DoD's $38.5M Tactical Engagement Systems Contract Awarded to Raytheon Company

Contract Overview

Contract Amount: $38,469,276 ($38.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2017-04-26

End Date: 2018-09-26

Contract Duration: 518 days

Daily Burn Rate: $74.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF TACTICAL ENGAGEMENT SYSTEMS (TES)

Place of Performance

Location: FAIRDALE, JEFFERSON County, KENTUCKY, 40118

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $38.5 million to RAYTHEON COMPANY for work described as: IGF::CT::IGF TACTICAL ENGAGEMENT SYSTEMS (TES) Key points: 1. Contract value of $38.5M for Tactical Engagement Systems. 2. Awarded to Raytheon Company under full and open competition. 3. Potential risk associated with firm-fixed-price contract type. 4. Spending falls within Engineering Services sector (NAICS 541330).

Value Assessment

Rating: good

The contract value of $38.5M appears reasonable for specialized engineering services. Benchmarking against similar complex system development contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

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

Taxpayer Impact: Competitive bidding in this full and open process likely resulted in a fair price, maximizing taxpayer value for these critical systems.

Public Impact

Enhances tactical engagement capabilities for the Department of the Army. Supports military readiness and operational effectiveness. Represents investment in advanced defense technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Firm-fixed-price contract may shift cost overruns to the government.
Contract duration of 518 days could lead to scope creep if not managed.

Positive Signals

Awarded via full and open competition.
Clear definition of services (Engineering Services).

Sector Analysis

This contract falls under Engineering Services, a sector crucial for developing and maintaining complex defense systems. Spending benchmarks for similar large-scale engineering projects are typically in the tens to hundreds of millions.

Small Business Impact

The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of small business participation in the provided data.

Oversight & Accountability

The Department of Defense's contracting oversight should ensure adherence to the firm-fixed-price terms and manage any potential scope changes effectively.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Firm-fixed-price contract risk
Potential for scope creep
Lack of small business participation noted
Contract duration of over a year

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 million to RAYTHEON COMPANY. IGF::CT::IGF TACTICAL ENGAGEMENT SYSTEMS (TES)

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 $38.5 million.

What is the period of performance?

Start: 2017-04-26. End: 2018-09-26.

What specific tactical engagement capabilities does this contract aim to enhance, and how does it align with current military doctrine?

The contract for Tactical Engagement Systems (TES) likely focuses on improving battlefield communication, targeting, and situational awareness for Army personnel. Its alignment with military doctrine would depend on the specific technological advancements and operational requirements it addresses, aiming to provide a decisive advantage in modern combat scenarios.

What are the primary risks associated with a firm-fixed-price contract for complex engineering services like this, and how are they mitigated?

The primary risk of a firm-fixed-price contract for complex engineering is that the contractor may incur cost overruns, potentially leading to reduced quality or requests for contract modifications. Mitigation involves robust initial cost estimation, clear performance specifications, and diligent government oversight to prevent scope creep and ensure adherence to the agreed-upon price.

How does the $38.5M expenditure compare to similar investments in tactical engagement systems by other nations or previous DoD programs?

Comparing this $38.5M expenditure requires access to specific program data and market intelligence. However, for advanced, specialized systems, this figure is within a typical range for development and integration contracts. Significant deviations from historical spending on similar capabilities or competitor bids would warrant further investigation into value for money.

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: $38,469,276

Exercised Options: $38,469,276

Current Obligation: $38,469,276

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK07D0001

IDV Type: IDC

Timeline