DoD's $703M Facilities Support Services Contract Awarded to Computer Sciences Raytheon Shows Long Duration

Contract Overview

Contract Amount: $703,455,612 ($703.5M)

Contractor: Computer Sciences Raytheon

Awarding Agency: Department of Defense

Start Date: 2007-09-01

End Date: 2017-09-30

Contract Duration: 3,682 days

Daily Burn Rate: $191.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: RANGE OPERATIONS SERVICES FY08

Place of Performance

Location: PATRICK AFB, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $703.5 million to COMPUTER SCIENCES RAYTHEON for work described as: RANGE OPERATIONS SERVICES FY08 Key points: 1. The contract's 10-year duration suggests a need for sustained support in facilities operations. 2. Awarded under full and open competition, indicating a broad market search. 3. The Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful oversight to manage costs. 4. The contractor, Computer Sciences Raytheon, has a significant presence in government contracting. 5. The contract's value of over $700 million over a decade points to a substantial investment in base support. 6. The geographic focus on Florida (ST, SN) highlights a concentration of Air Force facilities in the region.

Value Assessment

Rating: fair

The contract's total value of $703.4 million over 10 years averages to approximately $70.3 million per year. Benchmarking this against similar large-scale facilities support contracts is challenging without more specific service details. However, the Cost Plus Award Fee (CPAF) pricing structure, while common for complex services, can lead to higher final costs if not managed tightly. The absence of a clear per-unit cost makes direct value assessment difficult, but the long duration and significant total value suggest a substantial, ongoing requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of the Air Force sought proposals from all responsible sources. The presence of 6 bidders (no=6) indicates a healthy level of competition for this significant facilities support services requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. Multiple bidders help drive down costs and ensure the government is not overpaying for essential services.

Public Impact

The primary beneficiaries are the Department of the Air Force personnel and operations at facilities located in Florida. The contract delivers essential facilities support services, likely including maintenance, repair, operations, and potentially base support functions. The geographic impact is concentrated in Florida, specifically at installations managed by the Air Force. The contract supports a significant number of jobs, both directly with the contractor and indirectly through its supply chain, contributing to the local economy in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPAF structure requires robust performance metrics and oversight to prevent cost overruns.
Long-term contracts can sometimes lead to complacency or reduced innovation if not actively managed.
Reliance on a single large contractor for critical base operations could pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

Full and open competition suggests a strong initial market assessment and competitive pricing.
The long duration indicates a stable, long-term need for these services, providing predictability for the contractor and the agency.
The contractor, Computer Sciences Raytheon, likely possesses significant experience and capability in delivering large-scale facilities support.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services required to maintain and operate physical infrastructure. This sector is critical for government operations, ensuring bases and facilities are functional and secure. The market for these services is substantial, with numerous large and small businesses competing for government contracts. The $703 million value over 10 years positions this as a major contract within the sector, likely representing a significant portion of the Air Force's facilities spending in the specified region.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (sb=false). While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors. However, without specific subcontracting plans or goals detailed in the award data, the direct impact on the small business ecosystem is unclear. Further analysis of subcontracting reports would be necessary to assess the extent of small business involvement.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would typically involve the Department of the Air Force's contracting officers and technical representatives. They are responsible for monitoring contractor performance against established metrics, approving award fees, and ensuring compliance with contract terms. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Logistics and Readiness Support
Information Technology Support Services
Professional, Scientific, and Technical Services
Real Property Maintenance

Risk Flags

Long contract duration
Cost Plus Award Fee structure requires diligent oversight
Potential for contractor complacency over time

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $703.5 million to COMPUTER SCIENCES RAYTHEON. RANGE OPERATIONS SERVICES FY08

Who is the contractor on this award?

The obligated recipient is COMPUTER SCIENCES RAYTHEON.

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 $703.5 million.

What is the period of performance?

Start: 2007-09-01. End: 2017-09-30.

What specific facilities support services are included under this contract?

The provided data categorizes this contract under NAICS code 561210 (Facilities Support Services), but does not detail the specific services rendered. Typically, such contracts encompass a broad range of activities including but not limited to: operation and maintenance of buildings and grounds, custodial services, pest control, refuse collection, transportation services, security services, and potentially IT infrastructure support within facilities. The 'RANGE OPERATIONS SERVICES' designation suggests a comprehensive scope. A deeper dive into the contract's Performance Work Statement (PWS) would be necessary to ascertain the precise deliverables.

How does the $703 million total contract value compare to similar facilities support contracts awarded by the DoD?

The $703 million total contract value over a 10-year period, averaging approximately $70.3 million annually, is substantial for facilities support services. Large-scale base operations and maintenance contracts for major military installations often fall within this range or higher. For instance, similar multi-year, comprehensive support contracts at large Air Force bases or Army posts can easily exceed $100 million per year. Without knowing the specific scope and location of the facilities supported, a precise comparison is difficult, but this contract appears to be a significant award, reflecting the extensive needs of the Air Force installations in Florida.

What are the key performance indicators (KPIs) used to determine award fees under this Cost Plus Award Fee (CPAF) contract?

The specific Key Performance Indicators (KPIs) for award fee determination are not detailed in the provided summary data. However, for CPAF contracts, KPIs typically align with critical aspects of the Performance Work Statement (PWS) and focus on areas such as timeliness of service delivery, quality of work, cost control, safety compliance, customer satisfaction, and responsiveness to requirements. The Air Force's technical monitors and contracting officer would evaluate the contractor's performance against these pre-defined metrics. High performance in these areas would result in higher award fees, while subpar performance would lead to reduced or zero award fees, incentivizing the contractor to meet or exceed expectations.

What is the historical spending pattern for facilities support services at the relevant Air Force installations in Florida?

The provided data focuses on a single contract award from FY08 for services spanning from 2007 to 2017. To understand historical spending patterns, one would need to analyze cumulative spending on facilities support services at the specific Air Force installations in Florida covered by this contract over multiple fiscal years. This would involve examining prior contracts, task orders, and potentially other related service contracts awarded to different vendors. Analyzing trends in spending, contract types (e.g., fixed-price vs. cost-reimbursement), and competition levels over time would reveal patterns and potential shifts in procurement strategies or service requirements.

What is the track record of Computer Sciences Raytheon (now part of RTX) in managing large-scale government facilities support contracts?

Computer Sciences Raytheon (CSR), now part of RTX (formerly Raytheon Technologies), has a long and extensive history of managing large-scale government contracts, including significant facilities support and base operations services. Prior to its acquisition by Raytheon, Computer Sciences Corporation (CSC) was a major player in government IT and professional services. Raytheon itself has substantial defense and aerospace operations. Their combined entity possesses the scale, resources, and experience necessary to manage complex, multi-year contracts like this one. Past performance evaluations and contract administration data from the DoD would provide more granular insights into their specific performance on similar contracts, including any challenges or successes.

What are the potential risks associated with a 10-year contract duration for facilities support services?

A 10-year contract duration for facilities support services presents several potential risks. Firstly, it can lead to contractor complacency if performance incentives are not robustly structured or enforced, potentially diminishing service quality over time. Secondly, long-term contracts may lock the government into specific technologies or service methodologies that could become outdated, hindering modernization efforts. Thirdly, significant changes in operational requirements or budget constraints within the government could make the contract less flexible or economically burdensome. Finally, the long duration increases the risk associated with the contractor's long-term financial stability and operational continuity.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA252105R0003

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 1201 EDWARD H WHITE II ST, PATRICK AFB, FL, 32925

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $921,475,549

Exercised Options: $759,704,995

Current Obligation: $703,455,612

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline