DHS awards $42.8M for Air Cargo Security Tech Program to Raytheon Company

Contract Overview

Contract Amount: $42,790,002 ($42.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Homeland Security

Start Date: 2016-10-12

End Date: 2021-12-31

Contract Duration: 1,906 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: "IGF::CT::IGF" TASK ORDER HSTS04-16-F-CT5501 UTILIZING THE GSA OASIS IDIQ CONTRACT NUMBER GS00Q14OADU129. THE PURPOSE OF THE TASK ORDER IS TO PROVIDE PROGRAM MANAGEMENT, ENGINEERING SERVICES, AND TEST ARTICLE MANAGEMENT FOR THE PLACEMENT AND EVALUATION OF SECURITY TECHNOLOGIES ASSOCIATED WITH AIR CARGO SECURITY TECHNOLOGY PROGRAM, AIR CARGO INFRASTRUCTURE PROTECTION AND SURVEILLANCE FIELD ASSESSMENT, AND THE SURFACE TRANSPORTATION SECURITY TECHNOLOGY PROGRAM.

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42.8 million to RAYTHEON COMPANY for work described as: "IGF::CT::IGF" TASK ORDER HSTS04-16-F-CT5501 UTILIZING THE GSA OASIS IDIQ CONTRACT NUMBER GS00Q14OADU129. THE PURPOSE OF THE TASK ORDER IS TO PROVIDE PROGRAM MANAGEMENT, ENGINEERING SERVICES, AND TEST ARTICLE MANAGEMENT FOR THE PLACEMENT AND EVALUATION OF SECURITY TECHNOLOGIES AS… Key points: 1. Significant investment in critical security technology programs. 2. Raytheon Company, a major defense contractor, is the awardee. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans multiple years, indicating a long-term need for these services.

Value Assessment

Rating: good

The contract value of $42.8 million over approximately 5 years appears reasonable for specialized engineering and program management services in the security technology sector. Benchmarking against similar large-scale technology development and integration contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently through a process designed to secure favorable pricing for essential security technology services.

Public Impact

Enhances air cargo and surface transportation security through advanced technology. Supports the Department of Homeland Security's mission to protect critical infrastructure. Potential for improved screening and surveillance capabilities. Long-term contract may lead to sustained innovation in security tech.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is substantial (over 5 years).
No explicit mention of small business participation.
Specific performance metrics are not detailed in the provided data.

Positive Signals

Awarded under full and open competition.
Utilizes a reputable IDIQ contract vehicle (GSA OASIS).
Addresses critical national security needs.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to national security and transportation infrastructure. Spending in this area is often driven by evolving threats and the need for technological advancement, with significant government investment typical for such programs.

Small Business Impact

The provided data does not indicate any specific set-aside for small businesses, nor does it mention their participation in this contract. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

The use of a GSA OASIS IDIQ contract suggests a framework for oversight. However, specific details on performance monitoring, reporting requirements, and accountability mechanisms for this task order are not provided and would be crucial for a comprehensive oversight assessment.

Related Government Programs

Engineering Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Long contract duration may pose risks if technology becomes obsolete.
Lack of explicit small business participation.
Potential for cost overruns if program scope expands.
Dependence on a single large contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.8 million to RAYTHEON COMPANY. "IGF::CT::IGF" TASK ORDER HSTS04-16-F-CT5501 UTILIZING THE GSA OASIS IDIQ CONTRACT NUMBER GS00Q14OADU129. THE PURPOSE OF THE TASK ORDER IS TO PROVIDE PROGRAM MANAGEMENT, ENGINEERING SERVICES, AND TEST ARTICLE MANAGEMENT FOR THE PLACEMENT AND EVALUATION OF SECURITY TECHNOLOGIES ASSOCIATED WITH AIR CARGO SECURITY TECHNOLOGY PROGRAM, AIR CARGO INFRASTRUCTURE PROTECTION AND SURVEILLANCE FIELD ASSESSMENT, AND THE SURFACE TRANSPORTATION SECURITY TECHNOLOGY PROGRAM.

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $42.8 million.

What is the period of performance?

Start: 2016-10-12. End: 2021-12-31.

What specific performance metrics are being used to evaluate Raytheon's success in delivering program management, engineering, and test article management services?

The provided data does not detail the specific performance metrics. A thorough review of the task order's statement of work and associated performance work statement would be necessary to identify these metrics. These typically include adherence to timelines, quality of engineering deliverables, effectiveness of test article management, and overall program execution success.

How does the cost of these engineering services compare to industry benchmarks for similar large-scale security technology programs?

Without access to detailed cost breakdowns and specific service components, a precise benchmark comparison is difficult. However, the contract's value and duration suggest a significant investment. Benchmarking would require analyzing the labor categories, hours, and rates against comparable government and commercial contracts for specialized engineering and program management in the defense and security sectors.

What is the anticipated impact of these security technologies on the effectiveness of air cargo and surface transportation screening processes?

The anticipated impact is likely a significant improvement in the detection capabilities for threats within air cargo and on surface transportation. This could translate to fewer successful security breaches, more efficient screening operations, and enhanced overall public safety. The evaluation of test articles aims to validate these improvements before wider deployment.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 22260 PACIFIC BLVD, STERLING, VA, 20166

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: $43,757,375

Exercised Options: $42,926,684

Current Obligation: $42,790,002

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU129

IDV Type: IDC

Timeline