Raytheon Technical Services Co. awarded $112.8M for defense equipment maintenance, with a 1998 start date
Contract Overview
Contract Amount: $27,862,269 ($27.9M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Defense
Start Date: 1998-07-17
End Date: 2000-12-08
Contract Duration: 875 days
Daily Burn Rate: $31.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 199810!9700!0515!ZS01 !DEFENSE SPECIAL WEAPONS AGENCY !DSWA0198C0133 !A!*!* !19980717!20030715!112820840!112820840!001339159!N!0RL45!RAYTHEON TECHNICAL SERVICES CO!8614 WESTWOOD CENTER DR !VIENNA !VA!22182!* !* !RS!* !* !RUSSIA !0001!+000013827556!N!N!000000000000!J099!MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8744!3!*!*!*!B!A!*!A !Y!R!2!002!B!* !Z!Y!Z!* !* !N!M!*!*!*!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.9 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: 199810!9700!0515!ZS01 !DEFENSE SPECIAL WEAPONS AGENCY !DSWA0198C0133 !A!*!* !19980717!20030715!112820840!112820840!001339159!N!0RL45!RAYTHEON TECHNICAL SERVICES CO!8614 WESTWOOD CENTER DR !VIENNA !VA!22182!* !* !RS!* !* … Key points: 1. Contract awarded for maintenance and repair of miscellaneous equipment, indicating a need for ongoing support of defense assets. 2. The contract's duration of 875 days suggests a medium-term commitment for services. 3. Awarded to Raytheon Technical Services Co., a significant defense contractor with a substantial presence in the sector. 4. The contract type is a Definitive Contract, suggesting a clear scope and established terms. 5. The pricing structure is Cost Plus Award Fee, which incentivizes performance but can lead to cost overruns if not managed carefully. 6. The contract was awarded under Full and Open Competition, implying a competitive bidding process.
Value Assessment
Rating: fair
The total value of $112.8 million over approximately 2.4 years suggests a significant but not exceptionally high annual spend. Benchmarking this against similar maintenance contracts for defense equipment is difficult without more specific details on the equipment maintained. The Cost Plus Award Fee structure allows for flexibility but requires diligent oversight to ensure value for money, as costs can escalate beyond initial projections if performance targets are not met efficiently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This suggests a competitive environment where multiple companies likely vied for the contract. The presence of competition is generally positive for price discovery and can lead to more favorable terms for the government.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from contractors.
Public Impact
The primary beneficiaries are the Department of Defense, which receives essential maintenance and repair services for its equipment. Services delivered include the upkeep and repair of miscellaneous defense equipment, crucial for operational readiness. The contract is geographically focused on supporting defense operations, with the contractor based in Virginia. This contract supports jobs within the defense contracting industry, specifically at Raytheon Technical Services Company.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to higher final costs than fixed-price contracts if not managed with strict oversight.
- The long duration and significant value could indicate a critical need, but also a potential for long-term dependency on a single contractor.
- The specific equipment being maintained is not detailed, making it difficult to assess the true value and necessity of the services.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
- The contractor, Raytheon Technical Services Company, is a well-established entity in the defense sector, implying experience and capability.
- The contract has a defined period of performance, allowing for re-evaluation and potential re-competition in the future.
Sector Analysis
This contract falls within the broader defense sector, specifically focusing on the maintenance and repair of equipment. The defense sector is characterized by large, complex contracts often awarded through competitive bidding processes. Spending in this area is driven by national security needs and the requirement to maintain a high level of operational readiness for military assets. Comparable spending benchmarks would typically involve analyzing other contracts for similar maintenance and repair services across various defense agencies.
Small Business Impact
There is no explicit indication of small business set-asides for this contract. The prime contractor is Raytheon Technical Services Company, a large entity. Subcontracting opportunities for small businesses may exist, but are not detailed in the provided data. The overall impact on the small business ecosystem is likely minimal unless significant subcontracting plans were implemented.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the Cost Plus Award Fee structure, which ties a portion of the payment to performance metrics. Transparency is generally maintained through contract awards databases, though specific performance details may be sensitive.
Related Government Programs
- Defense Equipment Maintenance Contracts
- Raytheon Technical Services Company Contracts
- Department of Defense Service Contracts
- Cost Plus Award Fee Contracts
- Maintenance, Repair, and Overhaul (MRO) Services
Risk Flags
- Cost Plus Award Fee structure requires diligent oversight to control costs.
- Lack of specific equipment details hinders a full assessment of service criticality.
- Contract awarded in 1998, historical context may differ significantly from current market conditions.
Tags
defense, department-of-defense, raytheon-technical-services-company, definitive-contract, cost-plus-award-fee, full-and-open-competition, maintenance-and-repair, miscellaneous-equipment, virginia, 1998, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.9 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. 199810!9700!0515!ZS01 !DEFENSE SPECIAL WEAPONS AGENCY !DSWA0198C0133 !A!*!* !19980717!20030715!112820840!112820840!001339159!N!0RL45!RAYTHEON TECHNICAL SERVICES CO!8614 WESTWOOD CENTER DR !VIENNA !VA!22182!* !* !RS!* !* !RUSSIA !0001!+000013827556!N!N!000000000000!J099!MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8744!3!*!*!*!B!A!*!A !Y!R!2!0
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 Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $27.9 million.
What is the period of performance?
Start: 1998-07-17. End: 2000-12-08.
What specific types of defense equipment were covered under this contract, and what was the criticality of their maintenance?
The provided data indicates the contract covered 'MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT.' However, the specific types of equipment are not detailed. This lack of specificity makes it challenging to assess the criticality of the maintenance performed. Generally, maintenance of defense equipment is critical for ensuring operational readiness, national security, and the longevity of expensive assets. Without knowing the exact equipment, it's impossible to determine if this contract supported routine upkeep or highly specialized, mission-critical systems. Further investigation into the contract's statement of work would be necessary to ascertain the precise nature and criticality of the equipment serviced.
How did the final awarded amount compare to the initial estimated value or ceiling of the Cost Plus Award Fee contract?
The data shows a total award amount of $112,820,840. However, the initial estimated value or the ceiling of the Cost Plus Award Fee (CPAF) contract is not provided. CPAF contracts have a base cost plus a fee that can vary based on performance. To assess value for money, it would be crucial to compare the final amount to the contract's ceiling and the contractor's performance against the award criteria. If the final amount is significantly below the ceiling, it might indicate efficient cost management and good performance. Conversely, if it approached the ceiling, it could suggest higher-than-expected costs or exceptional performance, requiring careful review of the award fee determination.
What were the key performance metrics used to determine the award fee for Raytheon Technical Services Company?
The provided data identifies the contract type as 'COST PLUS AWARD FEE' (CPAF) and notes the contractor is 'RAYTHEON TECHNICAL SERVICES CO'. However, the specific performance metrics or criteria used to determine the award fee are not detailed. In CPAF contracts, award fees are typically tied to exceeding baseline performance requirements in areas such as technical execution, schedule adherence, cost control, and customer satisfaction. The government would have established objective and subjective measures to evaluate the contractor's performance. Without access to the contract's statement of work or performance evaluation reports, it is impossible to list the exact metrics used for this particular contract.
Were there any significant cost overruns or underruns associated with this contract, and how were they managed?
The available data does not explicitly state whether there were significant cost overruns or underruns for this contract. The total award amount is listed as $112,820,840. As a Cost Plus Award Fee (CPAF) contract, the final cost is subject to actual allowable costs incurred plus an award fee based on performance. To determine overruns or underruns, one would need to compare the final incurred costs against an initial estimate or budget, and analyze the fee earned relative to the target fee. The 'NOT DISCERNABLE OR CLASSIFIED' notation for certain fields might obscure such details. A thorough review of contract modification history and financial reports would be necessary to assess cost performance.
What is the historical spending pattern for similar 'MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT' contracts within the Department of Defense?
The provided data focuses on a single contract awarded in 1998. To establish a historical spending pattern for 'MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT' within the Department of Defense (DoD), a broader analysis of historical contract databases (like FPDS or USASpending) would be required. This would involve querying for similar contract actions over multiple fiscal years, filtering by the relevant Product Service Code (PSC) or contract descriptions, and aggregating spending by agency and fiscal year. Such an analysis would reveal trends in overall spending, average contract values, common contract types, and key contractors in this service category, providing context for the $112.8 million awarded in this instance.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Raytheon Company
Address: 22265 PACIFIC BLVD, STERLING, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1998-07-17
Current End Date: 2000-12-08
Potential End Date: 2000-12-08 00:00:00
Last Modified: 2024-11-22
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