DARPA Awards $800M R&D Contract to RTX BBN for Physical Sciences Research
Contract Overview
Contract Amount: $8,000,032 ($8.0M)
Contractor: RTX BBN Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-01-18
End Date: 2028-01-11
Contract Duration: 1,454 days
Daily Burn Rate: $5.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DARPA RESEARCH PROJECT
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138
Plain-Language Summary
Department of Defense obligated $8.0 million to RTX BBN TECHNOLOGIES, INC. for work described as: DARPA RESEARCH PROJECT Key points: 1. Significant investment in advanced physical sciences R&D. 2. RTX BBN Technologies, a major defense contractor, is the awardee. 3. Full and open competition suggests a robust price discovery process. 4. Contract duration of over 3 years indicates a long-term research focus.
Value Assessment
Rating: good
The contract value of $800 million over approximately 4 years is substantial for R&D. Benchmarking against similar large-scale, specialized R&D contracts is difficult without more specific project details, but the value appears aligned with the scope of advanced research.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value by selecting from a wide range of qualified sources.
Taxpayer Impact: Taxpayer funds are being invested in cutting-edge research with potential for significant technological advancements, though the direct return on investment is uncertain at this early stage.
Public Impact
Advancement of critical defense technologies through R&D. Potential for breakthroughs in physical sciences impacting various sectors. Investment in a major US technology company's research capabilities. Long-term project may lead to future technological dependencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to cost overruns if not managed effectively.
- Specific R&D outcomes are inherently uncertain, posing a risk to value realization.
- Concentration of R&D funding with a single large contractor.
Positive Signals
- Competition ensures a thorough vetting of potential research partners.
- Focus on advanced R&D aligns with national security priorities.
- Potential for significant technological innovation and economic spillover.
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 maintaining technological superiority, with significant government investment directed towards innovation and future capabilities.
Small Business Impact
The awardee is RTX BBN Technologies, Inc., a large corporation. There is no indication in the provided data that small businesses were specifically targeted or involved in this particular contract award, suggesting limited direct impact on the small business sector for this specific procurement.
Oversight & Accountability
DARPA's mission involves overseeing high-risk, high-reward research. Oversight would focus on milestone achievement, adherence to research plans, and responsible use of funds. The definitive contract structure implies detailed reporting and accountability mechanisms.
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
- High contract value increases financial exposure.
- R&D nature introduces inherent uncertainty in outcomes.
- Cost Plus Fixed Fee structure can lead to cost overruns.
- Long duration may outpace rapid technological shifts.
- Sole reliance on a large contractor for critical research.
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.0 million to RTX BBN TECHNOLOGIES, INC.. DARPA RESEARCH PROJECT
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 Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $8.0 million.
What is the period of performance?
Start: 2024-01-18. End: 2028-01-11.
What specific technological advancements is this contract expected to yield for national security?
While the data specifies 'Research and Development in the Physical, Engineering, and Life Sciences,' the precise technological advancements are proprietary to DARPA's research objectives. These could range from advanced materials and sensor technologies to novel communication systems or energy solutions, all aimed at enhancing national security capabilities and maintaining a technological edge over adversaries.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D?
Cost Plus Fixed Fee (CPFF) contracts for R&D carry risks of cost overruns if the contractor's estimated costs are inaccurate, as the government pays the actual costs plus a fixed fee. For R&D, the inherent uncertainty in achieving specific outcomes can exacerbate this, potentially leading to higher-than-expected costs without guaranteed success. Effective oversight is crucial to mitigate these risks.
How does this investment align with broader federal R&D spending trends and priorities?
This $800 million award to DARPA reflects a significant federal commitment to advanced R&D, particularly in areas critical for national security and technological leadership. It aligns with broader trends of prioritizing innovation in physical sciences to maintain a competitive advantage. The scale of the investment suggests a strategic focus on long-term capability development rather than incremental improvements.
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: HR001123S0018
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
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: $14,252,816
Exercised Options: $14,252,816
Current Obligation: $8,000,032
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $105,240
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-01-18
Current End Date: 2028-01-11
Potential End Date: 2028-01-11 00:00:00
Last Modified: 2026-01-08
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