DoD's $15.8M R&D Contract with Raytheon: Research & Development in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $15,795,679 ($15.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2009-01-13
End Date: 2012-12-11
Contract Duration: 1,428 days
Daily Burn Rate: $11.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: HTS SWUP
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $15.8 million to RAYTHEON COMPANY for work described as: HTS SWUP Key points: 1. The contract awarded to Raytheon Company for $15.8 million focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. This contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' NAICS code (541712). 3. The contract was awarded as a Definitive Contract with a Cost Plus Fixed Fee pricing structure. 4. The contract duration was 1428 days, spanning from January 13, 2009, to December 11, 2012. 5. The contract was not competed and did not involve small businesses.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the fixed fee represents a fair price for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was not competed, which limits price discovery and potentially leads to higher costs for the government. The sole awardee was Raytheon Company.
Taxpayer Impact: The lack of competition may have resulted in taxpayers paying more than necessary for the research and development services provided.
Public Impact
Taxpayers funded $15.8 million for research and development services. The contract supported advancements in physical, engineering, and life sciences. The Department of the Air Force was the contracting agency. The contract was performed in Arizona.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee pricing
- No small business participation
Positive Signals
- Awarded to a major defense contractor
- Focus on critical R&D areas
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this sector is crucial for technological advancement but requires careful oversight to ensure value for money.
Small Business Impact
This contract did not include provisions for small business participation, representing a missed opportunity to support smaller innovative companies within the R&D ecosystem.
Oversight & Accountability
The lack of competition and the Cost Plus Fixed Fee structure warrant scrutiny. Further review of performance metrics and final costs would be necessary to assess oversight effectiveness.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns with CPFF
- No small business involvement
- Limited transparency on specific R&D outcomes
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 $15.8 million to RAYTHEON COMPANY. HTS SWUP
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 $15.8 million.
What is the period of performance?
Start: 2009-01-13. End: 2012-12-11.
What specific research and development outcomes were achieved under this contract, and how do they align with the initial objectives?
The contract focused on Research and Development in Physical, Engineering, and Life Sciences. Specific outcomes would typically be detailed in technical reports and project milestones. Assessing alignment requires comparing these deliverables against the contract's statement of work and performance objectives. Without access to these detailed reports, it's challenging to definitively state the achieved outcomes and their alignment.
Given the 'NOT COMPETED' status, what justification was provided for not seeking multiple bids, and how was the fixed fee determined?
Justification for 'NOT COMPETED' contracts usually involves factors like unique capabilities, urgent needs, or follow-on work. The fixed fee in a Cost Plus Fixed Fee contract is negotiated based on estimated costs and a pre-determined profit margin. Without the contract's specific justification and negotiation details, it's impossible to assess the fairness of the fee determination process.
What was the overall return on investment or technological advancement realized from the $15.8 million expenditure in R&D?
Determining the precise return on investment for R&D contracts is complex, as benefits can be long-term and indirect. This contract's value would be measured by the successful development of new technologies, processes, or scientific understanding. A comprehensive assessment would require evaluating the impact of the research on subsequent programs, commercial applications, or national security capabilities.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
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
Financial Breakdown
Contract Ceiling: $39,508,030
Exercised Options: $39,508,030
Current Obligation: $15,795,679
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-01-13
Current End Date: 2012-12-11
Potential End Date: 2012-12-11 00:00:00
Last Modified: 2023-07-25
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