Raytheon awarded $82.5M for FAA's CCP 2000 program, focusing on engineering services

Contract Overview

Contract Amount: $82,529,322 ($82.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Transportation

Start Date: 2017-08-30

End Date: 2021-09-30

Contract Duration: 1,492 days

Daily Burn Rate: $55.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF PROVIDING PHASE 3 SEGMENT 2 FUNDING TO RAYTHEON FOR CCP 2000

Place of Performance

Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $82.5 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF PROVIDING PHASE 3 SEGMENT 2 FUNDING TO RAYTHEON FOR CCP 2000 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 1492 days indicates a long-term commitment to the services provided. 3. Fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 4. The award is for engineering services, a critical component for complex federal programs. 5. The contract's value of $82.5 million places it in the mid-to-large range for federal contracts of this nature. 6. The specific NAICS code (541330) points to a focus on engineering consulting services.

Value Assessment

Rating: good

The contract value of $82.5 million for engineering services over approximately four years appears reasonable when benchmarked against similar long-term federal engineering support contracts. While specific per-unit cost data is not provided, the firm fixed-price structure suggests that the government has negotiated a set price for the defined scope of work, which can be advantageous for budget predictability. Further analysis would require comparing the specific deliverables and technical requirements against industry standards and other awarded contracts for similar services to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not detailed, but this procurement method generally fosters a competitive environment, which is expected to drive down prices and improve the quality of services offered. The FAA's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions for the CCP 2000 program.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the best possible value by allowing a wide range of potential contractors to compete, likely resulting in a more cost-effective outcome.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by securing essential engineering services for the CCP 2000 program. The program likely supports the modernization or maintenance of air traffic control systems or related infrastructure. The geographic impact is primarily within the United States, supporting national airspace management. The contract supports a workforce of engineers and technical specialists, contributing to the federal IT and engineering sector employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program requirements evolve significantly beyond the initial fixed-price agreement.
Dependence on a single contractor for a critical, long-duration program could pose risks if performance issues arise.
The fixed-price nature might disincentivize innovation or efficiency gains by the contractor if not structured with appropriate incentives.

Positive Signals

Awarded through full and open competition, indicating a robust market evaluation.
Firm fixed-price contract provides budget certainty for the FAA.
Long contract duration suggests a stable, ongoing need for these specialized engineering services.
Contractor, Raytheon, is a well-established entity with significant experience in aerospace and defense.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to aerospace and government systems. The market for federal engineering services is substantial, with agencies like the FAA consistently investing in maintaining and upgrading complex infrastructure. Comparable spending benchmarks would involve looking at other large-scale engineering support contracts awarded by agencies managing critical national infrastructure, such as the Department of Defense or NASA, to gauge the relative cost and scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Raytheon, it is unlikely to have significant direct subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. The focus on specialized engineering services may also limit the types of small businesses that could participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration's contracting officers and program managers. The firm fixed-price nature implies that oversight will focus on adherence to the Statement of Work and delivery schedules. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FAA Air Traffic Control Modernization Programs
Federal Aviation Systems Engineering Support
Department of Transportation IT and Engineering Contracts
Aerospace Engineering Services Contracts

Risk Flags

Long-term contract duration may increase risk of cost escalation or scope creep.
Fixed-price contract may limit flexibility for evolving requirements.
No indication of small business subcontracting goals.
Specific program details (CCP 2000) are not fully elaborated in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $82.5 million to RAYTHEON COMPANY. IGF::OT::IGF PROVIDING PHASE 3 SEGMENT 2 FUNDING TO RAYTHEON FOR CCP 2000

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $82.5 million.

What is the period of performance?

Start: 2017-08-30. End: 2021-09-30.

What is the specific nature of the CCP 2000 program and Raytheon's role within it?

The provided data indicates that CCP 2000 is a program within the Federal Aviation Administration (FAA) for which Raytheon Company is providing engineering services. The abbreviation 'CCP' is not explicitly defined in the data, but given the context of the FAA and engineering services, it likely relates to a critical component of the National Airspace System (NAS), such as communications, navigation, surveillance, or air traffic management systems. Raytheon's role, as an engineering services provider, would involve tasks such as system design, development, integration, testing, analysis, and potentially sustainment support for the systems associated with CCP 2000. The funding amount of $82.5 million and the contract duration of 1492 days (approximately 4 years) suggest a significant and long-term commitment to this program, highlighting its importance to the FAA's operational capabilities.

How does the $82.5 million award compare to other engineering services contracts awarded by the FAA or Department of Transportation?

The $82.5 million award to Raytheon for engineering services represents a substantial investment. To benchmark this, one would typically compare it against the average and median contract values for similar engineering services (NAICS 541330) awarded by the FAA and the broader Department of Transportation (DOT) over the past several fiscal years. Contracts for major air traffic system upgrades or sustainment efforts can often reach tens or hundreds of millions of dollars. Without access to a comprehensive database of comparable contracts with detailed scopes of work, it's challenging to provide a precise comparison. However, given the duration (over 4 years) and the nature of federal aviation infrastructure, this award appears to be within the expected range for significant, long-term engineering support for a critical national program.

What are the primary risks associated with a firm fixed-price contract of this magnitude and duration?

A primary risk with a firm fixed-price (FFP) contract of this magnitude ($82.5 million) and duration (1492 days) is the potential for the contractor, Raytheon, to face financial strain if costs escalate unexpectedly due to unforeseen technical challenges, material price increases, or labor rate hikes. Conversely, the government risks paying a premium if the contractor's actual costs are significantly lower than the fixed price, especially if the initial price was set conservatively. Another risk is the potential for the contractor to cut corners on quality or scope to protect profit margins if cost overruns occur. For the government, managing scope changes can be difficult under an FFP contract; any modifications typically require formal change orders, which can be time-consuming and may lead to price adjustments that negate some of the initial cost certainty.

What does the 'FULL AND OPEN COMPETITION' designation imply about the contractor selection process and potential value for taxpayers?

The designation 'FULL AND OPEN COMPETITION' signifies that the Federal Aviation Administration (FAA) followed a procurement process designed to maximize the number of potential bidders and ensure fair competition. This means that all responsible sources were solicited and given an equal opportunity to submit proposals. This approach is generally considered the most effective way to achieve competitive pricing and high-quality solutions, as it encourages multiple companies to vie for the contract, driving down costs and fostering innovation. For taxpayers, this implies that the government likely obtained the best possible value for the $82.5 million awarded, as the selection process was designed to identify the most capable contractor offering the most advantageous price, rather than being limited to a pre-selected group or a single provider.

How does Raytheon's track record in federal contracting influence the assessment of this award?

Raytheon Company is a major defense contractor and a significant player in the aerospace and technology sectors, with extensive experience in delivering complex systems and services to various government agencies, including the Department of Defense and NASA. Their track record includes managing large-scale, high-value contracts, often involving advanced engineering and integration. This extensive experience suggests a high likelihood of Raytheon possessing the technical expertise, project management capabilities, and financial stability required to successfully execute the CCP 2000 program for the FAA. While past performance is a key factor in federal contract awards, a detailed review of Raytheon's specific performance on similar FAA or DOT contracts would be necessary for a complete assessment. However, their general reputation and scale indicate a lower risk profile compared to smaller or less experienced firms for such a critical program.

What are the potential workforce implications of this $82.5 million engineering services contract?

This $82.5 million contract for engineering services is likely to support a significant number of jobs for engineers, technicians, project managers, and support staff, both within Raytheon and potentially its subcontractors. Given the contract's duration of over four years, it provides a degree of job stability for the individuals involved. The specific skills required would likely include expertise in aerospace engineering, systems engineering, software development, cybersecurity, and potentially specialized areas related to air traffic management systems. The contract contributes to the federal government's demand for highly skilled technical labor, supporting the broader engineering and technology workforce within the United States. The geographic location of the work, while not specified, could have localized economic impacts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $82,529,322

Exercised Options: $82,529,322

Current Obligation: $82,529,322

Actual Outlays: $44,394,379

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFA0196C03008C

IDV Type: IDC

Timeline