Raytheon Awarded $288M for Engineering Technical Services by Defense Threat Reduction Agency
Contract Overview
Contract Amount: $288,322,260 ($288.3M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Defense
Start Date: 2005-06-08
End Date: 2010-12-31
Contract Duration: 2,032 days
Daily Burn Rate: $141.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200512!502062!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0013 !A!N! !N!0016 ! !20050608!20080930!931871438!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DRIVE!RESTON !VA!20191!00000! !RS!* !* !RUSSIA !+000050228526!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!C!20060828!B! ! !A! !A!U!R!2!002!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !
Plain-Language Summary
Department of Defense obligated $288.3 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: 200512!502062!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0013 !A!N! !N!0016 ! !20050608!20080930!931871438!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DRIVE!RESTON !VA!20191!00000! !RS!* !* … Key points: 1. The contract value of $288.3M is significant, indicating a substantial need for these services. 2. Raytheon Technical Services Company LLC is the sole awardee, raising questions about competition. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, potentially masking specific service costs. 4. This contract falls under the Defense sector, specifically supporting the Defense Threat Reduction Agency's mission.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee (CPAF) structure can lead to costs exceeding initial estimates if not managed tightly. Benchmarking against similar broad service contracts is difficult without more specific task orders.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While listed as full and open competition, the award went to a single entity. Further investigation is needed to understand if the competition was truly robust or if specific requirements favored one bidder.
Taxpayer Impact: The substantial value of this contract represents a significant taxpayer investment, with the ultimate value dependent on the effective delivery of services and cost control.
Public Impact
Supports critical national security functions through the Defense Threat Reduction Agency. Potential for technology development and application in threat reduction. Impacts the professional services sector, particularly in specialized technical support for defense agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on the specific services provided under the broad NAICS code.
- Potential for cost overruns due to the CPAF contract type.
- Limited insight into the competitive landscape despite 'full and open' designation.
Positive Signals
- Supports a vital national security agency.
- Long contract duration suggests sustained need for services.
- Awardee has a significant presence in the defense contracting space.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically supporting defense-related technical services. Benchmarks for this broad category can vary widely, but the contract value suggests a significant scale of operation.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as indicated by 'sb: false'. There is no information on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract's oversight will depend on the Defense Threat Reduction Agency's internal controls and reporting mechanisms for CPAF contracts. The duration and value necessitate diligent monitoring to ensure performance and cost-effectiveness.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Broad NAICS code lacks specificity on services rendered.
- Limited transparency on the competitive process despite 'full and open' designation.
- No indication of small business subcontracting participation.
Tags
all-other-professional-scientific-and-te, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $288.3 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. 200512!502062!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0013 !A!N! !N!0016 ! !20050608!20080930!931871438!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DRIVE!RESTON !VA!20191!00000! !RS!* !* !RUSSIA !+000050228526!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!C!200
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 $288.3 million.
What is the period of performance?
Start: 2005-06-08. End: 2010-12-31.
What specific technical services are being provided under this contract, and how do they align with DTRA's core mission objectives?
The contract is broadly categorized under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). Specific details on the technical services are not provided in this data. These services likely support DTRA's mission of countering weapons of mass destruction, potentially involving research, analysis, or technical support for threat reduction programs. Further documentation would be needed to clarify the exact nature of the engineering and technical support.
Given the Cost Plus Award Fee structure, what mechanisms are in place to ensure cost control and prevent potential overruns?
Cost Plus Award Fee (CPAF) contracts typically include performance metrics and award fee criteria tied to achieving specific objectives. The Defense Threat Reduction Agency would have established these criteria and would be responsible for evaluating Raytheon's performance against them. Robust oversight, regular performance reviews, and clear communication channels are crucial to managing costs and ensuring the government receives value for the award fees paid.
How was the 'full and open competition' process managed to ensure a fair evaluation of all potential bidders, and what was the competitive landscape?
While designated as 'full and open competition,' the award to a single entity warrants further examination. It's possible that only one offeror met the stringent technical requirements, or that the solicitation was structured in a way that naturally led to a single awardee. Understanding the number of proposals received and the evaluation criteria used would provide more insight into the competitiveness of the process and whether it truly maximized value for the government.
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
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
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, Manufacturer of Goods, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTRA0101D0013
IDV Type: IDC
Timeline
Start Date: 2005-06-08
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2024-11-22
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