DoD's $39M CODE Contract with Raytheon: R&D for Denied Environments
Contract Overview
Contract Amount: $39,049,134 ($39.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2014-11-25
End Date: 2019-06-28
Contract Duration: 1,676 days
Daily Burn Rate: $23.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF COLLABORATIVE OPERATION IN DENIED ENVIRONMENT (CODE)
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $39.0 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF COLLABORATIVE OPERATION IN DENIED ENVIRONMENT (CODE) Key points: 1. Significant investment in advanced R&D for challenging operational scenarios. 2. Raytheon, a major defense contractor, holds this contract. 3. Potential risks include cost overruns and technological obsolescence in a rapidly evolving field. 4. Spending falls within the Research and Development sector.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to higher costs compared to fixed-price contracts. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms for this type of R&D are not detailed.
Taxpayer Impact: Taxpayer funds are supporting advanced defense research, with the ultimate benefit being enhanced operational capabilities.
Public Impact
Enhances U.S. military capabilities in contested environments. Supports technological innovation and the defense industrial base. Potential for dual-use technologies benefiting civilian sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns due to R&D complexity
- Technological obsolescence
- Limited transparency on specific R&D outcomes
Positive Signals
- Addresses critical national security needs
- Leverages expertise of a leading defense contractor
- Potential for significant technological advancement
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending benchmarks for highly specialized R&D are variable, but $39 million represents a substantial investment.
Small Business Impact
The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The contract type and duration suggest ongoing monitoring is required.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost overrun potential
- Technological obsolescence risk
- Dependency on a single large contractor
- Classification of specific R&D outcomes limits public scrutiny
Tags
research-and-development-in-the-physical, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.0 million to RAYTHEON COMPANY. IGF::OT::IGF COLLABORATIVE OPERATION IN DENIED ENVIRONMENT (CODE)
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 $39.0 million.
What is the period of performance?
Start: 2014-11-25. End: 2019-06-28.
What specific technological advancements are expected from this contract, and how will they be measured?
The contract aims to develop capabilities for operating in denied environments. Specific advancements are likely classified, but success metrics would typically involve demonstrated performance in simulated or actual challenging conditions, meeting defined technical requirements, and successful integration into existing or future military systems.
What are the primary risks associated with the 'Cost Plus Fixed Fee' structure for this R&D project?
The primary risks include potential cost overruns if research proves more complex or time-consuming than anticipated, leading to higher final costs for the government. The fixed fee component provides some cost certainty for the contractor's profit, but the government bears the risk of escalating direct costs.
How does this investment in denied environment operations align with current geopolitical threats and future defense strategies?
Investing in denied environment operations directly addresses evolving geopolitical threats where adversaries may seek to restrict U.S. military access or operations. This aligns with defense strategies focused on maintaining freedom of action, deterring aggression, and ensuring mission success across a spectrum of conflict scenarios.
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: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 1151 E HERMANS RD, TUCSON, AZ, 85756
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: $43,560,931
Exercised Options: $43,560,931
Current Obligation: $39,049,134
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-11-25
Current End Date: 2019-06-28
Potential End Date: 2019-06-28 00:00:00
Last Modified: 2024-09-17
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