DoD's $86.9M Contract with Raytheon for Technical Services: A Deep Dive
Contract Overview
Contract Amount: $86,912,925 ($86.9M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Defense
Start Date: 2013-02-28
End Date: 2017-09-03
Contract Duration: 1,648 days
Daily Burn Rate: $52.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BASE WORK ACTIVITIES
Plain-Language Summary
Department of Defense obligated $86.9 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: BASE WORK ACTIVITIES Key points: 1. Significant contract value of $86.9 million awarded to Raytheon Technical Services Company LLC. 2. Services fall under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. Contract duration spans over 4.5 years, indicating a long-term need. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure costs remain reasonable and do not exceed projections. Benchmarking CPFF contracts in this service category is challenging due to inherent cost variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The CPFF structure necessitates robust oversight to ensure cost efficiency and prevent unnecessary expenditure.
Public Impact
Supports critical defense operations by providing specialized technical services. Ensures the Department of Defense has access to essential scientific and technical expertise. The long-term nature of the contract suggests ongoing requirements for these services within the agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs.
- Lack of specific performance metrics makes it difficult to assess value for money.
- No indication of small business participation.
Positive Signals
- Awarded through full and open competition.
- Long contract duration suggests sustained need and potential for stable service delivery.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, which is a broad category encompassing a wide range of specialized expertise. Benchmarks for this specific sub-sector are difficult to establish due to its diverse nature.
Small Business Impact
The data indicates that small businesses were not a direct awardee of this contract, as the awardee is Raytheon Technical Services Company LLC. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The contract's CPFF structure requires diligent oversight from the Defense Threat Reduction Agency to manage costs effectively and ensure that the fixed fee remains appropriate for the services rendered. Regular performance reviews and cost audits are crucial.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns.
- Lack of detailed service description makes value assessment difficult.
- No explicit mention of small business subcontracting goals.
- Potential for vendor lock-in due to long contract duration.
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 $86.9 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. BASE WORK ACTIVITIES
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 $86.9 million.
What is the period of performance?
Start: 2013-02-28. End: 2017-09-03.
What specific technical services are being provided under this contract, and how do they directly support the Defense Threat Reduction Agency's mission?
The contract covers 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). While the exact services are not detailed, they likely involve specialized expertise crucial for the DTRA's mission, which focuses on countering weapons of mass destruction. This could include research, analysis, engineering support, or program management related to threat reduction.
Given the CPFF structure, what mechanisms are in place to control costs and ensure the government receives good value for the fixed fee?
The Cost Plus Fixed Fee (CPFF) structure necessitates robust government oversight. Mechanisms should include detailed cost tracking, regular audits, and performance reviews to ensure that costs are reasonable and allocable. The fixed fee itself should be periodically reviewed to ensure it remains fair and reflects the complexity and risk associated with the services provided.
How does the long duration of this contract impact the agency's ability to adapt to evolving threats and technological advancements?
A long contract duration, while providing stability, can pose a risk if the agency's needs or the threat landscape change significantly. The agency must have provisions for contract modifications or regular reviews to ensure the services remain relevant and effective. Flexibility within the contract or periodic re-competition might be necessary to adapt to evolving requirements.
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) › PROFESSIONAL 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: $87,648,128
Exercised Options: $87,648,128
Current Obligation: $86,912,925
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA111D0007
IDV Type: IDC
Timeline
Start Date: 2013-02-28
Current End Date: 2017-09-03
Potential End Date: 2017-09-03 00:00:00
Last Modified: 2026-02-19
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