Raytheon Company awarded $98.5M for IT services, with a significant portion for program management support

Contract Overview

Contract Amount: $98,510,949 ($98.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Transportation

Start Date: 2014-03-26

End Date: 2021-09-30

Contract Duration: 2,745 days

Daily Burn Rate: $35.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PRIME CONTRACTOR PROGRAM MANAGEMENT SUPPORT IGF::CL::IGF

Place of Performance

Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $98.5 million to RAYTHEON COMPANY for work described as: PRIME CONTRACTOR PROGRAM MANAGEMENT SUPPORT IGF::CL::IGF Key points: 1. Contract focuses on essential program management support for IT systems. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A firm-fixed-price contract type generally offers cost certainty for the government. 4. The contract duration spans over 7 years, indicating a long-term need for these services. 5. The award is categorized under Electronic Computer Manufacturing, aligning with IT infrastructure needs. 6. The prime contractor, Raytheon Company, is a large, established entity in the defense and aerospace sector.

Value Assessment

Rating: good

The contract's value of $98.5 million over approximately 7 years suggests a substantial investment in program management support. Benchmarking this against similar large-scale IT support contracts would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure is a positive indicator for cost control. The specific services rendered under 'program management support' will heavily influence the perceived value.

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 a bid. This typically leads to a more robust price discovery process and potentially better pricing for the government compared to sole-source or limited competition scenarios. The number of bidders is not specified, which would provide further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple vendors.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced program management for its IT systems. Services delivered likely include planning, execution, monitoring, and control of IT programs. The contract supports IT infrastructure critical to aviation operations and safety. Workforce implications may involve IT specialists, project managers, and support staff, potentially both within the contractor's organization and indirectly supporting government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is developed solely by the contractor.
Risk of scope creep if program management is not tightly controlled.
Dependence on a single large contractor for critical IT program oversight.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Long contract duration suggests a stable, ongoing need and potential for efficiency gains.
Award to a large, experienced contractor like Raytheon may indicate a lower risk of performance issues.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT services and program management. The NAICS code 334111 (Electronic Computer Manufacturing) is somewhat atypical for pure IT services but may relate to the underlying hardware or integrated systems being managed. The IT services market is vast, with significant government spending dedicated to maintaining and modernizing federal IT infrastructure. Comparable spending benchmarks would depend on the specific IT programs supported.

Small Business Impact

The data indicates that small business participation (ss and sb fields) was not a specific set-aside requirement for this prime contract. Therefore, the direct impact on small businesses is likely through subcontracting opportunities, if any, awarded by Raytheon Company. Without specific subcontracting plans or data, it's difficult to assess the extent of small business involvement or its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation's Federal Aviation Administration contracting officers and program managers. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract type, with performance expectations tied to payment. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration IT Modernization Programs
Department of Transportation IT Services Contracts
Large-Scale IT Program Management Support
Electronic Computer Manufacturing Support Contracts

Risk Flags

Potential for undefined scope leading to change orders.
Reliance on a single large contractor for critical functions.
Lack of specific performance metrics in public data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $98.5 million to RAYTHEON COMPANY. PRIME CONTRACTOR PROGRAM MANAGEMENT SUPPORT 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 $98.5 million.

What is the period of performance?

Start: 2014-03-26. End: 2021-09-30.

What specific IT programs or systems does this contract support within the FAA?

The provided data does not specify the exact IT programs or systems managed under this contract. However, given the agency (FAA) and the nature of 'program management support,' it likely pertains to critical aviation infrastructure systems, air traffic control modernization, data management, cybersecurity initiatives, or administrative IT systems essential for the FAA's operations. Further details would require access to the contract's statement of work or related documentation. The duration and value suggest a significant, ongoing program rather than a short-term project.

How does the $98.5 million award compare to typical IT program management support contracts for agencies of the FAA's size?

Without specific details on the scope of 'program management support,' a direct comparison is challenging. However, $98.5 million over approximately 7 years (around $14 million annually) is a substantial but not extraordinary figure for managing complex IT programs within a large federal agency like the FAA. Agencies often award multi-year, multi-million dollar contracts for IT program management due to the complexity and criticality of their systems. Benchmarking would require analyzing contracts with similar statements of work, durations, and agency sizes to determine if this represents a competitive price point and good value.

What is Raytheon Company's track record with the FAA and similar government IT contracts?

Raytheon Company, now part of RTX, has a long history of performing large-scale government contracts, particularly in defense and aerospace, which often involve significant IT components. While this specific contract focuses on IT program management, Raytheon's broader experience suggests a capacity to handle complex projects. Their track record with the FAA and other agencies would typically be assessed through past performance evaluations during the bidding process. A review of their contract history would reveal their performance on similar IT services and program management contracts, including any past issues or commendations.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this program management support contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or metrics for this contract. However, for IT program management support, typical KPIs often include adherence to schedule, budget performance, quality of deliverables, risk management effectiveness, stakeholder satisfaction, and successful achievement of program milestones. For a firm-fixed-price contract, meeting defined objectives within the agreed-upon price and timeline is paramount. The FAA's contracting officers would monitor these metrics to ensure the contractor is meeting its obligations.

What is the historical spending trend for IT program management support at the FAA or Department of Transportation?

The provided data only includes details for this single contract award. To understand historical spending trends for IT program management support at the FAA or the Department of Transportation, one would need to analyze aggregated spending data over multiple fiscal years. This would involve querying federal procurement databases for similar contract types, NAICS codes, and agencies. Such an analysis could reveal patterns of increasing or decreasing investment in IT program management, identify major contractors, and highlight shifts in procurement strategies.

Given the firm-fixed-price (FFP) contract type, what is the risk of cost overruns for the government?

The firm-fixed-price (FFP) contract type is generally designed to shift cost risk to the contractor. In theory, the government pays a set price, and the contractor is responsible for managing costs to deliver the agreed-upon scope. However, cost overruns for the government can still occur if the scope of work is not clearly defined, leading to change orders, or if the contractor fails to perform adequately, necessitating corrective actions or re-competition. Effective government oversight is crucial to manage scope and ensure the contractor meets FFP obligations without resorting to costly modifications.

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

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: $98,510,949

Exercised Options: $98,510,949

Current Obligation: $98,510,949

Actual Outlays: $1,173,914

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFA0196C03008A

IDV Type: IDC

Timeline