Raytheon Technical Services secured a $112.8M contract for Russia-related defense threat reduction services
Contract Overview
Contract Amount: $90,987,135 ($91.0M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Defense
Start Date: 1999-12-17
End Date: 2005-09-30
Contract Duration: 2,114 days
Daily Burn Rate: $43.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200011!9700!000893!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0100C0007 !A!*!* !19991217!20010216!112820840!112820840!001339159!N!0RL45!RAYTHEON TECHNICAL SERVICES CO!8614 WESTWOOD CENTER DR !VIENNA !VA!22182!* !* !RS!* !* !RUSSIA !0001!+000016754903!N!N!000000000000!J099!MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8744!3!*!*!*!B!A!*!A !U!R!2!002!B!* !Z!Y!Z!* !* !N!M!*!*!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $91.0 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: 200011!9700!000893!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0100C0007 !A!*!* !19991217!20010216!112820840!112820840!001339159!N!0RL45!RAYTHEON TECHNICAL SERVICES CO!8614 WESTWOOD CENTER DR !VIENNA !VA!22182!* !* !RS!* !* … Key points: 1. Contract awarded for services related to defense threat reduction, specifically focusing on Russia. 2. The contract type is a Definitive Contract with Cost Plus Award Fee pricing structure. 3. Performance period spans from December 1999 to September 2005, indicating a long-term engagement. 4. The contractor, Raytheon Technical Services Co., is a significant player in the defense sector. 5. The contract value of $112.8 million reflects substantial investment in threat reduction efforts. 6. The specific nature of services, 'MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT', suggests operational support.
Value Assessment
Rating: good
The contract value of $112.8 million for a period of over five years suggests a significant investment. Benchmarking this against similar defense threat reduction contracts would provide a clearer picture of value for money. The Cost Plus Award Fee structure allows for flexibility but requires careful oversight to ensure cost efficiency and performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that multiple bidders had the opportunity to compete. This competitive process is generally expected to yield better pricing and terms for the government. The number of bidders is not specified, but the open competition is a positive sign for price discovery.
Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a competitive environment, potentially leading to lower costs and better service quality compared to sole-source or limited competition awards.
Public Impact
The primary beneficiaries are likely U.S. national security interests through the reduction of defense threats. Services include maintenance and repair of equipment related to defense threat reduction, specifically concerning Russia. The geographic impact is focused on areas relevant to Russian defense threats, though specific locations are not detailed. Workforce implications would involve skilled personnel in defense, engineering, and technical support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the Cost Plus Award Fee structure if not managed tightly.
- Geopolitical sensitivities surrounding Russia could impact contract execution and scope.
- Dependence on specific equipment maintenance could create single points of failure if not diversified.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Contractor, Raytheon Technical Services, has a significant presence and experience in the defense sector.
- Long contract duration indicates a stable and ongoing need for these critical services.
Sector Analysis
This contract falls within the broader defense sector, specifically focusing on threat reduction. The market for such specialized services is often dominated by large defense contractors with the necessary expertise and security clearances. Comparable spending benchmarks would involve analyzing other contracts related to arms control, non-proliferation, and strategic weapons systems maintenance.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. However, given the nature and scale of the contract, it is plausible that a significant portion of the work might be subcontracted, potentially offering opportunities for small businesses within the defense supply chain.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which provides oversight for contract performance. The Cost Plus Award Fee structure necessitates robust oversight to ensure that award fees are justified by performance and that costs are reasonable. Transparency would depend on the reporting requirements within the contract and the agency's public disclosure policies.
Related Government Programs
- Defense Threat Reduction Agency (DTRA) Programs
- Arms Control and Disarmament Agency (ACDA) Initiatives
- Strategic Weapons Systems Maintenance Contracts
- International Security Cooperation Programs
Risk Flags
- Geopolitical Sensitivity: Contract focus on Russia carries inherent risks due to complex international relations.
- Cost Control: Cost Plus Award Fee structure requires diligent oversight to prevent cost overruns.
- Technical Complexity: Maintenance and repair of specialized defense equipment may involve intricate technical challenges.
Tags
defense, threat-reduction, russia, raytheon-technical-services, definitive-contract, cost-plus-award-fee, department-of-defense, defense-contract-management-agency, virginia, equipment-maintenance, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.0 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. 200011!9700!000893!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0100C0007 !A!*!* !19991217!20010216!112820840!112820840!001339159!N!0RL45!RAYTHEON TECHNICAL SERVICES CO!8614 WESTWOOD CENTER DR !VIENNA !VA!22182!* !* !RS!* !* !RUSSIA !0001!+000016754903!N!N!000000000000!J099!MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8744!3!*!*!*!B!A!*!A !U!R!
Who is the contractor on this award?
The obligated recipient is RAYTHEON TECHNICAL SERVICES COMPANY LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $91.0 million.
What is the period of performance?
Start: 1999-12-17. End: 2005-09-30.
What is the historical spending trend for similar defense threat reduction contracts awarded by DTRA?
Analyzing historical spending for similar DTRA contracts would involve examining annual obligations and contract awards over the past decade. This would reveal trends in funding priorities, shifts in focus areas (e.g., from specific geographic regions to emerging threats), and the average contract values for services like equipment maintenance and threat assessment. For instance, a review might show an increase in funding for cyber threat reduction or a decrease in programs related to legacy Soviet-era weaponry. Understanding these trends helps contextualize the $112.8 million awarded to Raytheon Technical Services, indicating whether it represents a typical investment or an outlier for such services.
How does the performance of Raytheon Technical Services on this contract compare to its other government contracts?
Assessing Raytheon Technical Services' performance on this specific contract requires access to performance reviews, award fee determinations, and any contract modifications or disputes. Comparing this to their broader portfolio of government contracts, particularly those with similar Cost Plus Award Fee structures, would highlight any patterns of success or challenges. For example, if performance ratings were consistently high and award fees were frequently earned, it suggests effective execution. Conversely, frequent disputes or low ratings might indicate underlying issues. This comparative analysis is crucial for understanding the contractor's reliability and value proposition across different engagements.
What specific risks were identified during the procurement process for this contract, and how were they mitigated?
Procurement risk assessment for a contract of this magnitude and sensitivity would typically involve evaluating technical risks (e.g., complexity of equipment, integration challenges), management risks (e.g., contractor's ability to manage schedule and cost), and geopolitical risks (given the focus on Russia). Mitigation strategies could include detailed performance work statements, stringent oversight by the Defense Contract Management Agency (DCMA), phased contract awards tied to performance milestones, and robust security protocols. The Cost Plus Award Fee structure itself can be a risk mitigation tool, incentivizing performance while allowing for adjustments based on demonstrated success.
What is the estimated impact of this contract on the overall effectiveness of the Defense Threat Reduction Agency's mission?
The effectiveness of the DTRA's mission is directly supported by contracts like this one, which provide essential services for maintaining and repairing critical equipment used in threat reduction efforts. The $112.8 million awarded to Raytheon Technical Services likely enabled the sustainment of operational capabilities, ensuring that the necessary tools and systems are functional and reliable. Without such maintenance, the agency's ability to monitor, secure, or dismantle weapons systems and related materials could be compromised. Therefore, this contract is a foundational element contributing to the agency's success in preventing the proliferation and use of weapons of mass destruction.
How has the geopolitical climate surrounding Russia influenced the scope and execution of this contract over its duration?
The geopolitical climate between the U.S. and Russia has historically been complex and has likely had a significant influence on the scope and execution of this contract. Fluctuations in diplomatic relations, arms control treaty statuses, and security concerns would directly impact the operational requirements, access to information, and the level of cooperation or scrutiny applied to the threat reduction activities. For instance, periods of heightened tension might necessitate increased security measures or a re-evaluation of program priorities, while periods of détente could facilitate greater collaboration. The contract's focus on 'RUSSIA' as a specific area of concern underscores its sensitivity to these evolving international dynamics.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Raytheon Company
Address: 22265 PACIFIC BLVD, STERLING, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1999-12-17
Current End Date: 2005-09-30
Potential End Date: 2005-09-30 00:00:00
Last Modified: 2024-11-22
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