DoD's $14.7M R&D Contract with Raytheon Company: Full and Open Competition, Cost Plus Fixed Fee
Contract Overview
Contract Amount: $14,731,713 ($14.7M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2007-04-16
End Date: 2012-04-15
Contract Duration: 1,826 days
Daily Burn Rate: $8.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES
Place of Performance
Location: TEWKSBURY, MIDDLESEX County, MASSACHUSETTS, 01876, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $14.7 million to RAYTHEON COMPANY for work described as: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES Key points: 1. Significant investment in physical, engineering, and life sciences R&D. 2. Raytheon Company is a major defense contractor, indicating potential for specialized expertise. 3. Full and open competition suggests a robust price discovery process. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee. While it can incentivize contractors to control costs, it also carries a risk of cost overruns if the initial estimates are inaccurate or scope creep occurs. Benchmarking CPFF contracts in R&D is challenging due to variability in project complexity and overhead.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to a more competitive bidding process and potentially better pricing. This method allows any qualified vendor to submit a proposal, fostering a wider range of solutions and price points.
Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by selecting the best value offer, though the CPFF structure requires careful oversight to manage costs.
Public Impact
Advancement in critical physical, engineering, and life sciences research. Potential for technological breakthroughs with national security implications. Supports innovation within the defense industrial base. Job creation in research and development sectors. Long-term impact on scientific and technological capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Warning Flags
- Cost Plus Fixed Fee contract type risk
- Potential for scope creep in R&D projects
- Long contract duration (5 years)
Positive Signals
- Full and open competition
- Awarded to a reputable defense contractor
- Focus on critical R&D areas
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for technological advancement and national security. Benchmarks for R&D contracts vary widely based on scope, duration, and specific scientific fields.
Small Business Impact
The data does not indicate any specific involvement or set-asides for small businesses in this contract. Large prime contractors like Raytheon often subcontract, but direct analysis of small business participation is not possible from this information.
Oversight & Accountability
The Department of Defense, through its agencies like the Defense Contract Management Agency, is responsible for overseeing R&D contracts. Oversight would focus on ensuring progress, managing costs under the CPFF structure, and verifying deliverables meet research objectives.
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
- Potential for cost overruns
- Lack of specific R&D project details
- Long contract duration (5 years)
- No explicit small business participation data
Tags
research-and-development-in-the-physical, department-of-defense, ma, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.7 million to RAYTHEON COMPANY. RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $14.7 million.
What is the period of performance?
Start: 2007-04-16. End: 2012-04-15.
What specific R&D projects were undertaken, and what were the key deliverables or milestones achieved?
The contract focused on 'Research and Development in the Physical, Engineering, and Life Sciences.' Specific project details, deliverables, and milestones are not provided in the data. Understanding these would be crucial for assessing the actual value and effectiveness of the $14.7 million investment. Without this, it's difficult to determine if the funds led to tangible advancements or successful research outcomes.
How effectively were costs managed under the Cost Plus Fixed Fee structure, and were there any significant cost overruns?
The Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost overruns if initial estimates are inaccurate or project scope expands. Without detailed financial reporting and audit data, it's impossible to definitively assess cost management effectiveness. The 'br' value of 8068 might represent a benchmark or target, but its relation to actual spending and potential overruns requires further investigation.
Did the full and open competition result in demonstrably superior technical solutions or cost savings compared to other procurement methods?
Full and open competition is generally considered the best method for achieving competitive pricing and accessing a broad range of technical solutions. While it likely contributed to a robust price discovery process for this $14.7 million contract, quantifying the exact savings or superiority of the technical solution requires comparison against hypothetical sole-source or limited competition scenarios, which are not available.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 180 HARTWELL RD, BEDFORD, MA, 01730
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,774,732
Exercised Options: $14,774,732
Current Obligation: $14,731,713
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-04-16
Current End Date: 2012-04-15
Potential End Date: 2012-04-15 00:00:00
Last Modified: 2015-08-25
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