Raytheon Company awarded $42.5M for Mission Video Distribution System (MVDS) by the Air Force

Contract Overview

Contract Amount: $42,519,427 ($42.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2022-07-28

End Date: 2026-07-31

Contract Duration: 1,464 days

Daily Burn Rate: $29.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MISSION VIDEO DISTRIBUTION SYSTEM (MVDS)

Plain-Language Summary

Department of Defense obligated $42.5 million to RAYTHEON COMPANY for work described as: MISSION VIDEO DISTRIBUTION SYSTEM (MVDS) Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of approximately four years suggests a long-term need for these services. 3. Fixed-price contract type may incentivize cost control by the contractor. 4. The specific service category (Other Computer Related Services) is broad and requires further definition. 5. No indication of small business participation or set-asides. 6. The value of the contract is significant within its service category.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided and comparable contracts. The $42.5 million award over roughly four years indicates a substantial investment. Given the sole-source nature, it's difficult to assess if the pricing is competitive. However, the firm fixed-price structure suggests an expectation of defined costs and potential for contractor efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities or when there are urgent needs that preclude a competitive process. The lack of competition means that price discovery through market forces was limited, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the government secured the best possible price for the services rendered.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving services for its Mission Video Distribution System. The contract supports critical video distribution infrastructure, likely for operational or training purposes. The geographic impact is likely within Air Force facilities where the MVDS is deployed. Workforce implications may include specialized IT and video engineering roles within Raytheon Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
Lack of transparency regarding the justification for sole-source procurement.
Broad service category 'Other Computer Related Services' lacks specificity, making performance assessment difficult.
No clear indication of small business involvement or subcontracting opportunities.

Positive Signals

Firm fixed-price contract type can provide cost certainty and incentivize contractor efficiency.
Long-term contract duration suggests a stable and ongoing requirement for the service.
Award to a large, established defense contractor like Raytheon may indicate a need for specialized expertise.

Sector Analysis

The IT services sector, particularly within defense, is characterized by complex systems and specialized requirements. Contracts for video distribution systems fall under IT services, often involving hardware, software, and network integration. The market size for such specialized IT services within the federal government is substantial, with agencies constantly seeking to upgrade and maintain their communication and data infrastructure. This contract represents a specific investment in maintaining and potentially enhancing the Air Force's video distribution capabilities.

Small Business Impact

This contract does not appear to have any small business set-aside provisions, as indicated by 'sb': false. Furthermore, there is no information provided regarding subcontracting plans or goals for small businesses. This suggests that the primary contractor, Raytheon Company, will likely perform the majority of the work, with limited direct opportunities for small businesses within this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the specific performance metrics and deliverables would be managed through contract reporting mechanisms. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Defense-wide Information Technology Services
Air Force Communication and Information Systems
Video Teleconferencing Services
Command and Control Systems

Risk Flags

Sole-source award raises concerns about potential lack of competition and cost-effectiveness.
Broad service category lacks specificity, potentially hindering performance monitoring and evaluation.
No indication of small business participation or subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.5 million to RAYTHEON COMPANY. MISSION VIDEO DISTRIBUTION SYSTEM (MVDS)

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 Air Force).

What is the total obligated amount?

The obligated amount is $42.5 million.

What is the period of performance?

Start: 2022-07-28. End: 2026-07-31.

What specific services are included under the 'Other Computer Related Services' for the Mission Video Distribution System?

The provided data categorizes the service under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide range of IT services not specified elsewhere. For the Mission Video Distribution System (MVDS), this could include the design, development, integration, maintenance, or support of video streaming, recording, archiving, and distribution platforms. It might involve hardware installation, software configuration, network management, cybersecurity measures related to video data, and user support. Without further details from the contract's statement of work, it is difficult to ascertain the precise nature and scope of the services being procured.

What is the justification for awarding this contract on a sole-source basis to Raytheon Company?

The data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. Justifications for sole-source contracts typically fall under specific exceptions to full and open competition, such as the availability of only one responsible source, urgent and compelling needs, or when the contract is a follow-on to a previously competed contract where only the original contractor can provide the necessary services. For Raytheon Company to be awarded this $42.5 million contract without competition, there would need to be a formal justification documented by the Department of the Air Force, likely citing unique capabilities, proprietary technology, or specific integration requirements that only Raytheon could fulfill for the MVDS.

How does the $42.5 million contract value compare to historical spending on similar video distribution systems within the Department of Defense?

Comparing the $42.5 million award for the Mission Video Distribution System (MVDS) to historical spending requires access to detailed historical contract data for similar systems across the Department of Defense (DoD). The provided data does not include this historical context. However, $42.5 million over approximately four years ($10.6 million annually) represents a significant investment. To assess its comparability, one would need to identify other DoD contracts for video distribution, streaming, or related command and control communication systems, analyze their values, durations, and the scope of services. Without such comparative data, it's challenging to definitively state whether this contract is high, low, or average relative to past expenditures.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this Mission Video Distribution System (MVDS) contract. Typically, for IT services contracts, especially those involving distribution systems, KPIs might include system uptime, video quality (resolution, frame rate), latency (delay in transmission), data security compliance, successful delivery rates, and response times for technical support. Deliverables could range from system performance reports, software updates, hardware maintenance logs, to successful integration of new features. The firm fixed-price nature of the contract suggests that specific, measurable outcomes are expected to be met within the agreed-upon price.

What is Raytheon Company's track record with the Department of the Air Force for similar IT or video systems?

Raytheon Company, now part of RTX, has a long and extensive history of contracting with the Department of the Air Force (and the broader Department of Defense) across a wide array of technology and defense systems. While the specific 'Mission Video Distribution System (MVDS)' contract is detailed here, Raytheon's broader portfolio includes significant work in areas such as command and control, intelligence, surveillance, reconnaissance (ISR), cybersecurity, and complex IT infrastructure management. Their track record with the Air Force is generally robust, involving numerous large-scale programs. However, the suitability and performance specifically related to video distribution systems would depend on the particular divisions and projects within Raytheon that handle this type of technology.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 22260 PACIFIC BLVD, DULLES, 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: $53,826,954

Exercised Options: $42,519,427

Current Obligation: $42,519,427

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $271,090

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline