Raytheon Awarded $13.9M for Web Hosting Services by GSA

Contract Overview

Contract Amount: $13,891,422 ($13.9M)

Contractor: Raytheon Company

Awarding Agency: General Services Administration

Start Date: 2006-05-11

End Date: 2011-05-10

Contract Duration: 1,825 days

Daily Burn Rate: $7.6K/day

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: WEB HOSTING SERVICES

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $13.9 million to RAYTHEON COMPANY for work described as: WEB HOSTING SERVICES Key points: 1. Contract awarded to Raytheon Company for web hosting services. 2. Total contract value is $13,891,422.17. 3. The contract was issued by the General Services Administration (GSA). 4. This falls under NAICS code 541512 (Computer Systems Design Services).

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar web hosting contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition method is not specified, making it difficult to assess price discovery. If this was a sole-source or limited competition, it may have resulted in higher costs for taxpayers.

Taxpayer Impact: The final cost to taxpayers depends heavily on the competition and oversight applied to this Cost Plus Award Fee contract.

Public Impact

Provides essential web hosting infrastructure for government operations. Supports federal agencies' digital presence and online service delivery. Long-term contract (5 years) indicates ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contract type can incentivize higher spending.
Lack of specified competition raises concerns about price reasonableness.
Contract duration of 5 years may not reflect current market pricing.

Positive Signals

Secures essential IT infrastructure for government functions.
Awarded by a reputable agency (GSA) known for procurement expertise.

Sector Analysis

Web hosting is a critical component of IT infrastructure for government agencies, enabling online services and data management. Spending benchmarks vary widely based on scale and service level agreements.

Small Business Impact

No information is provided regarding small business participation in this contract. Larger contracts are often awarded to prime contractors who may subcontract to small businesses.

Oversight & Accountability

The effectiveness of oversight is not detailed. Cost Plus Award Fee contracts require diligent monitoring by the government to ensure performance and control costs.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Cost Plus Award Fee structure
Unknown competition method
Long contract duration without clear market alignment
Lack of detailed service scope

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $13.9 million to RAYTHEON COMPANY. WEB HOSTING SERVICES

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2006-05-11. End: 2011-05-10.

What specific services are included under 'web hosting' to assess value?

The provided data lacks specifics on the exact web hosting services rendered. This could range from basic server space to complex cloud-based solutions with advanced security and management. Without this detail, it's challenging to determine if the $13.9 million represents good value or if comparable services could be procured at a lower cost.

What was the competitive landscape for this contract to gauge risk?

The data does not specify the procurement method or the number of bidders. If competition was limited or non-existent, there's a higher risk of inflated pricing and reduced innovation. A robust competitive process typically leads to better pricing and service quality for the government.

How effectively does this contract support the government's IT modernization goals?

The contract's duration (5 years) and the nature of web hosting suggest it supports ongoing operational needs. However, without details on the technology used or alignment with modernization strategies, it's difficult to assess its contribution to IT modernization. Modernization often involves cloud migration and agile solutions, which may or may not be reflected here.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Contractor Details

Address: 12160 SUNRISE VALLEY DR, RESTON, VA, 20191

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,891,422

Exercised Options: $13,891,422

Current Obligation: $13,891,422

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0209

IDV Type: GWAC

Timeline