DoD Awards Raytheon $39.5M for Tactical Engagement Simulations Sustainment
Contract Overview
Contract Amount: $39,510,690 ($39.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2017-10-27
End Date: 2019-04-17
Contract Duration: 537 days
Daily Burn Rate: $73.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TACTICAL ENGAGEMENT SIMULATIONS (TES) AWARD OF LOT 10 TASK ORDER FOR TES SUSTAINMENT
Place of Performance
Location: FAIRDALE, JEFFERSON County, KENTUCKY, 40118
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $39.5 million to RAYTHEON COMPANY for work described as: TACTICAL ENGAGEMENT SIMULATIONS (TES) AWARD OF LOT 10 TASK ORDER FOR TES SUSTAINMENT Key points: 1. Significant contract value for simulation sustainment services. 2. Raytheon Company is a major defense contractor, indicating established capabilities. 3. Risk is moderate, given the fixed-price contract type and established provider. 4. Engineering services sector, crucial for military readiness and training.
Value Assessment
Rating: good
The $39.5M award for sustainment appears reasonable for a multi-year task order of this nature. Benchmarking against similar simulation sustainment contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense simulation services.
Public Impact
Ensures continued operational readiness of critical training systems. Supports advanced military training scenarios, enhancing warfighter preparedness. Contributes to the technological edge of U.S. forces.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for scope creep in sustainment services.
- Dependence on a single contractor for critical simulation support.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type limits cost overruns.
- Supports essential military training capabilities.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense simulation and training. Spending in this area is vital for maintaining military readiness and technological superiority.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The Department of the Army's oversight is crucial to ensure Raytheon meets performance requirements and manages costs effectively throughout the contract duration.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost growth if sustainment needs exceed initial estimates.
- Risk of vendor lock-in for specialized simulation support.
- Dependence on contractor's ability to maintain system integrity over time.
- Need for continuous monitoring of technological advancements to avoid obsolescence.
Tags
engineering-services, department-of-defense, ky, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.5 million to RAYTHEON COMPANY. TACTICAL ENGAGEMENT SIMULATIONS (TES) AWARD OF LOT 10 TASK ORDER FOR TES SUSTAINMENT
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 $39.5 million.
What is the period of performance?
Start: 2017-10-27. End: 2019-04-17.
What is the historical performance of Raytheon Company on similar sustainment contracts?
Raytheon Company has a long history of providing complex engineering and sustainment services to the Department of Defense. Their performance on similar contracts typically involves meeting stringent technical requirements and delivery schedules. However, specific performance metrics for this particular task order would require access to contract performance reports and user feedback.
Are there any identified risks associated with the long-term sustainment of these tactical engagement simulation systems?
Long-term sustainment risks can include technological obsolescence of the simulation systems, availability of spare parts, and the need for specialized technical expertise. Ensuring adequate funding for ongoing maintenance and upgrades is also critical. The firm fixed-price nature of this award helps mitigate cost risks for the government, but performance risks remain.
How effectively does this contract contribute to the overall training objectives of the Department of the Army?
This contract is essential for ensuring the operational availability and effectiveness of Tactical Engagement Simulations, which are vital for realistic and immersive military training. By providing sustainment, it directly supports the Army's ability to conduct complex training scenarios, thereby enhancing warfighter readiness and proficiency. The reliability of these systems is paramount to achieving training objectives.
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: $39,510,690
Exercised Options: $39,510,690
Current Obligation: $39,510,690
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: 2017-10-27
Current End Date: 2019-04-17
Potential End Date: 2019-04-17 00:00:00
Last Modified: 2021-02-19
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