DoD Awards Raytheon $393.5M for Defense Microelectronics Activity, Engineering Technical Services
Contract Overview
Contract Amount: $39,350,444 ($39.4M)
Contractor: Raytheon Electronic Technologi
Awarding Agency: Department of Defense
Start Date: 2000-12-21
End Date: 2010-09-15
Contract Duration: 3,555 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200111!000030!9700!ZD90 !DEF MICROELECTRONICS ACTIVITY !DMEA9099D0001 !A!N!*!N!0008 !20001221!20020930!876349705!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!1510 HUGHES WAY !LONG BEACH !CA!90810!43000!037!06!LONG BEACH !LOS ANGELES !CALIFORNIA!+000001000000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !541330!*!*!5!B!M! !*!*!*!B!*!*!A! !A !N!U!2!007!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001!
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $39.4 million to RAYTHEON ELECTRONIC TECHNOLOGI for work described as: 200111!000030!9700!ZD90 !DEF MICROELECTRONICS ACTIVITY !DMEA9099D0001 !A!N!*!N!0008 !20001221!20020930!876349705!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!1510 HUGHES WAY !LONG BEACH !CA!90810!43000!037!06!LONG BEACH !LOS A… Key points: 1. Contract awarded to Raytheon for critical microelectronics support. 2. Significant funding allocated for engineering and technical services. 3. Competition method was 'Full and Open', suggesting broad market engagement. 4. Sector focus on Electronics and Communication within Defense. 5. Contract duration is substantial, spanning over 9 years.
Value Assessment
Rating: good
The contract value of $393.5M over 9 years suggests a substantial investment. Benchmarking against similar long-term, specialized engineering services contracts is difficult without more granular data on specific deliverables and labor categories.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'Full and Open Competition' method indicates that multiple vendors were likely considered, promoting price discovery and potentially competitive pricing. The award to Raytheon suggests they offered the best value under the established criteria.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense microelectronics support, with the competition method aiming for cost-effectiveness.
Public Impact
Ensures continued development and support for critical defense microelectronics. Supports advanced technological capabilities within the Department of Defense. Contributes to national security by maintaining a robust electronics infrastructure. Potential for innovation in microelectronics through sustained R&D.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long contract duration may lead to scope creep or evolving requirements.
- Cost-plus fixed fee structure can incentivize higher spending if not tightly managed.
Positive Signals
- Full and open competition promotes market efficiency.
- Award to a major defense contractor suggests established capability.
- Significant investment in a critical technology area.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on microelectronics and engineering technical services. Spending in this area is crucial for maintaining technological superiority and national security, with benchmarks often tied to R&D investments and specialized hardware development.
Small Business Impact
While the primary awardee is Raytheon, a large corporation, the nature of such complex defense contracts may involve subcontracting opportunities for small businesses in specialized areas of microelectronics or engineering support.
Oversight & Accountability
The contract's oversight would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring compliance with terms, cost controls, and performance standards throughout the contract lifecycle.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long-term nature of the contract.
- Cost-plus contract type.
- Reliance on specialized microelectronics expertise.
- Potential for evolving technological requirements.
Tags
department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.4 million to RAYTHEON ELECTRONIC TECHNOLOGI. 200111!000030!9700!ZD90 !DEF MICROELECTRONICS ACTIVITY !DMEA9099D0001 !A!N!*!N!0008 !20001221!20020930!876349705!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!1510 HUGHES WAY !LONG BEACH !CA!90810!43000!037!06!LONG BEACH !LOS ANGELES !CALIFORNIA!+000001000000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !541330!*!*!5!B!M! !*!*!*!B!*!*!A!
Who is the contractor on this award?
The obligated recipient is RAYTHEON ELECTRONIC TECHNOLOGI.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $39.4 million.
What is the period of performance?
Start: 2000-12-21. End: 2010-09-15.
What specific microelectronics technologies or systems does this contract support, and how do they align with current and future defense needs?
The contract supports the Defense Microelectronics Activity (DMEA) with engineering technical services. While specific technologies are not detailed, DMEA's mission involves research, development, and production of microelectronics vital for advanced defense systems, including areas like secure communications, advanced sensing, and resilient computing, ensuring the warfighter maintains a technological edge.
How will the 'Cost Plus Fixed Fee' structure be managed to ensure taxpayer value and prevent cost overruns over the 9-year period?
Effective management of a Cost Plus Fixed Fee (CPFF) contract relies on stringent oversight, detailed performance metrics, and regular audits by the contracting agency. Clear definition of allowable costs, robust reporting requirements, and performance incentives tied to milestones are crucial to control spending and ensure the fixed fee remains justified by delivered value.
What are the key performance indicators (KPIs) for this contract, and how will Raytheon's performance be measured to ensure successful delivery of engineering technical services?
Key performance indicators would likely include technical performance metrics (e.g., system reliability, accuracy), schedule adherence for milestones, quality of deliverables (e.g., reports, prototypes), and responsiveness to DMEA's technical direction. Performance evaluations would be conducted periodically, feeding into future award decisions and ensuring accountability for meeting the contract's objectives.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1665 HUGHES WAY BLDG A2, LONG BEACH, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DMEA9099D0001
IDV Type: IDC
Timeline
Start Date: 2000-12-21
Current End Date: 2010-09-15
Potential End Date: 2010-09-15 00:00:00
Last Modified: 2014-08-08
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