DoD's $24.3M Raytheon Contract for Enterprise Software: Custom Programming Services Under Full and Open Competition
Contract Overview
Contract Amount: $24,311,759 ($24.3M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2015-09-21
End Date: 2018-09-29
Contract Duration: 1,104 days
Daily Burn Rate: $22.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE SOFTWARE
Place of Performance
Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451
Plain-Language Summary
Department of Defense obligated $24.3 million to RAYTHEON COMPANY for work described as: ENTERPRISE SOFTWARE Key points: 1. Significant contract value of $24.3 million awarded to Raytheon Company. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Services fall under Custom Computer Programming, a key IT sector.
Value Assessment
Rating: fair
The contract value of $24.3M for custom computer programming is substantial. Benchmarking requires specific details on the scope and complexity of the enterprise software developed, which are not provided. Without comparable contract data, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were allowed to participate. This method generally promotes competitive pricing and ensures the government receives the best value through a robust price discovery process.
Taxpayer Impact: The use of full and open competition is positive for taxpayers as it aims to secure competitive pricing and avoid inflated costs often associated with limited or sole-source procurements.
Public Impact
Taxpayers benefit from competitive bidding processes that aim to reduce costs. The Department of Defense receives critical enterprise software solutions. Raytheon Company secures a significant contract, contributing to its revenue and operations. The IT sector sees continued government investment in custom software development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcomes.
- Potential for scope creep in custom software development.
- Dependency on a single awardee for a critical system.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type mitigates cost overruns for the government.
- Contract awarded by a major agency (Department of Defense).
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is crucial for modernizing government operations and maintaining technological superiority. Benchmarks for custom software development vary widely based on complexity and scope.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Raytheon Company, a large business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the Defense Information Systems Agency to ensure Raytheon meets the technical requirements and delivery schedules. Accountability is maintained through the firm-fixed-price structure and contractual clauses.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of detailed scope of work.
- Potential for technology obsolescence over contract duration.
- No explicit mention of performance metrics or KPIs.
- Risk of vendor lock-in if software is highly proprietary.
Tags
custom-computer-programming-services, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.3 million to RAYTHEON COMPANY. ENTERPRISE SOFTWARE
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $24.3 million.
What is the period of performance?
Start: 2015-09-21. End: 2018-09-29.
What was the specific functionality and complexity of the enterprise software developed to justify the $24.3 million cost?
The provided data lacks specifics on the enterprise software's functionality and complexity. To justify the $24.3 million cost, detailed documentation on features, user base, integration requirements, and development hours would be necessary. Without this, assessing value for money is challenging, though the full and open competition suggests a competitive price was sought.
What are the potential risks associated with the long contract duration (1104 days) for custom software development?
A long duration for custom software development carries risks such as technological obsolescence, changing user requirements, and potential contractor performance degradation. Mitigating these requires robust contract management, phased deliveries, and clear change control processes. The firm-fixed-price nature may incentivize the contractor to complete efficiently but could also lead to rushed work if not properly overseen.
How effectively did the full and open competition process ensure the best value was achieved for this custom programming service?
Full and open competition is designed to maximize value by encouraging multiple bids, leading to potentially lower prices and higher quality solutions. The effectiveness here depends on the number and caliber of bidders, the clarity of the solicitation, and the evaluation criteria used. While the process itself is a positive indicator, actual value realization requires post-award performance monitoring.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 870 WINTER ST, WALTHAM, MA, 02451
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,311,759
Exercised Options: $24,311,759
Current Obligation: $24,311,759
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4097G
IDV Type: FSS
Timeline
Start Date: 2015-09-21
Current End Date: 2018-09-29
Potential End Date: 2018-09-29 00:00:00
Last Modified: 2022-10-29
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