DoD's $15.3M R&D Contract with Raytheon Applied Signal Technology: A Deep Dive
Contract Overview
Contract Amount: $15,309,179 ($15.3M)
Contractor: Raytheon Applied Signal Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-04-08
End Date: 2015-09-18
Contract Duration: 2,354 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY)
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $15.3 million to RAYTHEON APPLIED SIGNAL TECHNOLOGY, INC. for work described as: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY) Key points: 1. Significant investment in advanced physical, engineering, and life sciences R&D. 2. Raytheon Applied Signal Technology, a major defense contractor, secured the award. 3. Contract spans over 6 years, indicating a long-term research objective. 4. Full and open competition was utilized, suggesting a robust price discovery process.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee (CPFF), which is common for R&D where final costs are uncertain. Benchmarking CPFF contracts in this sector is challenging due to variability, but the fixed fee component provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, allowing multiple vendors to bid. This method generally leads to more competitive pricing compared to sole-source or limited competition scenarios.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair value, though the CPFF structure warrants ongoing monitoring of costs.
Public Impact
Advancement in critical scientific and technological fields vital for national security. Potential for groundbreaking discoveries with long-term economic and societal benefits. Supports high-skilled jobs in research and development within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can lead to cost overruns if not managed tightly.
- Long contract duration may not adapt well to rapidly evolving R&D landscapes.
Positive Signals
- Full and open competition ensures broad market participation.
- Award to a reputable contractor with proven R&D capabilities.
- Focus on critical scientific advancement.
Sector Analysis
This contract falls under the R&D services sector, specifically focusing on physical, engineering, and life sciences excluding biotechnology. Spending in this area is crucial for maintaining technological superiority and innovation within the defense industry.
Small Business Impact
While the primary awardee is a large corporation, the R&D process may involve subcontracting opportunities for small businesses in specialized areas, though this is not explicitly detailed in the provided data.
Oversight & Accountability
The Department of Defense, through its agencies like the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial for CPFF contracts to ensure cost efficiency and adherence to research objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Overrun Potential (CPFF)
- Scope Creep Risk
- Long-term Project Viability
- Dependency on Contractor Expertise
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.3 million to RAYTHEON APPLIED SIGNAL TECHNOLOGY, INC.. RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY)
Who is the contractor on this award?
The obligated recipient is RAYTHEON APPLIED SIGNAL TECHNOLOGY, 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 $15.3 million.
What is the period of performance?
Start: 2009-04-08. End: 2015-09-18.
What specific technological advancements are expected from this R&D investment?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. Specific advancements are not detailed, but likely include areas such as advanced materials, sensor technology, complex systems engineering, or novel biological applications relevant to defense.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D project?
The main risk with CPFF is potential cost overruns if the contractor's estimated costs are significantly underestimated, although the fixed fee provides a ceiling on profit. Effective government oversight is critical to manage scope and prevent unnecessary expenditures.
How does this contract contribute to the overall effectiveness of the Department of Defense's technological capabilities?
This contract aims to foster innovation in fundamental scientific and engineering domains. By investing in R&D, the DoD seeks to develop next-generation technologies that enhance warfighter capabilities, improve operational effectiveness, and maintain a strategic advantage over adversaries.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 999
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Raytheon Company (UEI: 001339159)
Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,668,015
Exercised Options: $47,668,015
Current Obligation: $15,309,179
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-04-08
Current End Date: 2015-09-18
Potential End Date: 2015-09-18 00:00:00
Last Modified: 2018-05-24
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