DoD's $29.3M R&D Contract with RTX Corporation: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $29,314,284 ($29.3M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2003-11-14
End Date: 2009-12-31
Contract Duration: 2,239 days
Daily Burn Rate: $13.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 30
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06108
Plain-Language Summary
Department of Defense obligated $29.3 million to RTX CORPORATION for work described as: Key points: 1. The contract awarded to RTX Corporation for R&D services represents a significant investment in technological advancement. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The contract's duration and cost structure warrant scrutiny for potential cost overruns and value for money. 4. Analysis of the specific R&D outcomes and their alignment with agency goals is crucial for assessing overall effectiveness.
Value Assessment
Rating: fair
The contract's total award value of $29.3 million over six years suggests a moderate annual spend. Benchmarking against similar R&D contracts is necessary to determine if this pricing is competitive and reflects fair market value for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple bidders had the opportunity to propose solutions. This method generally promotes price discovery and can lead to more competitive pricing, though the final negotiated price depends on the specific terms and technical requirements.
Taxpayer Impact: The taxpayer impact is tied to ensuring the $29.3 million investment yields valuable research outcomes that benefit national security or technological progress, justifying the expenditure.
Public Impact
Investment in advanced research and development by the Department of Defense. Potential for technological breakthroughs with implications for national security. Contract awarded through a competitive process, promoting fairness and potentially better value. Long-term commitment to a single contractor for specific research objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize cost overruns if not closely monitored.
- Long contract duration (6 years) increases risk of scope creep or evolving requirements.
- Lack of specific performance metrics makes it difficult to assess value for money.
- No indication of small business participation.
Positive Signals
- Full and open competition suggests a fair and transparent procurement process.
- Award to a major defense contractor like RTX implies access to specialized expertise.
- Focus on R&D aligns with strategic goals for technological superiority.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is critical for maintaining a technological edge, with benchmarks varying widely based on the specific research domain and project scope.
Small Business Impact
There is no indication of small business participation in this contract. Given the nature of advanced R&D, it's possible that the specialized requirements favored larger, established firms, but further analysis would be needed to confirm.
Oversight & Accountability
The contract's oversight would involve monitoring RTX Corporation's progress against research milestones and ensuring adherence to the Cost Plus Fixed Fee structure. Accountability rests on delivering tangible research outcomes and managing costs effectively throughout the contract's lifecycle.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed properly.
- Long contract duration (over 6 years) increases the risk of scope creep and requirement changes.
- Lack of specific performance metrics makes it difficult to assess the value and effectiveness of the R&D.
- No mention of small business subcontracting goals.
- The specific research outcomes and their impact are not detailed, making a full value assessment challenging.
Tags
research-and-development-in-the-physical, department-of-defense, ct, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.3 million to RTX CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is RTX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $29.3 million.
What is the period of performance?
Start: 2003-11-14. End: 2009-12-31.
What specific research objectives were prioritized under this contract, and how do they align with DARPA's strategic mission?
The contract focused on Research and Development in Physical, Engineering, and Life Sciences. While the specific objectives are not detailed, DARPA's mission is to make pivotal early investments in breakthrough technologies for national security. Therefore, the research likely aimed at developing novel capabilities or fundamental scientific understanding with potential defense applications, contributing to future technological superiority.
How effectively did the 'full and open competition' process ensure the best value for taxpayer dollars, given the Cost Plus Fixed Fee structure?
Full and open competition is designed to maximize the pool of potential offerors, fostering price competition and innovation. However, the Cost Plus Fixed Fee (CPFF) structure requires diligent oversight to prevent contractor inefficiencies from inflating costs. The effectiveness in ensuring best value hinges on robust negotiation, clear performance metrics, and continuous monitoring by the agency to manage costs and ensure the research objectives are met efficiently.
What are the potential long-term implications of this six-year R&D investment for national security and technological advancement?
A six-year investment in R&D with a major contractor like RTX Corporation could yield significant advancements in critical technology areas, bolstering national security. The outcomes might lead to new defense capabilities, improved systems, or foundational scientific knowledge. The long-term impact depends on the successful translation of research findings into practical applications and the sustained relevance of the developed technologies in a rapidly evolving global landscape.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 30
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 MAIN STREET, EAST HARTFORD, CT, 06108
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-11-14
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2017-09-29
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