Dod Navy Awards Raytheon $76M for Remanufacture, Overhaul or Repair Secrep Services
Contract Overview
Contract Amount: $76,276,731 ($76.3M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Defense
Start Date: 2010-11-10
End Date: 2017-06-20
Contract Duration: 2,414 days
Daily Burn Rate: $31.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE REDETERMINATION
Sector: Defense
Official Description: REMANUFACTURE, OVERHAUL OR REPAIR SECREP
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $76.3 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: REMANUFACTURE, OVERHAUL OR REPAIR SECREP Key points: 1. Significant contract value of $76.3M over 7 years. 2. Raytheon Technical Services Company LLC is the sole awardee. 3. Fixed Price Redetermination contract type introduces pricing risk. 4. Services fall under Process, Physical Distribution, and Logistics Consulting.
Value Assessment
Rating: fair
The contract type, Fixed Price Redetermination, allows for price adjustments, which can lead to cost overruns if not managed carefully. Benchmarking against similar logistics and repair contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific awardee is Raytheon Technical Services Company LLC, and the contract type may limit price discovery post-award.
Taxpayer Impact: Taxpayer funds are utilized for extensive repair and overhaul services, with potential for cost increases due to the contract's redetermination clause.
Public Impact
Ensures operational readiness of critical SECREP equipment for the Navy. Supports a major defense contractor's service division. Long-term contract duration (7 years) indicates ongoing need. Potential for cost escalation impacts budget predictability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed Price Redetermination contract type
- Long contract duration
- Sole awardee for specific services
Positive Signals
- Full and open competition initially
- Essential defense service provision
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically logistics consulting. Defense spending in this area is substantial, supporting military readiness and complex equipment maintenance.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is a large corporation. Opportunities for small businesses would likely be through subcontracting, which is not detailed here.
Oversight & Accountability
Oversight would focus on the effective execution of repair and overhaul services, adherence to performance standards, and management of the redetermination pricing mechanism by the Department of the Navy.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to Fixed Price Redetermination.
- Lack of detail on specific SECREP systems and their criticality.
- Limited insight into the competitive bidding process outcomes.
- No clear indication of small business participation.
- Long contract duration may not reflect evolving technological needs.
Tags
process-physical-distribution-and-logist, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.3 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. REMANUFACTURE, OVERHAUL OR REPAIR SECREP
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $76.3 million.
What is the period of performance?
Start: 2010-11-10. End: 2017-06-20.
What specific SECREP systems are being serviced, and what is the criticality of these systems to naval operations?
The specific SECREP systems are not detailed in the provided data. Understanding the criticality of these systems is crucial for assessing the true value and necessity of this contract. If these systems are vital for mission success or safety, the $76M expenditure might be justified, but without this context, it's difficult to fully evaluate the spending's effectiveness.
How were the redetermined prices established, and what mechanisms are in place to prevent excessive cost growth?
The data does not specify the methodology for price redetermination. Effective oversight would require clear criteria for cost adjustments, robust auditing of contractor expenses, and potentially independent cost analysis by the Navy to ensure fair pricing and prevent unjustified cost escalations.
What was the competitive landscape during the initial full and open competition, and why was Raytheon Technical Services Company LLC ultimately selected?
While the award was made under full and open competition, the specific details of the bidding process and the evaluation criteria are not provided. Understanding the number of bidders and the basis for selecting Raytheon would offer insight into whether the government secured the best value and competitive pricing.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6700410R0002
Pricing Type: FIXED PRICE REDETERMINATION (A)
Evaluated Preference: NONE
Contractor Details
Parent Company: Raytheon Company (UEI: 001339159)
Address: 12160 SUNRISE VALLEY DR, RESTON, VA, 20191
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $76,276,731
Exercised Options: $76,276,731
Current Obligation: $76,276,731
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6700410D0021
IDV Type: IDC
Timeline
Start Date: 2010-11-10
Current End Date: 2017-06-20
Potential End Date: 2017-06-20 00:00:00
Last Modified: 2018-04-06
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