Naval Research Lab contract awarded for photon research, totaling over $20M across multiple years

Contract Overview

Contract Amount: $20,048,623 ($20.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 1999-03-10

End Date: 2006-12-21

Contract Duration: 2,843 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 199911!1700!1760!E3230!NAVAL RESEARCH LABORATORY !N0017399C6009 !A!*!AWARD !19990310!20000309!081804205!081804205!081804205!N!7N694!PHOTON RESEARCH ASSOCIATES, IN!5720 OBERLIN DR !SAN DIEGO !CA!92121!03016!670!51!ARLINGTON !HOPEWELL (CITY) !VIRGINIA !0001!+000000125000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!A!S!*!B!A!*!A !N!U!2!001!K!* !Z!N!Z!* !* !N!B!*!Z!*!B!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to RAYTHEON COMPANY for work described as: 199911!1700!1760!E3230!NAVAL RESEARCH LABORATORY !N0017399C6009 !A!*!AWARD !19990310!20000309!081804205!081804205!081804205!N!7N694!PHOTON RESEARCH ASSOCIATES, IN!5720 OBERLIN DR !SAN DIEGO !CA!92121!03016!670!51!ARLINGTON !HOPEWE… Key points: 1. Contract awarded for basic research in photonics, a critical area for defense technology. 2. The contract spans nearly 8 years, indicating a long-term research and development effort. 3. Awarded under full and open competition, suggesting a robust selection process. 4. The contractor, Raytheon Company, is a major defense industry player with extensive experience. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 6. The total value exceeds $20 million, placing it in the mid-to-large contract category for R&D.

Value Assessment

Rating: good

The contract's total value of over $20 million for nearly 8 years of basic research in photonics appears reasonable given the specialized nature of the work and the contractor's expertise. Benchmarking against similar R&D contracts in advanced physics or optics would provide a more precise value-for-money assessment. However, the duration suggests a sustained investment in a critical technology area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple sources were considered and evaluated. The specific details of the exclusion of sources are not provided, but the 'full and open' designation generally implies a competitive process designed to solicit the best offers. The number of bidders is not specified, but the competitive nature should have driven price discovery.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by encouraging multiple companies to bid, potentially leading to lower prices and better technical solutions.

Public Impact

The primary beneficiary is the Naval Research Laboratory, which receives advanced photonics research capabilities. This research is crucial for developing next-generation defense technologies, potentially enhancing national security. The geographic impact is primarily in California, where the contractor is located, but the research benefits national defense. The contract supports highly skilled scientific and engineering jobs within the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
The long duration of the contract might present challenges in adapting to rapidly evolving technological landscapes.
Lack of specific details on the 'exclusion of sources' could obscure potential competitive limitations.

Positive Signals

Awarded under full and open competition, suggesting a strong initial selection process.
The contractor, Raytheon Company, has a proven track record in defense R&D.
The contract supports critical basic research in a strategically important technology area.

Sector Analysis

This contract falls within the Research, Development, Test, and Evaluation (RDTE) sector, specifically focusing on basic research in photonics. The defense industry heavily invests in such areas to maintain technological superiority. Comparable spending benchmarks would involve looking at other basic research contracts awarded by DoD agencies for advanced materials, physics, or engineering disciplines.

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the nature of advanced photonics research and the prime contractor being Raytheon Company, it is likely that any subcontracting opportunities would be with specialized technology firms rather than broad small business set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with terms and conditions. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure accountability and prevent overspending. Transparency is generally maintained through regular reporting requirements from the contractor.

Related Government Programs

Advanced Photonics Research
Naval Research Laboratory Contracts
Department of Defense Basic Research
Raytheon Company Defense Contracts
Cost Plus Fixed Fee R&D Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of technological obsolescence over the long contract duration.
Ambiguity in 'exclusion of sources' could impact competitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to RAYTHEON COMPANY. 199911!1700!1760!E3230!NAVAL RESEARCH LABORATORY !N0017399C6009 !A!*!AWARD !19990310!20000309!081804205!081804205!081804205!N!7N694!PHOTON RESEARCH ASSOCIATES, IN!5720 OBERLIN DR !SAN DIEGO !CA!92121!03016!670!51!ARLINGTON !HOPEWELL (CITY) !VIRGINIA !0001!+000000125000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!A!S!*!B!A!*!A !N!U!2!0

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 $20.0 million.

What is the period of performance?

Start: 1999-03-10. End: 2006-12-21.

What specific advancements in photonics was this contract intended to achieve?

The provided data does not detail the specific scientific objectives or intended advancements of the photonics research. However, 'AD91/RDTE/OTHER DEFENSE-BASIC RESEARCH' suggests the contract was for foundational research aimed at exploring new principles, materials, or phenomena in photonics that could have future defense applications. This could range from novel laser technologies, advanced optical sensors, quantum information processing, or new methods for manipulating light for communication or detection.

How does the total contract value of over $20 million compare to similar basic research contracts in photonics?

Without access to a comprehensive database of similar basic research contracts in photonics, a direct comparison is challenging. However, for a nearly 8-year duration (2843 days) involving a major defense contractor like Raytheon, a total value exceeding $20 million is within the expected range for significant R&D efforts. Basic research contracts can vary widely based on scope, complexity, and the specific technological domain. Contracts for fundamental scientific inquiry often have different cost structures than applied research or development contracts.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for basic research?

The primary risk with a CPFF contract for basic research is that the 'fixed fee' component might not adequately compensate the contractor for unforeseen challenges or the inherent uncertainties in scientific discovery. While the government pays for all allowable costs, the contractor's profit is fixed. This can disincentivize the contractor from pursuing highly innovative but risky avenues if they believe it could lead to cost overruns that erode their fee. Conversely, it can also incentivize efficiency to ensure the fee is realized. Close government oversight is crucial to manage costs and ensure the research remains focused and productive.

What was the track record of Photon Research Associates, Inc. prior to this award?

The data indicates that 'PHOTON RESEARCH ASSOCIATES, IN' was the contractor for this specific award (N0017399C6009). Raytheon Company is listed as the 'co' (parent company or successor). Information on Photon Research Associates, Inc.'s specific track record prior to this award is not detailed in the provided data snippet. However, their involvement suggests they possessed the specialized expertise required for this photonics research. Raytheon, as a major defense contractor, has a long and extensive history of performing complex R&D contracts for the U.S. government.

How did the 'exclusion of sources' clause in the competition affect the final price?

The phrase 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is somewhat contradictory. Typically, 'full and open competition' implies that all responsible sources are permitted to compete. The 'exclusion of sources' suggests that certain potential sources were deliberately excluded from the competition, perhaps due to specific requirements, security concerns, or prior performance issues. The impact on the final price is difficult to ascertain without knowing which sources were excluded and why. If significant competitors were excluded, it could potentially lead to less competitive pricing than a truly unrestricted full and open competition.

What is the significance of the contract being awarded to Raytheon Company in the context of defense R&D?

Awarding this contract to Raytheon Company signifies the government's reliance on established, large defense contractors for critical and complex research and development projects. Raytheon possesses significant resources, infrastructure, and a deep pool of scientific talent necessary for advanced fields like photonics. Their involvement suggests the project is likely aligned with broader strategic defense objectives and requires a high level of technical capability and program management expertise, which large contractors are typically equipped to provide.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 36

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline