DoD awards Raytheon $37.4M for aircraft parts, raising questions on value and competition
Contract Overview
Contract Amount: $37,396,794 ($37.4M)
Contractor: Raytheon Training LLC
Awarding Agency: Department of Defense
Start Date: 2005-09-09
End Date: 2009-05-15
Contract Duration: 1,344 days
Daily Burn Rate: $27.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76011
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $37.4 million to RAYTHEON TRAINING LLC for work described as: Key points: 1. Contract value of $37.4 million for aircraft parts. 2. Awarded to Raytheon Training LLC. 3. Full and open competition was utilized. 4. Contract duration spans from 2005 to 2009.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.
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 pricing outcomes and whether the fixed fee adequately incentivized cost control are not detailed.
Taxpayer Impact: Taxpayer funds were used for this contract. The effectiveness of the competition in securing the best value for taxpayer money is not fully clear without further analysis of the final cost versus performance.
Public Impact
Impacts the Department of the Air Force's aircraft maintenance and readiness. Supports the manufacturing sector for specialized aircraft components. Potential for cost overruns due to the contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type.
- Lack of detailed cost performance data.
- Long contract duration.
Positive Signals
- Full and open competition utilized.
- Awarded to a known defense contractor.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending benchmarks in this sector can vary widely based on the complexity and uniqueness of the components required.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Analysis of small business participation is not possible with the provided information.
Oversight & Accountability
Oversight would typically involve monitoring Raytheon's costs and performance against the fixed fee. The effectiveness of this oversight is not detailed in the provided data.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Lack of transparency on final cost vs. estimate.
- Limited insight into competitive pricing outcomes.
- No data on small business subcontracting.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.4 million to RAYTHEON TRAINING LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is RAYTHEON TRAINING LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $37.4 million.
What is the period of performance?
Start: 2005-09-09. End: 2009-05-15.
What was the final cost of the contract compared to the initial estimated cost, and how did the fixed fee influence contractor behavior?
The provided data does not include the final cost or a comparison to the initial estimate. The Cost Plus Fixed Fee structure means the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize cost control to protect the fee, but also carries risks of cost escalation if oversight is insufficient or the fee is disproportionately high.
Were there any performance issues or significant cost overruns during the contract's execution, and how were they addressed?
Information regarding performance issues or cost overruns is not available in the provided data. Effective oversight by the Department of the Air Force would be crucial to identify and address any such problems promptly to mitigate negative impacts on cost and readiness.
How did the pricing from Raytheon Training LLC compare to other potential bidders during the full and open competition?
The data confirms full and open competition, suggesting multiple bids were likely received. However, specific details about the pricing of competing bids are not provided. Without this comparative pricing data, it's difficult to definitively assess if Raytheon's pricing represented the best value achieved through the competitive process.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6341 CAMPUS CIRCLE DR E, IRVING, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3365798D0005
IDV Type: IDC
Timeline
Start Date: 2005-09-09
Current End Date: 2009-05-15
Potential End Date: 2009-05-15 00:00:00
Last Modified: 2009-10-01
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