FAA awards $21.6M to Raytheon for Engineering Services, highlighting full and open competition
Contract Overview
Contract Amount: $21,640,386 ($21.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Transportation
Start Date: 2014-04-17
End Date: 2021-09-30
Contract Duration: 2,723 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FUNDING FOR CCP-1000 NTE IGF::CL::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $21.6 million to RAYTHEON COMPANY for work described as: FUNDING FOR CCP-1000 NTE IGF::CL::IGF Key points: 1. Contract value of $21.6 million for engineering services. 2. Awarded to Raytheon Company under full and open competition. 3. Potential risk associated with long contract duration (2723 days). 4. Spending falls within the Engineering Services sector (NAICS 541330).
Value Assessment
Rating: good
The contract value of $21.6 million for engineering services appears reasonable given the extensive duration of over 7 years. Benchmarking against similar large-scale engineering contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple bidders, potentially driving down costs and ensuring value for money.
Public Impact
Supports critical engineering services for the Federal Aviation Administration. Long-term contract indicates ongoing need for specialized expertise. Raytheon's involvement suggests a significant player in aviation engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2723 days) could lead to cost overruns if not managed effectively.
- Reliance on a single contractor for an extended period may limit future flexibility.
Positive Signals
- Awarded through full and open competition, ensuring a competitive bidding process.
- Firm Fixed Price contract type helps control costs and manage budget.
- Significant contract value indicates a substantial and important project.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for infrastructure development and maintenance. Spending benchmarks for similar FAA engineering contracts would provide further context.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Federal Aviation Administration's oversight of this long-term contract is critical to ensure performance, cost control, and adherence to the firm fixed price terms. Regular performance reviews are essential.
Related Government Programs
- Engineering Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Long contract duration (2723 days) increases exposure to potential cost overruns and scope creep.
- Potential for vendor lock-in due to the extended period of service.
- Lack of specific detail on the nature of 'Engineering Services' limits full assessment.
- 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 $21.6 million to RAYTHEON COMPANY. FUNDING FOR CCP-1000 NTE 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 $21.6 million.
What is the period of performance?
Start: 2014-04-17. End: 2021-09-30.
What specific engineering services are being provided under this contract, and how do they align with the FAA's strategic objectives?
The contract specifies 'Engineering Services' under NAICS code 541330. While the exact nature of these services isn't detailed, they likely encompass technical support, design, analysis, and potentially program management related to aviation infrastructure, systems, or operations. These services are crucial for the FAA's mission of ensuring safe and efficient air travel, supporting modernization efforts, and maintaining regulatory compliance.
Given the 2723-day duration, what mechanisms are in place to mitigate risks associated with potential scope creep or evolving technological requirements?
The firm fixed price contract type provides a baseline for cost control. However, managing risks over such a long period requires robust contract management by the FAA. This includes clear performance metrics, regular progress reviews, and potentially change control processes to address any necessary modifications to scope or technology, ensuring that changes are justified and priced appropriately.
How does the $21.6 million award compare to industry benchmarks for similar long-term engineering support contracts within the federal government?
Without specific details on the scope and complexity of the engineering services, a precise benchmark is difficult. However, $21.6 million spread over approximately 7.5 years averages to roughly $2.88 million per year. This figure seems reasonable for specialized engineering support to a major agency like the FAA, especially considering the competitive bidding process employed.
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 (UEI: 001344142)
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: $27,175,867
Exercised Options: $21,731,265
Current Obligation: $21,640,386
Actual Outlays: $79,619
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTFA0196C03008D
IDV Type: IDC
Timeline
Start Date: 2014-04-17
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2022-02-23
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