DoD Spends $42.4M on Moldova/Ukraine Border and Maritime Security via Raytheon
Contract Overview
Contract Amount: $42,438,946 ($42.4M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Defense
Start Date: 2011-07-01
End Date: 2013-07-31
Contract Duration: 761 days
Daily Burn Rate: $55.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MOLDOVA/UKRAINE BORDER SECURITY AND UKRAINE MARITIME SECURITY
Plain-Language Summary
Department of Defense obligated $42.4 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: MOLDOVA/UKRAINE BORDER SECURITY AND UKRAINE MARITIME SECURITY Key points: 1. Significant investment in regional security, potentially impacting geopolitical stability. 2. Raytheon, a major defense contractor, secured this contract. 3. The contract duration of 761 days suggests a substantial, ongoing need. 4. Spending falls under 'All Other Professional, Scientific, and Technical Services'.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without specific performance metrics or benchmarks for similar services, assessing value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms and the number of bids received are not detailed, making it hard to confirm optimal price.
Taxpayer Impact: Taxpayer funds are allocated to enhance security in a critical geopolitical region, with potential long-term benefits for stability but also risks of inefficient spending.
Public Impact
Enhances security cooperation between the US and partner nations. Addresses potential threats to maritime and border integrity in Eastern Europe. Supports defense industrial base through contracts with major companies like Raytheon.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of detailed performance metrics makes value assessment difficult.
- Geopolitical sensitivity of the region introduces inherent risks.
Positive Signals
- Full and open competition was utilized.
- Addresses a critical national security interest.
- Supports allied security initiatives.
Sector Analysis
This spending falls within the broader defense sector, specifically professional, scientific, and technical services. Benchmarks for similar international security assistance contracts are highly variable due to unique geopolitical contexts and specific mission requirements.
Small Business Impact
The data does not indicate any specific involvement or benefit to small businesses in this contract. Large prime contractors often manage subcontracts, but visibility into small business participation is limited without further detail.
Oversight & Accountability
The Department of Defense, through the Defense Threat Reduction Agency, is the awarding agency. Oversight would typically involve contract management reviews, performance monitoring, and financial audits to ensure compliance and effectiveness.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Geopolitical instability impacting operational costs and effectiveness.
- Difficulty in measuring direct impact on security outcomes.
- Limited transparency on specific services rendered for the cost.
Tags
all-other-professional-scientific-and-te, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.4 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. MOLDOVA/UKRAINE BORDER SECURITY AND UKRAINE MARITIME SECURITY
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 Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $42.4 million.
What is the period of performance?
Start: 2011-07-01. End: 2013-07-31.
What specific technical services were provided under this contract to justify the $42.4M cost?
The contract falls under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). Specific services likely included technical assistance, training, equipment support, or intelligence analysis related to border and maritime security for Moldova and Ukraine. Detailed service descriptions are needed for a precise cost justification.
What are the key performance indicators (KPIs) used to measure the effectiveness of this security assistance?
Effectiveness KPIs would likely focus on measurable improvements in border control, interdiction rates, intelligence sharing capabilities, and overall threat reduction in the target regions. Without access to the contract's performance work statement and reporting, these specific KPIs and their achievement status remain unknown.
How does the Cost Plus Fixed Fee structure mitigate or exacerbate cost risks in this high-stakes geopolitical context?
A Cost Plus Fixed Fee contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it ensures the contractor is compensated for unforeseen challenges, it can incentivize cost escalation if not rigorously monitored. In a geopolitical context, unexpected operational costs are likely, making robust oversight crucial to prevent excessive spending.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HDTRA111R0007
Offers Received: 8
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Raytheon Company
Address: 22265 PACIFIC BLVD, STERLING, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,906,388
Exercised Options: $43,906,388
Current Obligation: $42,438,946
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA111D0007
IDV Type: IDC
Timeline
Start Date: 2011-07-01
Current End Date: 2013-07-31
Potential End Date: 2013-07-31 00:00:00
Last Modified: 2026-02-19
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