Raytheon awarded $13.1M for engineering services, with a significant portion for electronics and communication

Contract Overview

Contract Amount: $13,124,542 ($13.1M)

Contractor: Raytheon Electronic Technologi

Awarding Agency: Department of Defense

Start Date: 2001-07-16

End Date: 2009-03-31

Contract Duration: 2,815 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200112!000105!9700!ZD90 !DEF MICROELECTRONICS ACTIVITY !DMEA9099D0001 !A!N!*!N!0016 !20010716!20030930!876349705!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!1510 HUGHES WAY !LONG BEACH !CA!90810!43000!037!06!LONG BEACH !LOS ANGELES !CALIFORNIA!+000004600000!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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to RAYTHEON ELECTRONIC TECHNOLOGI for work described as: 200112!000105!9700!ZD90 !DEF MICROELECTRONICS ACTIVITY !DMEA9099D0001 !A!N!*!N!0016 !20010716!20030930!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 value of $13.1M over its period of performance. 2. Services primarily fall under electronics and communication, with a focus on engineering. 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. Contract type is Cost Plus Fixed Fee, which can carry higher risk for cost overruns. 5. Performance period spans over 2.3 years, indicating a medium-term engagement. 6. The contractor, Raytheon Technical Services Co., is a large, established entity in the defense sector.

Value Assessment

Rating: fair

The contract value of $13.1M for engineering and technical services appears moderate for a defense contract of this nature. Without specific benchmarks for 'Engineering Technical Services' within the defense electronics and communication sector, a direct value-for-money assessment is challenging. However, the Cost Plus Fixed Fee (CPFF) contract type suggests that the government is willing to cover costs plus a negotiated fee, which can sometimes lead to higher overall expenditures compared to fixed-price contracts if not managed tightly. The number of bids received (7) indicates some level of competition, which should have helped in price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Seven bids were received, indicating a healthy level of interest and competition for this requirement. The competitive nature of the procurement is a positive sign for price discovery and potentially achieving a fair market price for the services rendered.

Taxpayer Impact: The full and open competition suggests that taxpayer dollars were likely used efficiently, as multiple companies vied for the contract, driving down costs through competitive bidding.

Public Impact

The Department of Defense benefits from specialized engineering and technical services. Services provided are crucial for electronics and communication systems within the defense sector. The contract supports operations and potentially technological advancements for national security. Workforce implications include employment opportunities for engineers and technical specialists at Raytheon.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
The specific nature of 'Engineering Technical Services' is broad and may lack clear performance metrics without further detail.
Long Beach, California location may indicate a concentration of defense industry activity and associated economic impacts.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Raytheon Technical Services Co. is a well-established contractor with a significant presence in the defense industry.
The contract duration of over two years suggests a stable requirement and potential for sustained support.

Sector Analysis

This contract falls within the broader defense industry, specifically focusing on engineering and technical services related to electronics and communication systems. The defense sector is characterized by complex technological requirements and significant government investment. Comparable spending benchmarks for similar engineering support contracts within the Department of Defense can vary widely based on scope and duration, but a $13.1M award over approximately 2.3 years is within a typical range for specialized technical support.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Given the contractor is Raytheon Technical Services Co., a large defense contractor, the primary focus is likely on prime contract performance rather than small business utilization unless mandated by broader government policy or specific contract clauses not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA) given the 'sa' field. Accountability measures would be embedded in the Cost Plus Fixed Fee contract terms, requiring detailed cost reporting and performance metrics. Transparency is generally maintained through contract award databases, though specific performance details might be sensitive.

Related Government Programs

Defense Engineering Services
Electronics and Communication Systems Support
Technical Services Contracts
Cost Plus Fixed Fee Contracts
Department of Defense IT and Communications

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Lack of specific performance metrics or deliverables in the provided data makes assessing performance difficult.
The broad nature of 'Engineering Technical Services' requires careful oversight to ensure alignment with defense needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to RAYTHEON ELECTRONIC TECHNOLOGI. 200112!000105!9700!ZD90 !DEF MICROELECTRONICS ACTIVITY !DMEA9099D0001 !A!N!*!N!0016 !20010716!20030930!876349705!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!1510 HUGHES WAY !LONG BEACH !CA!90810!43000!037!06!LONG BEACH !LOS ANGELES !CALIFORNIA!+000004600000!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 $13.1 million.

What is the period of performance?

Start: 2001-07-16. End: 2009-03-31.

What is the historical spending pattern for Raytheon Technical Services Co. with the Department of Defense for similar engineering services?

Analyzing historical spending for Raytheon Technical Services Co. (or its parent/related entities) with the Department of Defense for similar engineering services would require access to comprehensive contract databases. However, Raytheon is a major defense contractor, and it is highly probable that they have received numerous contracts for engineering, technical, and electronics/communication support over many years. The specific value and nature of these past contracts would provide context for the $13.1M award. A trend analysis could reveal if this award is consistent with their typical contract sizes, if there's an increasing or decreasing demand for their services in this area, and how their pricing has evolved. Without specific historical data, it's difficult to provide precise figures, but their established presence suggests a substantial track record.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types in terms of cost efficiency for engineering services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not well-defined or involves significant uncertainty, making it difficult to establish a firm fixed price. In such cases, the government agrees to pay the contractor's actual costs plus a predetermined fixed fee representing profit. While this allows for flexibility, it carries a higher risk of cost overruns compared to fixed-price contracts, as the contractor is incentivized to incur costs to earn their fee. For engineering services where innovation or R&D is involved, CPFF can be appropriate. However, for more defined services, fixed-price or cost-plus-incentive-fee contracts might offer better cost control and value for taxpayers by aligning contractor incentives more closely with cost efficiency.

What specific types of electronics and communication systems does this contract likely support?

Given the 'ELECTRONICS AND COMMUNICATION' PSC (Product Service Code) and the nature of defense contracts, this award likely supports a range of critical systems. This could include radar systems, communication networks (satellite, terrestrial, tactical), electronic warfare systems, command and control (C2) systems, avionics, or other specialized electronic equipment integral to military operations. The 'ENGINEERING TECHNICAL SERVICES' aspect suggests the support might involve design, development, testing, integration, maintenance, or upgrade services for these complex systems. The exact systems would depend on the specific requirements of the contracting agency within the Department of Defense, which are not detailed in the provided data.

What are the potential risks associated with a CPFF contract for engineering technical services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. Since the contractor is reimbursed for actual costs incurred, there can be less incentive to control expenses compared to fixed-price contracts. If the scope of work is not clearly defined or if unforeseen technical challenges arise, costs can escalate beyond initial estimates. Another risk is 'scope creep,' where the project expands beyond its original intent without adequate adjustments to the fee or oversight. Effective oversight, detailed cost tracking, and robust change management processes are crucial to mitigate these risks and ensure the government receives good value.

How does the number of bidders (7) influence the potential value for taxpayers in this procurement?

Receiving seven bids for this contract, awarded under full and open competition, is generally a positive indicator for value for taxpayers. A higher number of bidders typically signifies robust competition, which tends to drive down prices as contractors vie for the award. It suggests that the market has sufficient capacity and interest to meet the government's needs. This competitive pressure encourages bidders to offer more competitive pricing and potentially more innovative solutions to win the contract. Conversely, a low number of bidders might suggest market limitations or barriers to entry, potentially leading to higher prices.

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, 90810

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DMEA9099D0001

IDV Type: IDC

Timeline