Raytheon Technical Services Co. awarded $1.95B for logistics support, with a significant portion for Russia-related efforts

Contract Overview

Contract Amount: $195,068,737 ($195.1M)

Contractor: Raytheon Technical Services Company LLC

Awarding Agency: Department of Defense

Start Date: 2005-07-15

End Date: 2011-07-16

Contract Duration: 2,192 days

Daily Burn Rate: $89.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200511!502164!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0013 !A!N! !Y!0017 ! !20050715!20110716!931871438!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DRIVE!RESTON !VA!20191!00000! !RS!* !* !RUSSIA !+000008055596!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !541990!E! !5!B!S! ! ! !20200930!B! ! !N!Z!A!U!R!2!001!B! !Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $195.1 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: 200511!502164!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0013 !A!N! !Y!0017 ! !20050715!20110716!931871438!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DRIVE!RESTON !VA!20191!00000! !RS!* !* … Key points: 1. Contract value of $1.95 billion over its life, indicating a substantial investment in logistics support services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period of over 6 years (2192 days) implies a long-term need for these services. 4. The contract's focus on Russia suggests a strategic geopolitical component to the logistics support. 5. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of work. 6. Award type is 'Delivery Order', which is common for task-based or phased service contracts.

Value Assessment

Rating: fair

The total award amount of $1.95 billion is substantial. Without specific performance metrics or comparable contracts for similar specialized logistics support, a precise value-for-money assessment is difficult. The contract type (Cost Plus Award Fee) allows for flexibility but can also lead to higher costs if award fees are consistently met without strict cost controls. Benchmarking against similar long-term, geographically specific logistics contracts would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition', indicating that all responsible sources were permitted to submit a bid. This generally promotes competitive pricing and innovation. The number of bidders is not specified in the provided data, which limits the assessment of the intensity of the competition. However, the 'full and open' designation is a positive indicator for price discovery.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Threat Reduction Agency (DTRA). Services delivered include logistics support, crucial for the agency's mission, particularly concerning Russia. The geographic impact is implied to be significant, with a specific mention of Russia, suggesting international operations or support. Workforce implications could include specialized logistics personnel, analysts, and technical experts required to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher overall costs if not managed tightly.
The long duration of the contract may present risks related to evolving technological needs or geopolitical shifts.
Lack of specific details on the number of bidders limits the assessment of competitive intensity.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract addresses a critical national security need related to defense threat reduction.
The contractor, Raytheon Technical Services Company, is a well-established entity in the defense sector.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to defense logistics. The market for defense logistics support is substantial, driven by global military operations and the need for specialized services. Raytheon Technical Services Company is a major player in this sector, competing with other large defense contractors. The contract's focus on a specific geopolitical region (Russia) highlights the specialized nature of the services required.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting plans for this contract. As a large prime contract awarded to Raytheon Technical Services Company, it is possible that subcontracting opportunities may exist for small businesses, but this is not explicitly detailed. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Threat Reduction Agency's program management. The Cost Plus Award Fee structure necessitates robust oversight to ensure performance targets are met and costs are controlled. Transparency is generally maintained through contract reporting requirements, though specific public access to detailed performance data may be limited due to national security considerations.

Related Government Programs

Defense Logistics Agency (DLA) contracts
Department of Defense IT and professional services
Geopolitical threat reduction programs
International security cooperation initiatives

Risk Flags

Geopolitical Risk (Russia Focus)
Cost Overruns (CPAF Structure)
Long-term Performance Monitoring
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $195.1 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. 200511!502164!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0013 !A!N! !Y!0017 ! !20050715!20110716!931871438!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DRIVE!RESTON !VA!20191!00000! !RS!* !* !RUSSIA !+000008055596!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !541990!E! !5!B!S! ! ! !202

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 $195.1 million.

What is the period of performance?

Start: 2005-07-15. End: 2011-07-16.

What is the historical spending pattern for similar logistics support services provided by Raytheon Technical Services Company to the DoD?

Analyzing historical spending for Raytheon Technical Services Company (RTSC) on similar logistics support contracts with the Department of Defense (DoD) requires access to comprehensive contract databases. Generally, RTSC, as a subsidiary of Raytheon Technologies, has a significant track record in providing a wide array of technical and support services to the DoD, including logistics, maintenance, and systems integration. Their past performance often involves large, multi-year contracts. Without specific data points on prior contracts of this exact nature (e.g., duration, specific services, geographic focus), a direct comparison is challenging. However, the $1.95 billion award suggests a continuation or expansion of services that align with RTSC's established capabilities in supporting complex defense missions, often involving substantial financial commitments over extended periods.

How does the awarded amount of $1.95 billion compare to the initial estimated cost or ceiling for this contract?

The provided data indicates a total award amount of $1,950,687,374.30. However, the data does not include information on the initial estimated cost or the contract's ceiling value. Contracts, especially Cost Plus Award Fee (CPA F) types, often have an estimated cost and a target fee, with an award fee component tied to performance. The final cost can fluctuate based on performance and the achievement of award criteria. To compare the awarded amount to an initial estimate or ceiling, one would need access to the original contract solicitation documents or modifications that detail these figures. The current data only provides the realized award value.

What specific performance metrics are used to determine the 'award fee' in this Cost Plus Award Fee contract?

The provided data specifies the contract type as 'Cost Plus Award Fee' (CPAF) but does not detail the specific performance metrics used to determine the award fee. In CPAF contracts, the government establishes criteria related to technical performance, cost control, schedule adherence, and management. The contractor receives a base fee plus an award fee, which is determined by the government's subjective evaluation of the contractor's performance against these predefined criteria. These metrics are typically outlined in the contract's Performance Work Statement (PWS) and the contract clauses related to award fee determination. Without access to the full contract document, the precise metrics remain unknown.

What is the breakdown of services provided under this contract, and how does it relate to the 'All Other Professional, Scientific, and Technical Services' NAICS code?

The contract is described as 'LOGISTICS SUPPORT SERVICES' and falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad NAICS code encompasses a wide range of non-classified services. For this contract, 'logistics support services' likely includes activities such as supply chain management, inventory control, transportation coordination, maintenance planning, technical support, and potentially specialized analytical or advisory services related to the movement and sustainment of defense assets. The broadness of the NAICS code suggests the contract could cover a diverse set of tasks that don't fit into more specific service categories, emphasizing the comprehensive nature of the support required by the Defense Threat Reduction Agency.

What are the potential risks associated with the contract's focus on Russia, given the geopolitical context?

The contract's explicit mention of 'RUSSIA' as a focus area for logistics support introduces significant geopolitical risks. These risks can include fluctuating diplomatic relations, potential sanctions, security concerns for personnel and assets operating in or related to the region, and the possibility of sudden shifts in mission requirements due to international events. Changes in U.S. foreign policy or Russian government actions could impact the feasibility, cost, or even the continuation of the contract. Furthermore, the nature of threat reduction activities in such a sensitive geopolitical environment may involve classified information or operations, adding layers of security and compliance risks.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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

Financial Breakdown

Contract Ceiling: $179,007,452

Exercised Options: $217,051,610

Current Obligation: $195,068,737

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRA0101D0013

IDV Type: IDC

Timeline