DoD Awards Raytheon $71M for Battle Command System Logistics Support
Contract Overview
Contract Amount: $71,135,938 ($71.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2010-05-03
End Date: 2014-04-30
Contract Duration: 1,458 days
Daily Burn Rate: $48.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: BATTLE COMMAND SUSTAINMENT SUPPORT SYSTEM (BCS3) TOTAL LOGISTICS SUPPORT TO PROVIDE LOGISTICS SUPPORT FOR CURRENT AND FUTURE BCS3 SYSTEMS, JDLM SUBSYSTEMS AND NODE MANAGEMENT, INCLUDING MARINE CORPS/COALITION USERS. LOGISTICS ACTIVITIES INCLUDE PROVIDING CUSTOMER SERVICE CENTER (HELP DESK) SUPPORT, FIELD ENGINEERING SUPPORT, ON SITE USER SUPPORT, SERVER/NETWORK MANAGEMENT SUPPORT AND SYSTEM NEW EQUIPMENT TRAINING (NET) /DOCUMENTATION SUPPORT TO GOVERNMENTAL PERSONS AND ENTITIES, SUCH AS PRODUCT MANAGER (PDM) BCS3 AND THE BCS3 USERS IN THE FIELD.
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46808
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $71.1 million to RAYTHEON COMPANY for work described as: BATTLE COMMAND SUSTAINMENT SUPPORT SYSTEM (BCS3) TOTAL LOGISTICS SUPPORT TO PROVIDE LOGISTICS SUPPORT FOR CURRENT AND FUTURE BCS3 SYSTEMS, JDLM SUBSYSTEMS AND NODE MANAGEMENT, INCLUDING MARINE CORPS/COALITION USERS. LOGISTICS ACTIVITIES INCLUDE PROVIDING CUSTOMER SERVICE CENTER (… Key points: 1. Significant contract for essential logistics and technical support for the BCS3 system. 2. Raytheon Company is the sole awardee, indicating a specific capability or existing relationship. 3. The contract duration is substantial, spanning over four years. 4. Focus on IT services, specifically custom computer programming and support.
Value Assessment
Rating: good
The total award amount of $71.1 million over four years appears reasonable for comprehensive logistics and support services for a complex military system. Benchmarking against similar IT support contracts would provide further context.
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 award type (Delivery Order) implies it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, where the initial competition determined the vendor.
Taxpayer Impact: Taxpayer funds are being used to ensure the operational readiness and effectiveness of critical command and control systems for the military.
Public Impact
Ensures continued operational capability of the Battle Command Sustainment Support System (BCS3). Supports Marine Corps and coalition users, highlighting interoperability and allied support. Provides critical help desk, field engineering, and training services to government personnel. Maintains network and server management for vital military IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in Time and Materials contracts.
- Reliance on a single vendor for critical support could pose a risk if performance falters.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense systems and coalition partners.
- Long-term contract provides stability for support services.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is crucial for modernizing and maintaining defense capabilities, with benchmarks varying widely based on system complexity and support scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the prime contractor is Raytheon Company. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Army is the contracting agency, responsible for oversight. The use of delivery orders under a potential IDIQ structure requires diligent monitoring to ensure adherence to contract terms and fair pricing.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials contract type can lead to cost uncertainty.
- Sole awardee raises questions about ongoing competition for specific tasks.
- Potential for vendor lock-in due to specialized system knowledge.
- Dependence on contractor performance for critical system availability.
Tags
custom-computer-programming-services, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.1 million to RAYTHEON COMPANY. BATTLE COMMAND SUSTAINMENT SUPPORT SYSTEM (BCS3) TOTAL LOGISTICS SUPPORT TO PROVIDE LOGISTICS SUPPORT FOR CURRENT AND FUTURE BCS3 SYSTEMS, JDLM SUBSYSTEMS AND NODE MANAGEMENT, INCLUDING MARINE CORPS/COALITION USERS. LOGISTICS ACTIVITIES INCLUDE PROVIDING CUSTOMER SERVICE CENTER (HELP DESK) SUPPORT, FIELD ENGINEERING SUPPORT, ON SITE USER SUPPORT, SERVER/NETWORK MANAGEMENT SUPPORT AND SYSTEM NEW EQUIPMENT TRAINING (NET) /DOCUMENTATION SUPPORT TO GOVERNMENTAL PERSONS AND ENTITIES, SUCH AS PRODUCT
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 $71.1 million.
What is the period of performance?
Start: 2010-05-03. End: 2014-04-30.
What was the competitive landscape during the initial IDIQ award, and how did it influence pricing for this delivery order?
While this specific delivery order was awarded under full and open competition, the underlying IDIQ contract's competitive history is key. If the initial competition was robust, it likely established competitive pricing ceilings. However, the nature of Time and Materials orders means actual costs depend on hours worked and resource utilization, necessitating strong government oversight to prevent scope creep and ensure efficient resource allocation.
What are the specific performance metrics and Service Level Agreements (SLAs) in place to ensure the quality and timeliness of BCS3 support?
The contract details likely include specific performance metrics and SLAs for help desk response times, field engineering availability, and training delivery. Effective oversight requires regular review of Raytheon's performance against these metrics. Failure to meet SLAs could trigger contractual remedies, ensuring accountability for service quality and minimizing risks associated with system downtime or user dissatisfaction.
How does the cost of this logistics support compare to similar IT support contracts for other major defense systems?
Benchmarking this $71 million, four-year contract against comparable IT logistics support for other complex defense systems is essential for value assessment. Factors like system criticality, user base size (including coalition partners), and the scope of services (help desk, field engineering, training) influence costs. A detailed comparison would reveal if the pricing is competitive or if potential efficiencies exist.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1010 PRODUCTION RD, FORT WAYNE, IN, 46808
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $94,206,672
Exercised Options: $94,206,672
Current Obligation: $71,135,938
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T09DN005
IDV Type: IDC
Timeline
Start Date: 2010-05-03
Current End Date: 2014-04-30
Potential End Date: 2014-04-30 00:00:00
Last Modified: 2025-04-23
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