DoD awards $15.3M contract to RTX BBN Technologies for R&D in physical sciences

Contract Overview

Contract Amount: $15,279,662 ($15.3M)

Contractor: RTX BBN Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-07-18

End Date: 2028-10-31

Contract Duration: 1,566 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: EMU GRAPE

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to RTX BBN TECHNOLOGIES, INC. for work described as: EMU GRAPE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. Performance period spans over four years, indicating a long-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541715 points to significant investment in advanced research. 5. The awardee, RTX BBN Technologies, is a known entity in the defense and technology sectors. 6. The contract is a definitive contract, suggesting a well-defined scope of work.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. However, the award amount of $15.3 million over approximately four years suggests a moderate investment in specialized research and development. Comparisons to similar R&D contracts in physical sciences would be necessary to fully assess value for money. The fixed fee component provides some cost certainty, but the cost-reimbursement nature requires careful oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids (no: 2) suggests a degree of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. A competitive process generally aids in price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs and improving the quality of proposals.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advanced research and development services. The services delivered are expected to advance knowledge and capabilities in physical, engineering, and life sciences. The geographic impact is likely concentrated around the contractor's facilities and potential testing sites, with broader implications for national security. Workforce implications may include specialized roles for scientists, engineers, and technicians involved in the R&D activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Limited transparency on specific R&D deliverables and milestones makes it difficult to assess progress and value.
The long performance period could introduce risks related to technological obsolescence or shifting research priorities.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor, RTX BBN Technologies, has a significant track record in defense-related R&D.
The definitive contract structure suggests a clear understanding of the research objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, aiming to maintain technological superiority. The market for such specialized R&D is often characterized by a few highly capable firms, making competition dynamics unique. Comparable spending benchmarks would involve looking at other large-scale, multi-year R&D awards within the Department of Defense for similar scientific domains.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of the R&D and the likely scale of the work, it is probable that larger, established defense contractors are the primary participants in this market. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for broader economic impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures would be tied to the achievement of research milestones and adherence to the Cost Plus Fixed Fee structure. Transparency may be limited due to the sensitive nature of defense R&D, but periodic reporting requirements should be in place. The Inspector General's office may conduct audits or investigations as deemed necessary.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Physical Sciences Research Initiatives
Engineering and Technology Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long performance period increases risk of technological obsolescence or shifting priorities.
Limited public information on specific R&D deliverables and milestones.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to RTX BBN TECHNOLOGIES, INC.. EMU GRAPE

Who is the contractor on this award?

The obligated recipient is RTX BBN TECHNOLOGIES, INC..

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 $15.3 million.

What is the period of performance?

Start: 2024-07-18. End: 2028-10-31.

What is RTX BBN Technologies' track record with similar Cost Plus Fixed Fee R&D contracts for the Department of Defense?

RTX BBN Technologies, a subsidiary of RTX Corporation, has a substantial history of performing complex research and development contracts for the U.S. government, including the Department of Defense. Their expertise spans various scientific and engineering disciplines relevant to this award. While specific details on past Cost Plus Fixed Fee (CPFF) contracts are often proprietary, their extensive portfolio suggests experience managing the financial and technical aspects of such agreements. CPFF contracts require careful monitoring of costs and progress, and BBN's continued success in securing these types of awards indicates a capacity to meet the government's requirements within the established fee structure. Further analysis would involve examining their performance ratings on past contracts and any publicly available reports on their R&D project outcomes.

How does the $15.3 million award compare to typical R&D spending in physical sciences by the DoD?

The $15.3 million award for R&D in physical sciences represents a moderate investment for the Department of Defense, which often engages in much larger, multi-billion dollar research programs. However, for a specific, focused project with a single contractor over a defined period (approximately four years), this amount is significant. The DoD's overall R&D budget is substantial, encompassing a wide array of initiatives from basic research to advanced technology development. Contracts of this size are common for specialized research efforts that may not require the scale of major platform development but are crucial for technological advancement. Benchmarking against other definitive contracts awarded under NAICS code 541715 to similar entities would provide a more precise comparison of its relative scale and value within the broader DoD R&D landscape.

What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts present several risks, particularly in the context of research and development. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost incurred. This can lead to cost overruns if the contractor's actual expenses significantly exceed initial estimates. Another risk is the potential for scope creep or inefficient resource allocation if project management is not rigorous. For the contractor, the risk lies in underestimating the costs required to complete the project, which could result in a lower-than-expected profit margin or even a loss if actual costs far exceed estimates. Effective oversight, clear milestone definitions, and robust cost tracking are crucial to mitigate these risks.

What is the significance of the NAICS code 541715 for this contract?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' signifies that this contract is focused on fundamental and applied research aimed at advancing scientific knowledge and capabilities within these broad scientific domains. This code indicates that the work is highly specialized, requiring expertise in areas such as physics, chemistry, materials science, various engineering disciplines, and biological sciences, excluding specific subfields like nanotechnology and biotechnology. Contracts under this code are critical for innovation and maintaining a technological edge, often involving theoretical work, experimentation, and prototype development. The DoD frequently utilizes this code for contracts that support strategic research objectives.

How does the contract duration of 1566 days (approx. 4.3 years) impact the assessment of this award?

The contract duration of approximately 4.3 years (1566 days) is substantial for a research and development effort. This extended timeline suggests that the project involves complex, long-term research objectives that cannot be achieved in a shorter period. It allows for in-depth investigation, iterative development, and potential refinement of technologies or scientific understanding. From an assessment perspective, this duration necessitates robust program management and oversight to ensure consistent progress and alignment with evolving research goals. It also increases the potential for risks associated with technological obsolescence or shifts in strategic priorities over the project's life. For taxpayers, a longer duration means sustained funding commitment, underscoring the importance of clear performance metrics and regular progress reviews to justify the ongoing investment.

Industry Classification

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

Solicitation ID: HR001123S0001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 10 MOULTON ST, CAMBRIDGE, MA, 02138

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,545,977

Exercised Options: $19,545,977

Current Obligation: $15,279,662

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $36,194

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline