DoD's $47.3M R&D Contract with Raytheon: Full and Open Competition After Exclusion of Sources
Contract Overview
Contract Amount: $47,305,990 ($47.3M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2005-02-22
End Date: 2017-02-09
Contract Duration: 4,370 days
Daily Burn Rate: $10.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 10
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: TEWKSBURY, MIDDLESEX County, MASSACHUSETTS, 01876
Plain-Language Summary
Department of Defense obligated $47.3 million to RAYTHEON COMPANY for work described as: Key points: 1. Significant investment in R&D for physical, engineering, and life sciences. 2. Raytheon Company is the sole awardee under a unique competition method. 3. Contract duration spans over 12 years, indicating long-term project scope. 4. Potential for cost overruns given the Cost Plus Fixed Fee structure.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to higher costs than fixed-price contracts. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'Full and Open Competition After Exclusion of Sources' method suggests a specific justification for limiting the initial pool of bidders. This approach can impact price discovery by reducing the number of competing proposals.
Taxpayer Impact: Taxpayer funds are allocated for advanced R&D. The effectiveness of the competition method in securing the best value for taxpayer money is a key consideration.
Public Impact
Advancement in physical, engineering, and life sciences research. Potential for technological breakthroughs with national security implications. Long-term commitment of resources to a single contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Cost-plus contract type
- Long contract duration
Positive Signals
- Focus on critical R&D area
- Award to established contractor
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation and national security, often involving complex and long-term projects.
Small Business Impact
The data indicates this contract was awarded to Raytheon Company and does not specify any small business participation. Larger prime contractors often subcontract, but direct award information for small businesses is not present.
Oversight & Accountability
The contract's extended duration and CPFF structure warrant close oversight to ensure cost control and adherence to research objectives. The 'Exclusion of Sources' justification requires thorough review.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition
- Cost-plus contract type
- Long contract duration
- Lack of small business direct award information
- Potential for cost overruns
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.3 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 $47.3 million.
What is the period of performance?
Start: 2005-02-22. End: 2017-02-09.
What was the specific justification for excluding sources in the full and open competition?
The justification for excluding sources in a full and open competition typically relates to unique capabilities, proprietary data, or specific national security requirements that only a limited number of entities can meet. Without further details on this specific contract, it's presumed that Raytheon possessed unique qualifications or technologies essential for the R&D objectives, necessitating their selection over a broader, unrestricted competition.
How does the Cost Plus Fixed Fee structure impact the overall value for taxpayer money in this R&D contract?
The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it incentivizes the contractor to control costs to maximize their fee, it can lead to higher overall spending compared to fixed-price contracts if costs escalate significantly. For R&D, where outcomes are uncertain, CPFF can be appropriate but requires robust oversight to ensure efficiency and prevent unnecessary expenditures.
What are the potential long-term effectiveness implications of awarding a single, long-duration contract for R&D?
A single, long-duration R&D contract can foster deep expertise and sustained focus on specific technological advancements, potentially leading to significant breakthroughs. However, it also carries risks, such as contractor complacency, potential for technological path dependency, and reduced agility if research needs shift. The effectiveness hinges on continuous evaluation of progress and adaptability to evolving requirements.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: BASIC RESEARCH
Offers Received: 10
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 50 APPLE HILL DR, TEWKSBURY, MA, 01876
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: 2005-02-22
Current End Date: 2017-02-09
Potential End Date: 2017-02-09 00:00:00
Last Modified: 2016-09-23
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)