Raytheon Company awarded $75.7M contract for external STARS customers, including ATPA and weather services

Contract Overview

Contract Amount: $75,746,650 ($75.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Transportation

Start Date: 2016-09-19

End Date: 2023-03-31

Contract Duration: 2,384 days

Daily Burn Rate: $31.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS DELIVERY ORDER IS ESTABLISHED TO RESERVE A DELIVERY ORDER FOR EXTERNAL STARS CUSTOMERS (E.G. ATPA, WEATHER, ETC.) TO PLACE FUNDING ON THE STARS CONTRACT. IGF::OT::IGF

Place of Performance

Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $75.7 million to RAYTHEON COMPANY for work described as: THIS DELIVERY ORDER IS ESTABLISHED TO RESERVE A DELIVERY ORDER FOR EXTERNAL STARS CUSTOMERS (E.G. ATPA, WEATHER, ETC.) TO PLACE FUNDING ON THE STARS CONTRACT. IGF::OT::IGF Key points: 1. Contract value of $75.7 million over its period of performance. 2. Awarded under a full and open competition. 3. Contract type is Firm Fixed Price, indicating predictable costs. 4. Delivery order established to reserve capacity for specific external customers. 5. Period of performance spans from September 19, 2016, to March 31, 2023. 6. Contractor is Raytheon Company, a major defense and aerospace firm.

Value Assessment

Rating: good

The contract value of $75.7 million appears reasonable for a multi-year delivery order supporting external customers. As a delivery order under a larger contract vehicle, direct comparison to standalone contracts is difficult. However, the firm fixed-price nature suggests cost certainty for the government. Benchmarking against similar IT support or electronic manufacturing services contracts would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific contract vehicle used (STARS) likely had its own competitive process. The number of bidders for this specific delivery order is not detailed, but the 'full and open' designation implies a robust competitive environment was intended.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging multiple vendors to offer competitive pricing.

Public Impact

Benefits external STARS customers, including ATPA and weather-related services. Provides essential electronic computer manufacturing and related services. Supports critical government functions reliant on these services. Geographic impact is likely nationwide, given the nature of the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders for this delivery order.
Potential for scope creep if not managed tightly, given the 'reserve capacity' nature.
Reliance on a single contractor (Raytheon) for these specific services under this order.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm Fixed Price contract type provides cost predictability.
Long period of performance suggests a stable and ongoing need for services.
Contract supports critical external government functions.

Sector Analysis

This contract falls within the Information Technology (IT) and electronic manufacturing services sector. The STARS (Solutions for Administrative and Logistics Transformation) contract vehicle is designed to provide a broad range of IT services. Spending in this sector is substantial, with government agencies continually investing in IT modernization and support services to maintain operational efficiency and security. Comparable spending benchmarks would involve analyzing other IT support contracts awarded by the FAA or other agencies.

Small Business Impact

The provided data indicates that small business participation (sb) was false and small business set-aside (ss) was false for this contract. This suggests that the contract was not specifically targeted towards small businesses, and there is no explicit indication of subcontracting opportunities for small businesses within this particular delivery order. The primary focus appears to be on larger, established contractors capable of fulfilling the requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. As a delivery order under a larger contract vehicle (STARS), oversight mechanisms are likely integrated into the broader contract management framework. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

STARS Contract Vehicle
Federal Aviation Administration IT Services
Electronic Computer Manufacturing Contracts
Department of Transportation IT Support
Weather Service Support Contracts

Risk Flags

Potential for underutilization of reserved capacity.
Risk of technological obsolescence over the contract period.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $75.7 million to RAYTHEON COMPANY. THIS DELIVERY ORDER IS ESTABLISHED TO RESERVE A DELIVERY ORDER FOR EXTERNAL STARS CUSTOMERS (E.G. ATPA, WEATHER, ETC.) TO PLACE FUNDING ON THE STARS CONTRACT. IGF::OT::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 $75.7 million.

What is the period of performance?

Start: 2016-09-19. End: 2023-03-31.

What is the specific nature of the services provided under this delivery order for ATPA and weather customers?

The provided data indicates this delivery order is established to reserve capacity for external STARS customers, specifically mentioning ATPA (likely Air Traffic Planning and Analysis) and weather-related services. While the exact technical specifications are not detailed, it implies the provision of IT infrastructure, support, or related electronic manufacturing services necessary for these critical government functions. These could range from hardware provisioning and maintenance to software support or data processing capabilities tailored to the unique needs of air traffic management and meteorological services. The contract's broad classification as 'Electronic Computer Manufacturing' suggests a focus on the physical or integrated systems supporting these operations.

How does the $75.7 million contract value compare to other similar IT support contracts awarded by the FAA?

Comparing the $75.7 million contract value requires context regarding the specific services and duration. As a delivery order under the STARS vehicle, it represents a portion of a larger contract. The FAA awards numerous IT contracts, ranging from small, specialized services to large-scale system modernizations. A direct comparison to other IT support contracts would necessitate analyzing contracts with similar scopes, durations, and service levels. However, $75.7 million over approximately 6.5 years (September 2016 to March 2023) suggests an average annual value of roughly $11.6 million. This figure is substantial and indicates a significant commitment to the services provided, aligning with the critical nature of FAA operations.

What are the primary risks associated with this contract, given its nature as a reserved capacity delivery order?

One primary risk is the potential for underutilization or over-allocation of the reserved capacity. If the external customers' needs fluctuate significantly, the government might be paying for unused capacity or find the reserved capacity insufficient during peak demand. Another risk is vendor lock-in, where the reliance on Raytheon Company for these specific services could limit future flexibility or competitive sourcing options. Furthermore, as with any long-term IT contract, there's a risk of technological obsolescence if the services or underlying infrastructure are not regularly updated to meet evolving standards and threats. Ensuring clear performance metrics and regular reviews is crucial to mitigate these risks.

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

Raytheon Company, now part of RTX, has a long and extensive history of providing a wide array of services and products to the U.S. government, including the Department of Defense and various civilian agencies like the FAA. Their track record encompasses complex systems integration, aerospace technology, defense electronics, and IT services. Within the FAA, Raytheon has been involved in significant projects related to air traffic control systems, surveillance technology, and communication infrastructure. Their experience with large-scale, mission-critical government contracts suggests a strong capability to deliver on requirements like those outlined in this STARS delivery order, although specific performance metrics for this particular contract would require deeper analysis.

How does the firm fixed-price contract type impact cost management and potential for cost overruns?

The Firm Fixed Price (FFP) contract type is generally advantageous for cost management as it shifts the risk of cost overruns to the contractor, Raytheon Company. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides budget certainty for the government. Potential cost overruns for the contractor could arise from unforeseen technical challenges, scope creep not properly managed, or inefficient execution. However, the government is protected from price increases unless the contract is formally modified. This structure incentivizes the contractor to manage their costs efficiently to maximize profit.

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: Rockwell Collins Australia PTY Limited

Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752

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: $1,933,000,641

Exercised Options: $75,746,650

Current Obligation: $75,746,650

Actual Outlays: $12,711,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFA0196C03008F

IDV Type: IDC

Timeline