Raytheon Company awarded $56.7M for DARPA's THREADS program focused on advanced heat removal technologies

Contract Overview

Contract Amount: $5,667,462 ($5.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2025-10-09

Contract Duration: 741 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE TECHNOLOGIES FOR HEAT REMOVAL IN ELECTRONICS AT THE DEVICE SCALE (THREADS) PROGRAM

Place of Performance

Location: TEWKSBURY, MIDDLESEX County, MASSACHUSETTS, 01876

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $5.7 million to RAYTHEON COMPANY for work described as: THE TECHNOLOGIES FOR HEAT REMOVAL IN ELECTRONICS AT THE DEVICE SCALE (THREADS) PROGRAM Key points: 1. Contract focuses on cutting-edge research and development in physical sciences, aiming for technological advancement. 2. Full and open competition suggests a robust market for these specialized research services. 3. Contract duration of 741 days indicates a medium-term research initiative. 4. Cost Plus Fixed Fee contract type may incentivize cost management while ensuring contractor effort. 5. The program's objective is to develop novel solutions for heat dissipation in electronic devices. 6. This award represents a strategic investment by DARPA in future technological capabilities.

Value Assessment

Rating: good

The contract value of $56.7 million for a 741-day research program appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in advanced physical sciences is challenging due to the unique focus of the THREADS program. However, the Cost Plus Fixed Fee structure, while common for R&D, requires careful monitoring to ensure cost efficiency. The award to a large, established defense contractor like Raytheon suggests a competitive bid process for a complex technological undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified offerors had the opportunity to bid. The presence of 13 bids suggests a healthy level of competition for this research and development effort. This broad competition is generally favorable for price discovery and ensures the government can select from a range of innovative approaches and capabilities.

Taxpayer Impact: A competitive bidding process for advanced research programs like THREADS helps ensure that taxpayer dollars are used efficiently, leading to potentially better technological outcomes at a more reasonable cost.

Public Impact

The primary beneficiaries are the Department of Defense and potentially future commercial sectors requiring advanced electronics with improved thermal management. The program aims to deliver breakthroughs in heat removal technologies for electronic devices. The geographic impact is primarily within the United States, with research likely conducted at Raytheon facilities. Workforce implications include highly skilled researchers, engineers, and technicians in specialized fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The highly specialized nature of the research may limit the number of truly competitive bidders in future procurements.
Dependence on a single large contractor for critical R&D could pose long-term strategic risks.

Positive Signals

Awarded through full and open competition, indicating a broad market engagement.
The contract is with a reputable contractor with a strong track record in defense R&D.
The program addresses a critical technological need for advanced electronics.
The fixed fee component provides some cost certainty for the government.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for advanced thermal management solutions is growing, driven by increasing power densities in electronics across defense, aerospace, and consumer electronics. DARPA's investment in this area is strategic, aiming to push the boundaries of current capabilities and maintain technological superiority. Comparable spending benchmarks are difficult to establish precisely due to the program's novelty, but significant R&D investments are common in areas with high technological potential.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. As a large research and development program awarded to a major defense contractor, the primary focus is likely on specialized expertise rather than small business participation. Future opportunities for small businesses might arise through subcontracting, but this is not explicitly detailed.

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. Accountability measures are inherent in the Cost Plus Fixed Fee contract type, which requires detailed reporting and justification of costs. Transparency is typically maintained through contract reporting mechanisms and program reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Electronics Research
Thermal Management Systems
Materials Science Research
Semiconductor Technology Development
Defense Research and Development Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Research and Development inherently carries technical and schedule risks.
Potential for limited future competition due to highly specialized nature of research.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to RAYTHEON COMPANY. THE TECHNOLOGIES FOR HEAT REMOVAL IN ELECTRONICS AT THE DEVICE SCALE (THREADS) PROGRAM

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 $5.7 million.

What is the period of performance?

Start: 2023-09-29. End: 2025-10-09.

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

Raytheon Company, now part of RTX, has a long and extensive history of working with the Department of Defense, including DARPA, on a wide array of research and development programs. They are a major defense contractor known for its expertise in areas such as advanced electronics, sensors, and systems integration. Their track record with DARPA typically involves developing cutting-edge technologies that address national security challenges. While specific performance metrics for past DARPA contracts are often classified or not publicly detailed, Raytheon's continued selection for significant R&D awards suggests a consistent ability to meet DARPA's demanding technical and programmatic requirements. Their experience in complex, multi-year research initiatives positions them well for the THREADS program.

How does the $56.7 million award compare to other DARPA R&D contracts in physical sciences?

The $56.7 million award for the THREADS program is within the typical range for significant DARPA research initiatives in advanced physical sciences and engineering. DARPA often funds ambitious, high-risk, high-reward projects that require substantial investment over several years. Contracts can range from a few million dollars for exploratory research to tens or even hundreds of millions for large-scale, multi-disciplinary programs. Given that THREADS focuses on a critical, potentially transformative area of electronics cooling, this funding level appears appropriate for achieving substantial research objectives. It reflects a commitment to pushing technological boundaries in a field essential for future defense and technological advancements.

What are the primary risks associated with the THREADS program and its execution?

The primary risks associated with the THREADS program are inherent to advanced research and development. Technical risk is significant, as the program aims to develop novel solutions that may not be fully proven or scalable. There is a risk that the desired breakthroughs in heat removal may prove more challenging than anticipated, potentially leading to schedule delays or reduced scope. Programmatic risks include potential cost overruns, although the Cost Plus Fixed Fee structure aims to manage this. Contractor performance risk exists, though Raytheon's experience mitigates this somewhat. Finally, there's a risk of obsolescence if competing technologies emerge rapidly or if the underlying assumptions about future electronic device needs change.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for this type of R&D?

The Cost Plus Fixed Fee (CPFF) contract type is frequently used for research and development efforts where the scope of work is not precisely defined at the outset, and innovation is paramount. For the THREADS program, CPFF allows the contractor (Raytheon) to incur costs while pursuing research objectives, with the government reimbursing these costs plus a predetermined fixed fee. This structure incentivizes the contractor to perform the work diligently to earn their fee. However, it requires robust government oversight to ensure costs are reasonable and allocable to the contract. While it provides flexibility for exploration, it can potentially lead to higher overall costs compared to fixed-price contracts if not managed carefully, as the contractor is less exposed to cost overruns.

What is the historical spending trend for DARPA in the physical sciences R&D category?

DARPA's historical spending in physical sciences R&D has consistently been substantial, reflecting its mission to invest in breakthrough technologies for national security. While specific figures fluctuate annually based on strategic priorities and emerging threats, DARPA dedicates a significant portion of its budget to fundamental and applied research across physics, chemistry, materials science, and engineering. This includes areas like advanced computation, novel materials, energy technologies, and, relevant to THREADS, advanced electronics and thermal management. Over the past decade, DARPA's overall budget has generally ranged from $3 billion to over $4 billion annually, with a considerable percentage allocated to these core scientific and engineering disciplines. The THREADS program award aligns with this historical pattern of investing in high-impact scientific exploration.

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: BASIC RESEARCH

Solicitation ID: HR001123S0013

Offers Received: 13

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

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: $14,866,765

Exercised Options: $5,667,462

Current Obligation: $5,667,462

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,475,435

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline