DoD's Army spent $43.3M on Raytheon's Engineering Services from FY12-FY15, a definitive contract

Contract Overview

Contract Amount: $43,305,679 ($43.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2011-12-21

End Date: 2020-07-31

Contract Duration: 3,145 days

Daily Burn Rate: $13.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICE FOR FY12 -FY15

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $43.3 million to RAYTHEON COMPANY for work described as: SERVICE FOR FY12 -FY15 Key points: 1. Significant spending on engineering services for the Army. 2. Raytheon Company is the sole provider for this contract. 3. The contract was not competed, raising potential value concerns. 4. The sector is Engineering Services, a critical component of defense operations.

Value Assessment

Rating: questionable

The total award of $43.3M over several years for engineering services warrants scrutiny. Without competitive bidding, it's difficult to ascertain if this price represents fair market value compared to similar services procured through competitive means.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and may lead to higher costs for taxpayers than if multiple vendors had vied for the contract.

Taxpayer Impact: The absence of competition likely resulted in a higher cost to taxpayers than a competed procurement.

Public Impact

Taxpayers may have overpaid due to the lack of competition. The Army received engineering services, crucial for its operations. Long contract duration (2011-2020) suggests ongoing need. The specific engineering services provided are not detailed, limiting public understanding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
High total value without competitive benchmark

Positive Signals

Definitive contract awarded
Long-term service provision

Sector Analysis

Engineering services are vital for defense, encompassing design, analysis, and technical support. Benchmarks for such services vary widely based on complexity and scope, making direct comparison difficult without more detail.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This sole-source award to a large corporation bypasses opportunities for small business participation.

Oversight & Accountability

The lack of competition suggests potential weaknesses in the oversight process for this procurement. Further review would be needed to understand why this contract was not competed and if adequate justification exists.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpayment
Limited transparency on services provided
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.3 million to RAYTHEON COMPANY. SERVICE FOR FY12 -FY15

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 Army).

What is the total obligated amount?

The obligated amount is $43.3 million.

What is the period of performance?

Start: 2011-12-21. End: 2020-07-31.

What specific engineering services were provided under this contract, and how did their scope justify a sole-source award?

The provided data does not specify the exact engineering services rendered. A sole-source award typically requires extensive justification, such as unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without this detail, assessing the value and necessity of the services is challenging.

What was the rationale for not competing this significant contract, and what steps were taken to ensure fair pricing?

The data indicates the contract was 'NOT COMPETED.' The rationale for this decision is not provided. In sole-source procurements, agencies must still conduct market research and negotiate fair and reasonable prices. The absence of competition inherently limits the government's leverage in price negotiation.

How does the $43.3M expenditure compare to similar engineering service contracts awarded competitively by the Department of the Army?

Direct comparison is difficult without specific service details and competitive benchmarks. However, a $43.3M expenditure over several years for engineering services, awarded without competition, raises a red flag. Competitively procured contracts often yield lower prices, suggesting this amount might be higher than necessary.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W31P4Q10R0019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $116,112,322

Exercised Options: $43,305,679

Current Obligation: $43,305,679

Actual Outlays: $528,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline