Raytheon Awarded $92.8M for Electronics & Communication Equipment Development by Air Force

Contract Overview

Contract Amount: $197,286,242 ($197.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2004-10-09

End Date: 2016-08-15

Contract Duration: 4,328 days

Daily Burn Rate: $45.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAS::57 3600::TAS 200410!000242!5700!GV68 !ESC/ACK !FA872004C0015 !A!N! !N! ! !20040709!20051109!928669969!928669969!001339159!N!RAYTHEON COMPANY !1620 WILSHIRE DRIVE, SUITE!BELLEVUE !NE!68005!03950!153!31!BELLEVUE !SARPY !NEBRASKA !+000001365000!N!N!000079308713!AC67!RDTE/ELECTRONICS&COMMUNICATION EQ-OP SYSTEM DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541511!E! !3! ! ! ! ! !99990909!B!C!N!A! !A!N!J!2!004!B! !Z!Y!A! ! !N!C!N! ! ! !Z!C!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68124

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $197.3 million to RAYTHEON COMPANY for work described as: TAS::57 3600::TAS 200410!000242!5700!GV68 !ESC/ACK !FA872004C0015 !A!N! !N! ! !20040709!20051109!928669969!928669969!001339159!N!RAYTHEON COMPANY !1620 WILSHIRE DRIVE, SUITE!BELLEVUE !NE!68005!03950!153!31!BELLEVU… Key points: 1. Significant contract value of $92.8 million awarded to Raytheon Company. 2. Competition type is 'Full and Open', suggesting a broad search for qualified bidders. 3. Contract duration is over 12 years, indicating a long-term project. 4. The sector is IT, specifically Custom Computer Programming Services.

Value Assessment

Rating: good

The contract value of $92.8 million for Custom Computer Programming Services over 12 years appears reasonable given the duration and the nature of the work. Benchmarking against similar long-term IT development contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition' method was used, which typically allows for the widest possible range of potential contractors to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing.

Taxpayer Impact: The competitive bidding process is expected to have yielded a fair price, maximizing the value of taxpayer dollars for this significant IT development effort.

Public Impact

Taxpayers benefit from a competitive bidding process for a substantial IT development contract. The long contract duration suggests a critical and ongoing need for these electronics and communication systems. Raytheon Company, a major defense contractor, is the recipient of this significant award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 12 years) could lead to scope creep or evolving requirements.
Lack of specific details on the 'Custom Computer Programming Services' makes it hard to assess true value.
Potential for cost overruns in long-term R&D/development contracts.

Positive Signals

Full and open competition should drive competitive pricing.
Award to a known, large defense contractor suggests established capabilities.
Clear product service code (541511) and NAICS code indicate a defined service area.

Sector Analysis

This contract falls within the Information Technology sector, specifically under Custom Computer Programming Services. The value of $92.8 million over more than a decade is substantial for this category, indicating a complex and long-term development project.

Small Business Impact

The contract was awarded to Raytheon Company, a large business. There is no indication in the provided data that small businesses were specifically involved as subcontractors or partners in this award.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, part of the Department of Defense. Standard government oversight processes would apply to ensure contract compliance and performance, though specific oversight mechanisms are not detailed here.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration increases risk of requirement changes and cost overruns.
Lack of detailed project scope makes value assessment difficult.
Potential for vendor lock-in with custom programming over an extended period.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $197.3 million to RAYTHEON COMPANY. TAS::57 3600::TAS 200410!000242!5700!GV68 !ESC/ACK !FA872004C0015 !A!N! !N! ! !20040709!20051109!928669969!928669969!001339159!N!RAYTHEON COMPANY !1620 WILSHIRE DRIVE, SUITE!BELLEVUE !NE!68005!03950!153!31!BELLEVUE !SARPY !NEBRASKA !+000001365000!N!N!000079308713!AC67!RDTE/ELECTRONICS&COMMUNICATION EQ-OP SYSTEM DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541511!E!

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

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 $197.3 million.

What is the period of performance?

Start: 2004-10-09. End: 2016-08-15.

What specific electronics and communication systems are being developed under this contract?

The provided data specifies 'Custom Computer Programming Services' under the PSC 'RDTE/ELECTRONICS&COMMUNICATION EQ-OP SYSTEM DEV'. However, the exact nature of the systems, their functionalities, and the specific programming services required are not detailed. Further information would be needed to understand the precise technological advancements or operational capabilities being developed.

What are the key performance indicators and milestones for this long-term contract?

Key performance indicators and milestones are crucial for managing a contract spanning over 12 years. Without them, it's difficult to assess progress, ensure accountability, and verify that the project is on track. The absence of this information raises concerns about effective oversight and the ability to measure the contractor's performance against defined objectives.

How does the final negotiated price compare to initial estimates or industry benchmarks for similar development projects?

While the contract was awarded under 'Full and Open Competition', the data does not provide initial estimates or specific benchmarks for comparison. Understanding the price discovery process and how the final $92.8 million was determined relative to market rates or government cost estimates is essential for evaluating the overall value for taxpayer money.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1620 WILSHIRE DRIVE, SUITE, BELLEVUE, NE, 68005

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $198,565,208

Exercised Options: $198,565,208

Current Obligation: $197,286,242

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline