DoD Awards Raytheon $54M for GEOINT Infrastructure Field Support, No Competition

Contract Overview

Contract Amount: $54,032,689 ($54.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2023-03-31

End Date: 2024-03-29

Contract Duration: 364 days

Daily Burn Rate: $148.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

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 $54.0 million to RAYTHEON COMPANY for work described as: DCGS GEOSPATIAL INTELLIGENCE (GEOINT) INFRASTRUCTURE FIELD SUPPORT SERVICES Key points: 1. Significant contract value of $54M awarded to a single large contractor. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. The contract supports critical geospatial intelligence infrastructure, vital for national security. 4. Engineering services sector sees substantial investment, but transparency is limited.

Value Assessment

Rating: questionable

The contract's value of $54M for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for GEOINT infrastructure support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there's no market pressure to offer the best value.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution for these essential GEOINT services.

Public Impact

Supports critical national security functions through advanced geospatial intelligence. Potential for taxpayer funds to be used inefficiently due to sole-source award. Impacts the market for specialized engineering services within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
High contract value

Positive Signals

Supports critical national security infrastructure
Long-term contract duration

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting critical geospatial intelligence (GEOINT) infrastructure. Spending in this area is often high due to the specialized nature and national security implications.

Small Business Impact

The contract was awarded to Raytheon Company, a large defense contractor, and there is no indication that small businesses were involved in this specific award. This limits opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services effectively and at a reasonable cost, despite the absence of competitive pressure.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns without market pressure.
Limited transparency into pricing justification.
Risk of vendor lock-in for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.0 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 $54.0 million.

What is the period of performance?

Start: 2023-03-31. End: 2024-03-29.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further details, it's difficult to ascertain the specific reasons, but it's crucial for the agency to have documented this thoroughly to ensure proper use of funds.

How will the agency ensure cost-effectiveness without competition?

The agency must implement robust cost-control measures, including detailed performance metrics, regular audits, and potentially benchmarking against similar services procured competitively elsewhere. Strong contract management is essential to mitigate the risks associated with a lack of competitive pricing.

What are the long-term implications of relying on a single provider for GEOINT infrastructure support?

Long-term reliance on a single provider can lead to vendor lock-in, reduced flexibility, and potentially stifle innovation. It also concentrates critical capabilities within one entity, which could pose a risk if that entity faces challenges or if strategic needs evolve.

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: $93,258,319

Exercised Options: $93,258,319

Current Obligation: $54,032,689

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $168,902

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