DOE's $128M EWGPP Project Awarded to Raytheon for Technical Services
Contract Overview
Contract Amount: $128,387,678 ($128.4M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Energy
Start Date: 2003-08-06
End Date: 2008-03-14
Contract Duration: 1,682 days
Daily Burn Rate: $76.3K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: EWGPP ZHELEZNOGORSK PROJECT
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $128.4 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: EWGPP ZHELEZNOGORSK PROJECT Key points: 1. Significant contract value of $128.4 million. 2. Sole-source award to Raytheon Technical Services Company LLC. 3. High risk due to non-competitive nature and cost-plus award fee structure. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The contract is a Cost Plus Award Fee (CPAF) type, which can lead to higher costs as contractor profit is tied to performance metrics. Without competitive bidding, it's difficult to assess if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a non-competitive delivery order, meaning there was no opportunity for other companies to bid. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may not have secured the best possible price for these services.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration (over 4 years) of the contract warrants close monitoring of performance and costs. Lack of transparency in the sole-source award process can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus award fee structure
- Lack of competition
- Long contract duration
Positive Signals
- Awarded to a known entity (Raytheon)
Sector Analysis
This contract falls under the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990). Spending in this broad category can vary widely, but non-competitive awards for complex technical services often carry higher price tags.
Small Business Impact
The contract was awarded to Raytheon Technical Services Company LLC, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The non-competitive nature of this award necessitates robust oversight from the Department of Energy to ensure Raytheon meets performance expectations and that costs remain reasonable throughout the contract's life.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Cost-plus structure can incentivize higher spending.
- Limited transparency in the award process.
- Long contract duration increases exposure to cost overruns.
- No clear benefit to small businesses.
Tags
all-other-professional-scientific-and-te, department-of-energy, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $128.4 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. EWGPP ZHELEZNOGORSK PROJECT
Who is the contractor on this award?
The obligated recipient is RAYTHEON TECHNICAL SERVICES COMPANY LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $128.4 million.
What is the period of performance?
Start: 2003-08-06. End: 2008-03-14.
What specific technical services were provided under this contract, and why was a sole-source award deemed necessary?
The contract details are limited, but it falls under 'All Other Professional, Scientific, and Technical Services.' A sole-source award typically implies that only one vendor possesses the unique capability or technology required, or that urgent circumstances prevented a competitive process. Further justification from the Department of Energy would be needed to understand the necessity.
What mechanisms were in place to control costs and ensure value given the Cost Plus Award Fee structure and non-competitive award?
Cost Plus Award Fee contracts include performance metrics that influence the fee earned by the contractor. However, without competition, the baseline cost is not market-tested. Robust government oversight, including detailed cost reviews and performance evaluations, would be critical to ensure value and control expenditures.
How was the performance of Raytheon Technical Services Company LLC evaluated during the contract period to justify the award fee?
The effectiveness of the award fee structure depends entirely on the clarity and rigor of the performance metrics defined in the contract and the diligence of the government's evaluation process. Without access to the contract's specific performance standards and award fee determinations, it's impossible to assess the effectiveness of this oversight mechanism.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Raytheon Company (UEI: 001339159)
Address: 22265 PACIFIC BLVD, STERLING, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $128,387,678
Exercised Options: $128,387,678
Current Obligation: $128,387,678
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTRA0101D0013
IDV Type: IDC
Timeline
Start Date: 2003-08-06
Current End Date: 2008-03-14
Potential End Date: 2008-03-14 00:00:00
Last Modified: 2017-05-22
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