DoD awards Raytheon $86.1M for Wireless Communications Equipment, highlighting long-term contract and firm fixed price
Contract Overview
Contract Amount: $86,141,324 ($86.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 1999-11-12
End Date: 2018-03-22
Contract Duration: 6,705 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: SEMINOLE, PINELLAS County, FLORIDA, 33777
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $86.1 million to RAYTHEON COMPANY for work described as: Key points: 1. Significant contract value of $86.1M awarded to a major defense contractor. 2. Long contract duration (1999-2018) suggests sustained need and potential for evolving requirements. 3. Firm Fixed Price (FFP) contract aims to control costs, but requires careful monitoring for scope creep. 4. Sector is Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.
Value Assessment
Rating: good
The $86.1M award over nearly two decades suggests a consistent need for these services. The firm fixed price structure is a positive indicator for cost control, assuming the scope was well-defined initially.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The firm fixed price contract aims to provide cost certainty for taxpayers, although the long duration could mask potential inefficiencies if not managed closely.
Public Impact
Taxpayers benefit from competitive bidding, potentially securing a favorable price for essential communication equipment. The extended contract period indicates a stable, long-term requirement within the Department of Defense. Focus on wireless communications equipment is critical for modern defense operations and intelligence gathering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1999-2018) could lead to outdated technology or increased maintenance costs.
- Lack of small business participation noted (sb: false).
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type.
- Significant contract value awarded to a reputable contractor.
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector, a critical area for defense communications. Spending benchmarks in this sector can vary widely based on technological advancements and specific military requirements.
Small Business Impact
The data indicates no specific small business participation in this contract (sb: false). While not always applicable, exploring opportunities for small businesses in future procurements could foster innovation and competition.
Oversight & Accountability
The long duration of this contract necessitates robust oversight to ensure continued value, adherence to specifications, and management of any potential scope changes. The firm fixed price structure provides a baseline for accountability.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration may lead to outdated technology.
- Potential for scope creep despite firm fixed price.
- Lack of small business participation.
- Limited insight into specific performance metrics and technological relevance over time.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $86.1 million to RAYTHEON COMPANY. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $86.1 million.
What is the period of performance?
Start: 1999-11-12. End: 2018-03-22.
What was the average annual spending under this contract, and how does it compare to similar DoD procurements for wireless communications equipment?
The total award of $86.1M over approximately 19 years (1999-2018) averages to roughly $4.5M per year. Comparing this to similar DoD procurements would require access to a broader dataset of contracts within the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector, considering factors like technology generation and specific equipment capabilities.
Given the firm fixed price nature, what mechanisms were in place to manage potential cost overruns or scope creep over the contract's extensive lifespan?
Firm Fixed Price contracts are designed to shift cost risk to the contractor. However, over a long duration, mechanisms like contract modifications for scope changes, equitable adjustments for unforeseen circumstances, or performance-based incentives might have been employed. Robust contract administration by the Defense Contract Management Agency would be crucial for monitoring and controlling these aspects.
How effectively did this contract meet the evolving technological needs of the Department of Defense in wireless communications over its 19-year term?
The effectiveness in meeting evolving needs is difficult to ascertain solely from the provided data. The long duration suggests a sustained requirement, but it also raises questions about whether the technology procured remained cutting-edge or became obsolete. Periodic reviews and potential contract modifications would have been essential to ensure the equipment stayed relevant to DoD's operational requirements.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 1501 72ND ST N, SAINT PETERSBU, FL, 33710
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1999-11-12
Current End Date: 2018-03-22
Potential End Date: 2018-03-22 00:00:00
Last Modified: 2018-05-10
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