Defense Threat Reduction Agency awards $198M R&D contract to UTD INC for ammunition research

Contract Overview

Contract Amount: $66,029,047 ($66.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2001-06-14

End Date: 2006-12-31

Contract Duration: 2,026 days

Daily Burn Rate: $32.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200111!000391!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101C0033 !A!N!*!Y! !20010614!20060623!198248494!198248494!198248494!N!UTD INC !10242 BATTLEVIEW PARKWAY !MANASSAS !VA!20109!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000001745920!N!N!000000000000!AD11!RDTE/AMMUNITION-BASIC RESEARCH !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3! ! ! !*!*!*!B!*!*!N!Z!D !U!R!1!001!N!1A!Z!Y!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $66.0 million to RAYTHEON COMPANY for work described as: 200111!000391!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101C0033 !A!N!*!Y! !20010614!20060623!198248494!198248494!198248494!N!UTD INC !10242 BATTLEVIEW PARKWAY !MANASSAS !VA!20109!01000!510!51!ALEXANDRIA !ALEXA… Key points: 1. The contract value is $198,248,494 over a period of 2026 days. 2. The primary contractor is UTD INC, with Raytheon Company listed as a competitor. 3. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 4. The contract type is Cost Plus Award Fee, indicating potential for performance-based incentives.

Value Assessment

Rating: questionable

The contract value of $198M for R&D services is substantial. Benchmarking against similar contracts for ammunition-related research is difficult without more specific details on the scope of work and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded on a limited competition basis, which may have restricted price discovery. The 'NOT COMPETED' status suggests a specific justification was likely required.

Taxpayer Impact: The use of limited competition could potentially lead to higher costs for taxpayers compared to a full and open competition.

Public Impact

This contract supports critical defense research and development in ammunition technology. The funding contributes to advancements in physical, engineering, and life sciences within the defense sector. The contract duration of over 5 years suggests a long-term investment in this research area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may reduce cost savings.
Cost Plus Award Fee contracts can incentivize higher spending.
Lack of detailed public information on scope.

Positive Signals

Supports critical defense R&D.
Long-term contract duration.
Potential for innovation in ammunition technology.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on ammunition. Defense R&D spending is a significant portion of the federal budget, with contracts often being complex and long-term.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were made available.

Oversight & Accountability

The contract was awarded by the Defense Threat Reduction Agency (DTRA), a component of the Department of Defense. Oversight would typically be managed by the Defense Contract Management Agency (DCMA).

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Limited competition.
Cost Plus Award Fee contract type.
Lack of detailed scope of work in public data.
Long contract duration may increase risk of cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.0 million to RAYTHEON COMPANY. 200111!000391!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101C0033 !A!N!*!Y! !20010614!20060623!198248494!198248494!198248494!N!UTD INC !10242 BATTLEVIEW PARKWAY !MANASSAS !VA!20109!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000001745920!N!N!000000000000!AD11!RDTE/AMMUNITION-BASIC RESEARCH !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3! ! ! !*!*!*!B!*!*!N!

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 $66.0 million.

What is the period of performance?

Start: 2001-06-14. End: 2006-12-31.

What specific technological advancements are expected from this R&D contract, and how will they enhance national security?

The contract focuses on 'Research and Development in Physical, Engineering, and Life Sciences' related to ammunition. While specific advancements are not detailed, the goal is likely to improve the effectiveness, safety, or cost-efficiency of munitions. Enhanced capabilities could range from improved warhead designs to more reliable fuzing systems, ultimately bolstering national security by maintaining a technological edge.

Given the 'limited competition' status, what was the justification, and how was the pricing determined to ensure fair value?

The justification for limited competition typically involves factors like unique capabilities of the contractor, urgent needs, or specific research requirements. Pricing for Cost Plus Award Fee contracts is negotiated based on estimated costs plus an award fee tied to performance metrics. Without the justification document, it's difficult to assess the fairness of the price discovery process.

How does the 'Cost Plus Award Fee' structure incentivize UTD INC to deliver effective and efficient research outcomes?

The Cost Plus Award Fee (CPA F) structure allows the contractor to recover allowable costs plus a fee that is composed of a fixed base fee and an award amount. The award amount is contingent upon meeting or exceeding pre-defined performance objectives. This incentivizes UTD INC to not only complete the research but to do so efficiently and effectively to maximize their potential fee.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 8350 ALBAN RD STE 700, SPRINGFIELD, VA, 22150

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $871,606

Exercised Options: $1,528,190

Current Obligation: $66,029,047

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline