DoD's $22.4M Raytheon Contract for Radar R&D: Full & Open Competition
Contract Overview
Contract Amount: $22,367,594 ($22.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2016-04-14
End Date: 2020-04-30
Contract Duration: 1,477 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::CT::IGF NETWORK COOPERATIVE RADAR (NCR)
Place of Performance
Location: TEWKSBURY, MIDDLESEX County, MASSACHUSETTS, 01876
Plain-Language Summary
Department of Defense obligated $22.4 million to RAYTHEON COMPANY for work described as: IGF::CT::IGF NETWORK COOPERATIVE RADAR (NCR) Key points: 1. Contract awarded to Raytheon Company for Research and Development in Physical, Engineering, and Life Sciences. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 4. The contract duration was 1477 days, indicating a significant, long-term project.
Value Assessment
Rating: fair
The contract value of $22.4M over nearly four years for R&D is within a reasonable range for complex defense systems. Benchmarking against similar R&D contracts is difficult without more specific technical details.
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. This method allows all responsible sources to submit offers, fostering a competitive environment that should drive down costs.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, though the Cost Plus Fixed Fee structure warrants monitoring for potential cost escalation.
Public Impact
Development of advanced radar technology could have significant implications for national security and defense capabilities. Investment in R&D by the Department of Defense stimulates innovation within the defense industrial base. The contract's duration suggests a substantial commitment to advancing specific technological areas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration increases risk of scope creep and evolving requirements.
- Lack of specific performance metrics makes it hard to assess value for money.
Positive Signals
- Full and open competition utilized.
- Awarded to a major defense contractor with proven capabilities.
- Contract supports critical R&D for national security.
Sector Analysis
This contract falls under the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority but can be prone to cost overruns due to the inherent uncertainties of R&D.
Small Business Impact
The data indicates the prime contractor is Raytheon Company, a large business. There is no explicit information on small business participation in this specific contract, which is common for large R&D efforts where specialized capabilities are required.
Oversight & Accountability
The Department of Defense, through its various contracting and oversight agencies like the Defense Contract Management Agency, is responsible for monitoring this contract. The Cost Plus Fixed Fee structure necessitates close oversight to manage costs and ensure performance.
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 Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific performance metrics in public data.
- Potential for cost overruns inherent in R&D contracts.
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 $22.4 million to RAYTHEON COMPANY. IGF::CT::IGF NETWORK COOPERATIVE RADAR (NCR)
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 $22.4 million.
What is the period of performance?
Start: 2016-04-14. End: 2020-04-30.
What specific technological advancements were achieved under this contract, and how do they compare to the initial objectives?
Assessing the precise technological advancements requires access to detailed project reports and performance metrics, which are not publicly available. Without this information, it's challenging to definitively state the value achieved relative to the $22.4M investment. Future analysis should focus on documented outcomes and their alignment with the contract's stated R&D goals.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to mitigate potential cost overruns and ensure efficient resource utilization?
Cost Plus Fixed Fee contracts typically include provisions for cost ceilings and require detailed reporting of expenditures. However, the inherent nature of such contracts can still lead to higher costs compared to fixed-price agreements. Effective oversight by the Defense Contract Management Agency would be crucial in scrutinizing costs and ensuring the contractor operates efficiently within the defined scope.
How did the full and open competition process ensure the best possible outcome for this complex R&D requirement?
Full and open competition is designed to maximize the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals and identifying the most capable contractor at a fair price. For complex R&D, this process allows for a thorough evaluation of technical approaches and past performance, ensuring the selected contractor possesses the necessary expertise to meet the demanding requirements.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001415RBA01
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 50 APPLE HILL DR, TEWKSBURY, MA, 01876
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,463,052
Exercised Options: $22,367,594
Current Obligation: $22,367,594
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $5,264,685
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-04-14
Current End Date: 2020-04-30
Potential End Date: 2020-04-30 00:00:00
Last Modified: 2025-07-10
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