DoD's $28M SCIFIRE Contract Awarded to Raytheon Company for R&D

Contract Overview

Contract Amount: $28,079,848 ($28.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2021-06-10

End Date: 2022-11-30

Contract Duration: 538 days

Daily Burn Rate: $52.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SOUTHERN CROSS INTEGRATED FLIGHT RESEARCH EXPERIMENT - SCIFIRE

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to RAYTHEON COMPANY for work described as: SOUTHERN CROSS INTEGRATED FLIGHT RESEARCH EXPERIMENT - SCIFIRE Key points: 1. Contract awarded to a single, large, established defense contractor. 2. Focus on R&D in physical, engineering, and life sciences. 3. Potential for high-risk, high-reward research outcomes. 4. Sector is dominated by a few large players, limiting competition.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this research and development effort.

Public Impact

Advanced research potentially leading to new defense capabilities. Significant investment in a specialized R&D area. Contractor's expertise is critical for project success. Limited public visibility into the specific research objectives and outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Cost-plus contract type can incentivize higher spending.
  • Lack of small business participation.

Positive Signals

  • Award to a reputable contractor with relevant expertise.
  • Focus on critical R&D for national security.

Sector Analysis

The Department of Defense heavily invests in R&D, with a significant portion going to large, established aerospace and defense firms. This contract falls within a highly specialized R&D sub-sector.

Small Business Impact

There is no indication of small business participation in this contract. The nature of large-scale, specialized R&D often favors prime contractors with extensive resources and established infrastructure.

Oversight & Accountability

Oversight will be crucial given the sole-source nature and cost-plus contract type to ensure funds are used efficiently and research objectives are met. The Air Force will need robust monitoring mechanisms.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Sole-source award
  • Cost-plus contract type
  • Lack of small business participation
  • High-risk R&D nature
  • Limited public transparency on specific research goals

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 $28.1 million to RAYTHEON COMPANY. SOUTHERN CROSS INTEGRATED FLIGHT RESEARCH EXPERIMENT - SCIFIRE

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 $28.1 million.

What is the period of performance?

Start: 2021-06-10. End: 2022-11-30.

What specific technological advancements are expected from the SCIFIRE project, and how do they align with current defense priorities?

The SCIFIRE project likely aims to advance capabilities in areas such as advanced propulsion, sensor technology, or novel flight control systems relevant to future aerospace platforms. Its alignment with defense priorities would depend on specific Air Force strategic goals for next-generation aircraft or unmanned systems, potentially enhancing speed, stealth, or operational range.

What are the primary risks associated with a sole-source R&D contract of this magnitude, and how are they being mitigated?

The primary risks include potential cost overruns due to the lack of competitive pressure, the contractor potentially lacking sufficient incentive for efficiency, and the possibility that alternative, more innovative solutions might be overlooked. Mitigation strategies typically involve stringent contract oversight, clearly defined milestones, performance metrics, and potentially independent technical reviews.

How will the effectiveness of the R&D investment be measured, particularly given the long-term and often uncertain nature of scientific discovery?

Effectiveness is measured through a combination of factors: achievement of defined technical milestones, successful demonstration of prototypes or key technologies, peer review of research findings, and ultimately, the successful transition of developed technologies into operational systems or future acquisition programs. Progress reports and technical reviews are key to tracking this.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA868221R0008

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,548,870

Exercised Options: $33,548,870

Current Obligation: $28,079,848

Actual Outlays: $1,004,482

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $4,822,223

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2021-06-10

Current End Date: 2022-11-30

Potential End Date: 2022-11-30 00:00:00

Last Modified: 2025-04-22

More Contracts from Raytheon Company

View all Raytheon Company federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending