DOD's $9.9M Route Clearance Training contract awarded to Raydon Corp. shows fair value with strong competition
Contract Overview
Contract Amount: $9,944,716 ($9.9M)
Contractor: Raydon Corporation
Awarding Agency: Department of Defense
Start Date: 2007-08-17
End Date: 2012-10-14
Contract Duration: 1,885 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SERVICES - ROUTE CLEARANCE TRAINING
Place of Performance
Location: DAYTONA BEACH, VOLUSIA County, FLORIDA, 32114
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to RAYDON CORPORATION for work described as: SERVICES - ROUTE CLEARANCE TRAINING Key points: 1. The contract demonstrates a commitment to value for money through a competitive bidding process. 2. Strong competition was present, suggesting a healthy market for route clearance training services. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of nearly five years provides a stable training platform. 5. This contract aligns with broader defense sector needs for specialized operational training.
Value Assessment
Rating: good
The contract's total value of approximately $9.9 million over five years suggests a reasonable investment for specialized route clearance training. Benchmarking against similar training contracts is challenging without more specific service details, but the firm-fixed-price structure indicates that the contractor assumed the risk of cost fluctuations. The award amount appears to be within a justifiable range for the scope of services, especially considering the critical nature of the training.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial sources might have been limited, the final award was made through a competitive process. The presence of multiple bidders, implied by 'full and open competition,' generally leads to better price discovery and ensures the government receives competitive offers. This approach helps prevent inflated pricing and encourages efficiency from the awarded contractor.
Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently, securing the best possible training services at a fair market price. It signals that the Department of Defense actively sought multiple solutions, maximizing the return on investment for this critical capability.
Public Impact
Service members requiring specialized route clearance training will benefit directly, enhancing their operational effectiveness and safety. The training delivered is crucial for preparing personnel for hazardous environments, potentially saving lives. The contract's geographic impact is primarily within Florida, where the contractor is based, but the training's benefits extend to deployed forces globally. Workforce implications include the potential for skilled instructors and support staff employed by Raydon Corporation in Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if training methodologies become proprietary and difficult to replicate.
- Reliance on a single contractor for critical, specialized training could pose a risk if performance degrades.
Positive Signals
- Firm-fixed-price contract type limits the government's exposure to cost increases.
- Long-term contract duration (nearly 5 years) provides stability and predictability for training needs.
- Awarded through full and open competition, suggesting a competitive market and fair pricing.
Sector Analysis
The defense training sector is a significant market driven by the continuous need for specialized skills development. This contract for route clearance training fits within the broader category of simulation and training services, which are essential for military readiness. Comparable spending benchmarks in this niche are difficult to ascertain without proprietary data, but the overall defense training market is substantial, with significant investment in advanced simulation and instructional technologies.
Small Business Impact
There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The award to Raydon Corporation, a single entity, suggests a focus on prime contractor capability rather than broad small business engagement. Further analysis would be needed to determine if any small business participation occurred indirectly through Raydon's supply chain.
Oversight & Accountability
The contract's oversight would typically fall under the Department of the Army's contracting and program management offices. Performance monitoring, quality assurance, and compliance checks are standard mechanisms. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Military Training Services
- Simulation and Training
- Route Clearance Operations
- Defense Contractor Performance
Risk Flags
- Contract Duration
- Sole Source Potential
- Training Efficacy Measurement
Tags
defense, department-of-defense, department-of-the-army, route-clearance-training, firm-fixed-price, full-and-open-competition, simulation-and-training, florida, commercial-and-service-industry-machinery-manufacturing, raydon-corporation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to RAYDON CORPORATION. SERVICES - ROUTE CLEARANCE TRAINING
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 Army).
What is the total obligated amount?
The obligated amount is $9.9 million.
What is the period of performance?
Start: 2007-08-17. End: 2012-10-14.
What is Raydon Corporation's track record with similar Department of Defense training contracts?
Raydon Corporation has a history of providing simulation and training solutions to the Department of Defense. Their expertise often lies in developing and delivering virtual and constructive training systems. While specific details on past route clearance training contracts require deeper database searches, their general profile suggests experience in complex military training environments. Analyzing past performance reviews, contract modifications, and any past performance issues would provide a more comprehensive understanding of their reliability and capability in fulfilling defense training requirements.
How does the value of this contract compare to other route clearance training initiatives?
Direct comparison of this $9.9 million contract value to other route clearance training initiatives is challenging without access to specific, comparable contract data. Factors such as the duration, scope of services (e.g., virtual vs. live training, curriculum development, instructor support), and the specific threats being trained against can significantly influence costs. However, the five-year duration and the firm-fixed-price nature suggest a structured approach to managing costs. Benchmarking would ideally involve comparing cost-per-training-hour or cost-per-service-member across similar programs, which often requires proprietary or specialized market intelligence.
What are the primary risks associated with this type of training contract?
Key risks include the potential for outdated training content if not regularly updated to reflect evolving threats and technologies. There's also a risk of contractor underperformance, where the quality or effectiveness of the training may not meet military standards, impacting soldier readiness. Another risk is the potential for cost growth if the firm-fixed-price contract has poorly defined scope or if unforeseen requirements emerge, although the contract type aims to mitigate this. Finally, over-reliance on a single provider for critical training could pose a strategic risk if the contractor faces financial instability or operational issues.
How effective is route clearance training in improving soldier safety and mission success?
Route clearance training is critically important for enhancing soldier safety and mission success in environments where improvised explosive devices (IEDs) and other threats are prevalent. Effective training equips soldiers with the knowledge and skills to identify, avoid, and mitigate these threats. Studies and after-action reports from conflicts where route clearance was vital have often highlighted the direct correlation between robust training and reduced casualties. The effectiveness is contingent on the realism, relevance, and frequency of the training, as well as the quality of instruction and simulation fidelity.
What has been the historical spending trend for route clearance training by the Department of Defense?
Historical spending on route clearance training by the Department of Defense has likely fluctuated based on operational tempo and evolving threat landscapes. During periods of intense conflict in Iraq and Afghanistan, spending on counter-IED and route clearance capabilities, including training, would have been significantly higher. As military operations shift, the focus and funding for such specialized training may adapt. Analyzing aggregate spending data for 'Training Services' or 'Simulation and Training' within the defense budget over the past decade would reveal broader trends, though isolating specific route clearance training expenditures can be difficult due to categorization.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 210 FENTRESS BLVD, DAYTONA BEACH, FL, 06
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $16,076,716
Exercised Options: $9,944,716
Current Obligation: $9,944,716
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK07D0723
IDV Type: IDC
Timeline
Start Date: 2007-08-17
Current End Date: 2012-10-14
Potential End Date: 2012-10-14 00:00:00
Last Modified: 2012-12-04
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