DoD's $20.5M R&D contract with Raytheon Company awarded under full and open competition

Contract Overview

Contract Amount: $20,494,082 ($20.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2005-05-12

End Date: 2015-02-06

Contract Duration: 3,557 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75070, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to RAYTHEON COMPANY for work described as: Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Long duration of 3557 days indicates a significant, multi-year project. 4. Awarded by the Department of Defense, a major federal spender. 5. Contractor, Raytheon Company, is a significant player in the defense sector. 6. Awarded in Texas, potentially impacting the local economy and workforce.

Value Assessment

Rating: fair

Benchmarking the value of this $20.5 million contract is challenging without specific deliverables or performance metrics. The firm fixed-price structure provides cost certainty, but the long duration could expose the government to risks if market conditions or project needs change significantly. Comparing it to similar R&D contracts would require detailed analysis of the specific research areas and expected outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a reasonable level of competition for this R&D effort. This competitive process is generally expected to lead to better price discovery and potentially more innovative solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services or products received.

Public Impact

The Department of Defense benefits from advanced research and development capabilities. Potential advancements in physical, engineering, and life sciences could have broader societal impacts. The contract's execution in Texas may stimulate the regional economy and create specialized jobs. Raytheon Company, as the contractor, will leverage its expertise to deliver on the R&D objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (3557 days) increases the risk of cost overruns or scope creep if not managed effectively.
Lack of specific performance metrics makes it difficult to assess the true value for money and contractor performance.
The nature of R&D inherently carries risks of not achieving desired outcomes, regardless of contractor performance.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
Contractor is a well-established entity with significant experience in defense R&D.

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, aiming to develop new technologies and capabilities. The market for defense R&D is characterized by high barriers to entry, significant government investment, and a focus on specialized expertise. Comparable spending benchmarks would depend heavily on the specific technological domain being researched.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely that small businesses would be primary recipients, though they might participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA) given the SA field. The firm fixed-price nature might simplify some aspects of oversight, but the long duration and R&D focus necessitate close monitoring of progress, milestones, and adherence to the contract's technical requirements to ensure accountability and transparency.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering and Scientific Services Contracts

Risk Flags

Long contract duration may increase risk.
R&D inherently carries uncertainty of outcome.
Lack of specific performance metrics limits value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to RAYTHEON COMPANY. See the official description on USAspending.

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 $20.5 million.

What is the period of performance?

Start: 2005-05-12. End: 2015-02-06.

What specific R&D advancements were expected from this $20.5 million contract with Raytheon Company?

The provided data indicates the contract (ID: DCA) was for 'Research and Development in the Physical, Engineering, and Life Sciences' awarded to Raytheon Company by the Department of Defense. However, the specific R&D advancements or project goals are not detailed in the summary data. Typically, such contracts aim to explore new scientific principles, develop prototypes, or test innovative technologies relevant to defense applications. Without access to the contract's statement of work or technical exhibits, it's impossible to specify the exact advancements sought. The long duration (3557 days) suggests a foundational or exploratory research effort rather than a targeted product development.

How does the $20.5 million value compare to similar R&D contracts in the physical, engineering, and life sciences sector?

Comparing the $20.5 million value requires context on the scope and duration of 'similar' R&D contracts. This contract, with a duration of 3557 days (nearly 10 years), represents a significant, long-term investment. R&D contracts can range from small, focused feasibility studies costing tens of thousands to multi-billion dollar programs for major system development. For foundational research in physical, engineering, or life sciences within the DoD, $20.5 million over a decade might be considered a substantial but not exceptionally large sum, especially for a prime contractor like Raytheon. Benchmarking would necessitate examining contracts with comparable objectives, technological maturity levels, and performer capabilities.

What are the primary risks associated with a firm fixed-price R&D contract of this magnitude and duration?

A primary risk with a firm fixed-price (FFP) R&D contract of this magnitude ($20.5M) and long duration (3557 days) is the potential for the contractor to deliver less than optimal results if the fixed price is too low to incentivize full effort, or conversely, for the government to overpay if the price is too high relative to the eventual outcome. For R&D, the inherent uncertainty means the contractor might struggle to meet technical objectives within the fixed budget, potentially leading to requests for modification or termination. Conversely, if the research proves unexpectedly easy or valuable, the contractor might achieve a high profit margin. Scope creep, if not managed tightly, can also be a risk, as can the obsolescence of technology developed over such a long period.

What is Raytheon Company's track record with similar DoD R&D contracts?

Raytheon Company (now RTX) has an extensive track record with the Department of Defense, including numerous contracts for Research and Development across various scientific and engineering disciplines. They are a major defense contractor involved in developing advanced technologies for air, missile defense, sensing, and other critical areas. While specific performance data for this particular $20.5 million contract isn't detailed here, Raytheon's history generally involves large-scale, complex R&D efforts. Their performance often varies by program, but they are a recognized leader in the defense R&D landscape, frequently securing significant contract awards due to their established capabilities and technological expertise.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) sector evolved over the contract's period?

This contract spanned from May 2005 to February 2015. During this period, federal spending in R&D, particularly within defense, saw fluctuations. Post-9/11, there was an emphasis on defense-related R&D. However, budget constraints and shifting priorities, including sequestration, likely impacted overall R&D funding towards the latter half of this contract's life. The specific sub-sector of physical, engineering, and life sciences within defense R&D would have been influenced by national security needs, technological advancements, and the specific research programs funded by agencies like DoD. Detailed historical spending data from agencies like the National Science Foundation (NSF) or specific DoD budget reports would be needed for a precise analysis.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2501 W UNIVERSITY DRIVE M, MC KINNEY, TX, 75070

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,888,825

Exercised Options: $17,890,585

Current Obligation: $20,494,082

Contract Characteristics

Cost or Pricing Data: NO

Timeline