DoD's $79M Raytheon Contract for Communication Installation & Sustainment Support Underwent Full and Open Competition
Contract Overview
Contract Amount: $79,034,755 ($79.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2013-09-27
End Date: 2023-10-31
Contract Duration: 3,686 days
Daily Burn Rate: $21.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF COMMUNICATION INSTALLATION&SUSTAINMNET SUPPORT
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $79.0 million to RAYTHEON COMPANY for work described as: IGF::CT::IGF COMMUNICATION INSTALLATION&SUSTAINMNET SUPPORT Key points: 1. The contract awarded to Raytheon Company for communication installation and sustainment support is substantial at $79 million. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The contract spans a significant duration, from 2013 to 2023, indicating long-term needs. 4. The firm-fixed-price contract type aims to control costs for the Department of Defense. 5. The absence of small business participation is noted.
Value Assessment
Rating: good
The contract's firm-fixed-price structure suggests an effort to establish clear pricing. Benchmarking against similar large-scale communication installation and sustainment contracts would be necessary for a precise value assessment, but the scale and duration imply significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as multiple bidders likely competed. This method generally leads to more competitive pricing compared to sole-source or limited solicitations.
Taxpayer Impact: The competitive nature of the award is expected to have yielded a fair price, maximizing taxpayer value for the critical communication services provided.
Public Impact
Ensures critical communication infrastructure for the Air Force remains operational and up-to-date. Supports national defense capabilities through reliable communication systems. Long-term contract provides stability for both the government and the contractor. Potential for technological advancements in communication systems through sustained support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to potential cost overruns if not managed effectively.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Significant investment in critical communication infrastructure.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to communication installation and sustainment. Spending in this area is crucial for maintaining operational readiness and technological superiority within the Department of Defense.
Small Business Impact
The contract data indicates that small businesses were not involved in this award. For future procurements of this nature, exploring opportunities for small business subcontracting could enhance economic impact and foster innovation.
Oversight & Accountability
The definitive contract award and firm-fixed-price structure suggest a degree of oversight. However, the long duration necessitates ongoing monitoring by the Air Force to ensure performance, cost control, and adherence to contract terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of small business participation.
- Long contract duration (10 years).
- Potential for obsolescence of supported technologies over time.
- Reliance on a single large contractor for critical infrastructure.
Tags
engineering-services, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $79.0 million to RAYTHEON COMPANY. IGF::CT::IGF COMMUNICATION INSTALLATION&SUSTAINMNET SUPPORT
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 $79.0 million.
What is the period of performance?
Start: 2013-09-27. End: 2023-10-31.
What specific communication systems or technologies are covered under this contract, and how do they align with current Air Force modernization efforts?
The contract covers installation and sustainment support for communication systems, which likely includes a range of technologies from legacy to potentially more modern infrastructure. Understanding the specific systems is key to assessing if the investment aligns with the Air Force's strategic modernization goals and if the sustainment efforts are future-proofing the capabilities or maintaining outdated ones.
Given the 10-year duration, what mechanisms were in place to manage potential scope creep or price escalation, and how effective were they?
The firm-fixed-price nature of the contract provides a baseline for cost control. However, a decade-long engagement necessitates robust change management processes and regular performance reviews to mitigate scope creep and ensure that any price adjustments are justified and within contractual limits. The effectiveness would depend on the Air Force's diligent oversight and the contractor's adherence to the agreed-upon terms.
How does the performance of Raytheon Company on this contract compare to industry benchmarks for similar communication sustainment services?
Assessing Raytheon's performance against industry benchmarks requires access to specific performance metrics (e.g., uptime, response times, cost efficiency) and comparative data from other large-scale communication sustainment contracts. Without such data, it's difficult to definitively state how well the company performed relative to its peers, though the contract's renewal or long duration might imply satisfactory performance.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752
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: $79,084,755
Exercised Options: $79,034,755
Current Obligation: $79,034,755
Actual Outlays: $1,153,295
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $156,605
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-27
Current End Date: 2023-10-31
Potential End Date: 2023-10-31 00:00:00
Last Modified: 2023-06-02
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