DoD Awards $1.9M Contract to Raydon Corp for Ground Training Systems Development
Contract Overview
Contract Amount: $19,047,619 ($19.0M)
Contractor: Raydon Corporation
Awarding Agency: Department of Defense
Start Date: 2006-08-29
End Date: 2009-04-01
Contract Duration: 946 days
Daily Burn Rate: $20.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: DEVELOPMENT MANUFACTURING AND TRAINING FOR GROUND TRAINING SYSTEMS
Place of Performance
Location: DAYTONA BEACH, VOLUSIA County, FLORIDA, 32114
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $19.0 million to RAYDON CORPORATION for work described as: DEVELOPMENT MANUFACTURING AND TRAINING FOR GROUND TRAINING SYSTEMS Key points: 1. Contract awarded to Raydon Corporation for $1.9 million. 2. Focuses on development, manufacturing, and training for ground systems. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Sector is Other Commercial and Service Industry Machinery Manufacturing.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount of $1.9 million is relatively small, making direct comparison difficult without more data on specific deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition was 'Full and Open Competition After Exclusion of Sources', indicating a limited initial pool of bidders. This method may have impacted price discovery, potentially leading to higher costs than a truly open competition.
Taxpayer Impact: The taxpayer impact is likely moderate given the $1.9 million award value. However, the cost-plus contract type warrants scrutiny to ensure efficient use of funds.
Public Impact
Ensures readiness for ground forces through advanced training systems. Supports the Department of the Navy's operational capabilities. Potential for technological advancements in military training.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can inflate costs.
- Limited competition may have reduced price competitiveness.
Positive Signals
- Addresses critical training needs for ground forces.
- Supports a specific branch of the military (Navy).
Sector Analysis
This contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' sector. Spending in this sector for defense applications is crucial for maintaining technological superiority and operational readiness.
Small Business Impact
The contract was awarded to Raydon Corporation, and there is no indication of small business subcontracting in the provided data. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms. However, the cost-plus nature of the contract necessitates diligent monitoring to ensure fiscal responsibility.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Limited competition method.
- Lack of detail on specific deliverables.
- No indication of small business subcontracting.
Tags
other-commercial-and-service-industry-ma, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.0 million to RAYDON CORPORATION. DEVELOPMENT MANUFACTURING AND TRAINING FOR GROUND TRAINING SYSTEMS
Who is the contractor on this award?
The obligated recipient is RAYDON CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $19.0 million.
What is the period of performance?
Start: 2006-08-29. End: 2009-04-01.
What specific ground training systems were developed and manufactured under this contract, and how do they compare to industry standards in terms of capability and cost-effectiveness?
The provided data does not detail the specific ground training systems developed. To assess value, a review of the contract's deliverables, performance metrics, and comparison with similar systems procured by other agencies or nations would be necessary. Understanding the technological advancements and their impact on training efficiency is key to evaluating cost-effectiveness beyond the initial award amount.
What were the primary reasons for excluding other sources during the 'Full and Open Competition After Exclusion of Sources' process, and did this limitation significantly impact the final contract pri
Excluding sources typically occurs when only a limited number of contractors possess the necessary specialized capabilities, technology, or security clearances. The specific reasons for exclusion here are not detailed. This limitation likely reduced the number of competing bids, potentially increasing the price compared to a broader competition. A price analysis against benchmarks or previous similar contracts would reveal the extent of this impact.
How effectively did the Cost Plus Fixed Fee structure incentivize Raydon Corporation to control costs and deliver the training systems within budget, and what was the final cost variance?
The Cost Plus Fixed Fee (CPFF) structure provides a fixed fee to the contractor regardless of the final cost, incentivizing them to manage costs efficiently to maximize their profit margin. However, it also shifts cost risk to the government. Without data on the final cost variance or detailed performance reports, it's difficult to assess the effectiveness of this structure in controlling costs for this specific contract.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 210 FENTRESS BLVD, DAYTONA BEACH, FL, 06
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $19,047,619
Exercised Options: $19,047,619
Current Obligation: $19,047,619
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017406D0033
IDV Type: IDC
Timeline
Start Date: 2006-08-29
Current End Date: 2009-04-01
Potential End Date: 2009-04-01 00:00:00
Last Modified: 2009-07-22
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