DoD's $17.15M R&D Contract with RTX BBN Technologies: Full and Open Competition Yields Definitive Contract
Contract Overview
Contract Amount: $17,154,543 ($17.2M)
Contractor: RTX BBN Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-06-30
End Date: 2009-05-01
Contract Duration: 2,132 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 106
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138
Plain-Language Summary
Department of Defense obligated $17.2 million to RTX BBN TECHNOLOGIES, INC. for work described as: Key points: 1. Contract Value: $17.15 million over 6 years. 2. Competition: Full and open competition after exclusion of sources. 3. Risk: Cost Plus Fixed Fee (CPFF) pricing structure carries inherent cost overrun risk. 4. Sector: Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: fair
The CPFF contract type is common for R&D but less favorable for cost control compared to fixed-price contracts. Benchmarking against similar R&D contracts would be necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process. However, the specific exclusion criteria and the impact on price discovery warrant further investigation.
Taxpayer Impact: Taxpayer funds are utilized for R&D, with the ultimate benefit dependent on the successful development of new technologies. The competitive award aims to ensure reasonable pricing.
Public Impact
Supports advanced research and development efforts within the Department of Defense. Potential for technological advancements that could enhance national security. Contract duration of over 6 years indicates a long-term R&D investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type increases cost risk.
- Potential for scope creep in R&D projects.
- Limited transparency on specific R&D deliverables.
Positive Signals
- Competitive award process.
- Significant investment in R&D.
- Long-term project duration.
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 often involves higher risk and less predictable outcomes compared to procurement contracts.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or prime contractors.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, indicating standard oversight. However, the effectiveness of oversight for R&D contracts, especially CPFF, depends on robust monitoring of progress and costs.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration (over 6 years).
- Potential for R&D scope creep.
- Limited information on specific R&D deliverables and success metrics.
- Ambiguity in 'exclusion of sources' for competition.
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.2 million to RTX BBN TECHNOLOGIES, INC.. See the official description on USAspending.
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $17.2 million.
What is the period of performance?
Start: 2003-06-30. End: 2009-05-01.
What were the specific criteria for excluding sources in the 'full and open competition after exclusion of sources' award, and how did this impact the final price?
The exclusion criteria are not detailed in the provided data. Understanding these criteria is crucial to assess if the competition was truly broad or if it inadvertently limited potential bidders. This could influence price discovery, as a narrower field of competitors might lead to less aggressive bidding.
Given the Cost Plus Fixed Fee (CPFF) structure, what mechanisms were in place to control costs and prevent potential overruns throughout the contract's 6-year duration?
CPFF contracts inherently carry a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Effective oversight would involve rigorous monitoring of contractor expenditures, regular progress reviews, and clear performance metrics to ensure costs remain aligned with project goals and the fixed fee remains appropriate.
How will the R&D outcomes from this $17.15M contract be evaluated for their effectiveness and contribution to the Department of Defense's mission?
The effectiveness of R&D outcomes is typically assessed through technical reviews, prototype demonstrations, and eventual integration into operational systems. The contract should have defined milestones and deliverables that allow for objective evaluation of progress and the realization of intended technological advancements.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: BASIC RESEARCH
Offers Received: 106
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 10 MOULTON ST, CAMBRIDGE, MA, 02138
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-06-30
Current End Date: 2009-05-01
Potential End Date: 2009-05-01 00:00:00
Last Modified: 2024-10-24
More Contracts from RTX BBN Technologies, Inc.
- Federal Contract — $100.5M (Department of Defense)
- This Procurement IS for Boomerang III Systems, Spares and Training Services — $68.1M (Department of Defense)
- Urgent Requirement of 300 Boomerang Generation III (bgiiii), Fixed Site Counter Sniper Acoustic GUN Detection Systems — $55.5M (Department of Defense)
- Plato Phase I — $41.0M (Department of Defense)
- Wnan Adaptive Network Development (wand) — $38.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)