DoD Awards Raytheon $28.77M for Tactical Engagement Systems, Engineering Services
Contract Overview
Contract Amount: $28,770,103 ($28.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2009-05-01
End Date: 2011-04-25
Contract Duration: 724 days
Daily Burn Rate: $39.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TACTICAL ENGAGEMENT SYSTEMS (TES)
Place of Performance
Location: FAIRDALE, JEFFERSON County, KENTUCKY, 40118
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $28.8 million to RAYTHEON COMPANY for work described as: TACTICAL ENGAGEMENT SYSTEMS (TES) Key points: 1. Contract awarded to Raytheon Company for Tactical Engagement Systems. 2. Significant award value of $28.77 million. 3. Services fall under Engineering Services (NAICS 541330). 4. Contract duration of 724 days. 5. Awarded via Full and Open Competition.
Value Assessment
Rating: good
The award value of $28.77 million for engineering services appears reasonable given the contract duration and the nature of tactical engagement systems. Benchmarking against similar complex engineering contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: Full and open competition suggests taxpayers likely benefited from competitive pricing, maximizing the value for the $28.77 million spent on these critical systems.
Public Impact
Enhances warfighter capabilities through advanced tactical engagement systems. Supports Department of the Army's operational readiness. Investment in defense technology contributes to national security. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope expands beyond initial engineering services.
- Dependence on a single contractor (Raytheon) for this specific system.
- Long-term sustainment costs not detailed in this award.
Positive Signals
- Awarded through competitive bidding, suggesting fair pricing.
- Clear contract duration and delivery order structure.
- Supports critical defense needs for the Army.
Sector Analysis
The defense sector, particularly engineering services for tactical systems, involves complex, high-value contracts. Spending benchmarks for similar specialized engineering services can vary widely based on technology and scope.
Small Business Impact
This contract was awarded to a large business (Raytheon Company). There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.
Oversight & Accountability
The award was made via a delivery order under a larger contract, implying prior oversight. Further oversight would focus on performance, adherence to specifications, and budget management throughout the contract period.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep leading to cost increases.
- Dependence on Raytheon's technical expertise and delivery.
- Long-term sustainment and upgrade costs are not specified.
- Effectiveness relies heavily on realistic simulation capabilities.
Tags
engineering-services, department-of-defense, ky, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.8 million to RAYTHEON COMPANY. TACTICAL ENGAGEMENT SYSTEMS (TES)
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $28.8 million.
What is the period of performance?
Start: 2009-05-01. End: 2011-04-25.
What is the specific nature of the 'Tactical Engagement Systems' and their intended use?
Tactical Engagement Systems (TES) likely refer to advanced hardware and software designed to simulate combat scenarios or provide realistic training environments for military personnel. Their intended use is to enhance warfighter proficiency, test tactics, and improve overall combat readiness in a safe and controlled manner before deployment to actual combat zones.
What are the key performance indicators (KPIs) for this contract to ensure effectiveness?
Key performance indicators would likely include system reliability, accuracy of simulations, ease of integration with existing military platforms, and user feedback from training exercises. Meeting delivery schedules and staying within the firm fixed price budget are also critical. Performance metrics should be clearly defined in the contract's statement of work.
How does the $28.77 million award compare to similar TES development contracts?
Without specific details on the system's complexity and capabilities, direct comparison is difficult. However, $28.77 million for a 724-day engineering services contract for advanced tactical systems is within a plausible range for specialized defense contracts. Benchmarking against contracts for similar simulation or training systems would be necessary for a precise assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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
Parent Company: RTX Corp
Address: 2603 CHALLENGER CT STE150, ORLANDO, FL, 32826
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $28,770,103
Exercised Options: $28,770,103
Current Obligation: $28,770,103
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK07D0001
IDV Type: IDC
Timeline
Start Date: 2009-05-01
Current End Date: 2011-04-25
Potential End Date: 2011-04-25 00:00:00
Last Modified: 2022-04-08
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