Raytheon Company awarded $28.6M for ARL High Performance Computing Modernization by GSA

Contract Overview

Contract Amount: $28,583,644 ($28.6M)

Contractor: Raytheon Company

Awarding Agency: General Services Administration

Start Date: 2006-09-19

End Date: 2008-06-30

Contract Duration: 650 days

Daily Burn Rate: $44.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ARL HIGH PERFORMANCE COMPUTING MODERNIZATION

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $28.6 million to RAYTHEON COMPANY for work described as: ARL HIGH PERFORMANCE COMPUTING MODERNIZATION Key points: 1. Contract value appears reasonable given the scope of high-performance computing modernization. 2. Competition dynamics for this specific delivery order were not fully detailed, but the overall contract vehicle likely saw competition. 3. Risk indicators are moderate, typical for complex IT modernization projects. 4. Performance context suggests a need for advanced computing capabilities within the Army Research Laboratory. 5. Positioned within the IT services sector, specifically focusing on advanced computing infrastructure.

Value Assessment

Rating: good

The contract value of $28.6 million for a two-year period for high-performance computing modernization seems aligned with industry standards for such specialized services. Benchmarking against similar large-scale HPC projects indicates that costs for hardware, software, and specialized personnel can be substantial. Without specific details on the deliverables, a precise value-for-money assessment is challenging, but the price appears competitive for the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data indicates this was a 'COMPETITIVE DELIVERY ORDER' under a larger contract vehicle. The exact number of bidders for this specific delivery order is not specified, but the 'competitive' designation suggests multiple proposals were considered. The nature of the underlying contract vehicle would determine the initial competition level, which in turn influences price discovery.

Taxpayer Impact: A competitive process, even for a delivery order, generally leads to better pricing for taxpayers by encouraging multiple vendors to offer their best terms.

Public Impact

The Army Research Laboratory (ARL) is the primary beneficiary, gaining access to enhanced high-performance computing capabilities. Services delivered include computer systems design and potentially related hardware/software integration for HPC. Geographic impact is likely concentrated around ARL facilities, primarily in Maryland. Workforce implications may involve specialized IT professionals and researchers utilizing the HPC resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of high-performance computing can lead to integration challenges and potential cost overruns if not managed meticulously.
Dependence on a single contractor (Raytheon) for this specific delivery order warrants close performance monitoring.
Ensuring the modernization meets evolving research needs requires continuous stakeholder engagement.

Positive Signals

The contract is awarded to a reputable defense contractor with a track record in complex systems.
The use of a competitive delivery order suggests a structured procurement process.
The project addresses a critical need for advanced computational power in scientific research.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on high-performance computing (HPC) and related systems design services. The HPC market is a niche but critical segment of the IT industry, supporting advanced research, simulations, and data analysis across various government and private entities. Spending in this area is driven by the increasing demand for computational power to tackle complex scientific and engineering challenges.

Small Business Impact

The data indicates that small business participation (sb) was false for this contract. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether Raytheon engaged small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the General Services Administration (GSA) and the Army Research Laboratory. Accountability measures would be tied to the contract's performance metrics and milestones. Transparency is generally facilitated through contract award databases, though detailed performance reports may be internal.

Related Government Programs

Army Research Laboratory IT Modernization Programs
General Services Administration IT Schedule Contracts
High-Performance Computing Infrastructure Procurement
Defense Research and Development IT Support

Risk Flags

Potential for scope creep in complex IT modernization projects.
Need for specialized technical expertise to manage and maintain HPC systems.
Ensuring interoperability with existing and future ARL research infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $28.6 million to RAYTHEON COMPANY. ARL HIGH PERFORMANCE COMPUTING MODERNIZATION

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 $28.6 million.

What is the period of performance?

Start: 2006-09-19. End: 2008-06-30.

What specific high-performance computing hardware and software were procured under this contract?

The provided data does not specify the exact hardware or software components procured. However, 'Computer Systems Design Services' (NAICS 541512) suggests the contract covered the design, integration, and potentially the implementation of computing systems. For high-performance computing, this could include supercomputers, clusters, specialized processors (like GPUs), high-speed interconnects, and associated operating systems, parallel file systems, and management software. A detailed statement of work or contract line item details would be necessary to identify specific technologies.

How does the $28.6 million cost compare to similar HPC modernization efforts in the federal government?

Direct comparison is difficult without knowing the exact scope, duration, and specific technologies involved. However, federal spending on high-performance computing can range from tens of millions to hundreds of millions of dollars for large-scale acquisitions or upgrades. For a two-year modernization effort focused on specific ARL needs, $28.6 million appears to be within a reasonable range, especially if it includes significant hardware, software, and integration services. Larger, agency-wide HPC procurements often exceed this figure substantially.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not list specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, for HPC modernization, KPIs would relate to computational performance (e.g., FLOPS achieved), system uptime and reliability, data throughput, energy efficiency, and the successful integration of new systems with existing infrastructure. The contracting officer's representative (COR) and program managers at ARL would monitor these metrics against the contract's requirements.

What is Raytheon Company's track record in providing high-performance computing services to the federal government?

Raytheon Company, now part of RTX, has a significant track record in providing advanced technology solutions and IT services to the federal government, including defense and intelligence agencies. While they are broadly known for defense systems, their capabilities extend to complex IT infrastructure, cybersecurity, and data processing. Their experience likely includes projects involving large-scale data management and computational analysis, which are foundational to high-performance computing, though specific HPC-centric projects would need further investigation.

What was the original contract vehicle under which this delivery order was issued, and what was its competition level?

The data indicates this was a 'COMPETITIVE DELIVERY ORDER' (CT: COMPETITIVE DELIVERY ORDER, AW: DO). This implies it was issued under a pre-existing contract or task order award structure that was itself competed. Delivery orders under such vehicles are often competed among the awardees of the base contract. Without knowing the specific base contract ID (e.g., a GSA Schedule number or IDIQ contract), the initial competition level cannot be precisely determined, but the 'competitive' designation for the order itself suggests multiple bids were solicited and evaluated for this specific task.

How has federal spending on computer systems design services (NAICS 541512) evolved over the period of this contract and since?

Federal spending on Computer Systems Design Services (NAICS 541512) has generally seen consistent growth, reflecting the increasing reliance on IT infrastructure and digital transformation across government agencies. During the period of this contract (2006-2008) and in the years following, agencies continued to invest heavily in modernizing their IT systems, including areas like high-performance computing, cloud migration, cybersecurity, and data analytics. Spending trends are influenced by technological advancements, evolving mission requirements, and budget allocations, often showing an upward trajectory in specialized areas like HPC.

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: R3060803

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12160 SUNRISE VALLEY DR, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,614,279

Exercised Options: $29,614,279

Current Obligation: $28,583,644

Parent Contract

Parent Award PIID: GS00T99ALD0209

IDV Type: GWAC

Timeline