DoD's $208M contract for policy review and development services awarded to Raytheon Technical Services Co

Contract Overview

Contract Amount: $20,808,106 ($20.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2005-10-21

End Date: 2007-09-30

Contract Duration: 709 days

Daily Burn Rate: $29.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200601!009120!1700!M67004!COMMANDER !GS10F0229L !C!N! !N!M6700406F0206! !20051021!20060930!931871438!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DRIVE!RESTON !VA!20191!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000000800000!N!N!000000000000!R406!POLICY REVIEW/DEVELOPMENT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541614!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! !Y!1727!MMFAF5!0001! !

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to RAYTHEON COMPANY for work described as: 200601!009120!1700!M67004!COMMANDER !GS10F0229L !C!N! !N!M6700406F0206! !20051021!20060930!931871438!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DRIVE!RESTON !VA!20191!66672!059!51!RESTON !FAIR… Key points: 1. Contract awarded for policy review and development services, indicating a need for specialized expertise in governmental processes. 2. The contract's duration of 709 days suggests a significant, ongoing requirement for these services. 3. Awarded to Raytheon Technical Services Co., a subsidiary of Raytheon Company, highlighting the role of large defense contractors in supporting federal agencies. 4. The contract was competed under full and open competition, suggesting a robust market for these services. 5. The fixed-price contract type aims to control costs for the government. 6. The contract falls under the 'Policy Review/Development Services' category, aligning with broader government administrative and strategic functions.

Value Assessment

Rating: fair

The total value of $208,081,063.50 for policy review and development services over approximately two years appears substantial. Benchmarking this against similar contracts is challenging without more specific service details. However, the fixed-price nature of the contract suggests an attempt to manage costs, though the final expenditure indicates a significant investment. The contractor, Raytheon Technical Services Co., is a large entity with extensive government contracting experience, which can sometimes lead to higher pricing compared to smaller, more specialized firms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of open competition is generally positive for price discovery, as it encourages vendors to offer competitive pricing to secure the award. The specific number of bidders is not provided, but the category suggests a market with several potential providers of policy and development services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, potentially reducing the overall cost to the government.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various branches, receiving support for critical policy review and development functions. The services delivered are essential for shaping and refining governmental policies, impacting strategic direction and operational efficiency. The geographic impact is primarily within the Department of Defense's operational sphere, though the policies developed could have broader national implications. Workforce implications include the employment of policy analysts, researchers, and subject matter experts within Raytheon Technical Services Co. and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in policy development projects, which could lead to cost overruns if not managed tightly.
Reliance on a single large contractor may limit flexibility and responsiveness to rapidly changing policy needs.
The broad nature of 'policy review/development' could lead to ambiguity in deliverables and performance metrics.

Positive Signals

Award to an experienced contractor like Raytheon Technical Services Co. suggests a high likelihood of meeting performance expectations.
The fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
Full and open competition indicates a healthy market and potential for quality service delivery.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on policy analysis and development. This is a critical area for government operations, supporting strategic planning and regulatory functions. The market for such services includes a range of consulting firms, think tanks, and large defense contractors. The total federal spending in this broad category is in the billions annually, with significant portions allocated to advisory and management support services.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. Given the large contract value and the nature of the services, it is possible that subcontracting opportunities may exist for specialized research or analytical tasks. However, the primary awardee is a large corporation, suggesting that the direct impact on small businesses may be limited unless specific subcontracting plans are in place.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of Defense. Performance reviews, milestone tracking, and invoice approvals are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements, though the specifics of policy development are often internal.

Related Government Programs

Defense Policy Development
Government Consulting Services
Strategic Planning Support
Federal Policy Analysis Contracts

Risk Flags

Contract Value
Contract Duration
Contractor Size
Service Specificity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to RAYTHEON COMPANY. 200601!009120!1700!M67004!COMMANDER !GS10F0229L !C!N! !N!M6700406F0206! !20051021!20060930!931871438!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DRIVE!RESTON !VA!20191!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000000800000!N!N!000000000000!R406!POLICY REVIEW/DEVELOPMENT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541614!E! !6! ! ! ! ! !999

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 Navy).

What is the total obligated amount?

The obligated amount is $20.8 million.

What is the period of performance?

Start: 2005-10-21. End: 2007-09-30.

What is the specific nature of the policy review and development services provided under this contract?

The contract, identified by NAICS code 541614 (Process, Physical Distribution, and Logistics Consulting Services), broadly covers policy review and development. While the specific policies are not detailed, this typically involves analyzing existing policies, researching best practices, developing new policy frameworks, and providing recommendations for implementation. These services are crucial for the Department of Defense to adapt to evolving geopolitical landscapes, technological advancements, and operational requirements. The services likely involve extensive research, stakeholder consultations, and the drafting of policy documents and reports.

How does the $208 million contract value compare to similar policy development contracts within the DoD?

Comparing the $208 million value requires context on the scope and duration. This contract spans approximately two years (709 days). Large-scale policy initiatives or comprehensive reviews for major defense strategies can easily reach these figures. For instance, contracts supporting the development of national defense strategies, cybersecurity policies, or major acquisition policy overhauls often involve substantial funding. Without knowing the specific policy areas, it's difficult to provide a precise benchmark, but for a broad mandate within a department as large as Defense, this value is within a plausible range for significant policy support.

What are the key performance indicators (KPIs) or deliverables expected from Raytheon Technical Services Co. under this contract?

Specific KPIs and deliverables are not publicly detailed for this contract. However, typical expectations for policy review and development services include timely delivery of comprehensive analytical reports, well-researched policy recommendations, draft policy documents, and presentations to key stakeholders. Performance would likely be assessed based on the quality of analysis, the clarity and feasibility of recommendations, adherence to project timelines, and the contractor's ability to incorporate feedback. The contracting officer's representative (COR) would be responsible for monitoring progress against the contract's statement of work.

What is Raytheon Technical Services Co.'s track record in providing policy development services to the federal government?

Raytheon Technical Services Co. (RTSC), as part of Raytheon Company, has a significant history of providing a wide array of technical and professional services to various U.S. government agencies, including the Department of Defense. Their expertise often spans complex engineering, logistics, IT, and management support. While specific details on their policy development portfolio require deeper investigation, their extensive experience as a prime contractor suggests a capacity to handle large, complex service contracts. Their track record generally indicates a capability to deliver on contracted requirements, though performance can vary across individual contracts.

What are the potential risks associated with awarding a large policy development contract to a single entity like Raytheon?

A primary risk is the potential for a lack of diverse perspectives if the contractor's internal team or subcontractors do not represent a broad range of expertise or viewpoints. Another risk is vendor lock-in, where the government becomes overly reliant on the contractor's specific methodologies or knowledge base, making future transitions difficult or costly. There's also the risk of 'groupthink' or a failure to challenge established norms if the contractor is too closely aligned with existing agency perspectives. Finally, the sheer size of the contract could make it challenging to manage effectively, potentially leading to scope creep or missed performance targets if oversight is insufficient.

How has federal spending on policy review and development services evolved over the past decade?

Federal spending on policy review and development services, often categorized under professional, scientific, and technical services, has generally seen an upward trend over the past decade, particularly in areas related to national security, technology, and regulatory compliance. Agencies frequently contract out for specialized expertise to inform policy decisions, conduct impact assessments, and develop strategic roadmaps. While specific figures for 'policy development' as a distinct category are hard to isolate, the broader consulting and professional services market for the federal government represents tens of billions of dollars annually, reflecting a consistent demand for external analytical and advisory support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 141 SPRING ST, LEXINGTON, MA, 05

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: GS10F0229L

IDV Type: FSS

Timeline