Raytheon Awarded $105M for Distributed Common Ground System Support by Air Force

Contract Overview

Contract Amount: $105,157,263 ($105.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2017-10-01

End Date: 2018-09-30

Contract Duration: 364 days

Daily Burn Rate: $288.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF DISTRIBUTED COMMON GROUND SYSTEM MISSION SUPPORT MAINTENANCE PERSONNEL SUPPORT

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $105.2 million to RAYTHEON COMPANY for work described as: IGF::CT::IGF DISTRIBUTED COMMON GROUND SYSTEM MISSION SUPPORT MAINTENANCE PERSONNEL SUPPORT Key points: 1. Significant contract value of $105M for mission support and maintenance. 2. Sole-source award to Raytheon Company, limiting competitive options. 3. Focus on engineering services (NAICS 541330) for critical defense systems. 4. Contract duration of 364 days with a Cost Plus Fixed Fee structure.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the $105M price is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, meaning no competition was sought. This significantly impacts price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive process.

Public Impact

Ensures continued operation and maintenance of critical intelligence systems. Supports personnel involved in the Distributed Common Ground System. Potential for cost inefficiencies due to sole-source, CPFF contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in pricing

Positive Signals

Supports critical defense intelligence infrastructure
Ensures continuity of operations

Sector Analysis

This contract falls under engineering services for defense systems, a sector often characterized by complex, specialized requirements. Benchmarks for similar sole-source, CPFF contracts can vary widely.

Small Business Impact

The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of small business participation in this specific award.

Oversight & Accountability

Oversight is crucial for sole-source, CPFF contracts to ensure costs are reasonable and performance meets requirements. The IG's role in reviewing such contracts is vital.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition and potentially increases cost.
CPFF contract type carries inherent risk of cost overruns.
Lack of transparency regarding the justification for sole-sourcing.
No indication of small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $105.2 million to RAYTHEON COMPANY. IGF::CT::IGF DISTRIBUTED COMMON GROUND SYSTEM MISSION SUPPORT MAINTENANCE PERSONNEL 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 $105.2 million.

What is the period of performance?

Start: 2017-10-01. End: 2018-09-30.

What specific justification was provided for the sole-source award, and were alternatives considered?

The data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. A thorough review would examine the documented rationale and whether any market research was conducted to confirm the lack of competition.

How will the Cost Plus Fixed Fee structure be monitored to prevent cost overruns?

Monitoring a CPFF contract involves rigorous oversight of incurred costs and the contractor's fee. The government must establish clear criteria for allowable costs and track them diligently. Regular audits, performance reviews, and milestone tracking are essential to ensure the contractor operates efficiently and stays within the agreed-upon fixed fee, preventing excessive spending.

What is the long-term strategy for competition for Distributed Common Ground System support services?

The long-term strategy for competition is not detailed in the provided data. However, for future procurements, the agency should explore opportunities to introduce competition, perhaps by breaking down the requirement into smaller, more competitive lots or by developing requirements that allow new entrants to compete. This would help ensure better value and innovation over time.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA852717R0041

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $105,157,263

Exercised Options: $105,157,263

Current Obligation: $105,157,263

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA852716D0050

IDV Type: IDC

Timeline