DoD's $39.4M IRIS R&D contract with Raytheon Company awarded via full and open competition

Contract Overview

Contract Amount: $39,408,537 ($39.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2011-03-04

End Date: 2020-12-09

Contract Duration: 3,568 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IDENTIFICATION AT RANGE INTEGRATED SENSOR (IRIS)

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $39.4 million to RAYTHEON COMPANY for work described as: IDENTIFICATION AT RANGE INTEGRATED SENSOR (IRIS) Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Significant duration of 3568 days indicates a long-term R&D effort. 3. Cost Plus Fixed Fee (CPFF) contract type suggests potential for cost overruns. 4. Awarded by the Department of the Air Force, indicating a focus on defense-related research. 5. The contract's value of $39.4 million is substantial for a single R&D effort. 6. Raytheon Company, a major defense contractor, is the awardee. 7. The contract was competed under 'Full and Open Competition' with 4 bidders. 8. California is the state associated with the contract.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables and market comparables. The CPFF structure inherently carries risk for the government, as contractor profit is not directly tied to cost savings. However, for complex, long-term research where scope can evolve, CPFF can be appropriate. The $39.4 million over nearly a decade suggests a significant investment, but its 'value for money' depends entirely on the successful outcomes of the research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. With four bidders participating, there was a reasonable level of competition. This suggests that the Air Force sought to leverage the market to find the best technical solution and price for this R&D effort. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing.

Taxpayer Impact: A competitive award process for this significant R&D contract is beneficial for taxpayers, as it increases the likelihood of obtaining a cost-effective solution and prevents potential price gouging associated with sole-source awards.

Public Impact

The primary beneficiaries are likely the Department of Defense and the Air Force, who will receive advancements in sensor technology. The contract supports research and development in advanced physical, engineering, and life sciences. The geographic impact is centered in California, where the contractor is located. The contract likely supports a specialized workforce of scientists, engineers, and researchers within Raytheon Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not managed diligently.
Long contract duration (3568 days) increases the risk of scope creep and evolving requirements.
R&D contracts inherently carry a risk of not achieving desired outcomes or technological breakthroughs.
Reliance on a single large contractor (Raytheon) for a significant R&D effort.

Positive Signals

Awarded through Full and Open Competition, indicating a robust bidding process.
Multiple bidders (4) suggest a competitive environment that can drive innovation and value.
Raytheon Company is a well-established defense contractor with significant R&D capabilities.
The contract supports critical research and development for the Department of Defense.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with major players like Raytheon investing heavily in innovation. This contract represents a significant investment by the Air Force in developing advanced sensor technologies, likely to maintain a technological edge. Comparable spending benchmarks in defense R&D can vary widely based on the specific technology area and program maturity.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. Given the nature of advanced R&D and the prime contractor being Raytheon, it's possible that small businesses could be involved as subcontractors, but this contract does not appear to have been specifically structured to promote small business participation as a prime awardee.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures would be tied to the achievement of R&D milestones and deliverables outlined in the contract. Transparency is generally limited for specific R&D projects due to national security and proprietary concerns, but contract award data is publicly available. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Advanced Sensor Development Programs
Department of Defense Research and Development Initiatives
Air Force Science and Technology Programs
Raytheon Company Defense Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long contract duration increases potential for scope creep and requirement changes.
R&D outcomes are inherently uncertain and may not yield desired results.
Potential for contractor to prioritize profit over cost efficiency in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.4 million to RAYTHEON COMPANY. IDENTIFICATION AT RANGE INTEGRATED SENSOR (IRIS)

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 Air Force).

What is the total obligated amount?

The obligated amount is $39.4 million.

What is the period of performance?

Start: 2011-03-04. End: 2020-12-09.

What specific technological advancements or breakthroughs were achieved under the IDENTIFICATION AT RANGE INTEGRATED SENSOR (IRIS) contract?

Detailed information on the specific technological advancements or breakthroughs achieved under the IDENTIFICATION AT RANGE INTEGRATED SENSOR (IRIS) contract is not publicly available. R&D contracts, especially those within the defense sector, often involve proprietary information and classified research. Publicly accessible data typically focuses on the award details, contract type, duration, and value, rather than the granular technical outcomes. To ascertain the specific achievements, one would need access to internal DoD reports, program reviews, or declassified technical documentation, which are generally not part of standard contract award disclosures.

How does the $39.4 million contract value compare to other similar R&D efforts in advanced sensor technology?

Comparing the $39.4 million contract value to other similar R&D efforts in advanced sensor technology requires access to a broader dataset of defense R&D contracts. However, for a nearly decade-long research initiative awarded to a major defense contractor like Raytheon, this value is within a plausible range. Defense R&D investments can span tens to hundreds of millions of dollars, depending on the complexity, novelty, and strategic importance of the technology. Contracts for foundational research might be smaller, while those for developing mature prototypes or systems can be significantly larger. Without specific comparable programs, it's difficult to definitively label this as high or low, but it represents a substantial commitment to a single R&D effort.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how were they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for R&D is that the contractor may have less incentive to control costs, as their fee is fixed regardless of the actual expenses incurred. This can lead to cost overruns. For the government, the risk is paying more than necessary. Mitigation strategies typically involve robust government oversight, detailed performance metrics, regular reviews of contractor expenditures, and clear definition of the 'fixed fee' component. The Air Force would have likely assigned program managers and contracting officers to closely monitor Raytheon's progress and spending, ensuring that the research remained on track and within the spirit of the agreement, even with the CPFF structure.

What was the strategic importance of the IRIS program to the Department of the Air Force at the time of award?

The strategic importance of the IRIS program to the Department of the Air Force at the time of its award in 2011 likely centered on enhancing intelligence, surveillance, and reconnaissance (ISR) capabilities. Advanced integrated sensor systems are crucial for modern military operations, providing real-time situational awareness, target identification, and threat assessment. Investing in R&D for such technologies would have been aimed at maintaining a technological advantage over potential adversaries, improving operational effectiveness, and ensuring the safety of personnel by providing better information. The long duration suggests a commitment to developing a potentially game-changing capability.

How has Raytheon Company's performance on previous R&D contracts influenced their selection for this IRIS contract?

While specific details of Raytheon Company's past performance evaluation for the IRIS contract are not publicly disclosed, it is standard practice for government agencies to consider a contractor's track record. Raytheon, as a major defense contractor, has extensive experience in research and development across various defense domains. Their selection for this significant R&D effort strongly suggests a history of successful contract performance, technical expertise, and reliability in delivering complex projects for the Department of Defense. Agencies typically review past performance information, including CPARS (Contractor Performance Assessment Reporting System) reports, to inform award decisions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245

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: $39,459,869

Exercised Options: $39,459,869

Current Obligation: $39,408,537

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $930,176

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline