DoD's $13M Raytheon Contract for SVEIITES II Task 2: Engineering Services Under Full and Open Competition
Contract Overview
Contract Amount: $13,066,274 ($13.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2008-09-16
End Date: 2014-02-28
Contract Duration: 1,991 days
Daily Burn Rate: $6.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: SVEIITES II -- TASK 2
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $13.1 million to RAYTHEON COMPANY for work described as: SVEIITES II -- TASK 2 Key points: 1. Contract awarded to Raytheon Company for engineering services. 2. Significant spending of $13.07 million over its duration. 3. Procured under full and open competition, suggesting market availability. 4. Sector is Defense, specifically IT support via engineering services.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure can lead to cost overruns if not closely managed. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating multiple bidders likely participated. This method generally promotes competitive pricing, but the Time and Materials (T&M) contract type may limit price certainty.
Taxpayer Impact: Taxpayer funds were used for engineering services. The T&M nature of the contract warrants scrutiny to ensure efficient use of funds and prevent cost creep.
Public Impact
Defense Information Systems Agency (DISA) received engineering support. Contract duration spanned over 5 years, indicating a long-term need. Raytheon Company, a major defense contractor, was the awardee.
Waste & Efficiency Indicators
Waste Risk Score: 65 / 10
Warning Flags
- Time and Materials pricing can inflate costs.
- Lack of specific performance metrics makes value assessment harder.
Positive Signals
- Full and open competition utilized.
- Awarded to a reputable defense contractor.
Sector Analysis
This contract falls within the Defense sector, specifically IT-related engineering services. Spending benchmarks for similar engineering services contracts vary widely based on scope and complexity.
Small Business Impact
The contract was not awarded to small businesses, as indicated by the prime contractor being Raytheon Company. There is no information on small business subcontracting.
Oversight & Accountability
Oversight would typically be managed by the Department of Defense and DISA. The Time and Materials contract type necessitates robust oversight to control costs and ensure deliverables meet requirements.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Time and Materials pricing structure.
- Lack of detailed service descriptions.
- Potential for cost overruns.
- No clear indication of small business participation.
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.1 million to RAYTHEON COMPANY. SVEIITES II -- TASK 2
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 $13.1 million.
What is the period of performance?
Start: 2008-09-16. End: 2014-02-28.
What specific engineering services were provided under this contract, and how did they contribute to the agency's mission?
The contract provided engineering services for SVEIITES II - Task 2. While the specific services are not detailed, they likely supported the Defense Information Systems Agency's (DISA) broader IT infrastructure and operational needs. The value of these services is tied to their effectiveness in supporting critical defense missions and maintaining technological superiority.
Given the Time and Materials contract type, what measures were in place to mitigate cost risks and ensure fair pricing?
Time and Materials contracts inherently carry cost risks. Effective mitigation would involve stringent monitoring of labor hours, rates, and material costs by the contracting officer's representative (COR). Establishing clear ceilings, requiring detailed justifications for hours worked, and comparing rates to market benchmarks are crucial for ensuring fair pricing and preventing overspending.
How did the full and open competition process ensure the government received the best value for these engineering services?
Full and open competition theoretically ensures the government receives best value by allowing all responsible sources to submit offers, fostering a competitive environment. This process should lead to lower prices and higher quality solutions. However, the effectiveness is contingent on the evaluation criteria used and the specific nature of the services, especially with T&M pricing where cost control is paramount post-award.
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
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 1235 SOUTH CLARK STREET, SUITE 800, ARLINGTON, VA, 22202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,099,828
Exercised Options: $14,879,789
Current Obligation: $13,066,274
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-16
Current End Date: 2014-02-28
Potential End Date: 2014-02-28 00:00:00
Last Modified: 2024-04-09
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