DoD's $57M GEOINT Infrastructure Support Contract Awarded to Raytheon Company

Contract Overview

Contract Amount: $56,892,921 ($56.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-03-30

End Date: 2025-07-31

Contract Duration: 488 days

Daily Burn Rate: $116.6K/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 $56.9 million to RAYTHEON COMPANY for work described as: DCGS GEOSPATIAL INTELLIGENCE (GEOINT) INFRASTRUCTURE FIELD SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. Limited competition may impact the government's ability to secure the best value. 3. Performance period extends over a year, indicating a need for sustained support. 4. The contract falls under Engineering Services, a broad category with varying cost structures. 5. Geographic focus on Virginia suggests localized operational requirements. 6. Firm Fixed Price contract type aims to control costs, but initial pricing needs scrutiny.

Value Assessment

Rating: fair

The contract's value of $56.9 million over approximately 16 months requires careful benchmarking against similar geospatial intelligence support services. Without competitive bids, it is difficult to definitively assess if this price represents optimal value for money. The firm fixed-price structure provides cost certainty, but the absence of competition means the government relies heavily on Raytheon's proposed pricing. Further analysis would involve comparing this contract's per-unit costs for specific services (e.g., data analysis, system maintenance) to industry benchmarks or historical government contracts for comparable support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Raytheon Company, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified for specialized capabilities or urgent needs, they limit the government's ability to leverage market competition to drive down prices and ensure the most innovative solutions are considered. The lack of bidders means there is no direct price comparison available from the market.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding. This necessitates robust internal cost analysis and negotiation by the contracting agency.

Public Impact

The Department of Defense, specifically the Air Force, will benefit from sustained geospatial intelligence infrastructure support. Services delivered are critical for national security, enabling intelligence gathering and analysis. The contract's geographic impact is concentrated in Virginia, where the services will be performed. The contract supports a specialized workforce within Raytheon Company, likely including engineers and technical experts in GEOINT.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition may reduce incentives for innovation and efficiency.
Contract duration requires careful monitoring to ensure continued value delivery.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Award to an established contractor like Raytheon suggests a degree of confidence in their capabilities.
The contract supports critical national security functions within the GEOINT domain.

Sector Analysis

The contract falls within the Engineering Services sector, specifically supporting Geospatial Intelligence (GEOINT) infrastructure. This sector is crucial for defense and intelligence agencies, requiring specialized technical expertise and advanced technological solutions. The market for GEOINT services is characterized by high barriers to entry due to security requirements and the need for proprietary technologies. Spending in this area is often substantial, driven by national security imperatives. Comparable spending benchmarks would involve analyzing other large-scale contracts for intelligence support, data analysis, and infrastructure maintenance within the defense sector.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like Raytheon Company suggests that the bulk of the work will be performed by the prime or its large subcontractors. This could limit opportunities for small businesses to participate directly in this specific contract, although they may be involved in Raytheon's broader supply chain.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award databases, though the specifics of performance and cost management are typically internal to the agency and contractor. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Geospatial Intelligence Services
Defense Intelligence Support
Engineering and Technical Services
National Reconnaissance Office Contracts
Air Force IT and Infrastructure Support

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns without competitive pressure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.9 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 $56.9 million.

What is the period of performance?

Start: 2024-03-30. End: 2025-07-31.

What is Raytheon Company's track record with similar GEOINT support contracts for the Department of Defense?

Raytheon Company, now part of RTX, has a long history of providing advanced technology and defense solutions to the U.S. military, including extensive work in intelligence, surveillance, and reconnaissance (ISR) systems, which heavily overlap with GEOINT capabilities. They have been a significant contractor for various defense agencies, including the Air Force, on programs involving satellite systems, sensor technology, data processing, and command and control systems. Their experience likely includes managing complex infrastructure and providing field support services for critical intelligence operations. Specific details on past GEOINT infrastructure support contracts would require deeper database searches, but their overall portfolio suggests a strong capability in this domain. Past performance reviews and contract histories would provide more granular insights into their reliability and effectiveness in delivering similar services.

How does the $56.9 million contract value compare to other sole-source awards for similar GEOINT services?

Benchmarking this $56.9 million sole-source contract against similar awards requires access to a comprehensive database of federal contracts, specifically filtering for sole-source GEOINT infrastructure field support services. However, given the specialized nature of GEOINT and the significant infrastructure requirements, a contract value in this range is not uncommon for large defense contractors like Raytheon. Sole-source awards, by definition, lack direct competitive pricing, making direct value comparisons challenging. Typically, agencies justify sole-source awards by demonstrating that only one responsible source can provide the required service or that a compelling urgency exists. Without competitive bids, the government relies on its own cost analysis and negotiation expertise to ensure fair pricing. If this contract were competed, it might attract multiple bidders, potentially leading to a lower price or more innovative solutions.

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

The primary risk associated with a sole-source award for critical GEOINT infrastructure support is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the best possible value for its investment. Another significant risk is reduced incentive for the contractor to innovate or improve efficiency, as there is no competitive pressure to do so. Furthermore, sole-source awards can limit the government's access to a wider range of technological solutions or specialized expertise that might be offered by other capable firms. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, making future transitions difficult and potentially costly. Robust oversight and negotiation are crucial to mitigate these risks.

What specific GEOINT infrastructure services are likely included under this contract?

Under the 'DCGS GEOSPATIAL INTELLIGENCE (GEOINT) INFRASTRUCTURE FIELD SUPPORT SERVICES' contract, Raytheon Company is likely providing a range of services essential for the operation and maintenance of the Distributed Common Ground System (DCGS). This typically includes technical support for hardware and software, system administration, network management, cybersecurity, data management, and potentially system upgrades or modifications. Field support implies on-site assistance, troubleshooting, and maintenance activities at various locations where DCGS infrastructure is deployed. Given the 'Engineering Services' NAICS code (541330), the contract may also encompass engineering analysis, design modifications, and technical consulting related to the GEOINT infrastructure to ensure its optimal performance and readiness for intelligence operations.

How does this contract fit into the broader context of U.S. Department of Defense spending on intelligence and surveillance?

This contract for GEOINT infrastructure field support services is a component of the Department of Defense's (DoD) substantial investment in intelligence, surveillance, and reconnaissance (ISR) capabilities. The DoD allocates billions of dollars annually to acquire and maintain systems and services that provide critical intelligence for national security. GEOINT, which involves the exploitation and analysis of imagery and geospatial information, is a cornerstone of modern military operations and strategic decision-making. Contracts like this one ensure the underlying infrastructure supporting these vital functions remains operational, secure, and effective. It complements spending on satellite platforms, sensor development, data fusion technologies, and analytical personnel, forming a comprehensive ecosystem for intelligence gathering and dissemination.

What are the implications of the contract's duration (488 days) for long-term GEOINT strategy?

The contract duration of 488 days (approximately 16 months) indicates a need for sustained, medium-term support for critical GEOINT infrastructure. This duration suggests that the services required are not for a short-term project but rather for ongoing operational maintenance and support. From a long-term strategy perspective, such contracts highlight the DoD's reliance on external contractors for specialized technical support in complex domains like GEOINT. While providing necessary expertise, it also raises questions about the DoD's strategy for in-house capabilities versus outsourcing. The relatively short duration compared to major system acquisition cycles might imply that this contract is for specific operational phases or that the DoD intends to re-evaluate its support needs and potentially re-compete the requirement in the future.

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: $102,372,617

Exercised Options: $102,372,617

Current Obligation: $56,892,921

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $172,789

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