DoD awards $64.6M Cost Plus Award Fee contract to Raytheon for technical services
Contract Overview
Contract Amount: $64,599,408 ($64.6M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Defense
Start Date: 2007-05-18
End Date: 2011-09-30
Contract Duration: 1,596 days
Daily Burn Rate: $40.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: COST PLUS AWARD FEE TASK ORDERS
Plain-Language Summary
Department of Defense obligated $64.6 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: COST PLUS AWARD FEE TASK ORDERS Key points: 1. Significant contract value awarded to a single large business. 2. Competition method was full and open, suggesting potential for competitive pricing. 3. Contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure allows for cost reimbursement plus an award fee based on performance. Without specific award fee criteria and outcomes, it's difficult to definitively assess value, but this structure can lead to higher costs than fixed-price contracts if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specific award mechanism (Delivery Order) and the Cost Plus Award Fee structure mean that the final price is not fixed upfront and depends on performance and costs incurred.
Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently. However, the Cost Plus Award Fee structure necessitates robust oversight to prevent cost overruns and ensure value for money.
Public Impact
Defense Threat Reduction Agency relies on these technical services for critical national security missions. Raytheon Technical Services Company LLC, a major defense contractor, is the awardee. The contract duration of over 4 years indicates a long-term need for these specialized services. The broad NAICS code suggests a wide range of potential technical support activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type requires diligent oversight to control costs and ensure performance.
- No indication of small business participation.
- The contract was a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, which could limit transparency on the overall program cost.
Positive Signals
- Awarded under full and open competition.
- Significant contract value awarded to a known entity.
- Contract duration suggests a stable, ongoing requirement.
Sector Analysis
This contract falls under the 'All Other Professional, Scientific, and Technical Services' sector, which is broad and encompasses a wide array of specialized support. Spending in this sector can vary significantly based on agency needs, but typically involves high-skilled labor and complex problem-solving.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no information provided regarding subcontracting opportunities for small businesses.
Oversight & Accountability
The Cost Plus Award Fee contract type necessitates strong government oversight to monitor costs, evaluate performance against award criteria, and ensure the contractor is delivering value. The Defense Threat Reduction Agency is responsible for this oversight.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Cost Plus Award Fee structure requires robust oversight.
- No small business participation indicated.
- Potential for cost overruns if not managed effectively.
- Lack of transparency on total contract value beyond obligated amount.
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 $64.6 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. COST PLUS AWARD FEE TASK ORDERS
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 $64.6 million.
What is the period of performance?
Start: 2007-05-18. End: 2011-09-30.
What were the specific performance metrics and award fee criteria used to determine the final award fee, and how did Raytheon perform against them?
The specific performance metrics and award fee criteria are not detailed in the provided data. For a Cost Plus Award Fee contract, these criteria are crucial for assessing value. They typically relate to technical performance, schedule adherence, and cost control. Without knowing these metrics and Raytheon's performance against them, it's impossible to fully evaluate the 'award' portion of the fee and thus the overall value achieved for the taxpayer.
What is the total potential value of the contract, considering the base cost plus the maximum possible award fee?
The provided data shows an obligated amount of $64,599,407.97. The contract type is Cost Plus Award Fee. To determine the total potential value, one would need to know the ceiling price or the maximum potential award fee. Without this information, we can only assess the obligated amount, not the full potential cost to the government.
How does the per-unit cost of these services compare to similar services procured by the government or in the commercial sector?
A direct per-unit cost benchmark is not possible with the provided data. The contract is for 'All Other Professional, Scientific, and Technical Services' under a Cost Plus Award Fee structure, making a simple per-unit comparison difficult. Benchmarking would require detailed knowledge of the specific services rendered, labor categories, hours, and the contractor's fee structure, which are not available here.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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
Financial Breakdown
Contract Ceiling: $67,813,589
Exercised Options: $67,813,589
Current Obligation: $64,599,408
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DTRA0101D0013
IDV Type: IDC
Timeline
Start Date: 2007-05-18
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2024-11-22
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