DHS awards $22.8M for security systems integration, with Raytheon Technical Services LLC as prime

Contract Overview

Contract Amount: $22,830,529 ($22.8M)

Contractor: Raytheon Technical Services Company LLC

Awarding Agency: Department of Homeland Security

Start Date: 2013-07-30

End Date: 2015-10-31

Contract Duration: 823 days

Daily Burn Rate: $27.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: "IGF::OT::IGF" SESI CONTRACT NUMBER: HSTS04-09-D-ST2233 TASK ORDER: HSTS04-13-J-CT4112 (TO27) SECURITY EQUIPMENT SYSTEMS INTEGRATION SUPPORT FOR EBSP

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.8 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: "IGF::OT::IGF" SESI CONTRACT NUMBER: HSTS04-09-D-ST2233 TASK ORDER: HSTS04-13-J-CT4112 (TO27) SECURITY EQUIPMENT SYSTEMS INTEGRATION SUPPORT FOR EBSP Key points: 1. Contract value represents a significant investment in critical security infrastructure. 2. Raytheon's established presence suggests a strong understanding of the agency's needs. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The contract duration of over two years indicates a need for sustained support. 5. Focus on system integration highlights the complexity of modern security operations. 6. The award falls within the broader category of defense and security systems manufacturing.

Value Assessment

Rating: good

The total award of $22.8 million for security equipment systems integration support appears reasonable given the scope and duration. While specific per-unit cost benchmarks are not readily available for this specialized integration service, the firm fixed-price structure suggests an effort to manage costs effectively. Benchmarking against similar large-scale security system integration contracts would provide further insight into value for money, but the scale of the award is consistent with complex federal IT and security projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, though the exact number of proposals received and the evaluation process details are not provided. Full and open competition is generally expected to yield competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best value through a competitive process, potentially leading to more cost-effective solutions for essential security systems.

Public Impact

The Department of Homeland Security, specifically the Transportation Security Administration, is the primary beneficiary, enhancing its operational capabilities. Services delivered include crucial support for the Explosives and Biological Security Program (EBSP) security equipment systems integration. The contract's impact is primarily national, supporting federal security infrastructure. Workforce implications may include specialized technical roles for system integration and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the "Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing" sector, a niche within the broader aerospace and defense industry. This sector is characterized by high technological sophistication and significant government procurement. The market size for such specialized systems is substantial, driven by national security and transportation safety requirements. This contract represents a component of the government's ongoing investment in advanced security technologies.

Small Business Impact

The provided data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, Raytheon Technical Services Company LLC, is likely responsible for managing the entire scope of work, potentially limiting direct opportunities for small businesses unless they are part of Raytheon's supply chain. Further analysis would be needed to determine if subcontracting plans included small business engagement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement and program management offices, as well as the Transportation Security Administration. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are often internal.

Related Government Programs

Risk Flags

Tags

dhs, transportation-security-administration, raytheon-technical-services-company-llc, security-equipment, systems-integration, firm-fixed-price, full-and-open-competition, department-of-homeland-security, virginia, defense, it-support, federal-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.8 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. "IGF::OT::IGF" SESI CONTRACT NUMBER: HSTS04-09-D-ST2233 TASK ORDER: HSTS04-13-J-CT4112 (TO27) SECURITY EQUIPMENT SYSTEMS INTEGRATION SUPPORT FOR EBSP

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 $22.8 million.

What is the period of performance?

Start: 2013-07-30. End: 2015-10-31.

What is Raytheon Technical Services Company LLC's track record with the Department of Homeland Security and similar security integration contracts?

Raytheon Technical Services Company LLC (RTSC) has a significant history of contracting with various U.S. federal agencies, including the Department of Homeland Security (DHS). Their portfolio often includes complex systems integration, logistics, and technical support services, particularly in defense and intelligence sectors. For DHS, RTSC has previously been awarded contracts related to aviation security, IT infrastructure, and command and control systems. Their experience in integrating sophisticated security equipment, such as detection systems and communication networks, aligns with the requirements of the EBSP security equipment systems integration support. A detailed review of their past performance ratings and any past performance issues on similar DHS contracts would be necessary for a comprehensive assessment, but their established presence suggests a capacity to handle such requirements.

How does the $22.8 million award compare to other security systems integration contracts awarded by DHS or similar agencies?

The $22.8 million award for security equipment systems integration support is a substantial but not extraordinary figure for a multi-year federal contract of this nature. Large-scale systems integration projects for critical infrastructure, especially within security-sensitive agencies like DHS, often range from tens to hundreds of millions of dollars over their lifecycle. For instance, contracts for upgrading airport security screening systems, integrating command and control platforms, or enhancing cybersecurity infrastructure can easily reach these figures. The duration of this contract (approximately 2 years) also suggests a significant scope of work. Without specific details on the exact deliverables and technological complexity, a direct comparison is challenging, but the award amount is consistent with the investment required for specialized, high-stakes federal security system integration.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks for this contract include potential cost overruns (though mitigated by the firm fixed-price structure), schedule delays due to the complexity of systems integration, technical obsolescence of security equipment over the contract's life, and performance issues in delivering seamless integration. Mitigation strategies likely involve robust project management by Raytheon, clear performance metrics and milestones defined in the contract, regular progress reviews with the TSA, and contingency planning for technical challenges. The firm fixed-price nature incentivizes Raytheon to manage costs efficiently. However, the inherent complexity of integrating diverse security systems means that unforeseen technical hurdles could still arise, requiring close collaboration and adaptive management from both the contractor and the government.

What is the expected program effectiveness or impact of this security systems integration support for the EBSP?

The expected effectiveness of this contract is to enhance the operational capabilities of the Department of Homeland Security's Explosives and Biological Security Program (EBSP) through improved integration of its security equipment systems. This likely translates to more reliable detection, better data management and analysis from security sensors, and potentially more streamlined operational workflows for security personnel. By ensuring that various security components work together seamlessly, the program can achieve greater threat detection accuracy, faster response times, and more comprehensive situational awareness. Ultimately, the goal is to strengthen national security by improving the effectiveness and efficiency of critical security infrastructure managed by the TSA.

How has federal spending in the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code trended in recent years?

Federal spending within the NAICS code 334511 ('Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing') has generally shown a robust trend, driven by consistent demand from defense, homeland security, and aviation sectors. Agencies like the Department of Defense, NASA, and DHS are major contributors to this spending, procuring advanced systems for surveillance, navigation, communication, and threat detection. While specific year-over-year fluctuations can occur based on budget appropriations and program priorities, the overall trajectory indicates sustained investment in these high-technology areas. Factors such as geopolitical stability, advancements in sensor technology, and evolving security threats continue to fuel demand for products and services within this manufacturing subsector.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: MODIFICATION OF EQUIPMENTMODIFICATION OF EQUIPMENT

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

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: $22,830,529

Exercised Options: $22,830,529

Current Obligation: $22,830,529

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSTS0409DST2233

IDV Type: IDC

Timeline

Start Date: 2013-07-30

Current End Date: 2015-10-31

Potential End Date: 2015-10-31 12:00:00

Last Modified: 2025-08-19

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