DOT Awards $73.5M to Raytheon for Engineering Services, Highlighting Full and Open Competition
Contract Overview
Contract Amount: $73,495,894 ($73.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Transportation
Start Date: 2017-08-24
End Date: 2021-09-30
Contract Duration: 1,498 days
Daily Burn Rate: $49.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Engineering Services
Official Description: IGF::OT::IGF OPS FUNDED CLINS CCP 2000 INCREMENTAL AND SUPPLEMENTAL CCP FUNDING
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Transportation obligated $73.5 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF OPS FUNDED CLINS CCP 2000 INCREMENTAL AND SUPPLEMENTAL CCP FUNDING Key points: 1. Significant contract value of $73.5 million awarded to Raytheon Company. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract duration of 1498 days indicates a long-term service requirement. 4. Engineering services sector is critical for infrastructure and operational support.
Value Assessment
Rating: good
The contract value of $73.5 million for engineering services appears reasonable given the 1498-day duration. Benchmarking against similar large-scale engineering contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible price and quality through a competitive process.
Public Impact
Supports critical FAA operations through engineering services. Raytheon's involvement suggests a focus on established, experienced contractors. Long-term nature of the contract provides stability for service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or KPIs in provided data.
- Potential for cost overruns in long-term, complex engineering projects.
Positive Signals
- Awarded under full and open competition.
- Significant contract value suggests important government need.
- Long contract duration implies sustained service requirement.
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for government agencies like the FAA to maintain and improve complex systems. Spending in this sector often reflects investments in infrastructure, technology, and operational support.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The award to Raytheon Company, a large defense contractor, suggests that small business participation may be limited unless subcontracted.
Oversight & Accountability
The contract's duration and value warrant ongoing oversight to ensure performance aligns with objectives and taxpayer funds are used efficiently. Monitoring by the FAA and potentially the DOT IG would be crucial.
Related Government Programs
- Engineering Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Long contract duration increases exposure to scope creep and changing requirements.
- Potential for cost overruns if not meticulously managed.
- Lack of detailed performance metrics in the provided summary.
- Reliance on a single large contractor may limit flexibility.
Tags
engineering-services, department-of-transportation, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $73.5 million to RAYTHEON COMPANY. IGF::OT::IGF OPS FUNDED CLINS CCP 2000 INCREMENTAL AND SUPPLEMENTAL CCP FUNDING
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 $73.5 million.
What is the period of performance?
Start: 2017-08-24. End: 2021-09-30.
What specific engineering services are being provided under this contract, and how do they directly support the FAA's mission?
The provided data lacks specifics on the exact engineering services. However, given the agency (FAA) and sector (Engineering Services), these likely encompass areas such as air traffic control system design, infrastructure maintenance, aviation safety analysis, or technology development. These services are crucial for ensuring the safety, efficiency, and modernization of the national airspace system.
What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract to ensure successful delivery and value for money?
The provided data does not detail specific KPIs or risk mitigation strategies. For a contract of this magnitude and duration, effective oversight would typically involve clearly defined performance metrics, regular progress reviews, and proactive identification and management of potential risks such as technical challenges, schedule delays, or budget overruns.
How does the pricing structure (Firm Fixed Price) compare to industry benchmarks for similar long-term engineering service contracts, and what is the potential for cost savings or overruns?
A Firm Fixed Price (FFP) contract aims to provide cost certainty. However, for complex, long-term engineering projects, FFP can sometimes lead to contractor risk if unforeseen issues arise, potentially impacting quality or leading to change orders. Benchmarking against similar FFP contracts in the engineering services sector would be necessary to assess if the $73.5 million award represents competitive pricing.
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: 180 HARTWELL RD, BEDFORD, MA, 01730
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: $73,556,894
Exercised Options: $73,495,894
Current Obligation: $73,495,894
Actual Outlays: $41,277,908
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTFA0196C03008E
IDV Type: IDC
Timeline
Start Date: 2017-08-24
Current End Date: 2021-09-30
Potential End Date: 2022-03-31 00:00:00
Last Modified: 2022-08-05
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