Raytheon Company Awarded $63.1M for DoD Concept Demonstrator Design
Contract Overview
Contract Amount: $63,129,495 ($63.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2010-07-13
End Date: 2013-04-12
Contract Duration: 1,004 days
Daily Burn Rate: $62.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CONCEPT DEMONSTRATOR (CD) DESIGN
Place of Performance
Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117
Plain-Language Summary
Department of Defense obligated $63.1 million to RAYTHEON COMPANY for work described as: CONCEPT DEMONSTRATOR (CD) DESIGN Key points: 1. Contract awarded to Raytheon Company for R&D services. 2. Full and open competition was utilized. 3. Potential for cost overruns exists with Cost Plus Fixed Fee contract type. 4. Spending falls within the R&D sector, specifically physical and engineering sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.
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 Cost Plus Fixed Fee structure may not incentivize the most cost-effective solution.
Taxpayer Impact: Taxpayer funds are being used for research and development, with the ultimate value dependent on the success of the concept demonstrator.
Public Impact
Investment in advanced defense technology. Potential for future technological advancements. Supports research and development sector jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Awarded to a major defense contractor
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending benchmarks for concept demonstrators can vary widely based on complexity and technological risk.
Small Business Impact
No indication of small business participation in this contract award.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency. Accountability will be measured by the successful development of the concept demonstrator.
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
- Contract type may not be cost-efficient
- Limited insight into specific R&D outcomes
- No small business participation noted
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 $63.1 million to RAYTHEON COMPANY. CONCEPT DEMONSTRATOR (CD) DESIGN
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 $63.1 million.
What is the period of performance?
Start: 2010-07-13. End: 2013-04-12.
What specific deliverables are expected from this concept demonstrator design contract?
The provided data does not specify the exact deliverables. Typically, concept demonstrator design contracts aim to produce prototypes, detailed designs, simulations, or feasibility studies to prove the viability of a new technology or system before full-scale development.
How will the effectiveness of the research and development be measured?
Effectiveness is likely measured against predefined technical milestones and performance objectives outlined in the contract's statement of work. Successful demonstration of the concept's feasibility and potential for future application would indicate effectiveness.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D?
The primary risks include potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen technical challenges arise. The government bears a significant portion of the cost risk, and the fixed fee may not adequately incentivize cost control.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: N0001909R0238
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6380 HOLLISTER AVE, GOLETA, CA, 93117
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: $63,129,495
Exercised Options: $63,129,495
Current Obligation: $63,129,495
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-07-13
Current End Date: 2013-04-12
Potential End Date: 2013-04-12 00:00:00
Last Modified: 2019-07-31
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