Raytheon Awarded $34.5M for Afghan National Army Depot Support
Contract Overview
Contract Amount: $34,512,936 ($34.5M)
Contractor: Raytheon Technical Services Company LLC
Awarding Agency: Department of Defense
Start Date: 2011-07-15
End Date: 2013-06-19
Contract Duration: 705 days
Daily Burn Rate: $49.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description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
Plain-Language Summary
Department of Defense obligated $34.5 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC for work described as: WAREHOUSING AND DISTRIBUTION SUPPORT CSTC-A/NTM-A AFGHAN NATIONAL ARMY DEPOTS 1 AND 2 1.) FURNISH PERSONNEL, EQUIPMENT, AND SERVICES REQUIRED TO OPERATE A NATIONAL STRATEGIC LEVEL WAREHOUSING AND DISTRIBUTION SERVICE IN SUPPORT OF THE AFGHANISTAN MINISTRY OF DEFENSE (MOD) AND COM… Key points: 1. Contract focuses on critical warehousing and distribution for Afghan National Army. 2. Raytheon Technical Services Company LLC is the incumbent contractor. 3. Potential risks include operational transition challenges and security in Afghanistan. 4. Spending falls under Research and Development, though operational support is key.
Value Assessment
Rating: fair
The contract value of $34.5M over two years for depot operations appears high, especially considering the complexities of the operating environment. Benchmarking against similar logistics support contracts in austere regions is difficult but suggests potential for cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific nature of the services and the operating environment may have limited the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are supporting critical logistics for the Afghan National Army, aiming for eventual self-sufficiency. The cost-effectiveness of this support in achieving long-term stability is a key consideration.
Public Impact
Supports the Afghan National Army's logistical capabilities, crucial for their operational effectiveness. Aims to transition depot operations from contractor to Afghan control, fostering self-sufficiency. Involves managing significant quantities of military equipment and supplies. Operates in a high-risk environment, potentially impacting cost and timeline.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Operational transition risks
- Security environment in Afghanistan
- Potential for cost overruns in complex logistics
Positive Signals
- Supports a key partner nation's military development
- Aims for long-term sustainability through Afghan control
- Full and open competition utilized
Sector Analysis
This contract falls under the Research and Development sector (NAICS 541710) but primarily involves operational logistics and support services for a foreign military. Benchmarking is difficult due to the unique geopolitical context and specialized nature of the services provided.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract. The prime contractor is Raytheon Technical Services Company LLC.
Oversight & Accountability
Oversight is likely managed by the Department of Defense and CSTC-A, given the mission's strategic importance. Accountability for operational success and financial management in a challenging environment is critical.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Operational transition challenges
- Security risks in Afghanistan
- Potential for cost overruns
- Dependency on contractor expertise
- Sustainability of Afghan National Army operations post-contract
Tags
research-and-development-in-the-physical, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.5 million to RAYTHEON TECHNICAL SERVICES COMPANY LLC. WAREHOUSING AND DISTRIBUTION SUPPORT CSTC-A/NTM-A AFGHAN NATIONAL ARMY DEPOTS 1 AND 2 1.) FURNISH PERSONNEL, EQUIPMENT, AND SERVICES REQUIRED TO OPERATE A NATIONAL STRATEGIC LEVEL WAREHOUSING AND DISTRIBUTION SERVICE IN SUPPORT OF THE AFGHANISTAN MINISTRY OF DEFENSE (MOD) AND COMBINED SECURITY TRANSITION COMMAND-AFGHANISTAN (CSTC-A). 2.) SUPPORT THE TRANSITION OF AND ASSUME FULL RESPONSIBILITY FOR THE DAILY OPERATION OF DEPOT 1 AND DEPOT 2 IN KABUL, AFGHANISTAN. 3.) ASSIST IN TRANSITIONING THE S
Who is the contractor on this award?
The obligated recipient is RAYTHEON TECHNICAL SERVICES COMPANY LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $34.5 million.
What is the period of performance?
Start: 2011-07-15. End: 2013-06-19.
What is the long-term cost-effectiveness of contractor-provided depot support versus direct government or host-nation operation in similar environments?
The long-term cost-effectiveness hinges on the success of the transition to Afghan National Army (ANA) operation. While contractor support provides immediate capability, it incurs ongoing costs. If the ANA can effectively assume responsibility without significant degradation in service or increased long-term government oversight, the transition could yield cost savings. However, the initial investment in training and potential for ongoing support needs to be factored in.
How are risks associated with the volatile security situation in Afghanistan mitigated to ensure consistent service delivery and personnel safety?
Mitigation strategies likely involve robust security protocols, intelligence sharing, and contingency planning. This could include secure transportation routes, personnel vetting, and evacuation procedures. The contract's duration and the nature of the services mean that continuous risk assessment and adaptation to the evolving security landscape are paramount for successful execution and the safety of all involved.
To what extent does this contract contribute to the sustainable operational readiness of the Afghan National Army beyond the contract period?
The contract's primary goal is to build the ANA's capacity for self-sufficient depot operations. Its contribution to sustainable readiness depends on the effectiveness of the training provided, the ANA's ability to adopt and maintain the systems and processes, and the long-term commitment to resourcing their logistics functions. Success is measured by the ANA's independent capability post-transition.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9113M06R0014
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Raytheon Company
Address: 12160 SUNRISE VALLEY DR, RESTON, VA, 20191
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $39,663,528
Exercised Options: $34,512,936
Current Obligation: $34,512,936
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9113M07D0008
IDV Type: IDC
Timeline
Start Date: 2011-07-15
Current End Date: 2013-06-19
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2025-12-31
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