Raytheon Company awarded $30M R&D contract for IGF MOS PHASE II PROGRAM by the Department of the Air Force

Contract Overview

Contract Amount: $29,976,886 ($30.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2014-09-26

End Date: 2020-01-31

Contract Duration: 1,953 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF MOS PHASE II PROGRAM

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF MOS PHASE II PROGRAM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for Research and Development in Physical, Engineering, and Life Sciences, indicating a focus on innovation. 3. A definitive contract type was used, typically for well-defined scopes of work. 4. The contract duration of 1953 days (over 5 years) suggests a significant, long-term project. 5. The contract was awarded to a single entity, Raytheon Company. 6. The contract value is approximately $30 million, providing a benchmark for similar R&D efforts.

Value Assessment

Rating: fair

The contract value of approximately $30 million for a multi-year R&D effort appears within a reasonable range for complex research projects. However, without specific deliverables or performance metrics, a detailed value-for-money assessment is challenging. Benchmarking against similar R&D contracts in advanced physical and engineering sciences would provide further context on pricing efficiency.

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. The presence of 3 bidders suggests a moderate level of competition for this R&D requirement. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovative solutions from multiple offerors.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially broader defense initiatives requiring advanced research and development. The services delivered are focused on research and development in physical, engineering, and life sciences, contributing to technological advancements. The contract is associated with California (st: CA), suggesting potential R&D activities or contractor presence in that state. The contract supports a specialized area of R&D, potentially leading to advancements in defense technology and capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or deliverables makes it difficult to assess the true value and success of the R&D effort.
The long duration of the contract could lead to scope creep or evolving requirements that may not be optimally managed.
As a definitive contract, the pricing structure (Cost Plus Fixed Fee) can sometimes incentivize cost overruns if not rigorously monitored.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contract is for research and development, which is crucial for future technological advancements and national security.
The contractor, Raytheon Company, is a well-established entity in the defense and aerospace sector, suggesting expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This is a critical area for defense modernization and technological superiority. Spending in this sector is often characterized by long project timelines, high innovation potential, and significant investment. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by the Department of Defense or other federal agencies for similar scientific and engineering pursuits.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Raytheon Company, would determine any subcontracting opportunities based on their project needs and internal policies.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The Inspector General of the Department of Defense may also have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D progress details may be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Advanced Technology Initiatives
Physical and Engineering Sciences Research Contracts
Cost Plus Fixed Fee Contracts
Definitive Contracts

Risk Flags

Long contract duration may increase risk of cost overruns or scope creep.
Cost Plus Fixed Fee structure requires diligent oversight to manage costs.
Specific R&D outcomes and deliverables are not detailed, making performance assessment difficult.
Contract awarded to a single entity, limiting immediate visibility into broader market capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to RAYTHEON COMPANY. IGF::OT::IGF MOS PHASE II PROGRAM

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 $30.0 million.

What is the period of performance?

Start: 2014-09-26. End: 2020-01-31.

What is the specific nature of the 'IGF MOS PHASE II PROGRAM' and its intended outcomes?

The provided data does not detail the specific objectives or intended outcomes of the 'IGF MOS PHASE II PROGRAM.' As a Research and Development contract under NAICS code 541712, it likely pertains to advancements in physical, engineering, or life sciences. Phase II programs often represent a continuation or expansion of initial research efforts, aiming to develop prototypes, test concepts, or further refine technologies identified in Phase I. Without access to the contract's SOW (Statement of Work) or related documentation, the precise nature of the research and its expected deliverables remain unspecified. Further inquiry would require accessing contract-specific documentation or public program descriptions from the Department of the Air Force.

How does the $30 million contract value compare to other R&D contracts in similar fields awarded by the Department of the Air Force?

Benchmarking the $30 million contract value requires comparing it against similar Research and Development (R&D) contracts within the physical, engineering, and life sciences sectors awarded by the Department of the Air Force (DAF). While specific comparable contract values fluctuate based on technological complexity, project scope, and duration, $30 million for a multi-year R&D effort is a substantial investment. Larger R&D programs within the DAF can range from tens of millions to billions of dollars, particularly for advanced weapon systems or foundational research. Smaller, more focused R&D efforts might be in the single-digit millions. Therefore, this contract appears to be a mid-to-large-sized R&D investment for the DAF, suggesting a project of significant scope and potential impact within its specialized field.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded here, carry inherent risks, particularly in R&D settings. The primary risk for the government is that the contractor is reimbursed for all allowable costs plus a fixed fee, which can incentivize cost overruns if not managed diligently. If the contractor's costs exceed initial estimates, the government still pays those costs, potentially leading to a higher total expenditure than initially anticipated. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable. Effective oversight, rigorous cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value. The long duration of this contract amplifies the need for robust oversight to manage potential cost escalations over time.

What is Raytheon Company's track record with similar R&D contracts for the Department of the Air Force?

Raytheon Company, now part of RTX, has a long and extensive track record of performing complex R&D and production contracts for the Department of the Air Force (DAF) and the broader Department of Defense. They are a major defense contractor with significant expertise in areas such as aerospace, defense electronics, and advanced technologies. While specific details on their performance for the 'IGF MOS PHASE II PROGRAM' are not provided, their history suggests a capacity to handle large-scale, technically challenging R&D projects. Performance reviews and contract histories available through federal procurement databases (like FPDS or SAM.gov) would offer more granular insights into their past performance ratings, on-time delivery, and adherence to budget on similar DAF R&D endeavors.

How does the competition level (3 bidders) impact the potential for innovation and cost savings in this R&D contract?

A competition with three bidders for a full and open solicitation generally strikes a reasonable balance between ensuring adequate choice and managing the procurement process. Three bidders suggest that the requirement was attractive enough to elicit interest from multiple capable sources, which typically fosters competitive pricing and encourages offerors to present their most innovative solutions to win the contract. While more bidders could theoretically drive prices lower, managing a procurement with a very large number of bidders can become administratively burdensome and may not necessarily yield significantly better results for complex R&D. Conversely, fewer than three bidders might raise concerns about market responsiveness or potential collusion. Thus, three bidders indicate a healthy competitive environment that likely benefited both cost considerations and the exploration of innovative approaches for this R&D program.

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: 3

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: $63,869,905

Exercised Options: $30,059,886

Current Obligation: $29,976,886

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $233,985

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline