DoD awards Raytheon $21.2M for R&D, facing potential cost overruns with limited oversight
Contract Overview
Contract Amount: $21,193,386 ($21.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2023-12-05
End Date: 2027-07-02
Contract Duration: 1,305 days
Daily Burn Rate: $16.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BIRDSEYE YONDER (BEYOND)
Place of Performance
Location: TEWKSBURY, MIDDLESEX County, MASSACHUSETTS, 01876
Plain-Language Summary
Department of Defense obligated $21.2 million to RAYTHEON COMPANY for work described as: BIRDSEYE YONDER (BEYOND) Key points: 1. Significant contract value for specialized R&D. 2. Raytheon is a major defense contractor, indicating established capabilities. 3. Risk of cost overruns due to Cost Plus Fixed Fee structure. 4. Research and Development sector, focusing on physical, engineering, and life sciences.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. The awarded amount of $21.2M needs to be benchmarked against similar R&D contracts for physical, engineering, and life sciences.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within this competition are not detailed, which could impact the final price.
Taxpayer Impact: Taxpayer funds are being used for advanced research and development, with the potential for cost increases impacting the overall financial outlay.
Public Impact
Advancement in physical, engineering, and life sciences R&D. Potential for technological breakthroughs with defense applications. Investment in a major defense contractor's research capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher spending.
- Limited details on specific oversight mechanisms.
- Potential for scope creep in R&D projects.
Positive Signals
- Awarded through full and open competition.
- Contract with a well-established defense contractor.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is critical for technological advancement but can be prone to cost fluctuations and long development cycles.
Small Business Impact
The contract was awarded to Raytheon Company, a large defense contractor. There is no indication of small business participation in this specific award, suggesting limited opportunities for smaller entities.
Oversight & Accountability
The contract details provide limited information on specific oversight mechanisms beyond the standard award type. Robust oversight will be crucial to manage costs and ensure project milestones are met effectively.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Limited details on specific oversight.
- R&D projects inherently carry uncertainty.
- No explicit small business participation.
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 $21.2 million to RAYTHEON COMPANY. BIRDSEYE YONDER (BEYOND)
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 $21.2 million.
What is the period of performance?
Start: 2023-12-05. End: 2027-07-02.
What specific R&D objectives does this contract aim to achieve, and how will success be measured?
The contract aims to advance Research and Development in Physical, Engineering, and Life Sciences. Success will likely be measured by the achievement of specific technical milestones, prototype development, and successful testing phases as outlined in the contract's statement of work. Detailed metrics are crucial for effective evaluation.
What are the primary risks associated with the Cost Plus Fixed Fee structure in this R&D context?
The primary risk with CPFF in R&D is the potential for cost overruns if the contractor's actual costs exceed initial estimates, even with a fixed fee. This structure can reduce the contractor's incentive to control costs rigorously, potentially leading to higher overall spending than anticipated by the government.
How does this contract contribute to the Department of the Navy's broader technological modernization goals?
This contract likely supports the Department of the Navy's strategic goals by funding cutting-edge research in areas critical for future naval capabilities. The R&D outcomes could lead to advancements in areas such as materials science, sensor technology, or operational systems, enhancing the Navy's technological edge.
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: N0001422SB001
Offers Received: 999
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: $27,101,945
Exercised Options: $21,539,474
Current Obligation: $21,193,386
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $2,062,263
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-12-05
Current End Date: 2027-07-02
Potential End Date: 2027-07-02 00:00:00
Last Modified: 2025-07-07
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