DARPA awards Raytheon Company $21.27M for R&D in physical, engineering, and life sciences

Contract Overview

Contract Amount: $21,272,320 ($21.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2022-12-30

End Date: 2026-12-17

Contract Duration: 1,448 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROJECT

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to RAYTHEON COMPANY for work described as: DARPA RESEARCH PROJECT Key points: 1. Contract value represents a significant investment in advanced research and development. 2. Raytheon Company, a major defense contractor, brings substantial experience to this project. 3. The contract's cost-plus-fixed-fee structure allows for flexibility but requires careful cost monitoring. 4. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 5. The project's duration of nearly four years indicates a complex and long-term research objective. 6. Geographic location in California may leverage regional expertise in R&D.

Value Assessment

Rating: good

The contract value of $21.27 million for a multi-year R&D project appears reasonable given the scope and the contractor's expertise. Benchmarking against similar large-scale research contracts, especially those awarded by DARPA, would provide further context. The cost-plus-fixed-fee (CPFF) pricing structure is common for R&D where final costs are uncertain, but it necessitates rigorous oversight to ensure value for money. Without specific comparable per-unit costs for the research deliverables, a precise value assessment is challenging, but the overall award seems aligned with the nature of advanced research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit proposals. The presence of 10 bids suggests a healthy level of interest and competition for this DARPA research project. A competitive environment like this typically drives innovation and can lead to more favorable pricing for the government, as contractors strive to offer their best technical and cost solutions.

Taxpayer Impact: The full and open competition ensures that taxpayer funds are likely being used efficiently, as multiple companies vied for the contract, potentially lowering the overall cost compared to a sole-source award.

Public Impact

The primary beneficiaries are expected to be the advancement of scientific knowledge and technological capabilities within the physical, engineering, and life sciences. The project will deliver research outcomes and potentially novel technologies that could have future defense or civilian applications. The geographic impact is centered in California, potentially stimulating local economic activity and supporting the region's R&D ecosystem. Workforce implications include the creation of specialized research and technical jobs within Raytheon and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns are a potential risk with Cost Plus Fixed Fee contracts, requiring diligent oversight.
The long duration of the contract increases the risk of scope creep or evolving research needs.
Dependence on a single large contractor, Raytheon, could limit future flexibility if the project requires a pivot.

Positive Signals

Award to a reputable contractor like Raytheon suggests a high likelihood of technical success.
Full and open competition indicates a thorough vetting process and potential for competitive pricing.
DARPA's involvement implies a focus on cutting-edge research with potentially high impact.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for national security and technological advancement, often characterized by high investment and long development cycles. DARPA is a key player in funding high-risk, high-reward research. Comparable spending in this sector involves significant government investment across various agencies, with R&D contracts often ranging from millions to billions of dollars, depending on the scope and technological maturity.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. As a large prime contract awarded to Raytheon Company, a major defense contractor, the primary focus is likely on large-scale R&D capabilities. While large prime contractors often engage small businesses as subcontractors, the specific impact and extent of this on the small business ecosystem are not detailed in the provided data. Further investigation into subcontracting plans would be necessary to assess the full impact.

Oversight & Accountability

Oversight for this contract will likely 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 contract awards databases and public reporting, though specific research details may be sensitive.

Related Government Programs

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

Risk Flags

Cost Overrun Risk (CPFF)
Long Project Duration Risks
Technical Feasibility Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 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 $21.3 million.

What is the period of performance?

Start: 2022-12-30. End: 2026-12-17.

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 contracting with the Department of Defense, including DARPA. They are a major defense contractor with significant experience in research and development across various domains, including aerospace, defense systems, and advanced technologies. Their track record typically involves delivering complex technological solutions and conducting cutting-edge research. Analyzing their past performance on similar cost-plus-fixed-fee R&D contracts with DARPA would reveal their ability to manage budgets, timelines, and technical objectives effectively. While specific project successes and failures are not detailed here, their status as a prime contractor on this significant award suggests a favorable assessment of their capabilities by DARPA.

How does the $21.27 million award compare to other DARPA R&D contracts in the physical, engineering, and life sciences sector?

The $21.27 million award to Raytheon Company for R&D in physical, engineering, and life sciences is a substantial but not exceptionally large sum for a DARPA contract. DARPA funds a wide range of projects, from smaller, exploratory research grants in the hundreds of thousands to major, multi-year programs costing hundreds of millions or even billions of dollars. Contracts in the $10 million to $50 million range are common for focused, advanced research efforts that require significant resources and expertise over several years. This particular award appears to be in the mid-range for a significant DARPA R&D initiative, suggesting a project of considerable scope and potential impact, but not one of the agency's largest flagship programs.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of research?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Raytheon, is the potential for cost overruns. While the contractor is incentivized to control costs to maximize their fixed fee, the government bears the risk of actual costs exceeding estimates. For R&D projects, where the scope and technical challenges can be highly unpredictable, cost escalation is a significant concern. Effective oversight, detailed cost tracking, and robust milestone management by DARPA are crucial to mitigate this risk. If costs escalate significantly beyond initial projections, the government may end up paying more than initially anticipated for the research outcomes, potentially impacting the overall value for money.

How does the 'full and open competition' with 10 bidders influence the potential value for taxpayers?

The fact that this contract was awarded under 'full and open competition' with 10 bidders is a strong positive indicator for taxpayer value. Competition inherently drives efficiency and encourages contractors to offer their most competitive pricing and innovative solutions to win the award. With 10 distinct proposals, DARPA had a wide pool of options to evaluate, increasing the likelihood that they selected the offer that provided the best combination of technical merit and cost-effectiveness. This competitive environment reduces the risk of overpayment that can occur with sole-source or limited competition contracts, ensuring that taxpayer funds are utilized more prudently for this significant R&D investment.

What are the implications of the contract's duration (1448 days) for program effectiveness and cost control?

A contract duration of 1448 days (approximately four years) for an R&D project indicates a complex, long-term research objective requiring sustained effort and development. This extended timeline allows for in-depth investigation, iterative development, and the potential for significant technological breakthroughs. However, it also introduces risks related to cost control and program relevance. Longer durations increase the potential for unforeseen challenges, scope creep, and the need for adaptive management. For cost control, it necessitates robust financial oversight mechanisms to track expenditures over the extended period and ensure that the project remains within budget. Program effectiveness relies on maintaining focus and adapting to new findings or technological shifts over the four years.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001122S0025

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245

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: $24,782,282

Exercised Options: $24,782,282

Current Obligation: $21,272,320

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $2,054,852

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline