DoD's $55.5M Route Clearance Training Services contract awarded to Raydon Corporation shows fair value with 3 bidders

Contract Overview

Contract Amount: $55,510,962 ($55.5M)

Contractor: Raydon Corporation

Awarding Agency: Department of Defense

Start Date: 2008-08-28

End Date: 2012-11-28

Contract Duration: 1,553 days

Daily Burn Rate: $35.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ROUTE CLEARANCE TRAINING SERVICES (RCTS)

Place of Performance

Location: DAYTONA BEACH, VOLUSIA County, FLORIDA, 32114

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $55.5 million to RAYDON CORPORATION for work described as: ROUTE CLEARANCE TRAINING SERVICES (RCTS) Key points: 1. Contract value of $55.5M over 4 years suggests a significant investment in specialized training. 2. The award was made under full and open competition, indicating a competitive bidding process. 3. Three bidders participated, providing a reasonable level of competition for this specialized service. 4. The contract type is Firm Fixed Price, which transfers cost risk to the contractor. 5. Performance occurred in Florida, potentially impacting the local economy and workforce. 6. The North American Industry Classification System (NAICS) code 333319 points to machinery manufacturing, suggesting a link to equipment used in training.

Value Assessment

Rating: good

The contract's value of approximately $55.5 million over four years for route clearance training services appears reasonable given the specialized nature of the training and the number of bidders. While direct comparisons are difficult without more specific service details, the firm fixed-price structure suggests that the government secured predictable costs. The benchmark for similar training contracts would need to consider the complexity of the curriculum, the technology involved, and the duration of the training.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was generally open, specific sources may have been excluded for defined reasons. Three bidders participated in this competition. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The competitive nature of this award, with three bidders, suggests that taxpayers likely benefited from a more efficient allocation of funds compared to a sole-source procurement. The competition helped ensure that the selected contractor offered a fair price for the required training services.

Public Impact

Military personnel requiring specialized route clearance training are the primary beneficiaries. The services delivered likely include simulation, classroom instruction, and practical exercises related to identifying and mitigating threats on routes. The contract's performance was geographically focused in Florida. The contract may have implications for a specialized training workforce, potentially creating or sustaining jobs in the defense training sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly beyond initial specifications.
Dependence on a single contractor for a critical training capability could pose a risk if performance issues arise.
Ensuring the training remains current with evolving threats and technologies requires ongoing vigilance.

Positive Signals

Firm Fixed Price contract structure helps control costs and provides budget certainty.
Full and open competition, even with exclusions, suggests a robust process for selecting the best value.
The award to Raydon Corporation indicates a selection based on perceived capability and value for this specialized training.

Sector Analysis

The defense training sector is a significant market driven by the need for continuous military readiness and adaptation to new threats. Contracts like this represent a portion of the broader spending on defense readiness and personnel development. Benchmarking this contract's value would involve comparing it to other simulation and specialized training services procured by the Department of Defense and other military branches, considering factors like technology, duration, and trainee numbers.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The contract was awarded to Raydon Corporation, which is not explicitly identified as a small business in this context. Subcontracting opportunities for small businesses may exist, but they are not detailed here. The overall impact on the small business ecosystem would depend on the extent of any subcontracting awarded.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army program management office. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Training Services
Defense Simulation and Training
Route Clearance Operations
Department of Defense Readiness Programs
Army Training and Doctrine Command (TRADOC) Contracts

Risk Flags

Potential for training obsolescence if not updated
Contractor performance risk
Dependence on specific contractor capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.5 million to RAYDON CORPORATION. ROUTE CLEARANCE TRAINING SERVICES (RCTS)

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 $55.5 million.

What is the period of performance?

Start: 2008-08-28. End: 2012-11-28.

What was Raydon Corporation's track record with similar defense training contracts prior to this award?

Prior to the award of the Route Clearance Training Services (RCTS) contract, Raydon Corporation had a history of performing defense-related training and simulation services. While specific details of prior contracts are not provided in this data snippet, their selection for a significant contract like RCTS suggests they possessed relevant experience and capabilities. A deeper analysis would involve examining their contract history with the Department of Defense and other agencies, looking at past performance evaluations, contract values, and the types of training and simulation systems they have developed or managed. This would help establish a baseline for their expertise in areas relevant to route clearance.

How does the per-unit cost of this training compare to industry benchmarks or other government training programs?

Determining a precise per-unit cost for this contract is challenging without knowing the exact number of trainees or training hours delivered. The total contract value of $55.5 million over approximately four years suggests a substantial investment. To benchmark, one would need to identify comparable training programs, such as those for convoy operations, IED detection, or other specialized military skills. Factors like the complexity of the training, the use of advanced simulation technology, instructor-to-student ratios, and the duration of each training cycle would significantly influence per-unit costs. Without these granular details, a direct comparison to industry or government benchmarks remains speculative, though the firm fixed-price nature implies a negotiated cost that was deemed acceptable at the time of award.

What are the primary risks associated with this contract, and how were they mitigated?

Key risks associated with this contract could include the potential for outdated training content if not regularly updated to reflect evolving threats, contractor performance issues impacting training quality or delivery schedules, and cost overruns if the firm fixed-price structure proves inadequate for unforeseen circumstances. Mitigation strategies likely involved rigorous performance specifications in the contract, regular progress reviews, and potentially incorporating clauses for contract modifications or adjustments based on changing operational needs. The competitive bidding process itself serves as a risk mitigation tool by selecting a contractor deemed capable and offering a fair price. Furthermore, the Department of the Army's oversight mechanisms would be crucial in identifying and addressing any emerging risks throughout the contract's lifecycle.

How effective was the training provided under this contract in improving military personnel's route clearance capabilities?

The effectiveness of the training provided under this contract is not directly quantifiable from the award data alone. Effectiveness would typically be measured through post-training assessments of personnel performance, feedback from units receiving the trained personnel, and ultimately, through operational outcomes in the field. Metrics could include reduced incidents related to route clearance, improved response times, and higher proficiency in identifying and neutralizing threats. The Department of the Army would have internal mechanisms to evaluate the success of such training programs, likely involving feedback loops from operational commands and potentially periodic reviews of training curricula and delivery methods to ensure they meet current operational requirements and standards.

What has been the historical spending trend for route clearance training services by the Department of Defense?

Historical spending on route clearance training services by the Department of Defense would likely show fluctuations tied to operational tempo and evolving mission requirements. During periods of active conflict where route clearance was a critical operational necessity (e.g., Iraq and Afghanistan), spending on such specialized training would have been significantly higher. As military operations shift and focus changes, spending may decrease or be reallocated. Analyzing historical data would involve looking at contract awards for similar services over the past decade or more, identifying trends in contract values, durations, and the number of awarded contracts. This specific $55.5 million contract awarded in 2008 reflects a period where such training was a high priority.

Were there any specific technological advancements or innovations introduced by Raydon Corporation through this contract?

The provided data does not specify whether Raydon Corporation introduced specific technological advancements or innovations through this contract. However, contracts for advanced training services often involve the development or utilization of sophisticated simulation technologies, virtual reality environments, or advanced instructional design methodologies. To determine if innovations occurred, one would need to review contract deliverables, performance reports, and potentially any publicly available case studies or technical documentation related to the training systems developed or employed by Raydon under this award. The nature of route clearance training, which often involves complex scenarios and threat replication, suggests a potential for technological integration.

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: 3

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: $110,110,962

Exercised Options: $55,510,962

Current Obligation: $55,510,962

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK07D0723

IDV Type: IDC

Timeline