Raytheon Company awarded $14.58M for Gunnery and Maintenance Trainers by the Department of Defense
Contract Overview
Contract Amount: $14,580,872 ($14.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2009-05-01
End Date: 2011-09-30
Contract Duration: 882 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TO 0115, GUNNERY AND MAINTENANCE TRAINERS
Place of Performance
Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40201
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $14.6 million to RAYTHEON COMPANY for work described as: TO 0115, GUNNERY AND MAINTENANCE TRAINERS Key points: 1. Value for money appears fair given the firm-fixed-price contract type and duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract and a defined performance period. 4. Performance context is within engineering services for training equipment. 5. Sector positioning is within defense procurement for specialized training systems.
Value Assessment
Rating: fair
The contract value of $14.58 million for Gunnery and Maintenance Trainers over 882 days (approximately 2.4 years) suggests a moderate annual spend. Without specific details on the trainers' capabilities or the number of units procured, a direct comparison to similar contracts is challenging. However, the firm-fixed-price nature of the award implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the scope is well-defined. The benchmark for such specialized training systems can vary widely based on complexity and technology.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a degree of competition, though the exact number of proposals received and their relative strengths are not detailed. A full and open competition generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality by allowing a wide range of contractors to participate.
Public Impact
The Department of Defense benefits through the acquisition of essential training equipment. Gunnery and maintenance trainers are delivered to support military readiness and operational effectiveness. The geographic impact is primarily in Kentucky (ST), where the contract is managed or delivered. Workforce implications include employment for engineers, technicians, and manufacturing personnel involved in the development and production of these trainers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if training requirements are not precisely defined.
- Dependence on a single contractor for specialized training system maintenance and upgrades.
Positive Signals
- Firm-fixed-price contract structure limits cost uncertainty for the government.
- Full and open competition suggests a competitive bidding process.
- Awarded to a well-established defense contractor with relevant expertise.
Sector Analysis
The defense training and simulation sector is a significant market within the broader aerospace and defense industry. Companies like Raytheon specialize in developing advanced simulation and training solutions for military applications. This contract for Gunnery and Maintenance Trainers fits within this niche, providing critical capabilities for personnel development. Spending in this sector is driven by the need for realistic and cost-effective training methods to maintain military readiness.
Small Business Impact
There is no indication from the provided data that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The award was made to Raytheon Company, a large defense contractor. Further analysis would be needed to determine if Raytheon has a subcontracting plan in place that benefits small businesses.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified trainers. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Training Systems
- Military Simulation Equipment
- Gunnery Training Devices
- Maintenance Training Simulators
Risk Flags
- Contract duration is relatively long (882 days).
- Specific trainer capabilities not detailed, making value assessment difficult.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, firm-fixed-price, delivery-order, full-and-open-competition, raytheon-company, training-equipment, gunnery-trainers, maintenance-trainers, kentucky
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to RAYTHEON COMPANY. TO 0115, GUNNERY AND MAINTENANCE TRAINERS
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $14.6 million.
What is the period of performance?
Start: 2009-05-01. End: 2011-09-30.
What is the specific type and complexity of the Gunnery and Maintenance Trainers procured under this contract?
The provided data does not specify the exact type or complexity of the Gunnery and Maintenance Trainers. These could range from simple simulators for basic weapon systems to highly sophisticated virtual reality training environments for complex aircraft or vehicle maintenance procedures. The "TO 0115" designation might refer to a specific technical order or equipment series, but without further context, the precise nature of the trainers remains unknown. Understanding the specific capabilities is crucial for benchmarking costs and assessing the overall value proposition of the contract.
How does the per-unit cost of these trainers compare to similar systems in the market?
A per-unit cost comparison is not possible with the current data. The total award amount of $14.58 million is for an unspecified number of trainers and associated services (like maintenance and potentially software updates) over a period of 882 days. To establish a per-unit cost benchmark, we would need to know the quantity of trainers procured and their specific functionalities. Market rates for military training systems vary dramatically based on technological sophistication, fidelity of simulation, and integration requirements. Without these details, any cost comparison would be speculative.
What was the estimated cost or value of competing proposals during the full and open competition?
The provided data does not include information on the estimated cost or value of competing proposals. While the contract was awarded under full and open competition with two bidders, the details of the proposals submitted, including their pricing structures and technical approaches, are not publicly available. This information would be necessary to fully assess the competitiveness of the final award price and understand the range of solutions considered by the Department of Defense.
What is Raytheon Company's track record with similar defense training system contracts?
Raytheon Company is a major defense contractor with extensive experience in developing and producing advanced systems, including simulation and training solutions. They have a history of delivering complex technological products to various branches of the U.S. military and international allies. While specific details on their past performance related to "Gunnery and Maintenance Trainers" are not provided here, their general profile suggests a capacity to handle such contracts. A deeper dive into their contract history, past performance reviews, and any relevant program management successes or challenges would provide a more comprehensive assessment.
What are the key performance metrics used to evaluate the success of these trainers?
The provided contract data does not specify the key performance metrics (KPIs) used to evaluate the success of these Gunnery and Maintenance Trainers. Typically, for training systems, KPIs might include measures of training effectiveness (e.g., improved skill acquisition rates, reduced training time), system reliability and uptime, user feedback, and adherence to technical specifications. The firm-fixed-price nature of the contract implies that meeting the defined scope and specifications is a primary measure of success, but specific operational or training outcome metrics would likely be detailed in the contract's statement of work.
How has spending on Gunnery and Maintenance Trainers evolved over the past five years for the Department of the Army?
Historical spending data on Gunnery and Maintenance Trainers for the Department of the Army is not available within the provided information. This specific contract award is for $14.58 million, with performance from 2009 to 2011. To analyze spending trends, one would need access to historical contract databases that track procurement of similar items over multiple fiscal years. Such an analysis would reveal whether spending in this category has increased, decreased, or remained stable, potentially influenced by changes in military doctrine, equipment modernization, or budget allocations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 2603 CHALLENGER CT STE150, ORLANDO, FL, 32826
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,580,872
Exercised Options: $14,580,872
Current Obligation: $14,580,872
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK07D0001
IDV Type: IDC
Timeline
Start Date: 2009-05-01
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2024-05-14
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