating superior technical expertise or a more compelling approach to the R&D challenge compared to other potential bidders.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2000 EAST EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2004-07-28
Current End Date: 2011-01-27
Potential End Date: 2011-01-27 00:00:00
Last Modified: 2016-06-22
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