Raytheon Company Awarded $23M for Naval Shipyard Equipment Maintenance and Repair

Contract Overview

Contract Amount: $21,286,351 ($21.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2006-04-21

End Date: 2008-10-30

Contract Duration: 923 days

Daily Burn Rate: $23.1K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Defense

Official Description: 200607!062788!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002406C6107 !A!N! !N! ! !20060421!20061115!004661344!004661344!001339159!N!RAYTHEON COMPANY !1050 NE HOSTMARK ST STE 20!POULSBO !WA!98370!63200!003!15!PRL HRBR NAV SHIPYD !HONOLULU !HAWAII !+000009213593!N!N!000009213593!J010!MAINT & REPAIR OF EQ/WEAPONS !A5 !WEAPONS !000 !NOT DISCERNABLE !811219!E! !3! ! ! ! ! !99990909!B! ! !A! !C!N!J!1!001!N!1B!C!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00024!0001! !

Place of Performance

Location: EWA BEACH, HONOLULU County, HAWAII, 96706

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to RAYTHEON COMPANY for work described as: 200607!062788!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002406C6107 !A!N! !N! ! !20060421!20061115!004661344!004661344!001339159!N!RAYTHEON COMPANY !1050 NE HOSTMARK ST STE 20!POULSBO !WA!98370!63200!003!15!PRL HRBR NAV SHIPYD !HONO… Key points: 1. Contract awarded to Raytheon Company for maintenance and repair of equipment and weapons. 2. The contract is a follow-on to a competed action, suggesting prior competition. 3. The total value of the contract is $23,062,000. 4. The contract duration is 923 days, ending in October 2008. 5. The specific item being procured is 'Other Electronic and Precision Equipment Repair and Maintenance'.

Value Assessment

Rating: fair

The contract value of $23.06 million for maintenance and repair of naval equipment appears reasonable given the scope and duration. Benchmarking against similar complex repair contracts is difficult without more specific details on the equipment and services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract is noted as a 'FOLLOW ON TO COMPETED ACTION', which implies some level of prior competition. However, the current award type is not explicitly stated as full and open, potentially limiting competition for this specific action.

Taxpayer Impact: Taxpayer funds are being used for essential maintenance of naval assets. The effectiveness of competition in driving down costs for this follow-on contract will impact the overall value for taxpayers.

Public Impact

Ensures operational readiness of naval vessels through equipment maintenance. Supports jobs within the defense industrial base, specifically Raytheon Company. Contributes to the overall security and defense capabilities of the U.S. Navy. Potential for cost savings if the follow-on action was effectively competed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on the specific competition method for this follow-on award.
Potential for sole-sourcing or limited competition impacting price discovery.
Limited public information on the specific equipment and repair services.

Positive Signals

Follow-on to a competed action suggests a history of competitive pricing.
Award to a known defense contractor like Raytheon indicates established capabilities.
Contract aims to maintain critical naval assets.

Sector Analysis

This contract falls under the defense sector, specifically focusing on maintenance and repair of naval equipment and weapons. Spending in this area is critical for maintaining fleet readiness and can vary significantly based on modernization efforts and operational tempo.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The Department of Defense and Department of the Navy are responsible for oversight of this contract. Accountability would involve ensuring Raytheon Company meets all performance requirements and delivery schedules as outlined in the contract.

Related Government Programs

Other Electronic and Precision Equipment Repair and Maintenance
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of transparency regarding the competition method for this follow-on award.
Potential for cost overruns if competition was not robust.
Limited insight into the specific technical requirements and performance metrics.
The contract duration of 923 days is substantial, requiring ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to RAYTHEON COMPANY. 200607!062788!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002406C6107 !A!N! !N! ! !20060421!20061115!004661344!004661344!001339159!N!RAYTHEON COMPANY !1050 NE HOSTMARK ST STE 20!POULSBO !WA!98370!63200!003!15!PRL HRBR NAV SHIPYD !HONOLULU !HAWAII !+000009213593!N!N!000009213593!J010!MAINT & REPAIR OF EQ/WEAPONS !A5 !WEAPONS !000 !NOT DISCERNABLE !811219!E! !3! ! ! ! ! !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 $21.3 million.

What is the period of performance?

Start: 2006-04-21. End: 2008-10-30.

What was the specific competitive process used for this follow-on contract, and how did it ensure fair and reasonable pricing?

The data indicates this is a 'FOLLOW ON TO COMPETED ACTION', suggesting a prior competitive award. However, the specific method for this follow-on action is not detailed. To ensure fair and reasonable pricing, the government should have conducted market research and potentially solicited proposals from multiple sources, even if the original contract was competed. Without this information, it's difficult to assess the effectiveness of price discovery.

What are the key performance indicators (KPIs) for this maintenance and repair contract, and how is Raytheon Company's performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the metrics used to measure Raytheon Company's performance. Typically, such contracts would include clauses related to timeliness of repairs, quality of work, adherence to technical specifications, and reporting requirements. Effective oversight would involve regular performance reviews against these defined KPIs to ensure the Navy receives the expected value and maintains operational readiness.

What is the long-term strategic value of this specific maintenance and repair contract in the context of the Navy's overall fleet modernization and readiness plans?

This contract supports the immediate operational readiness of naval assets by ensuring critical equipment and weapons are maintained. Its long-term strategic value depends on how it aligns with the Navy's broader fleet modernization strategy. If the equipment being maintained is part of a legacy fleet slated for replacement, the value is primarily short-term. If it supports platforms with a longer service life, it contributes to sustained readiness and potentially delays costly new procurements.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Address: 1050 NE HOSTMARK ST STE 20, POULSBO, WA, 98370

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline