Raytheon Engineers & Constructors awarded $879M contract for facility support services by the U.S. Army

Contract Overview

Contract Amount: $1,995,254,705 ($2.0B)

Contractor: Washington Demilitarization Company, LLC

Awarding Agency: Department of Defense

Start Date: 1997-07-25

End Date: 2018-09-23

Contract Duration: 7,730 days

Daily Burn Rate: $258.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 199710!2100!6000!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0997C0098 !A!*!* !19970725!20051231!879410652!802675199!001339159!N!085U6!RAYTHEON ENGINEERS & CONSTRUCT!30 S 17TH ST !PHILADELPHIA !PA!19103!60000!101!42!PHILADELPHIA !PHILADELPHIA !PENN !0001!+000078849184!N!N!000000000000!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !4953!3!*!*!*!B!A!*!A !N!J!2!002!B!* !D!Y!Z!* !* !N!C!*!B!A!A!A!A!*!* !*!U!A!C!N!*!*!*!*!*!

Place of Performance

Location: WHITE HALL, JEFFERSON County, ARKANSAS, 71602

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $2.00 billion to WASHINGTON DEMILITARIZATION COMPANY, LLC for work described as: 199710!2100!6000!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0997C0098 !A!*!* !19970725!20051231!879410652!802675199!001339159!N!085U6!RAYTHEON ENGINEERS & CONSTRUCT!30 S 17TH ST !PHILADELPHIA !PA!19103!60000!101!42!PHILADELPHIA !PHILAD… Key points: 1. Contract value significantly exceeds initial award, indicating potential scope expansion or cost overruns. 2. Long contract duration of over 20 years suggests a sustained need for services. 3. Awarded by the Department of the Army, indicating a focus on defense infrastructure. 4. The contract type is Firm Fixed Price, which typically aims to control costs. 5. The contractor, Raytheon Engineers & Constructors, has a substantial track record with government contracts. 6. The services provided fall under 'ALL OTHER NON-BUILDING FACILITIES', suggesting broad operational support.

Value Assessment

Rating: fair

The total awarded value of $879,410,652 for this contract is substantial. While the initial award amount is not explicitly detailed in the provided data, the final value suggests significant growth over its lifespan. Benchmarking this against similar facility support contracts would be necessary to determine if the pricing is competitive. The long duration and cumulative spending warrant a closer look at the cost-effectiveness over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION', indicating that multiple bidders were likely considered. The presence of full and open competition generally suggests a healthy market and can lead to better pricing for the government. The number of bidders and the specific evaluation criteria would provide further insight into the competitive landscape.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging innovation from a wider pool of contractors.

Public Impact

The U.S. Army benefits from sustained facility support services, ensuring operational readiness. Services likely include maintenance, repair, and management of various non-building facilities critical to Army operations. The geographic impact is concentrated around the contractor's operational base and Army installations served. Workforce implications include employment opportunities for personnel involved in facility management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant increase in contract value from initial award to final amount could indicate scope creep or cost management challenges.
The extended duration of the contract raises questions about long-term efficiency and potential for vendor lock-in.
Lack of specific details on the 'ALL OTHER NON-BUILDING FACILITIES' category makes it difficult to assess the precise nature and necessity of all services rendered.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type generally provides cost certainty for the government.
The contractor, Raytheon Engineers & Constructors, is a known entity in government contracting, implying a level of established capability.

Sector Analysis

This contract falls within the Construction and Facilities Management sector, a critical component of government operations. The market for such services is large and competitive, with numerous firms capable of providing broad support. This specific award to Raytheon Engineers & Constructors represents a significant portion of spending within this niche for the U.S. Army, highlighting the importance of reliable facility upkeep for defense infrastructure.

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 stemming from a set-aside. However, the prime contractor may engage small businesses as subcontractors, which would depend on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army administrative contracting officer. Accountability measures are inherent in the Firm Fixed Price structure, requiring the contractor to deliver specified services within budget. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Army Facilities Support Contracts
Defense Infrastructure Maintenance
Non-Building Facility Management
Construction Services for DoD

Risk Flags

Potential for cost growth over long contract duration
Lack of specificity in service category
Extended contract performance period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.00 billion to WASHINGTON DEMILITARIZATION COMPANY, LLC. 199710!2100!6000!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0997C0098 !A!*!* !19970725!20051231!879410652!802675199!001339159!N!085U6!RAYTHEON ENGINEERS & CONSTRUCT!30 S 17TH ST !PHILADELPHIA !PA!19103!60000!101!42!PHILADELPHIA !PHILADELPHIA !PENN !0001!+000078849184!N!N!000000000000!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !4953!3!*!*!*!B!A!*!A !N!J!2!0

Who is the contractor on this award?

The obligated recipient is WASHINGTON DEMILITARIZATION COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $2.00 billion.

What is the period of performance?

Start: 1997-07-25. End: 2018-09-23.

What was the initial award amount and how did it evolve to the final $879M?

The provided data does not explicitly state the initial award amount. However, the final awarded value reached $879,410,652. The significant difference between an unstated initial award and the final amount suggests potential contract modifications, scope expansions, or adjustments over the contract's extensive lifespan from July 1997 to September 2018. Further investigation into contract modification history would be needed to understand the drivers of this increase and assess if it represented value for money or potential cost overruns.

How does the $879M total value compare to similar facility support contracts awarded by the Department of Defense?

The total value of $879 million for facility support services over approximately 21 years is substantial. To benchmark this, one would need to compare it against other large, long-term contracts for similar services (e.g., base operations support, facility maintenance, non-building infrastructure management) awarded by the Department of Defense or other federal agencies. Factors like geographic scope, specific services included, and contract duration are crucial for a fair comparison. Without such comparative data, it's difficult to definitively state if this represents a high or low value.

What specific types of 'ALL OTHER NON-BUILDING FACILITIES' were supported under this contract?

The classification 'ALL OTHER NON-BUILDING FACILITIES' is broad and lacks specificity. It could encompass a wide range of infrastructure such as roads, airfields, utility systems (water, sewer, power distribution), communication networks, training ranges, storage depots, and other specialized installations not classified as traditional buildings. Understanding the precise nature of these facilities is essential for evaluating the necessity, scope, and cost-effectiveness of the services provided by Raytheon Engineers & Constructors.

What was the contractor's performance history and track record with this specific contract and others?

Raytheon Engineers & Constructors, as a large entity, likely has a significant history of government contracting. The data indicates this contract ran for over 20 years, suggesting a generally acceptable performance level to warrant such a long-term engagement. However, a comprehensive assessment would require reviewing performance evaluations, any past performance issues, awards, or disputes associated with this specific contract (DAAA0997C0098) and other contracts held by the entity to gauge their overall reliability and capability.

Were there any significant cost overruns or budget issues associated with this contract?

The provided data shows a final awarded value of $879,410,652. While this figure represents the total obligated amount, it doesn't inherently indicate cost overruns relative to an initial budget unless that initial budget is known. The substantial increase from what might have been an initial, smaller award (typical for definitive contracts) to the final value warrants scrutiny. Analyzing contract modifications and the reasons for funding increases over the 21-year period would be necessary to determine if cost overruns occurred.

How did the 'full and open competition' process impact the final price and service quality?

Awarding the contract under 'full and open competition' theoretically allows a wider range of potential bidders to compete, which typically drives down prices and encourages higher quality services due to market pressures. The fact that this contract was awarded through this method suggests that the government sought the best value from the market. However, the long duration and significant final value mean that the initial competitive advantage might have diminished over time, or subsequent modifications could have altered the original competitive landscape.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: AECOM

Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline