Raytheon Awarded $128M for Remote Advise and Assist Virtual Services

Contract Overview

Contract Amount: $128,222,775 ($128.2M)

Contractor: Raytheon Company

Awarding Agency: General Services Administration

Start Date: 2021-07-15

End Date: 2026-07-14

Contract Duration: 1,825 days

Daily Burn Rate: $70.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: REMOTE ADVISE AND ASSIST VIRTUAL ACCOMPANY RAAVAK SERVICES SUPPORT

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $128.2 million to RAYTHEON COMPANY for work described as: REMOTE ADVISE AND ASSIST VIRTUAL ACCOMPANY RAAVAK SERVICES SUPPORT Key points: 1. Significant contract value of $128.2M awarded to Raytheon Company. 2. Services fall under Engineering Services (NAICS 541330). 3. Full and open competition was utilized. 4. Contract duration is 5 years, ending July 2026.

Value Assessment

Rating: fair

The contract is Time and Materials, which can lead to cost overruns if not managed closely. Benchmarking against similar 'advise and assist' contracts is difficult due to the virtual and specialized nature of the services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded via full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing structure may not guarantee the most cost-effective outcome for the government.

Taxpayer Impact: Taxpayer funds are being utilized for specialized virtual support services. The effectiveness of the competition in driving down costs for this specific service type warrants monitoring.

Public Impact

Provides critical virtual support, potentially enhancing operational readiness. Leverages technology for remote assistance, reducing physical presence needs. Supports national security objectives through specialized engineering services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Lack of specific performance metrics in provided data

Positive Signals

Full and open competition
Long-term contract for sustained support

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for national defense and technological advancement. Spending in this sector is often high due to the specialized expertise and research required.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as Raytheon Company is a large corporation. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight will be critical to ensure Raytheon delivers the contracted virtual advise and assist services effectively and within budget, especially given the Time and Materials pricing. The General Services Administration (GSA) is the contracting agency.

Related Government Programs

Engineering Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of specific performance metrics in the award data.
Reliance on a single large contractor for critical services.
Limited visibility into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $128.2 million to RAYTHEON COMPANY. REMOTE ADVISE AND ASSIST VIRTUAL ACCOMPANY RAAVAK SERVICES SUPPORT

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $128.2 million.

What is the period of performance?

Start: 2021-07-15. End: 2026-07-14.

What specific metrics will be used to evaluate the effectiveness of the 'advise and assist' services provided virtually?

The provided data does not specify the performance metrics for this contract. Effective oversight would require clearly defined deliverables and Key Performance Indicators (KPIs) to measure the value and impact of the virtual support. Without these, assessing the true effectiveness and return on investment for taxpayer dollars is challenging.

How will the government mitigate potential cost overruns associated with the Time and Materials pricing model?

Mitigation strategies for Time and Materials contracts typically involve establishing strong contract management, setting clear ceilings on labor hours and rates, and conducting regular reviews of expenditures. The contracting officer and technical team must actively monitor progress and costs to prevent scope creep and ensure efficient resource utilization.

What is the projected long-term value or strategic advantage of investing in these remote virtual assistance services?

The strategic advantage lies in maintaining operational readiness and providing expert support regardless of geographical limitations. This can lead to cost savings compared to deploying personnel physically and ensures access to specialized knowledge. The long-term value is realized through enhanced mission effectiveness and adaptability in a dynamic environment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFSA21Q0115

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 22260 PACIFIC BLVD, STERLING, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $155,215,430

Exercised Options: $148,029,571

Current Obligation: $128,222,775

Actual Outlays: $-90,925

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $14,135,123

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU129

IDV Type: IDC

Timeline