DoD Awards Raytheon $112.8M for Engineering Services, Ending March 2011
Contract Overview
Contract Amount: $43,887,873 ($43.9M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Defense
Start Date: 2006-01-04
End Date: 2011-03-31
Contract Duration: 1,912 days
Daily Burn Rate: $23.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200605!000187!5700!FA2521!45CONS/PK !FA252106C8006 !A!N! !Y! ! !20060104!20061231!112820840!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DR !RESTON !VA!20191!69550!016!02!SHEMYA AFS !ALEUTIANS WEST !ALASKA !+000003836390!N!N!000022770686!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!002!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $43.9 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: 200605!000187!5700!FA2521!45CONS/PK !FA252106C8006 !A!N! !Y! ! !20060104!20061231!112820840!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DR !RESTON !VA!20191!69550!016!02!SHEMYA AFS !ALEUTIANS WEST !ALASKA !+000003836390!N!N!000022770686!R799!OTHER MA… Key points: 1. Contract awarded to Raytheon Technical Services Company LLC for engineering services. 2. The contract has a base value of $112.8 million and a potential value of $112.8 million. 3. This contract was awarded under full and open competition. 4. The primary service category is Engineering Services (NAICS 541330).
Value Assessment
Rating: good
The contract value of $112.8 million for engineering services appears reasonable given the duration of over 3 years. Benchmarking against similar large-scale engineering support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should lead to fair pricing. The specific price discovery mechanisms are not detailed.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for the services rendered.
Public Impact
Supports critical engineering services for the Department of Defense. Ensures continued operational support and development for defense systems. Potential for technological advancements and improved defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration extends beyond initial award, potentially increasing total cost.
- Lack of detailed performance metrics makes it difficult to assess value for money.
- Reliance on a single contractor for extensive engineering services.
Positive Signals
- Awarded through full and open competition, indicating market responsiveness.
- Clear definition of engineering services required.
- Contract has a defined period of performance.
Sector Analysis
This contract falls within the Engineering Services sector, which is a significant area of government spending. Benchmarks for similar large-scale engineering support contracts are typically in the tens to hundreds of millions of dollars, depending on scope and duration.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor is a large business, suggesting limited direct opportunities for small businesses through subcontracting unless explicitly planned.
Oversight & Accountability
Oversight would typically be managed by the contracting officer and program management office within the Department of Defense to ensure contract compliance and performance standards are met.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration is lengthy, increasing potential for cost escalation.
- Lack of detailed performance metrics.
- Potential for scope creep if not managed tightly.
- No explicit small business participation noted.
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.9 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. 200605!000187!5700!FA2521!45CONS/PK !FA252106C8006 !A!N! !Y! ! !20060104!20061231!112820840!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DR !RESTON !VA!20191!69550!016!02!SHEMYA AFS !ALEUTIANS WEST !ALASKA !+000003836390!N!N!000022770686!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!002!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y! ! !0001! !
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $43.9 million.
What is the period of performance?
Start: 2006-01-04. End: 2011-03-31.
What specific engineering services are included in this $112.8 million contract, and how do they align with current defense priorities?
The contract specifies 'Engineering Services' under NAICS code 541330. While the exact breakdown isn't provided, these services generally encompass design, development, testing, and integration of defense systems. The alignment with current priorities would depend on the specific projects undertaken by Raytheon Technical Services Company, which are not detailed in this award notice but are presumed to support ongoing Air Force operations and modernization efforts.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effective service delivery?
The provided data does not detail specific Key Performance Indicators (KPIs) or the measurement methods for this contract. Effective service delivery would typically be monitored through regular progress reports, milestone achievements, and adherence to technical specifications. The contracting officer's representative (COR) would be responsible for overseeing performance and ensuring Raytheon meets the contract's requirements.
Given the contract's duration and value, what is the potential for cost overruns or scope creep, and what mechanisms are in place to mitigate these risks?
The contract is a Firm Fixed Price (FFP) type, which inherently shifts cost overrun risk to the contractor. However, scope creep can still occur if contract modifications are issued without proper justification or cost control. Mitigation strategies would include strict change control processes, regular budget reviews, and active program management by the DoD to ensure the scope remains aligned with the original objectives and funding.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Raytheon Company (UEI: 001339159)
Address: 12160 SUNRISE VALLEY DR, RESTON, VA, 20191
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: 2006-01-04
Current End Date: 2011-03-31
Potential End Date: 2011-03-31 00:00:00
Last Modified: 2016-09-06
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