DARPA Awards Raytheon $23.9M for R&D in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $23,928,782 ($23.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-04-16
End Date: 2026-09-30
Contract Duration: 1,993 days
Daily Burn Rate: $12.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 12
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DARPA RESEARCH PROJECT
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75071
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $23.9 million to RAYTHEON COMPANY for work described as: DARPA RESEARCH PROJECT Key points: 1. Contract awarded to Raytheon Company for research and development. 2. Significant funding of $23.9 million allocated. 3. Competition method: Full and Open Competition after Exclusion of Sources. 4. Sector: Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific deliverables, but the per-unit cost is not directly applicable to this type of research contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating a limited competition. This method may not have yielded the most competitive pricing due to restricted participation.
Taxpayer Impact: Taxpayer funds are being used for advanced research, with the potential for significant technological advancements but also the risk of inefficient spending if not closely monitored.
Public Impact
Funding advanced R&D with potential for breakthrough technologies. Contract awarded to a major defense contractor, Raytheon. Research area spans physical, engineering, and life sciences. Long-term contract duration (2021-2026) suggests complex project scope.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may impact cost-effectiveness.
- Cost Plus Fixed Fee contracts carry inherent cost overrun risks.
- Lack of specific deliverable details makes value assessment challenging.
Positive Signals
- Supports critical R&D for national security.
- Awarded to a reputable defense contractor.
- Long-term commitment indicates strategic importance.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but requires rigorous oversight to ensure value for money.
Small Business Impact
The contract was awarded to Raytheon Company, a large business. There is no indication of small business participation in this specific award, which is common for large-scale R&D contracts.
Oversight & Accountability
The contract is managed by DARPA, known for its rigorous oversight of research projects. However, the Cost Plus Fixed Fee structure necessitates close monitoring of expenditures to ensure accountability and prevent waste.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Limited competition may not yield the best value.
- Lack of detailed project scope makes independent value assessment difficult.
- Long contract duration requires sustained oversight.
Tags
research-and-development-in-the-physical, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.9 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 $23.9 million.
What is the period of performance?
Start: 2021-04-16. End: 2026-09-30.
What are the specific research objectives and expected outcomes of this DARPA project?
The specific research objectives and expected outcomes are not detailed in the provided data. DARPA projects typically aim for transformative technological advancements. Further documentation would be required to understand the precise goals and anticipated results of this particular contract with Raytheon.
How does the 'Full and Open Competition after Exclusion of Sources' process ensure fair pricing and innovation?
This procurement method allows for full and open competition but excludes specific sources, often due to unique capabilities or prior work. While it ensures competition among the included entities, it may limit the pool of potential bidders, potentially impacting the breadth of innovation and the aggressiveness of price negotiation compared to a truly unrestricted open competition.
What mechanisms are in place to track and ensure the effectiveness of the R&D spending?
DARPA employs stringent project management and oversight for its research initiatives. This includes regular technical reviews, milestone tracking, and financial audits. The Cost Plus Fixed Fee structure requires Raytheon to report costs incurred, allowing DARPA to monitor spending against progress and ensure funds are used effectively towards achieving the project's research goals.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HR001120S0050
Offers Received: 12
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75071
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: $28,771,436
Exercised Options: $25,850,257
Current Obligation: $23,928,782
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $1,174,424
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-04-16
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-06
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