DoD awards Raytheon $18.8M for Logistics Consulting Services under Full and Open Competition
Contract Overview
Contract Amount: $18,882,121 ($18.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2007-11-08
End Date: 2009-09-30
Contract Duration: 692 days
Daily Burn Rate: $27.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REMANUFACTURE-
Place of Performance
Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421
Plain-Language Summary
Department of Defense obligated $18.9 million to RAYTHEON COMPANY for work described as: REMANUFACTURE- Key points: 1. Contract awarded to Raytheon Company for logistics consulting. 2. Full and open competition was utilized. 3. The contract value is $18.8 million. 4. Services are for the Department of the Navy. 5. The contract duration is 692 days.
Value Assessment
Rating: fair
The contract value of $18.8 million for logistics consulting services over approximately two years appears within a reasonable range for specialized consulting. Benchmarking against similar large-scale government contracts for consulting services 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, suggesting a competitive bidding process that should lead to fair market pricing. This method allows multiple vendors to propose solutions, driving price discovery and potentially lower costs for the government.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes a competitive environment, which can lead to cost savings and better value for public funds.
Public Impact
Ensures efficient supply chain and distribution for naval operations. Supports the Department of Defense's logistical capabilities. Leverages private sector expertise for complex logistical challenges. Potential for improved operational readiness through optimized processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for scope creep in consulting services.
- Dependence on a single contractor for critical logistics analysis.
Positive Signals
- Awarded through full and open competition.
- Fixed-price contract type can control costs.
- Experienced contractor (Raytheon Company).
Sector Analysis
This contract falls under professional services, specifically logistics consulting, within the broader defense sector. Spending in this area often supports complex operational needs and aims to optimize efficiency and cost-effectiveness in supply chains and distribution networks.
Small Business Impact
The data indicates the prime contractor is Raytheon Company, a large business. There is no information provided regarding subcontracting opportunities for small businesses on this specific contract.
Oversight & Accountability
Oversight would typically involve contract management by the Department of the Navy to ensure Raytheon meets performance requirements and delivers services as specified. The fixed-price nature of the contract provides some cost control, but monitoring service delivery is crucial.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded to a large business.
- Limited insight into specific performance metrics.
- Potential for scope creep in consulting services.
- Consulting services can be subjective to measure ROI.
- No indication of small business participation.
Tags
process-physical-distribution-and-logist, department-of-defense, ma, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to RAYTHEON COMPANY. REMANUFACTURE-
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 $18.9 million.
What is the period of performance?
Start: 2007-11-08. End: 2009-09-30.
What specific logistical challenges is Raytheon tasked with addressing, and how will their solutions demonstrably improve efficiency or reduce costs for the Navy?
The provided data lacks specifics on the exact logistical challenges. However, typical engagements involve optimizing supply chain management, inventory control, transportation routing, and distribution network design. Demonstrable improvements would be measured by key performance indicators such as reduced transit times, lower inventory holding costs, improved order fulfillment rates, and enhanced operational readiness.
Given the $18.8 million value and fixed-price structure, what are the primary risks associated with this contract for the government?
The primary risks include potential scope creep if the consulting services are not tightly defined, leading to cost overruns despite the fixed price. There's also a risk that the consultant's recommendations may not be fully implementable or may not yield the expected benefits. Furthermore, over-reliance on external consultants can sometimes lead to a knowledge gap within the government agency.
How does the use of a large, established contractor like Raytheon impact the effectiveness and innovation potential of the awarded logistics consulting services?
Using a large, established contractor like Raytheon can bring significant resources, deep industry experience, and proven methodologies, potentially leading to effective and robust solutions. However, it might also introduce risks of less agility or innovation compared to smaller, specialized firms. The effectiveness hinges on Raytheon's ability to tailor their extensive capabilities to the Navy's specific, potentially unique, requirements.
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
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
Financial Breakdown
Contract Ceiling: $18,995,236
Exercised Options: $18,995,236
Current Obligation: $18,882,121
Parent Contract
Parent Award PIID: GS10F0229L
IDV Type: FSS
Timeline
Start Date: 2007-11-08
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2013-04-08
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