Raytheon Company awarded $55.4M for DCGS GEOINT Infrastructure Field Support Services by the Department of the Air Force

Contract Overview

Contract Amount: $55,436,211 ($55.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2022-03-30

End Date: 2023-03-29

Contract Duration: 364 days

Daily Burn Rate: $152.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DCGS GEOSPATIAL INTELLIGENCE (GEOINT) INFRASTRUCTURE FIELD SUPPORT SERVICES

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $55.4 million to RAYTHEON COMPANY for work described as: DCGS GEOSPATIAL INTELLIGENCE (GEOINT) INFRASTRUCTURE FIELD SUPPORT SERVICES Key points: 1. Contract awarded as a sole-source delivery order, raising questions about competition and potential cost efficiencies. 2. The firm-fixed-price contract type suggests a defined scope and predictable costs, but the lack of competition limits price discovery. 3. Performance is for one year, indicating a need for ongoing support rather than a long-term strategic investment. 4. The contract falls under Engineering Services, a broad category that requires further detail to assess specific value. 5. Geospatial intelligence infrastructure support is critical for national security, highlighting the importance of reliable service delivery.

Value Assessment

Rating: fair

The contract value of $55.4 million for one year of support is substantial. Without comparable contract data for similar GEOINT infrastructure field support services, it is difficult to definitively benchmark the value for money. The firm-fixed-price structure provides cost certainty for the government, but the sole-source nature means there was no opportunity to test the market for more competitive pricing. Further analysis would require understanding the specific services provided and their criticality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed. This approach is typically used when only one source is capable of meeting the requirement, often due to specialized expertise, proprietary technology, or urgent needs. The lack of competition means the government did not benefit from multiple bids, which could have driven down prices or led to innovative solutions from a wider pool of contractors.

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 price reflects the best possible value achievable in the market.

Public Impact

The primary beneficiaries are likely elements within the Department of Defense that rely on DCGS for geospatial intelligence. Services delivered include infrastructure field support, crucial for the operational readiness of intelligence gathering and analysis systems. The geographic impact is likely concentrated where DCGS facilities are located, potentially across various military installations. Workforce implications may involve specialized technical personnel required for maintaining and supporting complex GEOINT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for money.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if not closely managed due to lack of competitive pressure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Focus on critical geospatial intelligence infrastructure support suggests high importance.
Existing contractor (Raytheon) may possess specialized knowledge and capabilities.

Sector Analysis

The defense sector, particularly within intelligence, surveillance, and reconnaissance (ISR) capabilities, heavily relies on advanced geospatial intelligence (GEOINT) infrastructure. This contract supports the Distributed Common Ground System (DCGS), a key program for processing and disseminating intelligence data. The market for such specialized support services is often concentrated among a few large defense contractors with the requisite security clearances and technical expertise. Spending in this area is driven by national security imperatives and the continuous need to maintain and upgrade sophisticated intelligence systems.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Raytheon Company actively engages small businesses for subcontracting opportunities not detailed here. Further investigation into subcontracting plans would be necessary to assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within a set budget. Transparency is limited by the sole-source nature of the award; however, contract modifications, performance reports, and payment data are typically subject to government review and potentially Inspector General oversight if performance issues or irregularities arise.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Geospatial Intelligence (GEOINT) Services
Defense Information Technology Support
Ground Systems Engineering
National Reconnaissance Office (NRO) Support

Risk Flags

Sole-source award
Lack of competition
Potential for cost inefficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.4 million to RAYTHEON COMPANY. DCGS GEOSPATIAL INTELLIGENCE (GEOINT) INFRASTRUCTURE FIELD SUPPORT SERVICES

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 $55.4 million.

What is the period of performance?

Start: 2022-03-30. End: 2023-03-29.

What specific services are included under 'DCGS GEOSPATIAL INTELLIGENCE (GEOINT) INFRASTRUCTURE FIELD SUPPORT SERVICES'?

The provided data offers a high-level description. 'DCGS GEOSPATIAL INTELLIGENCE (GEOINT) INFRASTRUCTURE FIELD SUPPORT SERVICES' likely encompasses a range of technical and operational support for the Distributed Common Ground System (DCGS) infrastructure. This could include maintenance, repair, installation, and configuration of hardware and software systems, network operations, cybersecurity support, and potentially field engineering services at various locations where DCGS operates. The 'field support' aspect suggests on-site assistance and troubleshooting. A more detailed statement of work (SOW) would be required to fully delineate the scope of services, including specific systems supported, performance metrics, and operational hours.

What is the justification for awarding this contract as sole-source to Raytheon Company?

The data indicates the contract was 'NOT COMPETED' and awarded as a 'sole-source' delivery order. Government contracts are typically competed to ensure fair and open competition and achieve best value. A sole-source award implies that the contracting agency determined, after market research, that only Raytheon Company could provide the required services. Common justifications include unique capabilities, proprietary technology, existing system integration expertise, urgent and compelling needs where competition is not feasible, or if the contractor is the only source capable of meeting specific security or operational requirements for critical intelligence infrastructure like DCGS. The specific justification would be documented in a Justification for Other Than Full and Open Competition (JOFOC) filed by the Department of the Air Force.

How does the $55.4 million contract value compare to historical spending on DCGS support?

The provided data shows a single award of $55.4 million for a 364-day period (approximately one year). To assess historical spending patterns, one would need to examine prior contracts awarded for DCGS GEOINT Infrastructure Field Support Services, or similar services, to Raytheon Company or other contractors. This would involve searching federal procurement databases (like FPDS or USASpending) for awards related to DCGS support over several fiscal years. Comparing the annual value, contract duration, and scope of services across different awards would reveal trends in spending, identify potential cost increases or decreases, and highlight any shifts in contracting strategies (e.g., from competed to sole-source or vice versa).

What are the potential risks associated with a sole-source award for critical intelligence infrastructure support?

Sole-source awards carry inherent risks, primarily related to cost and innovation. Without competition, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to higher costs for the government and taxpayers. There's also a risk of complacency, where the contractor may not feel the same pressure to innovate or improve service delivery as they would in a competitive environment. Furthermore, reliance on a single source can create vulnerabilities if that source experiences financial difficulties, operational issues, or if their capabilities become outdated. For critical infrastructure like DCGS, a sole-source award necessitates robust government oversight to mitigate these risks and ensure continued performance and value.

What is Raytheon Company's track record in providing similar geospatial intelligence or defense IT support services?

Raytheon Company (now RTX) is a major defense contractor with extensive experience in aerospace, defense, and intelligence systems. They have a long history of supporting various U.S. military and intelligence agencies, including the Department of Defense and the Air Force. Their portfolio often includes command and control systems, intelligence processing, surveillance, reconnaissance platforms, and related IT infrastructure support. While specific details on their performance for DCGS GEOINT Infrastructure Field Support Services would require examining past performance reviews and contract histories, Raytheon's general track record suggests they possess the technical capabilities and security clearances necessary for such complex and sensitive work.

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

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: $55,436,211

Exercised Options: $55,436,211

Current Obligation: $55,436,211

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,473,066

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA852722D0002

IDV Type: IDC

Timeline