DOI awards $14.6M R&D contract to Raytheon Company for physical, engineering, and life sciences research
Contract Overview
Contract Amount: $14,652,696 ($14.7M)
Contractor: Raytheon Company
Awarding Agency: Department of the Interior
Start Date: 2006-03-10
End Date: 2008-06-30
Contract Duration: 843 days
Daily Burn Rate: $17.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELPMENT SERVICES
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75069
State: Texas Government Spending
Plain-Language Summary
Department of the Interior obligated $14.7 million to RAYTHEON COMPANY for work described as: RESEARCH AND DEVELPMENT SERVICES Key points: 1. Contract awarded to a large, established defense contractor. 2. Significant investment in R&D services within the physical, engineering, and life sciences. 3. Full and open competition after exclusion of sources suggests a specific justification for limited competition. 4. Potential for high-value technological advancements stemming from the research.
Value Assessment
Rating: fair
The contract value of $14.6 million over approximately 2.8 years (843 days) for R&D services appears reasonable given the scope. However, without specific deliverables or benchmarks for similar R&D efforts, a precise pricing assessment is difficult.
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 specific reason for limiting the pool of potential bidders. This method may impact price discovery by reducing competitive pressure.
Taxpayer Impact: Taxpayer funds are being utilized for advanced research, with the expectation of future benefits. The limited competition structure warrants scrutiny to ensure value for money.
Public Impact
Investment in scientific and technological advancement. Potential for breakthroughs in physical, engineering, and life sciences. Supports a major defense contractor's research capabilities. Long-term contract duration suggests a sustained research effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition justification.
- Lack of detailed performance metrics for R&D.
Positive Signals
- Investment in critical R&D areas.
- Award to a reputable contractor.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for innovation and national security, often involving significant investment and long development cycles.
Small Business Impact
The contract was awarded to Raytheon Company, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited direct impact on the small business sector for this contract.
Oversight & Accountability
The contract's duration and nature of R&D services necessitate ongoing oversight to ensure progress aligns with objectives and taxpayer funds are used efficiently. The 'exclusion of sources' clause requires clear justification and documentation.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Limited competition raises concerns about potential price inflation.
- R&D outcomes are inherently uncertain, posing a risk to achieving desired results.
- Contract duration is lengthy, requiring sustained oversight.
- Lack of explicit small business participation.
Tags
research-and-development-in-the-physical, department-of-the-interior, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $14.7 million to RAYTHEON COMPANY. RESEARCH AND DEVELPMENT SERVICES
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $14.7 million.
What is the period of performance?
Start: 2006-03-10. End: 2008-06-30.
What specific research objectives and expected outcomes were defined to justify the limited competition and ensure value for money?
The contract details do not specify the exact research objectives or expected outcomes. Typically, R&D contracts with limited competition are justified by unique capabilities, proprietary technology, or urgent needs. A thorough review would require access to the contract's statement of work and justification for the procurement method to assess if the investment aligns with defined goals and provides adequate return.
How does the cost-plus-fixed-fee structure mitigate risks associated with R&D uncertainty for both the government and the contractor?
A Cost-Plus-Fixed-Fee (CPFF) contract allows the government to reimburse the contractor for allowable costs while providing a fixed fee as profit. This structure is common in R&D where scope can be uncertain. It incentivizes the contractor to control costs to maximize their fixed fee, while the government benefits from a defined profit margin, balancing risk and reward in an inherently unpredictable research environment.
What mechanisms are in place to measure the effectiveness and impact of the R&D services provided by Raytheon Company?
Effectiveness measurement in R&D contracts often relies on milestones, deliverables, technical reviews, and final reports. Given the 'definitive contract' nature, specific performance metrics should be outlined in the contract's statement of work. Oversight by the Department of the Interior would involve monitoring progress against these defined milestones and assessing the technical merit and potential applicability of the research outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2501 W UNIVERSITY ST, MC KINNEY, TX, 75070
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,689,794
Exercised Options: $14,689,794
Current Obligation: $14,652,696
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-03-10
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2017-03-06
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