DoD's $47.8M Raytheon Contract for R&D: Limited Competition Raises Concerns

Contract Overview

Contract Amount: $47,838,572 ($47.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2005-06-10

End Date: 2007-04-30

Contract Duration: 689 days

Daily Burn Rate: $69.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $47.8 million to RAYTHEON COMPANY for work described as: Key points: 1. Significant investment in research and development. 2. Sole reliance on Raytheon Company for this specific contract. 3. Potential for inflated costs due to lack of competition. 4. Focus on physical, engineering, and life sciences R&D.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes it difficult to assess value. The awarded amount of $47.8M over 689 days suggests a high per-diem cost, especially without competitive benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to achieve the best possible price.

Taxpayer Impact: The lack of competition in this sole-source award likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The specific R&D outcomes are not detailed, making it hard to gauge direct public benefit. Long contract duration (689 days) for a sole-source award warrants scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of transparency in R&D outcomes

Positive Signals

Awarded to a known defense contractor
Focus on critical R&D areas

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but requires careful oversight to ensure value for money, especially when awarded non-competitively.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded directly to Raytheon Company. This represents a missed opportunity for small business participation in government contracting.

Oversight & Accountability

The sole-source nature of this award raises questions about the oversight process that led to its non-competitive justification. Further review is needed to understand why competition was deemed unnecessary or impossible.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks competitive pricing.
Cost-plus contract type can lead to cost overruns.
Limited transparency on R&D deliverables and impact.
Potential for inefficient use of taxpayer funds.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.8 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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $47.8 million.

What is the period of performance?

Start: 2005-06-10. End: 2007-04-30.

What specific justification was provided for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A thorough review would require accessing the contract file to verify the specific justification (e.g., unique capabilities, urgent need) and confirm it met regulatory requirements for non-competitive procurement.

How does the Cost Plus Fixed Fee (CPFF) structure, combined with the sole-source award, impact the government's ability to control costs and ensure R&D effectiveness?

CPFF contracts can incentivize contractors to increase costs to maximize profit, especially when the fixed fee is a percentage of the total cost. Without competition, the government lacks a benchmark to assess if the costs incurred are reasonable or if the R&D objectives are being met efficiently.

What were the tangible outcomes or deliverables of this $47.8 million R&D investment, and how do they align with the Department of the Army's strategic goals?

The data does not specify the R&D outcomes. Assessing effectiveness requires examining the final reports, prototypes, or technological advancements resulting from the contract and evaluating their contribution to the Army's mission and technological superiority.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 180 HARTWELL RD, BEDFORD, MA, 06

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline