Air Force awards $30M contract for cooling and data acquisition systems to Raytheon Company

Contract Overview

Contract Amount: $29,974,576 ($30.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2021-05-18

End Date: 2024-04-26

Contract Duration: 1,074 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: COBRA DANE COOLING AND SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA), METASYS - REPLACEMENT (CASM-R1)

Place of Performance

Location: MADISON, MADISON County, MISSISSIPPI, 39110

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to RAYTHEON COMPANY for work described as: COBRA DANE COOLING AND SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA), METASYS - REPLACEMENT (CASM-R1) Key points: 1. Contract focuses on essential infrastructure upgrades for critical systems. 2. Raytheon Company, a major defense contractor, is the awardee. 3. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 4. This award is a delivery order under a larger contract vehicle. 5. The contract duration is approximately 3 years, indicating a significant project timeline. 6. The contract is for engineering services, supporting complex technical requirements.

Value Assessment

Rating: fair

The contract value of approximately $30 million for cooling and supervisory control systems appears to be within a reasonable range for complex engineering services of this nature. However, without specific benchmarks for comparable SCADA system replacements or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) pricing structure necessitates close monitoring to ensure costs do not escalate beyond initial expectations, as it allows the contractor to recover allowable costs plus a negotiated fee. Benchmarking against similar Air Force or DoD projects for SCADA upgrades would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is generally expected to yield better pricing and innovative solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended. The presence of multiple bidders typically drives down costs and encourages contractors to offer their best value propositions to secure the award.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at a competitive price, preventing potential overpayment that could occur with less competitive solicitations.

Public Impact

The primary beneficiaries are the Department of the Air Force, ensuring the operational integrity of critical facilities. The services delivered include the replacement of aging cooling and supervisory control and data acquisition (SCADA) systems. The contract is being performed in Mississippi, indicating a specific geographic impact. This contract supports specialized engineering roles, potentially involving a workforce skilled in SCADA systems and facility management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs effectively.
Lack of specific competition details (number of bidders) limits a full assessment of price discovery.
The nature of SCADA systems implies potential cybersecurity risks that need robust mitigation strategies.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Focus on essential infrastructure upgrades ensures continued operational capability.
The contract is with a well-established defense contractor, Raytheon Company, known for complex system integration.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the modernization of industrial control systems (SCADA) and facility infrastructure. The market for SCADA systems is substantial, driven by the need for automation, efficiency, and reliability across various industries, including defense, manufacturing, and utilities. The Department of Defense is a significant consumer of such services, often requiring highly specialized and secure solutions. Benchmarking this contract's value against other large-scale SCADA replacement projects within the federal government or similar industrial sectors would provide further context on its cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'small business set-aside' flag is false. There is no explicit mention of subcontracting goals for small businesses within the provided details. This suggests that the prime contract was awarded to a large business, and any small business involvement would likely be through Raytheon Company's own subcontracting decisions, rather than mandated set-asides. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee remains appropriate. Transparency is typically managed through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Air Force Facility Modernization Programs
Department of Defense SCADA System Upgrades
Federal Infrastructure Technology Modernization
Engineering Services for Government Facilities

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring.
Potential for cost escalation due to CPFF structure.
Cybersecurity implications of SCADA system upgrades need thorough assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to RAYTHEON COMPANY. COBRA DANE COOLING AND SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA), METASYS - REPLACEMENT (CASM-R1)

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 $30.0 million.

What is the period of performance?

Start: 2021-05-18. End: 2024-04-26.

What is Raytheon Company's track record with similar SCADA system replacement contracts for the Department of Defense?

Raytheon Company has a significant history of performing complex engineering and technical services for the Department of Defense, including work on command, control, communications, computers, and intelligence (C4I) systems, as well as infrastructure support. While specific details on SCADA system replacements are not immediately available in this summary, their extensive experience in systems integration, cybersecurity, and large-scale project management suggests a strong capability to handle such requirements. Analyzing past performance evaluations and contract awards related to facility management and industrial control systems would provide a more detailed understanding of their specific track record in this niche.

How does the $30 million cost compare to similar cooling and SCADA system upgrades in the federal government?

A direct comparison of the $30 million cost for this specific contract to similar federal projects is challenging without more granular data on the scope, complexity, and specific technologies involved. However, large-scale infrastructure modernization projects for critical facilities, especially within the Department of Defense, can easily run into tens of millions of dollars. Factors such as the size of the facility, the age and complexity of the existing systems, the required level of redundancy and security, and the specific performance requirements for the new SCADA and cooling systems all influence the overall cost. Benchmarking against other Air Force or DoD awards for similar engineering services related to facility control systems would be necessary for a more precise value assessment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for SCADA system replacement?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, particularly for complex projects like SCADA system replacement, is the potential for cost overruns. While the fee is fixed, the contractor is reimbursed for allowable costs, which can escalate if not managed diligently. This structure can incentivize contractors to incur higher costs if the oversight is not robust, as their profit (the fixed fee) remains constant regardless of the total cost. For the government, the risk lies in paying higher-than-necessary costs if the contractor's efficiency is poor or if unforeseen issues lead to significant cost increases. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks.

How effective are SCADA systems in enhancing operational efficiency and security for Air Force facilities?

Modern SCADA systems are highly effective in enhancing operational efficiency and security for Air Force facilities. They provide centralized monitoring and control of critical infrastructure, such as HVAC, power distribution, and environmental controls, allowing for real-time adjustments to optimize performance and reduce energy consumption. This automation minimizes the need for manual intervention, reducing the potential for human error and improving response times to operational issues. From a security perspective, SCADA systems enable the implementation of access controls, audit trails, and anomaly detection, which are vital for protecting sensitive infrastructure against both physical and cyber threats. Regular updates and replacements, like the one covered by this contract, are essential to maintain these benefits and address evolving security vulnerabilities.

What is the historical spending trend for engineering services related to facility control systems within the Department of the Air Force?

Historical spending trends for engineering services related to facility control systems within the Department of the Air Force typically show consistent investment, reflecting the ongoing need to maintain and modernize critical infrastructure. While specific figures fluctuate year-to-year based on budget allocations and project priorities, there is a sustained demand for services related to HVAC, power, water, and data acquisition systems. Factors such as aging infrastructure, technological advancements, and evolving security requirements drive this continuous spending. Analyzing aggregated contract data over several fiscal years for categories like 'Engineering Services' (NAICS 541330) and specific keywords related to facility control or SCADA systems would reveal the overall trend and scale of investment in this area.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1330 INVERNESS DR STE 200, COLORADO SPRINGS, CO, 80910

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: $29,974,576

Exercised Options: $29,974,576

Current Obligation: $29,974,576

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA872318D0003

IDV Type: IDC

Timeline