DoD Awards $45.6M R&D Contract to Raytheon Technical Services for Research in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $45,558,365 ($45.6M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Defense
Start Date: 2010-06-23
End Date: 2017-08-23
Contract Duration: 2,618 days
Daily Burn Rate: $17.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: FIRM FIXED PRICE T/O - OPTION 2 REQUIREMENTS
Plain-Language Summary
Department of Defense obligated $45.6 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: FIRM FIXED PRICE T/O - OPTION 2 REQUIREMENTS Key points: 1. The contract, valued at $45.6 million, is for Research and Development in Physical, Engineering, and Life Sciences. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract spans over 7 years, from June 2010 to August 2017. 4. Raytheon Technical Services Company LLC is the contractor for this significant R&D effort.
Value Assessment
Rating: good
The contract is a Firm Fixed Price type, which generally provides good value by shifting risk to the contractor. The total award amount of $45.6 million over 7 years suggests a substantial R&D investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple bidders to compete, potentially driving down costs and ensuring fair market pricing.
Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, as it aims to secure the best value through market forces.
Public Impact
Significant investment in critical R&D areas for national security. Potential for technological advancements stemming from the research. Long-term contract duration suggests ongoing, complex research requirements. Contractor expertise in R&D is crucial for successful project outcomes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or cost overruns if not managed effectively.
- Reliance on a single contractor for a long period may limit future innovation or flexibility.
- Specific R&D outcomes are inherently uncertain, posing a risk to achieving desired results.
Positive Signals
- Awarded through full and open competition, ensuring a competitive process.
- Firm Fixed Price contract structure transfers cost risk to the contractor.
- Contractor is a well-established entity with likely relevant R&D experience.
Sector Analysis
This contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector (NAICS 541710). Spending in this sector is critical for technological advancement and national security, with significant government investment annually.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award, as the contractor is Raytheon Technical Services Company LLC, a large business. There is no information on subcontracting opportunities for small businesses.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency, suggesting established oversight mechanisms. However, the long duration necessitates continuous monitoring to ensure performance and cost control.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (over 7 years).
- Firm Fixed Price for R&D can be challenging if unforeseen technical hurdles arise.
- No explicit mention of small business subcontracting goals.
- Specific R&D outcomes are inherently uncertain and difficult to guarantee.
Tags
research-and-development-in-the-physical, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.6 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. FIRM FIXED PRICE T/O - OPTION 2 REQUIREMENTS
Who is the contractor on this award?
The obligated recipient is RAYTHEON TECHNICAL SERVICES COMPANY LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $45.6 million.
What is the period of performance?
Start: 2010-06-23. End: 2017-08-23.
What specific R&D projects were undertaken, and what were the key deliverables or milestones achieved under this contract?
The contract focused on Research and Development in Physical, Engineering, and Life Sciences. Specific project details and deliverables are not provided in the data. However, given the duration and value, it likely involved complex, multi-faceted research initiatives aimed at advancing technological capabilities relevant to national defense. The success would be measured by the scientific and technical advancements made and their potential application.
How did the competitive bidding process ensure the best value was obtained for the taxpayer, given the specialized nature of R&D?
The 'full and open competition' award method suggests that multiple qualified vendors were invited to bid, allowing for a comparison of technical approaches and pricing. While R&D outcomes are inherently uncertain, the competitive process helps establish a baseline for fair pricing and encourages contractors to propose efficient research methodologies to win the contract and manage costs effectively.
What mechanisms were in place to manage the risks associated with a long-term, firm-fixed-price R&D contract?
A firm-fixed-price contract shifts cost overrun risk to the contractor. For long-term R&D, effective oversight by the Defense Contract Management Agency would be crucial, likely involving regular progress reviews, milestone tracking, and performance assessments. Clear contract terms and conditions, including potential for contract modifications if scope significantly changes, would also be vital for risk management.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9113M06R0014
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Raytheon Company (UEI: 001339159)
Address: 12160 SUNRISE VALLEY DR, RESTON, VA, 20191
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $45,918,651
Exercised Options: $45,805,360
Current Obligation: $45,558,365
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9113M07D0008
IDV Type: IDC
Timeline
Start Date: 2010-06-23
Current End Date: 2017-08-23
Potential End Date: 2017-08-23 00:00:00
Last Modified: 2021-08-05
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