DoD's $144M contract for policy review and development services awarded to Raytheon Technical Services Co

Contract Overview

Contract Amount: $14,406,275 ($14.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2006-01-31

End Date: 2007-09-30

Contract Duration: 607 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200604!009734!1700!M67004!COMMANDER !GS10F0229L !C!N! !N!M6700406F0752! !20060131!20060930!931871438!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DRIVE!RESTON !VA!20191!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000003000000!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!M67899!0001! !

Place of Performance

Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to RAYTHEON COMPANY for work described as: 200604!009734!1700!M67004!COMMANDER !GS10F0229L !C!N! !N!M6700406F0752! !20060131!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 strategic planning and analysis. 2. The contract value of $144 million over a 20-month period suggests a significant investment in policy-related support. 3. Awarded to Raytheon Technical Services Co., a major defense contractor, highlighting the role of large firms in providing complex government services. 4. The contract's duration of 20 months implies a medium-term engagement for the services rendered. 5. The primary service category is 'Policy Review/Development Services', falling under professional, scientific, and technical services. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: fair

The contract value of $144 million for 20 months of policy review and development services appears substantial. Benchmarking this against similar contracts for policy consulting is challenging without more specific service details. However, given the duration and the nature of policy work, the pricing may be within a reasonable range for specialized expertise. Further analysis would require comparing the specific deliverables and the level of expertise required against industry standards for similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive bidding process where multiple companies likely vied for the contract. The level of competition is generally positive for price discovery, as it encourages bidders to offer competitive pricing to win the award. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better value for the services procured.

Public Impact

The primary beneficiary is the Department of Defense, which receives support for its policy review and development initiatives. Services delivered include policy analysis, strategic planning, and potentially the development of new policy frameworks. The geographic impact is likely focused on the Department of Defense's operational areas and policy-making bodies. Workforce implications may involve specialized policy analysts, researchers, and consultants, potentially drawing from both government and contractor personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and value for money of the policy services.
The significant contract value raises questions about whether alternative, more cost-effective solutions were considered.
Limited transparency on the specific deliverables and outcomes of the policy review and development could obscure potential inefficiencies.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive procurement process.
The engagement of a well-established contractor like Raytheon Technical Services Co. may indicate a level of confidence in their capabilities.
The contract addresses a critical function for the Department of Defense: policy development and review.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on policy consulting. This sector is crucial for government operations, providing expertise in areas ranging from strategic planning to regulatory analysis. The market for such services is competitive, with numerous firms offering specialized knowledge. The Department of Defense, as a major government entity, frequently procures these types of services to support its complex mission requirements. Comparable spending benchmarks would depend on the specific nature of the policy work, but large-scale policy development contracts can run into tens or hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have a specific small business set-aside. As a large contract awarded to a major corporation, the primary focus is likely on prime contractor performance. However, Raytheon Technical Services Co. may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the small business ecosystem. The extent of small business subcontracting would need to be verified through contract-specific reporting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency, the Department of the Navy, through designated contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed performance data may be limited. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Policy Development Programs
Government Consulting Services
Strategic Planning Contracts
Federal Policy Analysis Contracts

Risk Flags

Potential for scope creep in policy development
Difficulty in measuring the tangible impact of policy recommendations
Reliance on a single large contractor for critical policy functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to RAYTHEON COMPANY. 200604!009734!1700!M67004!COMMANDER !GS10F0229L !C!N! !N!M6700406F0752! !20060131!20060930!931871438!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!12160 SUNRISE VALLEY DRIVE!RESTON !VA!20191!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000003000000!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 $14.4 million.

What is the period of performance?

Start: 2006-01-31. End: 2007-09-30.

What specific policy areas did Raytheon Technical Services Co. focus on under this contract?

The provided data indicates the contract was for 'Policy Review/Development Services' (NAICS code 541614). However, it does not specify the exact policy domains or subject matter expertise Raytheon was contracted to provide. This could range from national security policy, defense strategy, operational procedures, to internal administrative policies. To understand the specific focus, one would need to examine the contract's Statement of Work (SOW) or task orders issued against this contract. These documents would detail the objectives, deliverables, and the precise policy areas requiring review and development.

How does the $144 million contract value compare to typical spending on policy consulting by the DoD?

The $144 million contract value for 20 months of policy review and development services is substantial. Comparing it directly to 'typical' DoD spending is complex due to the wide variation in contract scope, duration, and the specific nature of policy work. Large-scale strategic policy initiatives or comprehensive reviews of defense-wide policies can indeed command such figures, especially when involving extensive research, analysis, and stakeholder engagement. However, without knowing the specific deliverables and the number of policy areas covered, it's difficult to definitively benchmark. Smaller, more focused policy tasks would naturally be valued much lower. This contract likely represents a significant, broad-scope policy support effort.

What were the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or details on how Raytheon Technical Services Co.'s performance was measured for this contract. Typically, government contracts include a Statement of Work (SOW) and a Quality Assurance Surveillance Plan (QASP) that outline performance standards, metrics, and evaluation criteria. For a policy development contract, KPIs might include timeliness of deliverables, quality of analysis, adherence to scope, stakeholder satisfaction, and the impact or utility of the developed policies. Without access to these contract-specific documents, a detailed assessment of performance measurement is not possible.

What is Raytheon Technical Services Co.'s track record with similar DoD policy contracts?

Raytheon Technical Services Co. (RTSC), as part of the larger Raytheon Company (now RTX), has a significant history of supporting the Department of Defense across various technical and professional services. While specific details on their past performance solely in 'policy review and development' for the DoD are not in the provided data snippet, RTSC has historically been involved in complex program management, systems engineering, technical support, and information technology services for defense agencies. Their extensive experience in managing large, complex government contracts suggests a capability to handle significant policy-related work, though the depth and breadth of their policy-specific expertise would require further investigation into their contract portfolio.

Were there any notable risks identified during the procurement or execution of this contract?

The provided data does not explicitly list any identified risks associated with this contract. However, for a contract of this magnitude and nature (policy development), potential risks could include scope creep, challenges in defining clear policy objectives, difficulties in stakeholder consensus, contractor performance issues, or budget overruns. The fact that it was awarded under full and open competition might suggest that potential bidders assessed these risks and submitted proposals accordingly. Post-award, ongoing risk management by the contracting officer and program manager would be crucial to mitigate any emerging issues.

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