DoD's $18.3M R&D Contract with Raytheon: Full and Open Competition, Fixed Fee Structure
Contract Overview
Contract Amount: $18,283,900 ($18.3M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Defense
Start Date: 2010-07-08
End Date: 2012-03-31
Contract Duration: 632 days
Daily Burn Rate: $28.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TOTAL COST PLUS FIXED FEE - OPT PRD 2
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.3 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: TOTAL COST PLUS FIXED FEE - OPT PRD 2 Key points: 1. Contract awarded to Raytheon Technical Services Company LLC for Research and Development. 2. Utilized full and open competition, suggesting a competitive bidding process. 3. Fixed fee structure provides cost certainty for the government. 4. The contract duration was 632 days. 5. No small business participation was noted.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a predetermined profit. This structure can be effective for R&D where costs are less predictable, but requires careful oversight to manage expenses.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: Full and open competition aims to secure the best possible pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
Supports critical research and development efforts within the Department of Defense. The fixed fee component provides a predictable profit margin for the contractor. Transparency in the bidding process through full and open competition. Potential for innovation stemming from R&D activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
Positive Signals
- Full and open competition utilized.
- Fixed fee structure provides cost control.
- Contract supports R&D in physical, engineering, and life sciences.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for technological advancement and national security, with benchmarks varying widely based on the specific R&D focus.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that the prime contractor, Raytheon, did not subcontract with small businesses for this particular award, which could be an area for future consideration.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The fixed fee structure requires oversight to ensure costs remain within reasonable bounds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- No small business participation.
- Potential for cost creep in Cost Plus Fixed Fee contracts if not properly managed.
- Specific R&D outcomes not detailed in the provided data.
- Need for comparative analysis against similar R&D contracts for full value assessment.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. TOTAL COST PLUS FIXED FEE - OPT PRD 2
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 $18.3 million.
What is the period of performance?
Start: 2010-07-08. End: 2012-03-31.
What specific R&D advancements were achieved under this contract?
The provided data does not detail the specific research and development outcomes. Further investigation into contract performance reports or project documentation would be necessary to ascertain the advancements made. Understanding the tangible results is key to evaluating the true value derived from the $18.3 million investment.
Were there any cost overruns or significant deviations from the fixed fee?
As a Cost Plus Fixed Fee contract, the government reimburses allowable costs plus a predetermined fixed fee. While the fixed fee limits the contractor's profit, oversight is still required to ensure costs are reasonable and allocable. The data does not indicate overruns, but a review of financial reports would confirm adherence to the contract terms.
How did the pricing compare to other R&D contracts of similar scope and duration?
Benchmarking this contract's price requires comparison with similar R&D efforts within the DoD or other federal agencies, considering factors like technical complexity, duration, and contractor expertise. Without access to a broader dataset of comparable contracts, a precise pricing assessment is difficult, though the full and open competition suggests a competitive market price was sought.
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: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Raytheon Company
Address: 12160 SUNRISE VALLEY DR, RESTON, VA, 20191
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,207,278
Exercised Options: $26,207,278
Current Obligation: $18,283,900
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: 2010-07-08
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2025-12-31
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