DoD awards Raytheon $9.8M for R&D, with 1947 days of performance

Contract Overview

Contract Amount: $9,822,608 ($9.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2021-08-11

End Date: 2026-12-10

Contract Duration: 1,947 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH SUPPORT FOR SSTP

Place of Performance

Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to RAYTHEON COMPANY for work described as: RESEARCH SUPPORT FOR SSTP Key points: 1. Contract value represents a significant investment in specialized research capabilities. 2. Full and open competition suggests a robust market for these services. 3. Performance duration indicates a long-term strategic objective for the research. 4. Cost-plus-fixed-fee structure may incentivize efficient cost management. 5. The contract's focus on physical, engineering, and life sciences research aligns with critical defense needs. 6. Rhode Island is the performance location, potentially boosting local economic activity.

Value Assessment

Rating: fair

The contract value of $9.8 million over approximately 5.3 years is moderate for a research and development effort of this nature. Benchmarking against similar contracts is challenging without more specific details on the research scope. However, the cost-plus-fixed-fee (CPFF) pricing structure, while common in R&D, can sometimes lead to higher overall costs if not carefully managed. The fixed fee component provides some predictability for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The number of bidders is not specified, but the designation suggests a healthy market for the required research services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices and encourages innovation from a wider pool of contractors, leading to better value for public funds.

Public Impact

The Department of the Navy benefits from advanced research support for its strategic initiatives. The contract supports research and development in physical, engineering, and life sciences. Performance is located in Rhode Island, potentially creating or sustaining high-skilled jobs in the region. The research outcomes could lead to advancements in defense technologies and capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely monitored.
The long performance period (1947 days) requires sustained oversight to ensure progress and relevance.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contract supports critical research and development for the Department of Defense.
The fixed fee component provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, supporting the development of new technologies and capabilities. The market for such specialized R&D services is often characterized by a mix of large defense contractors and specialized research firms. Spending in this category is essential for maintaining a technological edge.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. Given the nature of advanced research and development, it's possible that subcontracting opportunities may arise for specialized small businesses. However, without further details on subcontracting plans, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is typically maintained through contract reporting systems, though specific research details may be sensitive.

Related Government Programs

Department of Defense Research and Development Contracts
Naval Research Laboratory Support
Advanced Technology Development

Risk Flags

Long performance period requires sustained oversight.
CPFF structure necessitates diligent cost management and monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to RAYTHEON COMPANY. RESEARCH SUPPORT FOR SSTP

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $9.8 million.

What is the period of performance?

Start: 2021-08-11. End: 2026-12-10.

What is the specific research focus of this contract?

The contract data indicates the research falls under the North American Industry Classification System (NAICS) code 541715, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. While the specific project details are not provided in the summary data, this broad category suggests the research could encompass a wide range of scientific and engineering disciplines relevant to defense applications. This might include areas like materials science, advanced propulsion, sensor technology, cybernetics, or biomedical research for military personnel. The Department of the Navy's specific needs would dictate the precise focus within these fields.

How does the $9.8 million value compare to similar R&D contracts?

The $9.8 million value for a contract spanning nearly five years (1947 days) is a moderate investment for a Department of Defense research and development effort. Larger, more complex R&D programs can easily reach hundreds of millions or even billions of dollars. Conversely, smaller, more targeted research projects might be in the single-digit millions or less. This contract's value suggests a significant but not massive undertaking, likely focused on a specific technological advancement or a series of related research objectives within the physical, engineering, or life sciences domains.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract?

Cost Plus Fixed Fee (CPFF) contracts, while common in R&D where the scope can be uncertain, carry inherent risks. The primary risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as all allowable costs are reimbursed. If costs escalate beyond initial projections, the total expenditure could be higher than anticipated. However, the 'fixed fee' portion ensures the contractor's profit is predetermined, which can mitigate some risk for the contractor and provide a level of profit certainty. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to manage these risks.

What is the significance of the 1947-day performance period?

A performance period of 1947 days, approximately 5.3 years, indicates a long-term commitment to the research objectives outlined in the contract. This extended duration suggests that the research is likely complex, requiring substantial time for development, testing, and analysis. It implies a strategic investment by the Department of the Navy in achieving specific, potentially groundbreaking, outcomes. Such long-term projects often involve iterative development and may adapt to evolving technological landscapes or strategic priorities over the contract's life.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences' category impact potential outcomes?

The NAICS code 541715 signifies a broad scope for innovation. Research in physical sciences could involve physics, chemistry, and materials science, leading to advancements in areas like energy, sensors, or protective equipment. Engineering R&D might focus on developing new systems, improving existing technologies, or exploring novel designs for platforms or components. Life sciences R&D could pertain to areas like human performance optimization, medical countermeasures, or biological threat detection. The combination allows for interdisciplinary approaches, potentially yielding more comprehensive and impactful solutions for the Navy's diverse operational needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: N0001420SB001

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 1847 W MAIN RD, PORTSMOUTH, RI, 02871

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: $12,917,565

Exercised Options: $12,917,565

Current Obligation: $9,822,608

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline