DoD's $13.7M RETRODIRECTIVE ARRAYS contract to RTX BBN Technologies shows strong competition and R&D focus

Contract Overview

Contract Amount: $13,712,326 ($13.7M)

Contractor: RTX BBN Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-06-06

End Date: 2019-05-31

Contract Duration: 1,820 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 102

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RETRODIRECTIVE ARRAYS FOR COHERENT TRANSMISSION (REACT)

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $13.7 million to RTX BBN TECHNOLOGIES, INC. for work described as: RETRODIRECTIVE ARRAYS FOR COHERENT TRANSMISSION (REACT) Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Research and Development focus suggests investment in future technological capabilities. 3. Cost Plus Fixed Fee pricing structure requires careful monitoring of expenditures. 4. Long contract duration of 1820 days necessitates ongoing performance evaluation. 5. Awarded by the Defense Contract Management Agency, implying significant oversight. 6. Contractor RTX BBN Technologies has a substantial presence in defense contracting.

Value Assessment

Rating: good

The contract's value of $13.7 million for R&D services appears reasonable given the specialized nature of the work. Benchmarking against similar advanced research contracts is challenging due to the unique 'RETRODIRECTIVE ARRAYS FOR COHERENT TRANSMISSION (REACT)' technology. However, the Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates diligent oversight to ensure costs remain aligned with the fixed fee and project objectives. The contractor's experience in similar advanced technology development likely contributes to the overall value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors were invited to bid. The presence of 102 bids indicates a highly competitive environment. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from a wide range of potential suppliers, potentially leading to innovative solutions and better pricing.

Taxpayer Impact: The extensive competition for this R&D contract is beneficial for taxpayers as it likely drove down costs and encouraged innovative approaches, maximizing the return on investment for federal funds.

Public Impact

The primary beneficiaries are the Department of Defense, which gains access to advanced transmission array technology. The contract supports the development of cutting-edge research in physical sciences and engineering. Geographic impact is concentrated around the contractor's facilities, likely in Massachusetts. Workforce implications include employment for highly skilled researchers, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize cost overruns if not managed tightly.
Long contract durations (1820 days) increase the risk of scope creep or technological obsolescence.
The specialized nature of R&D may limit the number of truly competitive follow-on opportunities.

Positive Signals

Awarded through full and open competition, ensuring a broad base of potential suppliers.
Contractor RTX BBN Technologies is a well-established entity with a strong track record in defense R&D.
The contract focuses on developing advanced technology, potentially yielding significant long-term strategic advantages.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced defense technologies is characterized by high innovation, significant government investment, and a limited number of specialized contractors. Comparable spending benchmarks are difficult to establish due to the unique nature of 'RETRODIRECTIVE ARRAYS FOR COHERENT TRANSMISSION (REACT)', but R&D spending within the DoD is substantial, often involving complex, long-term projects.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of advanced R&D in defense, large, established contractors like RTX BBN Technologies are typically better positioned to compete. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this high-tech development.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), a key agency responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to monitor costs against the agreed-upon fixed fee. Transparency is generally maintained through contract reporting mechanisms, and while no specific Inspector General (IG) jurisdiction is mentioned, the DoD IG would likely have oversight authority over significant R&D expenditures.

Related Government Programs

Advanced Technology Development Programs
Department of Defense Research and Development
Signal Processing and Transmission Technologies
Coherent Transmission Systems

Risk Flags

Cost Plus Fixed Fee (CPFF) requires diligent cost monitoring.
Long contract duration may lead to technological obsolescence or scope creep.
Specialized R&D nature limits direct comparability for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to RTX BBN TECHNOLOGIES, INC.. RETRODIRECTIVE ARRAYS FOR COHERENT TRANSMISSION (REACT)

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2014-06-06. End: 2019-05-31.

What is the specific technological advancement expected from the RETRODIRECTIVE ARRAYS FOR COHERENT TRANSMISSION (REACT) program?

The REACT program aims to develop and mature retrodirective array technology for coherent transmission. Retrodirective arrays are capable of automatically directing a transmitted signal back towards the source of an incoming signal, regardless of the array's orientation or the source's movement. This is particularly useful for applications requiring robust, self-aligning communication links, such as in dynamic or contested electromagnetic environments. The 'coherent transmission' aspect suggests a focus on maintaining the phase and frequency integrity of the transmitted signal, crucial for high-bandwidth data transfer and advanced signal processing applications within the Department of Defense.

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact cost control for this R&D contract?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, this structure is often used when the scope of work is not precisely defined at the outset, allowing flexibility. However, it places a significant burden on the government to meticulously track and audit all costs to ensure they are reasonable, allocable, and allowable. Without stringent oversight, there's a risk of cost overruns, as the contractor's incentive is to complete the work, not necessarily to minimize costs beyond what's necessary to achieve the fixed fee. Regular reviews and clear milestones are essential to manage this risk effectively.

What is RTX BBN Technologies' track record in similar advanced R&D contracts with the DoD?

RTX BBN Technologies, a subsidiary of RTX Corporation (formerly Raytheon Technologies), has a long and established history of performing advanced research and development for the Department of Defense and other government agencies. They are known for expertise in areas such as advanced sensors, communications, signal processing, and electronic warfare. While specific contract details for REACT are not publicly detailed beyond this award, BBN Technologies has consistently secured and successfully executed complex R&D projects, often involving novel technologies and challenging technical requirements. Their extensive experience suggests a strong capability to handle the technical demands of this particular contract.

Are there any comparable R&D contracts that can be used to benchmark the value of this $13.7 million award?

Benchmarking the value of this $13.7 million R&D contract is challenging due to the highly specialized and potentially novel nature of 'RETRODIRECTIVE ARRAYS FOR COHERENT TRANSMISSION (REACT)'. R&D contracts, especially those involving cutting-edge technologies, often have unique cost drivers related to personnel expertise, specialized equipment, and the inherent uncertainty of research outcomes. While the total award value is significant, it must be assessed in the context of the project's duration (1820 days), the complexity of the research, and the contractor's capabilities. Without access to detailed statements of work and cost breakdowns for comparable advanced defense R&D projects, a precise value-for-money comparison is difficult.

What are the potential risks associated with the 1820-day duration of this contract?

A contract duration of 1820 days (approximately 5 years) for an R&D project presents several potential risks. Firstly, technological advancements can occur rapidly; the technology being developed might be surpassed or become obsolete before the contract concludes, reducing its long-term utility. Secondly, the extended timeline increases the risk of scope creep, where the project's objectives may evolve or expand beyond the original intent, potentially leading to cost increases or delays. Thirdly, maintaining consistent project focus and team engagement over such a long period can be challenging. Finally, economic or geopolitical shifts could impact funding priorities, potentially affecting the project's continuation or relevance.

How does the 'full and open competition' aspect influence the overall effectiveness and cost-efficiency of this contract?

Awarding this contract through 'full and open competition' is a significant positive indicator for its effectiveness and cost-efficiency. It means that all responsible sources were permitted to submit a bid, fostering a competitive environment. This broad competition typically drives down prices as contractors vie for the award, and it increases the likelihood that the government will receive the most innovative and technically superior solution available. For taxpayers, this means their funds are more likely to be used efficiently, securing advanced technology at a competitive market rate. The high number of bids (102) further reinforces the competitive nature, suggesting robust market interest and a strong basis for price discovery.

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

Solicitation Procedures: BASIC RESEARCH

Offers Received: 102

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

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: $21,233,087

Exercised Options: $13,712,326

Current Obligation: $13,712,326

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $2,317,879

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline