DoD Awards Raytheon $60.3M Task Order for Technical and Logistics Analysis

Contract Overview

Contract Amount: $60,294,752 ($60.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2021-06-17

End Date: 2024-12-20

Contract Duration: 1,282 days

Daily Burn Rate: $47.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TASK ORDER AWARD FOR KU TECHNICAL AND LOGISTICS ANALYSIS AND SYSTEM ENGINEERING ENHANCEMENTS.

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $60.3 million to RAYTHEON COMPANY for work described as: TASK ORDER AWARD FOR KU TECHNICAL AND LOGISTICS ANALYSIS AND SYSTEM ENGINEERING ENHANCEMENTS. Key points: 1. Significant award for engineering services to support defense needs. 2. Raytheon Company, a major defense contractor, secured the task order. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans over three years, indicating a substantial, long-term requirement.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. However, the fixed fee component provides some cost control. Benchmarking against similar engineering services contracts is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the engineering services provided.

Public Impact

Enhances technical and logistics capabilities for the Department of Defense. Supports system engineering enhancements crucial for defense operations. Award to a major defense contractor like Raytheon signifies critical national security support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Long duration of the task order (over 3 years) necessitates ongoing performance evaluation.

Positive Signals

Awarded under full and open competition.
Task order addresses critical defense engineering and logistics needs.

Sector Analysis

This award falls within the Engineering Services sector, which is a significant area of government spending, particularly within the Department of Defense. Benchmarks for similar engineering services contracts can vary widely based on scope and complexity.

Small Business Impact

The award was not set aside for small businesses, and the prime contractor, Raytheon Company, is a large corporation. There is no indication of small business participation in the provided data.

Oversight & Accountability

The Department of Defense's Defense Microelectronics Activity is the awarding agency. Standard oversight procedures for task orders of this nature would apply, focusing on performance, cost, and adherence to contract terms.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Microelectronics Activity Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
No explicit mention of small business subcontracting.
Potential for scope creep in engineering services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.3 million to RAYTHEON COMPANY. TASK ORDER AWARD FOR KU TECHNICAL AND LOGISTICS ANALYSIS AND SYSTEM ENGINEERING ENHANCEMENTS.

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Microelectronics Activity).

What is the total obligated amount?

The obligated amount is $60.3 million.

What is the period of performance?

Start: 2021-06-17. End: 2024-12-20.

What specific technical and logistics challenges does this task order aim to address for the Defense Microelectronics Activity?

This task order likely aims to address complex challenges in maintaining and enhancing the technical capabilities and logistical support systems for defense microelectronics. This could involve improving supply chain efficiency, ensuring the reliability of critical components, and developing advanced engineering solutions to meet evolving national security requirements. The focus on system engineering enhancements suggests a need for integrated solutions to complex problems.

How will the Cost Plus Fixed Fee structure be managed to ensure cost-effectiveness and prevent potential overruns?

Effective management of a Cost Plus Fixed Fee (CPFF) contract requires robust oversight from the Defense Microelectronics Activity. This includes detailed tracking of all incurred costs, regular audits, and clear communication with Raytheon regarding project milestones and budget adherence. The fixed fee provides an incentive for the contractor to control costs, but the agency must actively monitor expenditures against the estimated cost to ensure value for money.

What are the key performance indicators (KPIs) that will be used to measure the success of Raytheon's engineering services?

Key performance indicators would likely focus on the successful delivery of technical and logistics analysis, the effectiveness of system engineering enhancements, and adherence to project timelines and budget constraints. Specific KPIs might include the reduction of logistical lead times, the successful integration of new system components, the accuracy of technical analyses, and overall contractor performance ratings. Regular reviews will assess Raytheon's contribution to the agency's mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ072715R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245

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: $60,294,752

Exercised Options: $60,294,752

Current Obligation: $60,294,752

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $1,974,588

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ072716D0006

IDV Type: IDC

Timeline