Raytheon Company awarded $298,983 contract for engineering services by the Department of the Army
Contract Overview
Contract Amount: $31,209,346 ($31.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2011-04-28
End Date: 2013-04-10
Contract Duration: 713 days
Daily Burn Rate: $43.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TO INCORPORATE OAWR 324-SM-USSFC-001-0 (5494) IN THE AMOUNT OF $298,983.00.
Place of Performance
Location: OAK GROVE, CHRISTIAN County, KENTUCKY, 42262, UNITED STATES OF AMERICA
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $31.2 million to RAYTHEON COMPANY for work described as: TO INCORPORATE OAWR 324-SM-USSFC-001-0 (5494) IN THE AMOUNT OF $298,983.00. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value is relatively small compared to typical large-scale defense procurements. 3. Fixed-price contract type may limit cost overruns for the government. 4. The duration of the contract is approximately two years. 5. The specific engineering services provided are not detailed, making performance assessment difficult. 6. Awarded to a single contractor, Raytheon Company, a major defense industry player.
Value Assessment
Rating: fair
The contract value of $298,983 is modest for a Department of Defense engineering services contract. Without more specific details on the services rendered, it is difficult to benchmark against similar contracts or assess value for money. The firm fixed-price nature provides some cost certainty, but the overall value proposition is unclear without performance metrics.
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. The presence of two bids suggests a degree of competition, though the specific number of bidders does not inherently guarantee the best price or value without further analysis of the bidding landscape for these specific engineering services.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.
Public Impact
The Department of the Army benefits from specialized engineering services to support its operations. The contract likely supports military readiness and infrastructure maintenance. The geographic impact is centered around the Army's operational needs, potentially in Kentucky where the contract was administered. Workforce implications would primarily affect engineers and technical staff employed by Raytheon Company.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed service description hinders performance evaluation.
- Limited competition (2 bidders) may not represent the full market potential.
- Contract value is small, raising questions about the scope and impact of the services.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract type offers cost predictability.
- Contractor is a well-established defense firm.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader defense industrial base. The market for defense engineering services is substantial, with numerous firms competing for government contracts. This specific award appears to be a niche requirement within the larger defense spending landscape, likely supporting specific technical or operational needs of the Army.
Small Business Impact
The contract does not indicate any small business set-aside provisions, and the prime contractor, Raytheon Company, is a large business. There is no information provided on subcontracting plans, so the impact on the small business ecosystem is unknown but likely minimal for this specific award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Transparency is generally provided through contract award databases. Accountability measures are inherent in the firm fixed-price structure, which incentivizes the contractor to meet performance requirements within the agreed budget.
Related Government Programs
- Department of Defense Engineering Services
- Army Research, Development, and Engineering Command Contracts
- Defense Infrastructure Support Contracts
Risk Flags
- Lack of detailed scope of work
- Limited competition data
- Unclear performance metrics
Tags
defense, department-of-the-army, engineering-services, raytheon-company, firm-fixed-price, full-and-open-competition, kentucky, small-contract-value, procurement
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.2 million to RAYTHEON COMPANY. TO INCORPORATE OAWR 324-SM-USSFC-001-0 (5494) IN THE AMOUNT OF $298,983.00.
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 $31.2 million.
What is the period of performance?
Start: 2011-04-28. End: 2013-04-10.
What specific engineering services were provided under this contract?
The provided data indicates the contract was for 'Engineering Services' (NAICS code 541330) awarded to Raytheon Company. However, the specific nature of these services is not detailed. This could range from design and development to testing, analysis, or technical support for military systems or infrastructure. Without further documentation or a detailed statement of work, the precise services remain unspecified, making it challenging to assess their criticality or impact.
How does the contract value of $298,983 compare to typical engineering service contracts for the Department of the Army?
The contract value of $298,983 is relatively modest for a Department of the Army engineering services contract. Large-scale defense engineering projects can often run into millions or even billions of dollars. This award likely represents a specific, smaller-scope task or a component of a larger program. Benchmarking requires access to a broader dataset of similar, narrowly defined engineering service contracts to determine if this price is competitive for the specific services rendered.
What are the potential risks associated with this contract for the government?
Given the limited information, potential risks include scope creep if the statement of work is not clearly defined, potential for cost overruns if the fixed-price nature doesn't adequately account for unforeseen technical challenges, and performance issues if the contractor fails to deliver the required engineering expertise. The small number of bidders (two) could also indicate a lack of robust competition, potentially leading to less than optimal pricing or solutions.
What is Raytheon Company's track record with similar Department of Defense contracts?
Raytheon Company (now RTX) is a major defense contractor with an extensive history of performing a wide array of services and providing complex systems for the Department of Defense. They have a significant portfolio of contracts across various defense domains, including engineering, research and development, and weapon systems production. While this specific contract is small, Raytheon's overall track record suggests they possess the capability and experience to handle defense-related engineering tasks, though performance on individual contracts can vary.
What does the 'AW: DO' designation signify?
The 'AW: DO' designation likely refers to the award type or action taken by the contracting officer. 'DO' often stands for 'Delivery Order' or 'Task Order' issued under a previously established contract vehicle or basic ordering agreement. This suggests that the $298,983 might be a specific order placed against a larger, pre-negotiated agreement, rather than a standalone new contract. This is a common method for procuring services efficiently.
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
Address: 2603 CHALLENGER CT STE150, ORLANDO, FL, 32826
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,209,346
Exercised Options: $31,209,346
Current Obligation: $31,209,346
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK07D0001
IDV Type: IDC
Timeline
Start Date: 2011-04-28
Current End Date: 2013-04-10
Potential End Date: 2013-04-10 00:00:00
Last Modified: 2016-03-31
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