DOI's $36.3M R&D Contract with Raytheon: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $36,315,558 ($36.3M)
Contractor: Raytheon Company
Awarding Agency: Department of the Interior
Start Date: 2003-06-15
End Date: 2009-01-30
Contract Duration: 2,056 days
Daily Burn Rate: $17.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85706
State: Arizona Government Spending
Plain-Language Summary
Department of the Interior obligated $36.3 million to RAYTHEON COMPANY for work described as: Key points: 1. Significant investment in R&D, potentially driving innovation. 2. Sole awardee Raytheon Company suggests a specialized capability or limited market. 3. Contract duration of 2056 days (over 5 years) indicates a long-term project. 4. Cost-plus-fixed-fee structure requires careful monitoring to manage expenses.
Value Assessment
Rating: fair
The contract's value of $36.3M over 5 years is substantial for R&D. Benchmarking against similar large-scale, specialized R&D contracts is difficult without more specific project details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this suggests multiple bidders were considered. However, the single award to Raytheon implies they were the most qualified or offered the best value.
Taxpayer Impact: Taxpayer funds are supporting advanced research and development, with the potential for future technological advancements and economic benefits.
Public Impact
Investment in research could lead to breakthroughs benefiting the public. Long-term contract provides stability for the contractor and project continuity. Potential for dual-use technologies that could have civilian applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize cost overruns if not managed tightly.
- Lack of specific R&D project details makes assessing true value challenging.
- Long contract duration increases risk of scope creep or changing technological needs.
Positive Signals
- Awarded through full and open competition, ensuring a fair process.
- Significant investment in R&D signals commitment to innovation.
- Raytheon is a well-established defense and technology contractor.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. The $36.3M value over 5 years is a considerable investment for this sector, suggesting a complex or high-impact research initiative.
Small Business Impact
The data indicates this contract was awarded to Raytheon Company, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract's long duration and cost-plus-fixed-fee structure necessitate robust oversight from the Department of the Interior to ensure efficient use of funds and adherence to research objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Cost-plus-fixed-fee contract type.
- Long contract duration.
- Lack of specific R&D project details.
- No small business participation noted.
Tags
research-and-development-in-the-physical, department-of-the-interior, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $36.3 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 the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $36.3 million.
What is the period of performance?
Start: 2003-06-15. End: 2009-01-30.
What specific R&D outcomes were achieved, and do they align with the initial objectives and taxpayer investment?
Without detailed project reports, it's impossible to definitively assess the R&D outcomes. The value of taxpayer investment hinges on the successful development of new technologies or scientific understanding that provides a return, whether through improved government capabilities, commercialization, or broader societal benefits. Further analysis would require access to project milestones and final reports.
How effectively was the competition managed to ensure the best value was secured for this significant R&D investment?
While the contract was awarded under full and open competition, the single award to Raytheon warrants scrutiny. Understanding the evaluation criteria and the reasons why Raytheon was selected over other potential bidders is crucial. Ensuring a robust competitive process minimizes the risk of overpaying and maximizes the likelihood of obtaining cutting-edge solutions for the government's R&D needs.
What are the long-term implications of this R&D investment for the Department of the Interior and related sectors?
The long-term impact depends on the nature of the R&D. Successful projects could lead to enhanced operational capabilities, new scientific discoveries, or technological advancements that benefit the DOI's mission. It's important to track the transition of research findings into practical applications and assess any follow-on contracts or commercialization efforts that stem from this initial investment.
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 › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 1151 E HERMANS RD, TUCSON, AZ, 85706
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $36,315,558
Exercised Options: $36,315,558
Current Obligation: $36,315,558
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2003-06-15
Current End Date: 2009-01-30
Potential End Date: 2009-01-30 00:00:00
Last Modified: 2017-10-25
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