Raytheon Training LLC awarded $11.36M contract for field service and academic instructors

Contract Overview

Contract Amount: $11,363,156 ($11.4M)

Contractor: Raytheon Training LLC

Awarding Agency: Department of Defense

Start Date: 2006-12-12

End Date: 2009-06-30

Contract Duration: 931 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIELD SERVICE AND ACADEMIC INSTRUCTORS FOR CY 2007

Place of Performance

Location: ARLINGTON, TARRANT County, TEXAS, 76011

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to RAYTHEON TRAINING LLC for work described as: FIELD SERVICE AND ACADEMIC INSTRUCTORS FOR CY 2007 Key points: 1. Contract value represents a significant investment in specialized training services. 2. Competition dynamics suggest a potentially competitive bidding process for this requirement. 3. Contract duration of over two years indicates a sustained need for these services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Geographic location in Texas may indicate a specific operational focus for the training. 6. The award to a single contractor, Raytheon Training LLC, warrants further examination of the procurement process.

Value Assessment

Rating: fair

The contract value of $11.36 million for field service and academic instructors appears reasonable given the duration and scope. Benchmarking against similar training contracts is difficult without more specific details on the services provided. However, the fixed-price nature of the contract suggests that the government has negotiated a set cost, which can be advantageous if the contractor can deliver efficiently. The number of bids received (2) is on the lower side, which might indicate less aggressive pricing than in a more crowded field.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. However, only two bids were received. This limited number of bidders could suggest potential barriers to entry for other firms, a lack of market interest, or a highly specialized requirement that only a few companies can meet. The limited competition may have impacted the government's ability to secure the most competitive pricing.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the full range of competitive pricing that could have been achieved with more offers. This could translate to a higher overall cost for the services rendered.

Public Impact

The primary beneficiaries are likely Department of Defense personnel, specifically those within the Air Force, who will receive specialized training. The services delivered include field support and academic instruction, crucial for maintaining operational readiness and technical expertise. The contract's geographic impact is centered in Texas, suggesting a concentration of training activities or personnel in that state. Workforce implications include the employment of instructors and support staff by Raytheon Training LLC, contributing to the local economy in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) raises concerns about potential price inflation and reduced value for taxpayer dollars.
The specific nature of 'field service and academic instructors' is broad and could encompass a wide range of specialized skills, making direct cost comparisons challenging.
Lack of detailed performance metrics or quality indicators in the provided data makes it difficult to assess the effectiveness of the training.

Positive Signals

Awarded under full and open competition, adhering to principles of fair market access.
Fixed-price contract type aligns incentives for contractor efficiency and cost control.
Contractor, Raytheon Training LLC, is a known entity in the defense sector, suggesting a degree of established capability.

Sector Analysis

The defense training sector is a critical component of military readiness, encompassing a wide array of services from technical instruction to operational support. This contract falls within the broader aerospace and defense industry, which is characterized by long-term government relationships and specialized technological requirements. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the training, but the defense sector consistently represents a significant portion of federal expenditures, with training and support services being a recurring need.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'ss' (small business set-aside) field is false and the 'sb' (small business) field is also false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the prime contractor, Raytheon Training LLC, is expected to perform the majority of the work, and opportunities for small businesses to participate in this specific contract may be limited unless they are direct suppliers or subcontractors not explicitly tracked in this summary data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance reports and specific oversight activities are often internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Training Services
Aerospace and Defense Support Contracts
Military Education and Instruction
Field Service Representatives
Aircraft Maintenance Training

Risk Flags

Limited Competition
Potential for Cost Overruns (if scope poorly defined)
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to RAYTHEON TRAINING LLC. FIELD SERVICE AND ACADEMIC INSTRUCTORS FOR CY 2007

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 $11.4 million.

What is the period of performance?

Start: 2006-12-12. End: 2009-06-30.

What specific types of field service and academic instruction are covered under this contract?

The provided data does not specify the exact nature of the 'field service and academic instruction.' This could range from technical training on specific aircraft systems, operational procedures, maintenance protocols, to leadership or tactical instruction. Without further details from the contract statement of work, it is impossible to ascertain the precise skills and knowledge being imparted. Understanding the specificity of these services is crucial for evaluating their value and comparing costs against industry benchmarks. For instance, training on a complex avionics system would command a different price point than basic military doctrine instruction.

How does the $11.36 million contract value compare to similar training contracts awarded by the Department of Defense?

Direct comparison of the $11.36 million contract value is challenging without knowing the specific services, duration, and number of personnel trained. However, the Department of Defense awards numerous training contracts annually, ranging from millions to billions of dollars. Contracts for specialized technical training, particularly for advanced platforms, can be substantial. Given this contract's duration of approximately 2.5 years (from Dec 2006 to June 2009), the annual value is roughly $4.5 million. This figure falls within a common range for significant, multi-year training engagements, but its true value depends heavily on the scope and criticality of the instruction provided.

What are the potential risks associated with a firm-fixed-price contract for training services?

The primary risk with a firm-fixed-price (FFP) contract for training services lies in potential scope creep or unforeseen complexities that could lead to the contractor incurring higher costs than anticipated. While FFP shifts performance risk to the contractor, if the training requirements are not clearly defined or if the contractor underestimates the effort, they might cut corners on quality to maintain profitability. Conversely, if the contractor is highly efficient and the government overpaid relative to the actual effort, the value proposition diminishes. Effective government oversight is key to ensuring the contractor meets quality standards despite the fixed price.

What is the track record of Raytheon Training LLC in delivering similar defense training services?

Raytheon Training LLC, as part of the larger Raytheon Company (now RTX), has a substantial track record in providing training and simulation solutions for various defense platforms. While this specific contract data doesn't detail their performance, Raytheon is a major defense contractor known for its expertise in areas like aviation, missile systems, and command and control. Their involvement in defense training is extensive, often including development of training curricula, provision of instructors, and operation of training facilities and simulators. Past performance reviews and contract histories within the DoD would provide a more granular assessment of their reliability and effectiveness for this particular type of service.

How has spending on field service and academic instruction evolved within the Department of the Air Force over time?

Spending on field service and academic instruction within the Department of the Air Force has generally trended upwards over the past two decades, driven by the increasing complexity of military technology, evolving geopolitical threats, and the need for continuous personnel development. While specific figures for 'field service and academic instructors' are not readily available as a distinct category across all years, overall training and education budgets within the Air Force are substantial and fluctuate based on modernization programs, new platform introductions, and operational tempo. This $11.36 million contract represents a specific investment during its performance period (2006-2009) that aligns with the ongoing need for skilled personnel to operate and maintain advanced Air Force assets.

What does the limited competition (2 bidders) for this contract imply about the market for these specialized training services?

The fact that only two bids were received for this 'full and open' competition suggests that the market for these specific field service and academic instructor services may be concentrated among a few specialized providers. This could be due to the high level of technical expertise required, the need for specific security clearances, the geographic location of the required services, or the significant resources needed to compete effectively. For taxpayers, limited competition can mean potentially higher prices than if a larger pool of bidders were vying for the contract, as the incumbent or limited number of players face less pressure to offer the lowest possible price.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

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

Address: 6341 CAMPUS CIRCLE DR E, IRVING, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,363,156

Exercised Options: $11,363,156

Current Obligation: $11,363,156

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F3365798D0005

IDV Type: IDC

Timeline