FAA Awards Raytheon $111.8M for Electronic Computer Manufacturing Under Full and Open Competition
Contract Overview
Contract Amount: $111,872,827 ($111.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Transportation
Start Date: 2016-07-21
End Date: 2021-09-30
Contract Duration: 1,897 days
Daily Burn Rate: $59.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TAMRP1 FUNDING IGF::CL::IGF
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Transportation obligated $111.9 million to RAYTHEON COMPANY for work described as: TAMRP1 FUNDING IGF::CL::IGF Key points: 1. Significant contract value of $111.8 million awarded to Raytheon Company. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract duration is substantial at 1897 days, indicating a long-term need. 4. The sector is Electronic Computer Manufacturing, a critical area for the FAA.
Value Assessment
Rating: good
The contract value of $111.8 million for electronic computer manufacturing appears reasonable given the long duration and the prime contractor's expertise. Benchmarking against similar large-scale IT infrastructure contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and potentially more favorable pricing for the government. The use of a delivery order under a larger contract vehicle suggests a structured procurement process.
Taxpayer Impact: Full and open competition generally maximizes taxpayer value by encouraging multiple bidders to offer competitive prices, leading to cost savings.
Public Impact
Ensures continued operation and modernization of critical FAA systems. Supports advanced electronic computer manufacturing capabilities within the defense industrial base. Impacts the aviation sector by providing essential technology for air traffic management.
Waste & Efficiency Indicators
Waste Risk Score: 58 / 10
Warning Flags
- Long contract duration could lead to scope creep or evolving technology obsolescence.
- Reliance on a single large contractor for critical systems warrants close monitoring.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- Contract supports a vital government agency (FAA) with essential technology.
Sector Analysis
The Electronic Computer Manufacturing sector is crucial for government operations, particularly for agencies like the FAA that rely on sophisticated technology for their core missions. Spending in this area is often characterized by high R&D costs and long product lifecycles.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, Raytheon Company, is a large corporation, suggesting that subcontracting opportunities may exist for small businesses within the supply chain.
Oversight & Accountability
The contract's long duration and significant value necessitate robust oversight from the FAA to ensure performance, manage costs, and address any potential issues proactively. Regular performance reviews and audits are crucial.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Long contract duration increases risk of technological obsolescence.
- Potential for vendor lock-in if systems become highly specialized.
- Need for strong government oversight to ensure performance and cost control.
- Dependence on a single large contractor for critical components.
Tags
electronic-computer-manufacturing, department-of-transportation, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $111.9 million to RAYTHEON COMPANY. TAMRP1 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 $111.9 million.
What is the period of performance?
Start: 2016-07-21. End: 2021-09-30.
What specific electronic computer systems or components are being procured under this contract, and how do they align with current FAA modernization goals?
The contract specifies 'Electronic Computer Manufacturing' under NAICS code 334111. While the exact systems are not detailed, this code covers the manufacturing of computers and related devices. For the FAA, this likely includes components for air traffic control systems, data processing, communication networks, and potentially specialized hardware for surveillance and navigation. Alignment with modernization goals would depend on whether these components support upgrades to NextGen systems or maintain existing critical infrastructure.
Given the 5-year duration, what mechanisms are in place to mitigate the risk of technological obsolescence or performance degradation?
The contract's duration necessitates proactive management. Mechanisms likely include performance-based metrics, phased delivery schedules, and potentially clauses for technology refresh or upgrades. The firm-fixed-price structure incentivizes the contractor to deliver reliable, up-to-date components. However, ongoing government oversight is critical to ensure the technology remains relevant and performs as expected throughout the contract period.
How does the benchmarked price per unit, if available, compare to industry standards for similar electronic computer manufacturing contracts?
Specific per-unit cost data is not provided in the input. However, the total award of $111.8 million over approximately 5 years suggests a significant investment. Without detailed specifications and volume, a direct per-unit comparison is difficult. The firm-fixed-price contract type and full and open competition suggest the government aimed for competitive pricing, but a true benchmark would require access to detailed cost breakdowns and comparable contract data.
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: $111,872,827
Exercised Options: $111,872,827
Current Obligation: $111,872,827
Actual Outlays: $28,092,471
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTFA0196C03008A
IDV Type: IDC
Timeline
Start Date: 2016-07-21
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2022-01-28
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