DoD's $174M R&D Contract with Raytheon: Research and Development in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $174,181,690 ($174.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2009-02-13
End Date: 2013-08-16
Contract Duration: 1,645 days
Daily Burn Rate: $105.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: MNIS DTO
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $174.2 million to RAYTHEON COMPANY for work described as: MNIS DTO Key points: 1. Significant investment in R&D for the Department of Defense. 2. Raytheon Company is the sole contractor, indicating potential concentration. 3. Contract duration of 1645 days suggests a long-term project. 4. NAICS code 541712 points to research in physical, engineering, and life sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific deliverables and comparable R&D projects.
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 award mechanism (Delivery Order) and the sole contractor (Raytheon) warrant further investigation into price discovery.
Taxpayer Impact: Taxpayer funds are being allocated to advanced research and development, with the ultimate benefit to national security and technological advancement.
Public Impact
Supports advanced technological development for national defense. Potential for innovation in physical, engineering, and life sciences. Long-term commitment of resources to a single contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Sole contractor may limit future competition and innovation.
- Long contract duration could lead to scope creep or outdated technology.
Positive Signals
- Awarded through full and open competition.
- Significant investment in critical R&D areas.
- Contractor is a major defense industry player.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding biotechnology. Spending in this sector is crucial for maintaining technological superiority in defense.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this contract. Further analysis would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
Oversight would focus on ensuring Raytheon meets R&D milestones, manages costs effectively under the CPFF structure, and delivers on the contract's objectives within the specified timeframe.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Sole contractor award.
- Long contract duration.
- Lack of small business participation indicated.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $174.2 million to RAYTHEON COMPANY. MNIS DTO
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $174.2 million.
What is the period of performance?
Start: 2009-02-13. End: 2013-08-16.
What specific research objectives were defined for this $174M contract, and how do they align with current defense priorities?
The contract's NAICS code (541712) indicates research in physical, engineering, and life sciences. Specific objectives would detail the precise areas of inquiry, such as advanced materials, propulsion systems, or sensor technology. Alignment with defense priorities would be assessed by comparing the contract's scope with documented strategic goals of the Department of Defense and the Defense Information Systems Agency.
Given the Cost Plus Fixed Fee structure and sole contractor, what mechanisms were in place to control costs and ensure value for money?
Cost Plus Fixed Fee contracts require robust oversight to manage costs. Mechanisms would include detailed cost accounting, regular audits, performance reviews against milestones, and clear definition of allowable costs. Value for money is assessed by comparing the R&D outcomes against the investment, considering the criticality of the research and potential technological advancements achieved.
How effectively did the full and open competition process identify the best value solution, considering Raytheon was the sole awardee?
Full and open competition aims to solicit proposals from all interested sources. The effectiveness is measured by the number and quality of proposals received and the justification for selecting Raytheon. If multiple strong proposals were submitted, the selection process must clearly demonstrate why Raytheon offered the best overall value, considering technical merit, cost, and other factors, despite being the sole awardee.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 7700 ARLINGTON BLVD, FALLS CHURCH, VA, 22042
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: $174,181,690
Exercised Options: $174,181,690
Current Obligation: $174,181,690
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2024
IDV Type: IDC
Timeline
Start Date: 2009-02-13
Current End Date: 2013-08-16
Potential End Date: 2013-08-16 00:00:00
Last Modified: 2022-09-30
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