Raytheon Company awarded $18M for CY 09 Technical Support, serving Guided Missile and Space Vehicle Manufacturing

Contract Overview

Contract Amount: $18,040,976 ($18.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2009-01-30

End Date: 2013-12-31

Contract Duration: 1,796 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: CY 09 TECHNICAL SUPPORT CONTRACT

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $18.0 million to RAYTHEON COMPANY for work described as: CY 09 TECHNICAL SUPPORT CONTRACT Key points: 1. Contract value appears moderate for specialized technical support in defense manufacturing. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. Performance period spans nearly four years, indicating a need for sustained support. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The awardee, Raytheon Company, is a major defense contractor with extensive experience. 6. The contract is not set aside for small businesses, implying a focus on large prime contractors.

Value Assessment

Rating: fair

The contract value of $18 million over approximately four years averages to about $4.5 million annually. Benchmarking this against similar technical support contracts for complex defense systems is difficult without more specific service details. However, the Time and Materials (T&M) contract type, while flexible, often carries a higher risk of cost overruns compared to fixed-price contracts. The absence of a specific ceiling or detailed cost breakdown makes a precise value-for-money assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation suggests that while the competition was intended to be broad, specific sources may have been excluded for reasons not detailed in the provided data. The number of bidders is not specified, but the 'limited' competition level implies that the pricing may not have benefited from the full competitive pressure of an unrestricted open competition.

Taxpayer Impact: The limited competition may have resulted in less aggressive pricing than a truly full and open competition, potentially leading to higher costs for taxpayers.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and its operations related to guided missile and space vehicles. The contract delivers essential technical support services, crucial for the maintenance and operation of advanced defense systems. The geographic impact is centered in Arizona (AZ), where the contract is managed. Workforce implications include employment opportunities for skilled technical personnel employed by Raytheon Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty and potential overruns if not closely managed.
The 'exclusion of sources' in the competition method raises questions about the breadth of market engagement.
Lack of specific performance metrics or deliverables makes it hard to gauge the effectiveness of the support provided.

Positive Signals

Awarded to a major, experienced defense contractor (Raytheon Company) with a proven track record.
Long performance period (nearly 4 years) suggests a stable and ongoing need for these critical services.
Contract supports vital defense capabilities in guided missile and space vehicle manufacturing.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically supporting the manufacturing and maintenance of guided missiles and space vehicles. This is a highly specialized area characterized by long development cycles, significant R&D investment, and stringent quality requirements. Spending in this sector is often driven by national security priorities and technological advancements. Comparable spending benchmarks would typically involve other large-scale support contracts for complex weapon systems, often in the multi-million dollar range annually.

Small Business Impact

The contract data indicates that this was not a small business set-aside (ss: false, sb: false). This suggests that the primary award was made to a large business prime contractor, Raytheon Company. There is no information provided on subcontracting plans or goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited to potential subcontracting opportunities that Raytheon may pursue, rather than a direct set-aside award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be embedded in the contract's terms and conditions, including reporting requirements and performance standards. Transparency is facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Guided Missile and Space Vehicle Manufacturing
Defense Technical Support Services
Department of the Air Force Contracts
Raytheon Company Contracts

Risk Flags

Time and Materials contract type poses cost control risks.
Competition method ('exclusion of sources') limits full market visibility.
Lack of specific performance metrics hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 million to RAYTHEON COMPANY. CY 09 TECHNICAL SUPPORT CONTRACT

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 $18.0 million.

What is the period of performance?

Start: 2009-01-30. End: 2013-12-31.

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

Raytheon Company, now part of RTX, has a long and extensive history of providing technical support, systems integration, and sustainment services for a wide array of Department of Defense (DoD) programs, particularly within missile defense, aerospace, and command and control systems. Their track record includes numerous large-scale contracts for complex platforms, often involving lifecycle support, engineering services, and specialized maintenance. While this specific $18 million contract for CY 09 technical support is a discrete award, it aligns with Raytheon's core competencies and established role as a major defense prime contractor. Historical performance data across their portfolio generally indicates a capacity to deliver on complex technical requirements, though like any large contractor, specific contract performance can vary based on program specifics, management, and evolving requirements.

How does the $18 million contract value compare to other technical support contracts in the Guided Missile and Space Vehicle Manufacturing sector?

The $18 million total value for this contract, spanning nearly four years, averages approximately $4.5 million per year. Within the Guided Missile and Space Vehicle Manufacturing sector, this value can be considered moderate. Major programs for developing, producing, or sustaining advanced missile systems or space vehicles often involve much larger contracts, potentially reaching hundreds of millions or even billions of dollars over their lifecycles. These larger contracts typically encompass R&D, production, integration, and long-term sustainment. Smaller, more focused technical support contracts, like this one, are common for specific operational needs, specialized maintenance, or component-level support. Therefore, while significant, $18 million is not exceptionally large in the context of the overall defense spending for this high-cost, high-technology sector.

What are the primary risks associated with a Time and Materials (T&M) contract of this nature?

The primary risk associated with a Time and Materials (T&M) contract, such as this one, is the potential for cost growth and lack of definitive cost control. Unlike fixed-price contracts, T&M contracts obligate the government to pay the contractor for the actual labor hours expended and the cost of materials used, plus a fixed fee or நிர்ணயம் (rate). This structure can incentivize longer task durations or less efficient work if not rigorously monitored. For the government, the risk is that the total cost could exceed initial estimates or budgets, as the final price is not predetermined. Effective oversight, detailed tracking of hours and materials, and clear definition of 'level of effort' or 'not-to-exceed' clauses are crucial to mitigate these risks and ensure fair pricing for the services rendered.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the competition for this contract?

The contract clause 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a specific procurement strategy. It means that the solicitation was initially intended for full and open competition, allowing all responsible sources to submit offers. However, certain sources were subsequently excluded from the competition pool before the final award decision. The reasons for exclusion are not specified in the provided data but could include factors like security clearances, specific technical capabilities, past performance issues, or pre-qualification requirements. This approach suggests a balance between seeking broad competition and ensuring that only qualified or appropriate entities participate, potentially leading to a more focused, albeit less universally open, bidding process compared to unrestricted full and open competition.

How does the contract's performance period (1796 days) influence the assessment of its value and risk?

A performance period of 1796 days, approximately 4 years and 11 months, is a substantial duration for a technical support contract. This extended period suggests a stable, long-term requirement for the services being provided, likely related to the sustainment or ongoing operational needs of guided missile and space vehicles. From a value perspective, a longer period can allow for economies of scale and relationship building, potentially leading to more efficient service delivery over time. However, it also increases the exposure to risks associated with T&M contracts, such as potential cost escalation over the extended duration. Furthermore, a longer period necessitates robust contract management and oversight to ensure continued alignment with evolving technological needs and performance expectations.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1151 E HERMANS RD, TUCSON, AZ, 85756

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: $18,067,170

Exercised Options: $18,067,170

Current Obligation: $18,040,976

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline