DOI's $86M Facilities Support Services Contract Awarded to Raytheon STX Corporation

Contract Overview

Contract Amount: $86,246,511 ($86.2M)

Contractor: Raytheon STX Corporation

Awarding Agency: Department of the Interior

Start Date: 1999-10-15

End Date: 2002-10-31

Contract Duration: 1,112 days

Daily Burn Rate: $77.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: SIOUX FALLS, MINNEHAHA County, SOUTH DAKOTA, 57198

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $86.2 million to RAYTHEON STX CORPORATION for work described as: Key points: 1. Contract value of $86.2 million over its duration. 2. Awarded under full and open competition. 3. Potential risk associated with a Cost Plus Fixed Fee contract type. 4. Services fall under Facilities Support Services (NAICS 561210).

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar facilities support contracts is difficult without detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee (CPFF) pricing structure may not incentivize the most cost-effective performance.

Taxpayer Impact: Taxpayer funds are utilized for facilities support services. The CPFF structure necessitates careful oversight to ensure value for money and prevent unnecessary costs.

Public Impact

Ensures operational continuity for U.S. Geological Survey facilities. Supports essential government infrastructure maintenance and services. Potential for cost efficiencies or overruns depending on contract management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Facilities Support Services are crucial for maintaining government infrastructure. Spending in this sector can vary significantly based on the scale and complexity of facilities managed.

Small Business Impact

The data indicates this contract was not awarded to small businesses, suggesting larger prime contractors are involved in providing these services.

Oversight & Accountability

Oversight is critical for Cost Plus Fixed Fee contracts to ensure costs are reasonable and allocable. The Department of the Interior's contracting office managed this award.

Related Government Programs

Risk Flags

Tags

facilities-support-services, department-of-the-interior, sd, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $86.2 million to RAYTHEON STX CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is RAYTHEON STX CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $86.2 million.

What is the period of performance?

Start: 1999-10-15. End: 2002-10-31.

What specific services are included under 'Facilities Support Services' for the USGS?

Facilities Support Services typically encompass a broad range of activities including maintenance, repair, custodial services, groundskeeping, security, and potentially utility management for government buildings and installations. The exact scope for this USGS contract would be detailed in the Statement of Work (SOW).

How effectively did the Cost Plus Fixed Fee structure incentivize Raytheon STX Corporation to control costs?

The effectiveness of a CPFF structure in controlling costs is highly dependent on the government's oversight and the clarity of the fixed fee. While it allows for flexibility, it inherently carries a higher risk of cost escalation compared to fixed-price contracts if not rigorously managed and audited.

What is the benchmark cost for similar facilities support services contracts of this size?

Establishing a precise benchmark is challenging without detailed scope and performance data. However, facilities support services costs are often benchmarked as a percentage of replacement building value or per square foot, with significant variation based on facility type, age, and location.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 4400 FORBES BLVD, LANHAM

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

Timeline

Start Date: 1999-10-15

Current End Date: 2002-10-31

Potential End Date: 2002-10-31 00:00:00

Last Modified: 2012-06-28

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