DARPA Awards Raytheon $63.5M for R&D in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $63,463,598 ($63.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2018-12-03
End Date: 2022-05-16
Contract Duration: 1,260 days
Daily Burn Rate: $50.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DARPA RESEARCH PROJECT
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $63.5 million to RAYTHEON COMPANY for work described as: DARPA RESEARCH PROJECT Key points: 1. Significant investment in advanced research and development by DARPA. 2. Raytheon Company is a major defense contractor, indicating a focus on established players. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The project falls under R&D in Physical, Engineering, and Life Sciences, a critical sector for innovation.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type carries inherent risk for cost control. Without a competitive bid, it's difficult to assess if the $63.5 million price is optimal compared to potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had competed.
Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds for this research project.
Public Impact
Advancement of critical research areas for national security. Potential for technological breakthroughs with long-term economic and defense implications. Funding allocated to a major defense contractor, potentially impacting smaller innovative firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
Positive Signals
- Supports critical R&D
- Awarded to established contractor
Sector Analysis
This contract falls under NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. Spending in this sector is crucial for technological advancement and national security, with significant government investment.
Small Business Impact
The contract was awarded to Raytheon Company, a large defense contractor. There is no indication that small businesses were involved in this specific award, potentially limiting their opportunities.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration and oversight. However, the sole-source and cost-plus nature of the award warrants close monitoring to ensure value for money.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Cost-plus contract type increases risk of overspending
- Potential for cost overruns due to R&D uncertainties
- Limited transparency on specific research objectives
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 $63.5 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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $63.5 million.
What is the period of performance?
Start: 2018-12-03. End: 2022-05-16.
What specific research objectives does this DARPA project aim to achieve, and how do they align with national security priorities?
This contract supports DARPA's mission to fund research that can lead to technological surprise and create future military capabilities. While the specific objectives are classified, R&D in physical, engineering, and life sciences often targets advancements in areas like materials science, artificial intelligence, robotics, or advanced computing, all critical for maintaining a technological edge in defense.
What are the potential risks associated with a Cost Plus Fixed Fee contract for a research and development project of this magnitude?
Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fixed fee profit margin, especially in R&D where costs can be unpredictable. This increases the risk of budget overruns and may not achieve the most cost-effective outcome for the government. Robust oversight is crucial to mitigate these risks.
How will the effectiveness and impact of this research project be measured and evaluated by DARPA?
DARPA typically employs rigorous program management and milestone-based evaluations for its research projects. Effectiveness is assessed through the achievement of defined technical milestones, successful demonstrations of prototypes or concepts, and the potential for transition to military applications or commercialization. Regular reviews and reporting are standard.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $63,881,496
Exercised Options: $63,881,496
Current Obligation: $63,463,598
Actual Outlays: $3,315,279
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $2,019,901
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-12-03
Current End Date: 2022-05-16
Potential End Date: 2022-05-16 00:00:00
Last Modified: 2022-04-25
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