DoD awards Raytheon $24.2M for Custom Computer Programming Services under full and open competition

Contract Overview

Contract Amount: $24,225,719 ($24.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2016-06-29

End Date: 2021-02-15

Contract Duration: 1,692 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: IGF::CL,CT::IGF PURSUANT TO DFARS CLAUSE 252.216-7006, ORDERING, AND THE TERMS AND CONDITIONS OF CONTRACT W15P7T-14-D-C006, TASK ORDER KZ01 IS HEREBY ISSUED ON A COST PLUS INCENTIVE FEE BASIS.

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46808

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to RAYTHEON COMPANY for work described as: IGF::CL,CT::IGF PURSUANT TO DFARS CLAUSE 252.216-7006, ORDERING, AND THE TERMS AND CONDITIONS OF CONTRACT W15P7T-14-D-C006, TASK ORDER KZ01 IS HEREBY ISSUED ON A COST PLUS INCENTIVE FEE BASIS. Key points: 1. Contract awarded to Raytheon Company for Custom Computer Programming Services. 2. Significant contract value of $24.2 million over a 1692-day period. 3. Procurement method was full and open competition, suggesting a competitive bidding process. 4. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control and performance. 5. This falls under the IT sector, specifically Custom Computer Programming Services.

Value Assessment

Rating: good

The Cost Plus Incentive Fee (CPIF) structure allows for shared savings if costs are below target, potentially leading to better value. However, CPIF contracts require careful monitoring to ensure costs remain reasonable and performance targets are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The competitive bidding process is expected to yield a fair price for the services rendered, maximizing taxpayer value.

Public Impact

Ensures the Department of Defense receives necessary custom computer programming services. Supports technological advancements and operational capabilities within the Army. The competitive nature of the award suggests efficient use of taxpayer funds. Raytheon Company's involvement indicates a significant player in the defense IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contracts require robust oversight to manage costs and performance.
Long contract duration (1692 days) may present risks if requirements evolve significantly.

Positive Signals

Full and open competition generally leads to better pricing.
Incentive fee structure can drive performance and cost efficiency.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming. Spending in this area is critical for modernizing government systems and maintaining operational effectiveness. Benchmarks for similar services vary widely based on complexity and duration.

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 indication of small business participation in this specific award.

Oversight & Accountability

The use of DFARS clause 252.216-7006 and the CPIF contract type suggest established oversight mechanisms. However, ongoing monitoring of performance and costs is crucial for accountability.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns in CPIF contracts if not closely managed.
Risk of requirements evolving beyond the scope of the original task order over its long duration.
Dependency on a single large contractor for critical programming services.
Lack of transparency regarding specific deliverables and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to RAYTHEON COMPANY. IGF::CL,CT::IGF PURSUANT TO DFARS CLAUSE 252.216-7006, ORDERING, AND THE TERMS AND CONDITIONS OF CONTRACT W15P7T-14-D-C006, TASK ORDER KZ01 IS HEREBY ISSUED ON A COST PLUS INCENTIVE FEE BASIS.

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2016-06-29. End: 2021-02-15.

What specific custom computer programming services are being provided under this task order, and how do they align with the Army's strategic IT goals?

The provided data does not specify the exact nature of the custom computer programming services. Further analysis would be needed to determine if these services directly support the Army's strategic IT objectives, such as modernization, cybersecurity enhancements, or data analytics capabilities. Understanding the scope is key to assessing long-term value.

How effectively are the incentive fee structures in this CPIF contract being managed to control costs and drive desired performance outcomes?

The effectiveness of the incentive fee structure depends on the clarity of performance metrics, the realism of cost targets, and the rigor of government oversight. Regular performance reviews and cost audits are essential to ensure the CPIF is achieving its intended purpose of aligning contractor incentives with government interests and preventing cost overruns.

What is the potential impact of the long contract duration (1692 days) on the relevance and adaptability of the custom software developed?

A long contract duration can pose a risk of technological obsolescence or changing requirements. Agile development methodologies and built-in flexibility for updates or modifications would be crucial to ensure the software remains relevant and effective throughout its lifecycle and beyond. Without such provisions, the value could diminish over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 1010 PRODUCTION RD, FORT WAYNE, IN, 46808

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,225,719

Exercised Options: $24,225,719

Current Obligation: $24,225,719

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T14DC006

IDV Type: IDC

Timeline