Raytheon Company awarded $657M for facilities support services by NSF over 11 years

Contract Overview

Contract Amount: $657,154,314 ($657.2M)

Contractor: Raytheon Company

Awarding Agency: National Science Foundation

Start Date: 2007-11-21

End Date: 2018-10-22

Contract Duration: 3,988 days

Daily Burn Rate: $164.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: STAND ALONE CONTRACT MOD 054

Plain-Language Summary

National Science Foundation obligated $657.2 million to RAYTHEON COMPANY for work described as: STAND ALONE CONTRACT MOD 054 Key points: 1. Contract value represents significant long-term investment in facilities management. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of nearly 11 years indicates a need for stable, ongoing support. 4. The Cost Plus Award Fee structure incentivizes performance beyond basic requirements. 5. Facilities support services are critical for operational continuity of the agency. 6. This contract falls within the broader category of professional and technical services.

Value Assessment

Rating: good

The total award of $657 million over nearly 11 years averages to approximately $60 million per year. Benchmarking this against similar large-scale facilities support contracts for federal agencies of comparable size and scope would be necessary for a precise value-for-money assessment. However, the duration and scope suggest a substantial, but potentially reasonable, investment for comprehensive facilities management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The presence of 5 modifications suggests ongoing adjustments and potential for further negotiation over the contract's life.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The National Science Foundation (NSF) benefits from reliable and efficient facilities operations. Services delivered likely include maintenance, repair, custodial, and potentially security for NSF facilities. Geographic impact is concentrated at NSF's primary locations, supporting its research and administrative functions. Workforce implications include direct employment by Raytheon Company and potential indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency if not actively managed.
Cost Plus Award Fee structure requires careful monitoring to ensure award fees are justified by performance.

Positive Signals

Full and open competition suggests a robust selection process.
The Cost Plus Award Fee structure can drive high performance and innovation.
Multiple modifications indicate adaptability to evolving needs.

Sector Analysis

Facilities Support Services represent a significant segment of the professional and technical services market supporting government operations. This contract, valued at over half a billion dollars, is a substantial award within this sector. Comparable spending benchmarks would involve analyzing other large federal contracts for facilities management, maintenance, and operations across various agencies, considering factors like facility size, complexity, and geographic spread.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. Therefore, the direct impact on small businesses through this specific award is likely minimal unless Raytheon Company engages in significant subcontracting with small businesses. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Science Foundation's contracting officers and program managers. The Cost Plus Award Fee structure necessitates detailed performance metrics and regular reviews to ensure accountability. Transparency would be enhanced through public contract databases and potential Inspector General reviews if performance issues arise.

Related Government Programs

Federal Facilities Management Contracts
Professional and Technical Services
Government Operations Support

Risk Flags

Long contract duration requires sustained oversight.
CPAF structure necessitates robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $657.2 million to RAYTHEON COMPANY. STAND ALONE CONTRACT MOD 054

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $657.2 million.

What is the period of performance?

Start: 2007-11-21. End: 2018-10-22.

What is the historical spending trend for facilities support services at the National Science Foundation?

Analyzing historical spending on facilities support services at the National Science Foundation requires accessing detailed budget and contract data over multiple fiscal years. While this specific contract (MOD 054) represents a significant portion of spending, understanding the overall trend would involve looking at previous contracts for similar services, any baseline operational costs, and the agency's strategic investments in its physical infrastructure. Without access to a comprehensive historical database, it's difficult to provide precise figures, but the longevity and value of this contract suggest a consistent and substantial allocation of resources towards facilities management to support NSF's mission-critical research and administrative functions.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for similar facilities support services?

The Cost Plus Award Fee (CPAF) structure used for this contract allows the contractor to recover allowable costs plus a fixed fee, with the potential for an additional award fee based on performance against pre-defined metrics. This differs from fixed-price contracts, where the price is set regardless of costs, and cost-reimbursement contracts without award fees. CPAF is often used when performance requirements are complex or difficult to define precisely upfront, incentivizing the contractor to exceed minimum requirements. For facilities support, CPAF can encourage proactive maintenance, efficiency improvements, and exceptional service delivery, potentially leading to better overall value than a simple cost-reimbursement contract, but it requires robust performance monitoring by the government to ensure award fees are earned appropriately.

What specific performance metrics were likely used to determine award fees for Raytheon Company under this contract?

While the specific performance metrics are not detailed in the provided data, for a facilities support services contract under a CPAF structure, typical metrics would likely include response times for maintenance requests, preventative maintenance completion rates, energy efficiency targets, customer satisfaction scores from NSF personnel, compliance with safety regulations, and successful completion of special projects. The award fee would be contingent on Raytheon Company exceeding baseline performance levels in these areas. The National Science Foundation would have established a clear Performance Work Statement (PWS) outlining these requirements and the criteria for earning award fee increments.

What is the typical duration for large federal facilities support service contracts, and how does this contract compare?

Large federal facilities support service contracts often have durations ranging from 3 to 10 years, frequently including options for extensions. The contract awarded to Raytheon Company, with an original award date in 2007 and an end date in 2018, spans approximately 11 years (3988 days). This duration is on the longer side of typical, suggesting a strong need for continuity and stability in facilities management for the National Science Foundation. Such long-term contracts are usually justified by the significant investment required for infrastructure management, the complexity of the services, and the desire to foster a stable, long-term relationship with a proven provider.

What are the potential risks associated with a sole-source or limited competition award for facilities support services?

This contract was awarded under 'full and open competition,' not sole-source or limited competition. Therefore, the risks typically associated with non-competitive awards, such as inflated pricing, reduced innovation, and lack of accountability due to limited alternatives, are mitigated. Full and open competition generally ensures that the government has access to the best available solutions and pricing from a wide range of potential providers, fostering a more competitive market and better value for taxpayer dollars. The risks in this case would be more related to contract management and performance oversight rather than the procurement method itself.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 22265 PACIFIC BLVD, DULLES, VA, 20166

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,825,935,333

Exercised Options: $1,825,935,333

Current Obligation: $657,154,314

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline