DHS awards $23M for security technology infrastructure, with Raytheon Technical Services LLC as prime

Contract Overview

Contract Amount: $23,036,776 ($23.0M)

Contractor: Raytheon Technical Services Company LLC

Awarding Agency: Department of Homeland Security

Start Date: 2013-09-19

End Date: 2015-09-18

Contract Duration: 729 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF SECURITY TECHNOLOGY INTEGRATED PROGRAM (STIP) INFRASTRUCTURE GAP REMEDIATION (IGR) SERVICES.

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.0 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: IGF::CT::IGF SECURITY TECHNOLOGY INTEGRATED PROGRAM (STIP) INFRASTRUCTURE GAP REMEDIATION (IGR) SERVICES. Key points: 1. Contract value of $23 million for infrastructure gap remediation services. 2. Raytheon Technical Services Company LLC is the prime contractor. 3. The contract falls under the Department of Homeland Security, specifically the Transportation Security Administration. 4. Services relate to search, detection, navigation, guidance, aeronautical, and nautical systems. 5. The contract was awarded via full and open competition. 6. The contract duration is 729 days. 7. This is a firm-fixed-price contract, indicating defined costs for services.

Value Assessment

Rating: fair

The contract value of $23 million for a two-year period for infrastructure gap remediation services appears to be within a reasonable range for large-scale technology and security system support. Benchmarking against similar large federal IT infrastructure projects suggests that costs can vary significantly based on scope and complexity. Without detailed service breakdowns, a precise value-for-money assessment is challenging, but the firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bids suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery, the limited number of bidders could suggest potential barriers to entry or a specialized market.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple vendors to bid, potentially driving down prices and ensuring the government receives competitive offers.

Public Impact

The Transportation Security Administration (TSA) benefits from improved security technology infrastructure. Services delivered aim to remediate gaps in critical security systems. The geographic impact is likely nationwide, supporting TSA operations across various locations. The contract supports a segment of the technology and defense industry workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope is not precisely managed, despite fixed-price nature.
Dependence on a single prime contractor for critical infrastructure remediation.
Risk of vendor lock-in if follow-on work is required and not competitively re-bid.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition promotes a fair bidding process.
Contract awarded to a known entity (Raytheon Technical Services Company LLC) with established capabilities.

Sector Analysis

This contract falls within the broader Information Technology and Defense Industrial Base sectors, specifically focusing on specialized security technology and infrastructure. The market for such services is characterized by a few large, established defense contractors and specialized IT firms capable of handling complex government requirements. Spending in this area is driven by national security needs and the continuous evolution of threats, requiring ongoing investment in advanced detection and navigation systems.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this award (ss: false, sb: false). While the prime contractor, Raytheon Technical Services Company LLC, is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific technical requirements of the infrastructure remediation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Homeland Security and the Transportation Security Administration contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability for cost. Transparency is facilitated through federal contract databases, and any Inspector General investigations would fall under DHS's purview.

Related Government Programs

Homeland Security Grants Program
Transportation Security Administration Technology Modernization Initiatives
Department of Defense IT Infrastructure Contracts
Federal Aviation Administration Navigation Systems Contracts

Risk Flags

Limited competition despite full and open award.
Potential for scope creep in 'gap remediation' services.
Dependence on specialized contractor capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.0 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. IGF::CT::IGF SECURITY TECHNOLOGY INTEGRATED PROGRAM (STIP) INFRASTRUCTURE GAP REMEDIATION (IGR) SERVICES.

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 $23.0 million.

What is the period of performance?

Start: 2013-09-19. End: 2015-09-18.

What specific infrastructure gaps is this contract intended to remediate?

The contract, identified as 'IGF SECURITY TECHNOLOGY INTEGRATED PROGRAM (STIP) INFRASTRUCTURE GAP REMEDIATION (IGR) SERVICES,' suggests a focus on addressing deficiencies or vulnerabilities within the TSA's security technology infrastructure. This could encompass a range of systems related to search and detection (e.g., baggage scanners, screening equipment), navigation, and guidance systems critical for aviation and transportation security operations. The 'IGR' designation implies a proactive or reactive effort to fix existing problems rather than implementing entirely new systems, though upgrades or enhancements might be part of the remediation.

How does the $23 million contract value compare to similar TSA infrastructure projects?

Comparing the $23 million contract value requires context on the scope and duration of similar TSA infrastructure projects. Given this contract spans approximately two years (729 days), the annual value is around $11.5 million. Large-scale IT infrastructure and security technology projects for federal agencies can range from tens of millions to billions of dollars. For a specific 'gap remediation' effort, this value appears substantial, suggesting a significant scope of work. However, without access to detailed project scopes and specific benchmarking data for TSA's remediation efforts, a precise comparison is difficult. It is within the expected range for major technology support contracts within a large federal agency.

What is Raytheon Technical Services Company LLC's track record with DHS or similar agencies?

Raytheon Technical Services Company LLC (RTSC), a subsidiary of Raytheon Technologies, has a significant history of performing complex technical services and support for various U.S. government agencies, including the Department of Defense and agencies within the intelligence community. Their experience often involves large-scale IT systems, cybersecurity, logistics, and engineering support. While specific contract details with DHS or TSA would require deeper database searches, RTSC's general profile suggests they possess the requisite capabilities and experience to handle substantial infrastructure remediation projects for security-focused agencies.

What are the potential risks associated with this firm-fixed-price contract?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty, risks can still emerge. For this contract, potential risks include scope creep if the 'gap remediation' is not tightly defined, leading to disputes over what is included. If the contractor underestimates the complexity or effort required for remediation, they might face reduced profit margins or attempt to cut corners, potentially impacting quality. Furthermore, unforeseen technical challenges or integration issues with legacy systems could arise, requiring contract modifications or potentially leading to delays and cost increases if not managed proactively by both parties. The government also bears the risk if the initial price was set too high.

How does the 'full and open competition' with two bidders impact price discovery?

Full and open competition is the government's preferred method for ensuring the widest possible participation and achieving the best possible prices. However, in this instance, only two bids were received. This suggests that while the process was open, the market for this specific type of specialized security technology infrastructure remediation may be limited, or the requirements were highly specific, deterring broader participation. With only two bidders, the price discovery mechanism is less robust than if there were numerous competitors. The government secured a price from one competitor against another, but the potential for a lower price that might have emerged with more bidders is reduced.

What is the historical spending trend for TSA security technology infrastructure?

Historical spending by the TSA on security technology infrastructure has been substantial and generally increasing, driven by evolving threats, technological advancements, and legislative mandates. The agency consistently invests in areas like passenger and baggage screening, cybersecurity, and data management systems. Specific figures for 'infrastructure gap remediation' are not readily available as a distinct category in public spending data. However, this $23 million contract represents a significant, albeit specific, investment within the broader context of TSA's ongoing technology modernization and security enhancement efforts, which typically involve multi-year funding cycles and large contract awards.

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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,249,100

Exercised Options: $23,036,776

Current Obligation: $23,036,776

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSTS0409DST2233

IDV Type: IDC

Timeline