DOD Army Funding for Engineering Services Reaches $2.5M with Raytheon Company
Contract Overview
Contract Amount: $25,079,086 ($25.1M)
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: $9.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Engineering Services
Official Description: DOD ARMY FUNDING CCP-1000 IGF::CL::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $25.1 million to RAYTHEON COMPANY for work described as: DOD ARMY FUNDING CCP-1000 IGF::CL::IGF Key points: 1. The contract awarded to Raytheon Company for engineering services totals $2,507,908. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration is substantial at 2745 days. 4. The sector appears to be engineering services, a common area for government contracting.
Value Assessment
Rating: fair
The award amount of $2.5M over nearly 7.5 years suggests a moderate per-year spend. Without specific deliverables or benchmarks for engineering services, a direct comparison is difficult, but the total value seems reasonable for a long-term, specialized service contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely received a fair price for the engineering services rendered.
Public Impact
The contract supports the Army's engineering needs, potentially impacting military readiness or infrastructure. Raytheon Company, a major defense contractor, is the recipient, indicating a significant player in the sector. The long duration suggests ongoing, critical support requirements. The use of a firm-fixed-price contract provides cost certainty for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or evolving needs.
- Reliance on a single large contractor might limit future flexibility.
Positive Signals
- Full and open competition promotes fair pricing.
- Firm fixed price contract offers cost predictability.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330). Government spending in this area is crucial for infrastructure, defense, and research projects. Benchmarks for engineering services vary widely based on specialization and project scope.
Small Business Impact
The data indicates the award went to Raytheon Company, a large business. There is no explicit information suggesting set-asides for small businesses in this particular award, which is common for large, specialized contracts.
Oversight & Accountability
The contract was awarded by the Department of Transportation's Federal Aviation Administration, suggesting oversight from this agency. Further oversight would typically involve program managers tracking performance and adherence to contract terms.
Related Government Programs
- Engineering Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Long contract duration increases risk of obsolescence or changing requirements.
- Lack of specific service details hinders in-depth value assessment.
- Potential for contractor lock-in due to long-term engagement.
- No indication of small business participation.
Tags
engineering-services, department-of-transportation, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $25.1 million to RAYTHEON COMPANY. DOD ARMY FUNDING CCP-1000 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 $25.1 million.
What is the period of performance?
Start: 2014-03-26. End: 2021-09-30.
What specific engineering services were provided under this contract, and how did they align with the Army's strategic objectives?
The provided data identifies the NAICS code as 541330 (Engineering Services) but lacks specifics on the exact nature of the services. These could range from design and analysis to testing and consulting, supporting various Army initiatives such as infrastructure development, weapon system sustainment, or research and development efforts. Understanding the precise services is key to assessing their strategic alignment and overall value.
Given the 2745-day duration, what mechanisms were in place to manage potential cost overruns or scope creep, despite the firm-fixed-price structure?
While a firm-fixed-price contract aims to cap costs, long durations necessitate robust contract management. Mechanisms likely included detailed performance metrics, regular progress reviews, and change order procedures. The contracting officer and program managers would monitor performance closely, ensuring adherence to the original scope and addressing any deviations through formal processes to mitigate risks of cost escalation or uncontrolled scope expansion.
How does the $2.5M total award compare to similar engineering services contracts awarded by the Army or other branches for comparable projects?
A direct comparison of the $2.5M total award requires identifying similar projects in terms of scope, complexity, and duration. Without more specific details on the services rendered, it's challenging to benchmark effectively. However, for a nearly 7.5-year contract involving specialized engineering, the total amount appears moderate, especially considering the potential for inflation and evolving technical requirements over such an extended period.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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
Address: 180 HARTWELL RD, BEDFORD, MA, 01730
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,079,086
Exercised Options: $25,079,086
Current Obligation: $25,079,086
Actual Outlays: $8,870
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTFA0196C03008D
IDV Type: IDC
Timeline
Start Date: 2014-03-26
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2022-06-29
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