Raytheon Company awarded $41M for computer manufacturing, with a 3251-day duration

Contract Overview

Contract Amount: $41,036,993 ($41.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Transportation

Start Date: 2012-11-05

End Date: 2021-09-30

Contract Duration: 3,251 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CCP-900 FUNDING IGF::CL::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $41.0 million to RAYTHEON COMPANY for work described as: CCP-900 FUNDING IGF::CL::IGF Key points: 1. Contract value of $41 million over nearly 9 years suggests a significant, long-term need. 2. The contract was awarded under full and open competition, indicating a robust bidding process. 3. Fixed-price contract type generally shifts risk to the contractor, potentially benefiting the government. 4. The North American Industry Classification System (NAICS) code 334111 points to electronic computer manufacturing. 5. The contract's duration of 3251 days (over 8 years) is substantial for a technology-related award. 6. The award was a delivery order, implying it was part of a larger contract vehicle.

Value Assessment

Rating: fair

The total award of $41,036,993 over 3251 days averages to approximately $12,623 per day. Without specific details on the units or services provided, a direct comparison to similar contracts is challenging. However, the duration suggests a sustained need for the manufactured goods or services. The firm fixed-price nature is generally favorable for the government in managing cost certainty, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' which typically means that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple companies likely vied for the award. The number of bidders is not specified, but the designation implies a broad solicitation process, which generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a wider range of suppliers to offer their best pricing and innovative solutions, potentially driving down costs and increasing value for money.

Public Impact

The primary beneficiaries are likely government agencies requiring electronic computer manufacturing capabilities, potentially for operational systems or infrastructure. The services delivered involve the manufacturing of electronic computers, crucial for various federal functions. The contract was awarded to Raytheon Company, a major defense and aerospace contractor. The geographic impact is noted as 'DC' (District of Columbia), suggesting a primary operational or delivery location.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to technology obsolescence if not managed carefully.
Lack of specific details on performance metrics makes it difficult to assess effectiveness.
Reliance on a single large contractor (Raytheon) might limit future competition or flexibility.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Full and open competition suggests a potentially competitive pricing environment.
Award to a well-established contractor like Raytheon may indicate reliability and proven capability.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically in the manufacturing of electronic computers. The IT sector is characterized by rapid technological advancements and significant government spending. Comparable spending benchmarks would involve analyzing other large-scale IT hardware procurement contracts awarded by federal agencies. The market for computer manufacturing is global and highly competitive, with major players investing heavily in research and development.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Raytheon Company, is a large corporation, and any subcontracting would be at their discretion, potentially involving small businesses as part of their supply chain, but not mandated by this contract's structure.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Federal Aviation Administration (FAA) and potentially the Department of Transportation's Office of Inspector General (OIG). Transparency is facilitated through contract award databases like FPDS. Accountability measures would be tied to the terms and conditions of the firm fixed-price contract, including delivery schedules and specifications. The OIG would have jurisdiction to investigate fraud, waste, and abuse related to this award.

Related Government Programs

Federal Aviation Administration IT Procurement
Department of Transportation Computer Systems
Defense and Aerospace Contractor Awards
Electronic Computer Manufacturing Contracts
Long-Term Government IT Services

Risk Flags

Long contract duration may lead to technology obsolescence.
Lack of specific performance metrics makes effectiveness assessment difficult.
Potential for cost increases if scope changes significantly over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $41.0 million to RAYTHEON COMPANY. CCP-900 FUNDING IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $41.0 million.

What is the period of performance?

Start: 2012-11-05. End: 2021-09-30.

What specific types of electronic computers were manufactured under this contract, and what was their intended use within the FAA?

The provided data does not specify the exact types of electronic computers manufactured or their precise application within the Federal Aviation Administration (FAA). The NAICS code 334111 indicates general electronic computer manufacturing. Given the FAA's mission, these computers could range from servers and workstations for air traffic control systems, data processing centers, administrative functions, or specialized hardware for aviation research and development. Without further details from the contract's statement of work or performance reports, the specific use case remains inferred based on the agency's operational needs.

How does the average daily cost of approximately $12,623 compare to industry benchmarks for similar computer manufacturing contracts?

Benchmarking the average daily cost of $12,623 for computer manufacturing is challenging without knowing the specific type, quantity, and complexity of the computers produced. This figure represents the total contract value divided by the duration. If this contract involved high-performance computing, specialized embedded systems, or large-scale server deployments, this daily rate might be within a reasonable range. However, for standard commercial off-the-shelf (COTS) computers, it could appear high. A more accurate comparison would require detailed specifications of the hardware, including processing power, memory, storage, and any customization or integration services provided by Raytheon Company.

What were the key performance indicators (KPIs) or metrics used to evaluate Raytheon Company's performance under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate Raytheon Company's performance. Typically, for manufacturing contracts, KPIs would focus on aspects such as on-time delivery, adherence to technical specifications, quality control (e.g., defect rates), warranty performance, and potentially cost control if there were any performance-based incentives or penalties. The firm fixed-price nature suggests that meeting the defined scope and delivery schedule would be paramount. Further details on performance evaluation would be found within the contract's statement of work and any associated performance management plans.

Given the contract's duration of over 8 years, what measures were in place to ensure the technology remained current and relevant?

The extended duration of this contract (3251 days) raises questions about technology currency. While the data doesn't specify, government contracts of this length often include provisions for technology refresh, phased upgrades, or require the contractor to maintain compatibility with evolving standards. Alternatively, the contract might have been structured as a series of delivery orders against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, allowing for adjustments over time. Without explicit contract clauses addressing technology obsolescence or refresh cycles, it's possible the procured systems could become outdated unless managed through subsequent contract actions or modifications.

What is the historical spending pattern for electronic computer manufacturing by the Department of Transportation or FAA?

The provided data focuses on a single contract award to Raytheon Company. To understand historical spending patterns for electronic computer manufacturing by the Department of Transportation (DOT) or the Federal Aviation Administration (FAA), a broader analysis of federal procurement databases (like FPDS) would be necessary. This would involve querying for similar NAICS codes (e.g., 334111) and contract types awarded by these agencies over multiple fiscal years. Such an analysis could reveal trends in spending levels, primary contractors, and the types of computer hardware procured, helping to contextualize the $41 million award to Raytheon.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 1801 W HUGHES DR, FULLERTON, CA, 92833

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,036,993

Exercised Options: $41,036,993

Current Obligation: $41,036,993

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFA0196C03008A

IDV Type: IDC

Timeline