DoD Awards Raytheon $40.8M for Tactical Engagement Simulation Services

Contract Overview

Contract Amount: $40,871,915 ($40.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2016-04-18

End Date: 2017-10-31

Contract Duration: 561 days

Daily Burn Rate: $72.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Engineering Services

Official Description: IGF::CT::IGF TACTICAL ENGAGEMENT SIMULATION

Place of Performance

Location: FAIRDALE, JEFFERSON County, KENTUCKY, 40118

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $40.9 million to RAYTHEON COMPANY for work described as: IGF::CT::IGF TACTICAL ENGAGEMENT SIMULATION Key points: 1. Significant contract value for specialized simulation technology. 2. Raytheon Company is a major defense contractor, indicating established competition. 3. Risk is moderate given the fixed-price contract and established vendor. 4. Engineering services sector, crucial for military readiness and training.

Value Assessment

Rating: good

The $40.8M award for engineering services appears reasonable given the scope of tactical engagement simulation. Benchmarking against similar complex simulation contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by fostering a competitive environment among potential bidders.

Public Impact

Enhances military training capabilities through advanced simulation. Supports Department of the Army's operational readiness. Potential for follow-on contracts based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively short (561 days).
Specific performance metrics not detailed.

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type.

Sector Analysis

This contract falls within the Engineering Services sector, specifically for simulation and training systems. Spending in this area is critical for maintaining a technologically advanced military.

Small Business Impact

No indication of small business participation in this specific award. Larger prime contractors often manage subcontracting opportunities, but direct involvement is not specified.

Oversight & Accountability

Standard DoD oversight processes are expected to apply. The fixed-price nature of the contract provides some inherent cost control.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Contract duration is less than two years.
Potential for scope creep if requirements are not clearly defined.
Dependence on a single prime contractor for a critical capability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.9 million to RAYTHEON COMPANY. IGF::CT::IGF TACTICAL ENGAGEMENT SIMULATION

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 $40.9 million.

What is the period of performance?

Start: 2016-04-18. End: 2017-10-31.

What is the specific technical capability being delivered by this simulation system?

The contract specifies 'TACTICAL ENGAGEMENT SIMULATION,' implying a system designed to replicate combat scenarios for training purposes. This could range from individual soldier training to large-scale unit exercises, focusing on tactical decision-making and operational execution in realistic environments.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators are not explicitly detailed in the provided data. However, for simulation contracts, typical KPIs would likely include system reliability, fidelity of the simulation, user feedback on realism and training effectiveness, and adherence to delivery schedules for updates or enhancements.

How does this contract contribute to overall military readiness and modernization?

This contract directly contributes to military readiness by providing advanced training tools that allow personnel to practice complex tactical scenarios in a safe and cost-effective virtual environment. It supports modernization by ensuring training methods keep pace with evolving threats and technologies.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 2603 CHALLENGER CT STE150, ORLANDO, FL, 32826

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,871,915

Exercised Options: $40,871,915

Current Obligation: $40,871,915

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK07D0001

IDV Type: IDC

Timeline