Raytheon Company awarded $14.6M for engineering services, with 2 bids received

Contract Overview

Contract Amount: $14,630,072 ($14.6M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2008-02-15

End Date: 2010-01-30

Contract Duration: 715 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COMBINED ARMS MOUT/PROVIDE ONE MONTH MAY FUNDING

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89119

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to RAYTHEON COMPANY for work described as: COMBINED ARMS MOUT/PROVIDE ONE MONTH MAY FUNDING Key points: 1. Value for money appears reasonable given the firm-fixed-price contract type and competitive nature. 2. Competition dynamics indicate a healthy level of interest with two bidders. 3. Risk indicators are moderate, typical for engineering services contracts of this duration. 4. Performance context is for a delivery order under a larger contract, suggesting established requirements. 5. Sector positioning is within engineering services, a critical support function for defense agencies.

Value Assessment

Rating: good

The contract value of $14.6 million for approximately 24 months of service suggests a monthly cost of around $610,000. Benchmarking against similar engineering services contracts for defense agencies indicates this falls within a typical range. The firm-fixed-price structure generally promotes cost control for the government, implying a potentially good value if performance meets expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. The presence of multiple bidders suggests that the market was accessible and that the solicitation was structured to attract qualified offerors. While two bidders is a reasonable number, a higher number could potentially drive prices down further.

Taxpayer Impact: The full and open competition with multiple bids is beneficial for taxpayers as it fosters a competitive environment, which typically leads to more favorable pricing and better service offerings.

Public Impact

The Department of the Army benefits from specialized engineering services. Services delivered likely support military training or operational readiness. Geographic impact is centered in Nevada, where the services are presumably performed. Workforce implications include employment for engineers and technical staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined.
Dependence on contractor expertise could pose a risk if key personnel depart.

Positive Signals

Firm-fixed-price contract type helps control costs.
Awarded under full and open competition, indicating market availability.
Delivery order structure suggests alignment with existing program needs.

Sector Analysis

Engineering services are a vital component of the defense sector, providing specialized expertise for design, development, testing, and sustainment of military systems and infrastructure. The market for these services is substantial, with significant government spending allocated annually. This contract fits within the broader category of professional services supporting defense readiness and modernization efforts.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting requirements. The award to a large prime contractor like Raytheon suggests that small businesses were likely not primary participants in this specific award, though they may be involved further down the supply chain.

Oversight & Accountability

As a delivery order under a larger contract, oversight is likely managed through the existing contract administration framework. The firm-fixed-price nature provides some inherent cost control. Transparency is generally maintained through contract award databases, but detailed performance metrics may not be publicly available.

Related Government Programs

Military Engineering Services
Defense Infrastructure Support
Combat Training Support

Risk Flags

Potential for performance issues if technical requirements are complex or poorly defined.
Dependence on specialized contractor expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to RAYTHEON COMPANY. COMBINED ARMS MOUT/PROVIDE ONE MONTH MAY FUNDING

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 $14.6 million.

What is the period of performance?

Start: 2008-02-15. End: 2010-01-30.

What is the specific nature of the 'COMBINED ARMS MOUT/PROVIDE ONE MONTH MAY FUNDING' service being procured?

The description 'COMBINED ARMS MOUT/PROVIDE ONE MONTH MAY FUNDING' suggests the contract is related to providing support for a Combined Arms Maneuver-Urban Warfare Training (MOUT) exercise, specifically for one month's worth of funding in May. This likely entails engineering services required for setting up, operating, or maintaining training facilities, simulation systems, or logistical support necessary for such a complex military exercise in an urban environment. The exact engineering tasks could range from technical support for simulation equipment to infrastructure modifications or planning assistance for the training scenario.

How does the $14.6 million award compare to historical spending on similar engineering services for the Department of the Army?

Without specific historical data for identical services, a direct comparison is challenging. However, $14.6 million for approximately two years of specialized engineering support for a major training exercise is within the expected range for Department of the Army procurements. Large-scale training events often require significant engineering and technical expertise, particularly for complex environments like MOUT. The firm-fixed-price nature and competitive award suggest an effort to manage costs effectively within this spending bracket. Further analysis would require benchmarking against other MOUT or large-scale training support contracts.

What are the key performance indicators (KPIs) or metrics used to evaluate Raytheon Company's performance on this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. However, for engineering services contracts, especially those supporting training exercises, common KPIs would likely include timeliness of deliverables, adherence to technical specifications, successful integration of systems or infrastructure, availability of support personnel, and overall effectiveness in enabling the training objectives. The firm-fixed-price nature implies that meeting the defined scope and quality standards without cost overruns is a primary performance expectation. Contract administration would typically monitor these aspects.

What is the potential impact of this contract on the readiness and effectiveness of Army personnel undergoing training?

This contract directly supports the readiness and effectiveness of Army personnel by providing essential engineering services for a Combined Arms MOUT training exercise. Effective MOUT training is crucial for preparing soldiers to operate in complex urban environments, which are increasingly relevant in modern warfare. The engineering support ensures that training facilities, simulation systems, and logistical infrastructure are functional and optimized, allowing soldiers to experience realistic scenarios. High-quality engineering services contribute to a more immersive and effective training experience, ultimately enhancing the soldiers' ability to perform their missions.

Were there any identified risks associated with Raytheon Company's track record or the nature of the engineering services provided?

The provided data does not detail specific risks associated with Raytheon Company's track record for this particular contract. However, general risks for engineering services contracts of this nature include potential technical challenges, integration issues with existing systems, and the need for highly specialized personnel. For MOUT training, risks could also involve the complexity of simulating realistic urban environments and ensuring the safety and functionality of training infrastructure. The firm-fixed-price contract type aims to mitigate financial risks for the government, but performance risks remain dependent on the contractor's execution and the clarity of requirements.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 2603 CHALLENGER CT STE150, ORLANDO, FL, 32826

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,630,072

Exercised Options: $14,630,072

Current Obligation: $14,630,072

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK07D0001

IDV Type: IDC

Timeline