GSA awards Raytheon $194M for Computer Systems Design Services over 10 years

Contract Overview

Contract Amount: $194,152,220 ($194.2M)

Contractor: Raytheon Company

Awarding Agency: General Services Administration

Start Date: 2000-05-15

End Date: 2010-06-01

Contract Duration: 3,669 days

Daily Burn Rate: $52.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $194.2 million to RAYTHEON COMPANY for work described as: Key points: 1. Significant contract value of $194.15M awarded to a major defense contractor. 2. Competition type is 'Competitive Delivery Order', indicating some level of bidding. 3. Risk is moderate due to long duration and potential for scope creep. 4. Sector is IT services, specifically computer systems design.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests good value control. Benchmarking against similar large-scale IT service contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

Awarded as a 'Competitive Delivery Order', implying competition occurred, but the specific number of bidders and the nature of the competition (e.g., on a larger IDIQ) are not detailed. This limits full price discovery transparency.

Taxpayer Impact: Taxpayer funds are utilized for IT services. The competitive nature, even if limited, aims to secure reasonable pricing, but the long duration could impact long-term cost-effectiveness.

Public Impact

Ensures continued access to essential computer systems design services for the government. Supports a major defense contractor, potentially impacting the IT services market. Long-term nature of the contract provides stability for both the agency and the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) increases risk of cost escalation and obsolescence.
Limited details on the competitive process for the delivery order.

Positive Signals

Firm fixed price contract type helps control costs.
Awarded to a reputable contractor with extensive experience.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government agencies, with benchmarks varying widely based on complexity and duration.

Small Business Impact

The data indicates the award went to Raytheon Company, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

Oversight would typically be managed by the General Services Administration (GSA) through contract officers and technical monitors to ensure performance and adherence to terms. The long duration necessitates ongoing vigilance.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Long contract duration (10 years)
Potential for technology obsolescence
Limited transparency on specific competition details
Risk of contractor lock-in
Scope creep potential over a decade

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $194.2 million to RAYTHEON COMPANY. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $194.2 million.

What is the period of performance?

Start: 2000-05-15. End: 2010-06-01.

What was the specific competitive process for this delivery order, and how many bids were received?

The data states 'COMPETITIVE DELIVERY ORDER', suggesting multiple bids were solicited. However, the exact number of bidders and the evaluation criteria are not provided. Understanding this would clarify the extent of price competition and ensure fair market value was achieved.

How does the per-unit cost or overall contract value compare to similar IT systems design services procured by the government?

Without specific line-item details or a breakdown of services rendered, a direct per-unit cost comparison is difficult. The total value of $194.15M over 10 years suggests an average annual spend of $19.4M. Benchmarking this against similar large-scale, long-term IT service contracts would be crucial for assessing value.

What mechanisms are in place to ensure the services remain relevant and cost-effective given the 10-year duration?

The firm fixed price structure provides initial cost certainty. However, long-term relevance and cost-effectiveness depend on contract clauses allowing for adjustments, regular performance reviews, and potential re-competition or modification if technology or requirements significantly change. Active contract management is key.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 12160 SUNRISE VALLEY DR, RESTON, VA, 20191

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $228,062,396

Exercised Options: $228,062,396

Current Obligation: $194,152,220

Parent Contract

Parent Award PIID: GS00T99ALD0209

IDV Type: GWAC

Timeline