DoD Awards Raytheon $86.5M for OSI Models and Simulations Support Through Full and Open Competition

Contract Overview

Contract Amount: $86,499,594 ($86.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2022-05-27

End Date: 2025-01-11

Contract Duration: 960 days

Daily Burn Rate: $90.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: OSI MODELS AND SIMULATIONS SUPPORT

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $86.5 million to RAYTHEON COMPANY for work described as: OSI MODELS AND SIMULATIONS SUPPORT Key points: 1. Significant contract value for specialized engineering services. 2. Raytheon Company is the sole awardee, indicating strong incumbent performance or specialized capability. 3. Potential for cost overruns given the Cost Plus Award Fee contract type. 4. The Missile Defense Agency is the primary customer, highlighting defense sector focus.

Value Assessment

Rating: good

The contract is a Delivery Order under an existing contract, suggesting a pre-negotiated pricing structure. The Cost Plus Award Fee (CPAF) type allows for performance incentives but can lead to higher costs if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, as a Delivery Order, the specific price discovery for this order is based on the terms of the parent contract.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and driving down prices.

Public Impact

Ensures continued development and maintenance of critical missile defense simulation capabilities. Supports advanced modeling for strategic defense systems, impacting national security. The contract duration extends into 2025, indicating long-term reliance on these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure can lead to higher than anticipated costs.
Reliance on a single contractor (Raytheon) for critical simulation support.
Contract duration extends over multiple fiscal years, subject to budget fluctuations.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Missile Defense Agency's focus on advanced simulation is crucial for national security.
Delivery Order structure implies established relationship and potentially streamlined execution.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced modeling and simulation for defense applications. Spending in this area is critical for maintaining technological superiority in national defense.

Small Business Impact

The data does not indicate any specific subcontracting goals for small businesses on this contract. Further review would be needed to assess potential small business participation.

Oversight & Accountability

As a Delivery Order under a larger contract, oversight may be integrated into the parent contract's management structure. The Missile Defense Agency is responsible for ensuring performance and cost control.

Related Government Programs

Engineering Services
Department of Defense Contracting
Missile Defense Agency Programs

Risk Flags

Cost Plus Award Fee (CPAF) contract type.
Potential for contractor lock-in.
Long contract duration.
Missile Defense Agency specific requirements.
Reliance on a single large prime contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.5 million to RAYTHEON COMPANY. OSI MODELS AND SIMULATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $86.5 million.

What is the period of performance?

Start: 2022-05-27. End: 2025-01-11.

What is the benchmark cost for similar OSI modeling and simulation support contracts?

Benchmarking this specific contract is challenging without detailed scope and performance metrics. However, engineering services for complex defense systems typically command high rates. The Cost Plus Award Fee structure introduces variability, making direct comparisons difficult. Further analysis of historical data and similar contract awards within the DoD would be necessary for a precise benchmark.

What are the key performance indicators (KPIs) tied to the award fee structure?

The award fee structure is designed to incentivize specific performance outcomes. While not detailed here, typical KPIs for simulation support contracts include accuracy of models, timeliness of deliverables, system performance, and successful integration with other defense platforms. The Missile Defense Agency would define and monitor these metrics to determine the award fee.

How does the reliance on Raytheon for this critical function impact long-term technological independence?

Sole-source reliance on any single contractor for critical functions like advanced simulation can raise concerns about long-term technological independence and potential vendor lock-in. While Raytheon is a major defense contractor, the DoD should continuously assess the competitive landscape and foster alternative capabilities to mitigate risks associated with over-reliance.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014716R0051

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 225 PRESIDENTIAL WAY, WOBURN, MA, 01801

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: $136,883,549

Exercised Options: $136,883,549

Current Obligation: $86,499,594

Actual Outlays: $54,929,989

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014718D0003

IDV Type: IDC

Timeline