Raytheon Technical Services Company LLC awarded $420M for EWGPP ZHELEZNOGORSK PROGRAM FOR NA-23 by Department of Energy
Contract Overview
Contract Amount: $420,268,607 ($420.3M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Energy
Start Date: 2007-03-21
End Date: 2011-10-31
Contract Duration: 1,685 days
Daily Burn Rate: $249.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: EWGPP ZHELEZNOGORSK PROGRAM FOR NA-23
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $420.3 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: EWGPP ZHELEZNOGORSK PROGRAM FOR NA-23 Key points: 1. Contract awarded for a complex program with a significant dollar value, indicating a critical need for specialized services. 2. The contractor, Raytheon Technical Services Company LLC, has a substantial contract value, suggesting a strong existing relationship or proven capability. 3. The contract duration of approximately 4.7 years implies a long-term commitment to the program's objectives. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of work, potentially encompassing research, development, and specialized technical support. 5. The 'COST PLUS AWARD FEE' contract type suggests that contractor performance is directly tied to incentives, aiming for high-quality delivery. 6. The contract was awarded as a competitive delivery order, implying a selection process among multiple potential providers.
Value Assessment
Rating: good
The total award amount of $420,268,607.21 for the EWGPP ZHELEZNOGORSK PROGRAM FOR NA-23 is substantial. Benchmarking this against similar complex, long-term technical services contracts within the Department of Energy or related scientific research programs would be necessary for a precise value-for-money assessment. However, the competitive nature of the award and the cost-plus-award-fee structure suggest an effort to ensure fair pricing and incentivize performance. The contractor's track record and the specific deliverables will ultimately determine the true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed under a full and open solicitation process. While the specific number of bidders is not provided, the designation implies that multiple qualified offerors had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces and encouraging innovation among potential contractors.
Public Impact
The primary beneficiaries are likely the Department of Energy and its research initiatives, which will receive specialized technical and scientific services. The services delivered are expected to support the EWGPP ZHELEZNOGORSK PROGRAM FOR NA-23, a program whose specific objectives are not detailed but are implied to be of national importance. The geographic impact is primarily within Virginia, where the contractor is located, but the program's ultimate impact could be national or international depending on its nature. The contract supports specialized technical roles, potentially impacting a workforce skilled in scientific research, engineering, and program management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'COST PLUS AWARD FEE' structure can sometimes lead to cost overruns if not managed meticulously, as it allows for reimbursement of costs plus a fee that can be adjusted based on performance.
- The broad NAICS code 'All Other Professional, Scientific, and Technical Services' makes it difficult to ascertain the precise nature of the services without further detail, potentially masking risks associated with specific technical areas.
- The long contract duration (1685 days) increases the risk of scope creep or changes in program requirements over time, which could impact the final cost and effectiveness.
Positive Signals
- The award was made through a competitive process, suggesting that multiple companies vied for the contract, which typically leads to better pricing and service.
- The 'COST PLUS AWARD FEE' contract type incentivizes the contractor to perform well and achieve specific award objectives, aligning their interests with the government's.
- Raytheon Technical Services Company LLC is a well-established entity in the defense and technical services sector, implying a level of experience and capability.
- The contract is a delivery order under a larger contract vehicle, suggesting it has already passed an initial vetting process for a broader set of services.
Sector Analysis
The contract falls under the Professional, Scientific, and Technical Services sector, specifically NAICS code 541990. This broad category encompasses a wide range of services, including research and development, testing, and specialized consulting. The market for such services is highly competitive, with numerous firms offering expertise in areas like advanced technology, scientific research, and program management. The Department of Energy frequently procures services in this domain to support its mission-critical research and operational activities. Comparable spending benchmarks would depend heavily on the specific technical nature of the EWGPP ZHELEZNOGORSK PROGRAM.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large dollar value contract awarded to a major contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime contractor. The focus appears to be on specialized, large-scale technical services rather than broad support where small businesses typically play a larger role.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. The 'COST PLUS AWARD FEE' structure implies performance metrics and evaluation criteria that are subject to oversight. Transparency would be enhanced through regular reporting requirements from the contractor. While specific Inspector General (IG) jurisdiction is not detailed, the Department of Energy's Office of Inspector General would likely have oversight authority over potential fraud, waste, and abuse related to this contract.
Related Government Programs
- Department of Energy Research and Development Programs
- National Nuclear Security Administration (NNSA) Contracts
- Advanced Scientific and Technical Services
- Federal IT and Engineering Services
- Defense and National Security Programs
Risk Flags
- Lack of specific program details
- Ambiguity in service scope due to broad NAICS code
- Potential for cost overruns with CPAF contract type if not managed effectively
- Need for detailed performance metrics for award fee determination
Tags
department-of-energy, scientific-services, technical-services, competitive-delivery-order, cost-plus-award-fee, raytheon-technical-services-company-llc, virginia, professional-services, research-and-development, large-contract, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $420.3 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. EWGPP ZHELEZNOGORSK PROGRAM FOR NA-23
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 $420.3 million.
What is the period of performance?
Start: 2007-03-21. End: 2011-10-31.
What is the specific nature and objective of the EWGPP ZHELEZNOGORSK PROGRAM FOR NA-23?
The provided data does not specify the exact nature or objectives of the 'EWGPP ZHELEZNOGORSK PROGRAM FOR NA-23.' The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' suggests a broad range of potential activities, which could include research, development, analysis, testing, or specialized consulting. Without further information from the contract's statement of work or related documentation, it is impossible to detail the program's specific goals, deliverables, or the scientific or technical domains it addresses. This lack of specificity makes it challenging to fully assess the program's impact or the contractor's performance against defined objectives.
How does the contractor's past performance on similar contracts inform the risk assessment for this award?
The provided data identifies Raytheon Technical Services Company LLC as the contractor. While this is a known entity in the technical services sector, the data does not include specific details on their past performance metrics, past issues, or prior successes on comparable Department of Energy or similar complex scientific programs. A thorough risk assessment would require reviewing their performance history, including any past performance evaluations, contract disputes, or quality control issues on previous government contracts. Without this historical context, it's difficult to definitively assess the risk associated with their ability to successfully execute this particular program, although their established presence suggests a baseline level of capability.
What are the key performance indicators (KPIs) and award criteria for the 'AWARD FEE' component of this contract?
The contract type is 'COST PLUS AWARD FEE' (CPAF), which means the contractor is reimbursed for allowable costs plus a fee that is determined by the government based on the contractor's performance against pre-defined criteria. The specific Key Performance Indicators (KPIs) and award criteria are not detailed in the provided data. Typically, for a CPAF contract, these criteria would be outlined in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO) and would cover aspects such as technical execution, schedule adherence, cost control, quality of deliverables, and customer satisfaction. The government's evaluation of these criteria directly impacts the 'award fee' earned by the contractor, incentivizing high performance.
What is the historical spending trend for the EWGPP ZHELEZNOGORSK PROGRAM FOR NA-23 or similar programs within the Department of Energy?
The provided data represents a single award of $420,268,607.21 for the 'EWGPP ZHELEZNOGORSK PROGRAM FOR NA-23' to Raytheon Technical Services Company LLC, with a duration from March 21, 2007, to October 31, 2011. This data point alone does not provide a historical spending trend. To establish such a trend, one would need access to historical contract awards and spending data for this specific program over multiple years, or for comparable programs within the Department of Energy that address similar scientific or technical services. Analyzing past spending would reveal whether this award represents an increase, decrease, or consistent level of investment in such activities.
What are the potential risks associated with the broad classification of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) for this contract?
The broad classification of NAICS 541990 presents several potential risks. Firstly, it lacks specificity, making it difficult to precisely define the scope of work and associated technical requirements without delving into the contract's detailed Statement of Work (SOW). This ambiguity can lead to misunderstandings, scope creep, and disputes between the government and the contractor. Secondly, it can complicate benchmarking and performance evaluation, as 'other' services can encompass a vast array of activities, making it harder to compare pricing or assess value-for-money against industry standards. Finally, it may obscure specialized risks inherent in particular scientific or technical domains that are not explicitly identified due to the general nature of the code.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
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: $421,145,717
Exercised Options: $421,145,717
Current Obligation: $420,268,607
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTRA0101D0013
IDV Type: IDC
Timeline
Start Date: 2007-03-21
Current End Date: 2011-10-31
Potential End Date: 2011-10-31 00:00:00
Last Modified: 2019-04-03
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