Raytheon Company awarded $15.9M for CY10 Technical Support, impacting guided missile and space vehicle manufacturing

Contract Overview

Contract Amount: $15,928,207 ($15.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2010-01-28

End Date: 2012-10-31

Contract Duration: 1,007 days

Daily Burn Rate: $15.8K/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: CY10 TECHNICAL SUPPORT CONTRACT

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to RAYTHEON COMPANY for work described as: CY10 TECHNICAL SUPPORT CONTRACT Key points: 1. Contract value of $15.9M for technical support services. 2. Awarded to Raytheon Company, a major defense contractor. 3. Services fall under Guided Missile and Space Vehicle Manufacturing. 4. Contract duration spans over 1000 days. 5. Represents a Time and Materials contract type. 6. Awarded by the Department of the Air Force.

Value Assessment

Rating: fair

The contract value of $15.9 million for technical support over approximately 3 years appears to be within a reasonable range for specialized defense services. Benchmarking against similar contracts for technical support in guided missile systems is challenging without more granular data on the specific services provided. However, the Time and Materials (T&M) pricing structure can sometimes lead to cost overruns if not closely managed, suggesting a need for diligent oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was generally open, certain sources were excluded. The specific reasons for exclusion are not detailed, which could limit the breadth of competition. The number of bidders is not specified, making it difficult to fully assess the competitive landscape and its impact on price discovery. A truly open competition with multiple bidders typically drives prices down.

Taxpayer Impact: The exclusion of sources, even if justified, may have limited the number of competitive bids, potentially leading to a higher price for taxpayers than if all capable sources had been allowed to compete.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and its missile and space vehicle programs. Services delivered include technical support crucial for the operation and maintenance of these systems. Geographic impact is centered around the contractor's operations in Arizona and the Air Force facilities utilizing the support. Workforce implications include employment for technical specialists and support staff at Raytheon.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
Limited transparency on the specific reasons for excluding certain sources in the competition.
Lack of detailed performance metrics makes it difficult to assess the effectiveness of the technical support.

Positive Signals

Awarded through a full and open competition process, suggesting a broad initial search for qualified contractors.
Contract awarded to a well-established defense contractor (Raytheon Company) with a track record in the sector.
Contract duration indicates a sustained need for these technical support services.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically supporting guided missile and space vehicle manufacturing. This is a highly specialized area characterized by significant R&D investment, long product lifecycles, and stringent performance requirements. Spending in this sector is often driven by national security priorities. Comparable spending benchmarks would typically involve other technical support contracts for complex defense systems, which can range from millions to billions depending on the system's complexity and scale.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, it is unlikely that small businesses were directly targeted for this prime contract. However, Raytheon, as a large prime contractor, may engage small businesses as subcontractors to fulfill certain aspects of the technical support, though this is not explicitly stated in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures would be tied to the performance of technical support services against the contract's requirements and the T&M expenditure limits. Transparency is facilitated by contract award data, but detailed performance reports and cost breakdowns are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited transparency on source exclusion in competition.
Lack of detailed performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to RAYTHEON COMPANY. CY10 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 $15.9 million.

What is the period of performance?

Start: 2010-01-28. End: 2012-10-31.

What specific technical support services were provided under this contract?

The provided data indicates the contract is for 'CY10 TECHNICAL SUPPORT CONTRACT' related to 'Guided Missile and Space Vehicle Manufacturing.' However, the specific nature of the technical support is not detailed. This could encompass a wide range of activities, including engineering support, maintenance, troubleshooting, system integration, software updates, documentation, and training for guided missile and space vehicle systems. Without further details, it's difficult to ascertain the precise scope of work, which is crucial for evaluating the contract's value and effectiveness.

How does the $15.9 million contract value compare to similar technical support contracts for missile systems?

Direct comparison of the $15.9 million value is difficult without knowing the specific missile systems supported and the duration/intensity of the support. However, for a multi-year technical support contract for complex defense systems, this amount appears moderate. Larger, more critical systems or longer-duration contracts could easily reach hundreds of millions or billions. The 'Time and Materials' nature of this contract also means the final cost is dependent on actual hours and material used, making a fixed-price comparison less direct. Benchmarking would require access to databases of similar T&M contracts for comparable defense platforms.

What are the primary risks associated with a Time and Materials (T&M) contract for technical support?

The primary risk with T&M contracts, like this one, is the potential for cost overruns. Since the contractor is reimbursed for direct labor hours and materials used, there is less incentive to control costs compared to a fixed-price contract. If not managed diligently through robust oversight, detailed tracking of hours, and clear definition of 'materials,' the total expenditure can exceed initial estimates. For the government, this necessitates strong project management and auditing capabilities to ensure fair pricing and prevent inefficient practices by the contractor.

What is the significance of 'Full and Open Competition After Exclusion of Sources'?

This contract type signifies that the procurement process began with the intent of full and open competition, meaning all responsible sources were initially considered. However, specific sources were subsequently excluded. The reasons for exclusion are not provided in the summary data, which is a critical detail. Typically, exclusions might be based on security concerns, lack of specific capabilities, or prior performance issues. While it's not a sole-source award, the exclusion limits the competitive pool, potentially impacting the final price and innovation compared to a scenario where all capable vendors could bid without restriction.

What is Raytheon Company's track record in providing technical support for defense systems?

Raytheon Company (now RTX) is a major defense contractor with extensive experience in developing, manufacturing, and supporting a wide array of defense systems, including missiles, radar, and command and control systems. They have a long history of securing large government contracts for technical support, sustainment, and modernization across various branches of the U.S. military. While their overall track record is substantial, the performance on any specific contract, including this one, would depend on the details of service delivery, customer satisfaction, and adherence to budget and schedule, which are not fully detailed here.

How has spending on technical support for guided missile and space vehicles evolved over time?

Spending on technical support for guided missile and space vehicles has generally increased over time, driven by the complexity of modern weapon systems, extended service lives, and evolving threats. Factors influencing this include technological advancements requiring specialized maintenance, upgrades to existing platforms, and the need for continuous readiness. Contracts like this one represent a portion of that overall spending. Historical data would show fluctuations based on program lifecycles, budget appropriations, and geopolitical events, with significant investments often tied to major platform development and sustainment phases.

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: $15,928,207

Exercised Options: $15,928,207

Current Obligation: $15,928,207

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline