DHS Awards $98.3M for Nationwide PSP Equipment Installation to Raytheon
Contract Overview
Contract Amount: $98,317,886 ($98.3M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Homeland Security
Start Date: 2010-03-24
End Date: 2011-11-30
Contract Duration: 616 days
Daily Burn Rate: $159.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SYSTEM INTEGRATION WORK IN ORDER TO INSTALL PSP EQUIPMENT NATIONWIDE CONTAINS PARTIAL ARRA STIMULUS FUNDS (SOW 1)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $98.3 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: SYSTEM INTEGRATION WORK IN ORDER TO INSTALL PSP EQUIPMENT NATIONWIDE CONTAINS PARTIAL ARRA STIMULUS FUNDS (SOW 1) Key points: 1. Significant investment in national security infrastructure. 2. Raytheon Technical Services Company LLC is the sole awardee. 3. Contract duration is 616 days. 4. Funding includes ARRA stimulus funds, indicating economic stimulus intent.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount of $98.3M for a 616-day duration needs further scrutiny against similar system integration projects.
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. However, the specific details of the price discovery mechanism are not provided, making it difficult to assess if the best possible price was achieved.
Taxpayer Impact: Taxpayer funds are being used for national security infrastructure upgrades, with potential for economic stimulus through ARRA funding.
Public Impact
Enhances national security through improved screening capabilities. Potential for job creation related to equipment installation and maintenance. Modernization of critical transportation security systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited information on price negotiation and justification.
- Potential for schedule delays given the complexity of nationwide rollout.
Positive Signals
- Awarded under full and open competition.
- Addresses critical national security needs.
- Utilizes ARRA stimulus funds for economic benefit.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically related to system integration and manufacturing of navigation and guidance instruments. Spending benchmarks for similar nationwide system deployments vary widely based on scope and technology.
Small Business Impact
No information is available regarding small business participation in this contract. Further investigation is needed to determine if small businesses were involved as subcontractors or prime contractors.
Oversight & Accountability
The Department of Homeland Security, specifically the Transportation Security Administration, is responsible for oversight. The use of ARRA funds may involve additional reporting and accountability measures.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of detailed justification for the fixed fee.
- Potential for cost overruns.
- Limited transparency on price discovery.
- No explicit mention of small business subcontracting.
Tags
search-detection-navigation-guidance-aer, department-of-homeland-security, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $98.3 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. SYSTEM INTEGRATION WORK IN ORDER TO INSTALL PSP EQUIPMENT NATIONWIDE CONTAINS PARTIAL ARRA STIMULUS FUNDS (SOW 1)
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 Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $98.3 million.
What is the period of performance?
Start: 2010-03-24. End: 2011-11-30.
What specific PSP equipment is being installed nationwide, and what are the projected operational benefits?
The specific PSP (Patriot System Program or similar) equipment details are not provided in the data. However, the objective is to install this equipment nationwide to enhance security screening capabilities at transportation hubs. The projected benefits likely include improved threat detection, faster processing times, and a more robust national security posture.
How was the fixed fee determined in this Cost Plus Fixed Fee contract, and what mechanisms are in place to control cost growth?
The determination of the fixed fee in a Cost Plus Fixed Fee contract is typically based on negotiation, considering the complexity, risk, and estimated profit margin for the contractor. Mechanisms to control cost growth would include detailed cost accounting standards, regular audits, and defined ceilings for allowable costs, though the CPFF structure inherently allows for cost reimbursement.
What is the anticipated impact of this nationwide system integration on transportation security effectiveness and passenger experience?
The nationwide integration of new PSP equipment is anticipated to significantly enhance transportation security effectiveness by providing advanced threat detection capabilities. This modernization aims to create a more secure environment. The impact on passenger experience could be mixed; while security may improve, the installation and potential recalibration of new systems might lead to temporary disruptions or longer wait times during the transition period.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Raytheon Company (UEI: 001339159)
Address: 12160 SUNRISE VALLEY DR, RESTON, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $98,317,886
Exercised Options: $98,317,886
Current Obligation: $98,317,886
Parent Contract
Parent Award PIID: HSTS0409DST2233
IDV Type: IDC
Timeline
Start Date: 2010-03-24
Current End Date: 2011-11-30
Potential End Date: 2011-11-30 00:00:00
Last Modified: 2013-09-19
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