Raytheon Company awarded $27M contract for DARPA research, highlighting R&D investment in physical and engineering sciences

Contract Overview

Contract Amount: $27,004,883 ($27.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2013-04-10

End Date: 2016-07-29

Contract Duration: 1,206 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROJECT.

Place of Performance

Location: TEWKSBURY, MIDDLESEX County, MASSACHUSETTS, 01876

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to RAYTHEON COMPANY for work described as: DARPA RESEARCH PROJECT. Key points: 1. Contract focuses on advanced research and development, indicating investment in cutting-edge technological advancements. 2. Awarded to a major defense contractor, suggesting a focus on complex, high-stakes projects. 3. The definitive contract type implies a long-term relationship for a defined scope of work. 4. The contract duration of approximately 3.3 years suggests a substantial research undertaking. 5. The R&D sector is critical for maintaining technological superiority and economic competitiveness. 6. The specific NAICS code points to a focus on physical, engineering, and life sciences research.

Value Assessment

Rating: good

The contract value of $27 million for a multi-year R&D project appears reasonable within the context of defense research. Benchmarking against similar DARPA contracts for advanced research would provide a more precise value-for-money assessment. The cost-plus-fixed-fee structure incentivizes the contractor to manage costs while achieving defined research objectives. Without specific deliverables or comparable projects, a definitive value assessment is challenging, but the amount aligns with the complexity typical of DARPA initiatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple sources were considered and allowed to bid, but specific exclusions were applied. This suggests a competitive process designed to ensure fair pricing and access to the best available technology. The number of bidders is not specified, but the 'full and open' designation implies a robust competition that should drive value.

Taxpayer Impact: A competitive award process for R&D contracts generally benefits taxpayers by ensuring that funds are used efficiently and that the government receives the best possible technological solutions at a fair price.

Public Impact

The primary beneficiaries are the Department of Defense and DARPA, gaining access to advanced research outcomes. The contract supports the development of new technologies in physical, engineering, and life sciences. The geographic impact is primarily within Massachusetts, where Raytheon Company is located. Workforce implications include employment for researchers, engineers, and support staff at Raytheon.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in R&D projects due to inherent uncertainties.
Dependence on a single large contractor may limit future innovation if not managed carefully.

Positive Signals

Award to a reputable contractor with a strong track record in defense R&D.
The 'full and open' competition suggests a commitment to achieving best value.
DARPA's rigorous oversight is expected to ensure project success and accountability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by high innovation, significant government investment, and long development cycles. DARPA is a key player in funding cutting-edge research that aims to provide technological advantages to the U.S. military. Comparable spending in this sector involves substantial investments in areas like artificial intelligence, advanced materials, and cybersecurity.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and Raytheon Company is a large business. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Raytheon actively engages small businesses as subcontractors for specialized services or components.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Advanced Research Projects Agency (DARPA), a component of the Department of Defense. DARPA is known for its rigorous program management and oversight of research projects. Accountability measures would include regular progress reports, milestone reviews, and financial audits. Transparency is generally maintained through program announcements and public summaries of research outcomes, though specific project details may be classified.

Related Government Programs

DARPA Research Programs
Department of Defense R&D Contracts
Advanced Technology Development
Physical Sciences Research
Engineering Research

Risk Flags

Potential for scope creep in R&D projects.
Reliance on contractor's internal expertise may limit independent verification.
Long-term nature of R&D can make immediate value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to RAYTHEON COMPANY. DARPA RESEARCH PROJECT.

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

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 $27.0 million.

What is the period of performance?

Start: 2013-04-10. End: 2016-07-29.

What is Raytheon Company's track record with DARPA and similar R&D contracts?

Raytheon Company, now part of RTX Corporation, has a long and extensive history of working with DARPA and other defense agencies on complex research and development projects. They are a major defense contractor known for expertise in areas such as aerospace, defense systems, and advanced technologies. Their track record includes numerous successful contract completions, often involving sophisticated engineering and scientific challenges. While specific performance metrics for individual contracts are not publicly detailed, their continued selection for high-value DARPA initiatives suggests a consistent ability to meet demanding technical and programmatic requirements. This specific contract, awarded in 2013, aligns with their core competencies in advanced research and development.

How does the $27 million contract value compare to other DARPA R&D awards?

The $27 million award value for this DARPA research contract is within a common range for significant R&D initiatives funded by the agency. DARPA typically funds projects that are exploratory, high-risk, and high-reward, often requiring substantial investment over several years. Contract values can range from a few million dollars for early-stage research to tens or even hundreds of millions for more extensive programs involving multiple performers or advanced prototyping. This $27 million award suggests a project of considerable scope and duration, likely involving complex scientific or engineering challenges that necessitate a significant budget to achieve its objectives. It is not an outlier and reflects typical investment levels for advanced research.

What are the primary risks associated with this type of R&D contract?

The primary risks associated with this type of R&D contract are inherent to the nature of research and development. These include technical risk, where the research objectives may prove unattainable due to scientific or engineering hurdles. Schedule risk is also significant, as R&D timelines can be unpredictable and subject to delays. Cost risk is another major concern; cost-plus-fixed-fee contracts, while providing a defined profit margin, still require careful management to prevent cost overruns if unforeseen technical challenges arise. Finally, there is programmatic risk, where the research outcomes may not ultimately meet DARPA's strategic goals or transition into practical applications. Effective project management and oversight are crucial to mitigate these risks.

How effective are DARPA contracts in driving technological innovation for national security?

DARPA contracts have historically been highly effective in driving technological innovation for national security. The agency's model focuses on funding high-risk, high-reward research that the private sector might not undertake due to market uncertainties. DARPA fosters a culture of innovation by bringing together leading researchers from academia, industry, and government labs. Many transformative technologies, such as GPS, the internet, and stealth aircraft, have roots in DARPA-funded projects. By setting ambitious goals and providing flexible funding, DARPA enables breakthroughs that can provide significant strategic advantages. The success of DARPA's approach is evident in the continuous stream of advanced capabilities it has delivered to the U.S. military over decades.

What are the historical spending patterns for R&D contracts within the Department of Defense?

Historical spending patterns for R&D contracts within the Department of Defense (DoD) show a consistent and substantial commitment to advancing military technology. The DoD is typically one of the largest government spenders on R&D, allocating significant portions of its budget to research, development, testing, and evaluation (RDT&E). Spending fluctuates based on geopolitical priorities, technological advancements, and specific program needs. Key areas of investment often include areas like artificial intelligence, cyber warfare, advanced materials, hypersonics, and space technologies. Agencies like DARPA, the military branches' research labs, and defense agencies are primary recipients of these R&D funds, often utilizing competitive contracting processes to engage a wide range of performers.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 50 APPLE HILL DR, TEWKSBURY, MA, 01876

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: $27,004,883

Exercised Options: $27,004,883

Current Obligation: $27,004,883

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $8,963,027

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline