NASA's $131M IT services contract with Raytheon STX Corporation awarded in 1999, spanning over 5 years
Contract Overview
Contract Amount: $131,029,831 ($131.0M)
Contractor: Raytheon STX Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1999-10-29
End Date: 2004-01-31
Contract Duration: 1,555 days
Daily Burn Rate: $84.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 75
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: NASA AMES FEDERAL INFORMATION PROCESSING (FIP)SERVICES
Place of Performance
Location: MOUNTAIN VIEW, SANTA CLARA County, CALIFORNIA, 94035
Plain-Language Summary
National Aeronautics and Space Administration obligated $131.0 million to RAYTHEON STX CORPORATION for work described as: NASA AMES FEDERAL INFORMATION PROCESSING (FIP)SERVICES Key points: 1. Contract value of $131 million over 5 years suggests a significant investment in IT infrastructure and services. 2. Awarded under full and open competition, indicating a broad market search for the best value. 3. The contract type (Cost Plus Incentive Fee) suggests a focus on performance-based outcomes with shared risk and reward. 4. Long duration of 1555 days (over 4 years) implies a need for stable, long-term IT support. 5. The contract's geographic location in California aligns with NASA's significant presence in the state. 6. The 'CA' Service Area code likely refers to California, a hub for aerospace and technology.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific service details and current market rates. However, a $131 million award over five years for IT services represents a substantial commitment. The Cost Plus Incentive Fee (CPIF) structure aims to control costs by incentivizing the contractor to meet performance targets and manage expenses efficiently. Without knowing the specific performance metrics and outcomes, a definitive value-for-money assessment is difficult, but the competitive award process suggests an attempt to secure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the open competition suggests that NASA sought a wide range of potential providers to ensure they received a competitive offer.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and improving the quality of services through market forces.
Public Impact
The primary beneficiary is NASA Ames Research Center, receiving essential IT services to support its research and development missions. Services delivered likely include network management, system administration, software development, and technical support for scientific computing. The geographic impact is concentrated in California, where NASA Ames is located. Workforce implications include the direct employment of IT professionals by Raytheon STX Corporation and potential indirect employment in supporting industries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not managed meticulously.
- The long duration of the contract might lead to vendor lock-in or slower adoption of newer technologies if not actively managed.
- Lack of specific performance metrics makes it difficult to fully assess the 'incentive' aspect of the fee structure.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process and competitive pricing.
- The CPIF structure incentivizes contractor performance and cost control, aligning contractor and agency goals.
- The contract's duration indicates a stable, long-term partnership crucial for complex IT operations.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on IT services for a federal research agency. The IT services market is vast and highly competitive, encompassing hardware, software, and support services. Federal IT spending is a significant portion of the overall federal budget, with agencies like NASA requiring advanced computing and network capabilities to support their missions. Comparable spending benchmarks would depend on the specific services rendered, but large-scale IT support contracts for research institutions often run into tens or hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, as a large prime contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to the prime contractor, Raytheon STX Corporation, depending on the prime's subcontracting plan and the nature of the services required.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA), specifically the contracting officer and program managers at NASA Ames Research Center. The Cost Plus Incentive Fee (CPIF) structure necessitates close monitoring of costs and performance against established targets. Transparency would be facilitated through contract reporting requirements. While specific Inspector General (IG) jurisdiction isn't detailed, NASA's Office of Inspector General typically oversees federal contracts to ensure accountability and prevent fraud, waste, and abuse.
Related Government Programs
- NASA IT Services Contracts
- Federal Information Processing Services
- Cost Plus Incentive Fee Contracts
- Aerospace IT Support
- Research and Development IT Infrastructure
Risk Flags
- Contract Duration
- Cost Plus Incentive Fee Structure
- Lack of Specific Performance Metrics
Tags
it-services, nasa, california, definitive-contract, large-contract, full-and-open-competition, cost-plus-incentive-fee, research-and-development, aerospace, information-technology
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $131.0 million to RAYTHEON STX CORPORATION. NASA AMES FEDERAL INFORMATION PROCESSING (FIP)SERVICES
Who is the contractor on this award?
The obligated recipient is RAYTHEON STX CORPORATION.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $131.0 million.
What is the period of performance?
Start: 1999-10-29. End: 2004-01-31.
What was the specific performance history of Raytheon STX Corporation on this contract?
Detailed performance history for Raytheon STX Corporation on this specific NASA AMES FEDERAL INFORMATION PROCESSING (FIP) SERVICES contract is not publicly available in the provided data. However, the contract type, Cost Plus Incentive Fee (CPIF), suggests that performance was a key factor. Under a CPIF contract, the contractor's fee is adjusted based on achieving certain performance targets, such as cost, schedule, or technical objectives. NASA would have monitored these metrics closely. Without access to NASA's internal performance reviews or contract close-out documentation, a precise assessment of Raytheon STX's performance (e.g., meeting targets, exceeding expectations, or falling short) cannot be made. Generally, for a contract of this duration and value, consistent performance would be required to maintain the relationship and achieve the incentive goals.
How does the $131 million contract value compare to similar IT service contracts awarded by NASA or other federal agencies during that period?
The $131 million contract value for IT services awarded to Raytheon STX Corporation by NASA in 1999, spanning over five years, was substantial for its time. Federal IT spending was growing significantly in the late 1990s and early 2000s, driven by Y2K remediation and the increasing reliance on digital infrastructure. Contracts of this magnitude were not uncommon for large-scale IT support, system integration, and infrastructure management at major federal agencies like NASA, the Department of Defense, or the General Services Administration. To provide a precise comparison, one would need to analyze IT service contracts with similar scopes (e.g., comprehensive support, network management, software development) awarded by comparable agencies (e.g., other science and technology-focused organizations) within the 1999-2004 timeframe. However, the $131M figure places it in the category of significant, long-term IT service agreements.
What were the primary risks associated with this Cost Plus Incentive Fee (CPIF) contract, and how were they managed?
The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract, like the one awarded to Raytheon STX, revolve around cost control and performance alignment. For the government, the risk is that costs could escalate beyond initial projections, even with incentives, if the contractor is not effectively managed or if unforeseen technical challenges arise. The incentive fee structure aims to mitigate this by rewarding the contractor for meeting or exceeding targets (e.g., cost savings, performance milestones). For the contractor, the risk lies in not achieving the incentive targets, which would reduce their profit margin. Management of these risks by NASA would involve rigorous oversight of incurred costs, detailed tracking of performance metrics against the established incentive criteria, and clear communication with the contractor. Regular audits, progress reviews, and milestone assessments are crucial for ensuring the CPIF structure effectively drives desired outcomes while managing financial exposure for the government.
What was the estimated total cost or spending pattern over the contract's duration?
The provided data indicates a total award amount of $131,029,830.93 for the NASA AMES FEDERAL INFORMATION PROCESSING (FIP) SERVICES contract. The contract duration was approximately 1555 days, starting from October 29, 1999, and ending on January 31, 2004. This duration is roughly 4.26 years. To estimate the spending pattern, we can calculate an average annual spending rate: $131,029,830.93 / 4.26 years ≈ $30.76 million per year. This suggests a relatively consistent expenditure throughout the contract period. However, as a Cost Plus Incentive Fee (CPIF) contract, actual spending could have varied based on performance against incentive targets and the contractor's ability to manage costs within the agreed-upon framework. Without detailed financial reports or expenditure breakdowns, this average provides a general indication of the spending flow.
How did the 'National Aeronautics and Space Administration' agency utilize these IT services to advance its mission?
The IT services procured under this contract were crucial for supporting the core missions of NASA Ames Research Center. NASA Ames is a leading center for aeronautics and space research, focusing on areas like supercomputing, astrobiology, nanotechnology, and advanced aerospace technologies. The Federal Information Processing (FIP) services likely encompassed a wide range of IT support, including maintaining high-performance computing clusters essential for complex simulations and data analysis, managing secure networks for sensitive research data, providing software development support for scientific applications, and ensuring reliable IT infrastructure for researchers and engineers. Effective IT services are fundamental to NASA's ability to conduct cutting-edge research, manage vast datasets, facilitate collaboration among scientists, and ultimately achieve its ambitious goals in space exploration and aeronautics.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 75
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Address: 4400 FORBES BLVD, LANHAM, MD, 20706
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,998,014
Exercised Options: $86,076,170
Current Obligation: $131,029,831
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1999-10-29
Current End Date: 2004-01-31
Potential End Date: 2004-01-31 00:00:00
Last Modified: 2017-09-26
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