DoD awards Raytheon Company $51.3M for GPNTS Software Support Services over 5 years

Contract Overview

Contract Amount: $51,301,426 ($51.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-04-24

End Date: 2025-04-30

Contract Duration: 1,832 days

Daily Burn Rate: $28.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: GPNTS SOFTWARE SUPPORT SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $51.3 million to RAYTHEON COMPANY for work described as: GPNTS SOFTWARE SUPPORT SERVICES Key points: 1. Contract value of $51.3M over 1832 days suggests a significant investment in critical software support. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. The contract type (Cost Plus Fixed Fee) carries inherent risk of cost overruns, requiring robust oversight. 4. Performance period extending to April 2025 allows for sustained support and potential for future enhancements. 5. This contract falls within the Custom Computer Programming Services sector, a key area for defense modernization. 6. The award to a large, established contractor like Raytheon suggests a focus on proven capabilities.

Value Assessment

Rating: fair

The total contract value of $51.3M over approximately five years averages to roughly $10.26M annually. Without specific benchmarks for GPNTS software support, it's difficult to definitively assess value. However, the Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs compared to fixed-price contracts if not managed tightly. The absence of detailed cost breakdowns or comparisons to similar support contracts makes a precise value-for-money assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This approach is generally favorable for price discovery and ensuring the government receives competitive offers. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive process was intended.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at the most competitive prices, reducing potential waste and maximizing the value of federal dollars.

Public Impact

The Department of the Navy benefits from sustained software support for its GPNTS system, crucial for operational readiness. This contract ensures the continued functionality and potential modernization of a key defense information system. The geographic impact is primarily within the Department of Defense's operational theaters, supporting naval forces. Workforce implications may include specialized software engineers and support personnel employed by Raytheon and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces risk of cost escalation if not closely monitored.
Lack of specific performance metrics or detailed value benchmarks makes objective assessment difficult.
Long contract duration could lead to vendor lock-in if not managed with clear exit strategies.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Contractor, Raytheon Company, is a large and established defense contractor with significant experience.
The contract provides sustained support, ensuring operational continuity for a critical system.

Sector Analysis

This contract falls within the broader IT services sector, specifically Custom Computer Programming Services. The defense industry relies heavily on specialized software for command, control, and intelligence systems. Spending in this area is substantial, driven by the need for advanced technological capabilities and ongoing system maintenance. Comparable spending benchmarks would typically involve other large-scale software development and support contracts within the Department of Defense or other federal agencies requiring similar complex IT solutions.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While the prime contractor, Raytheon Company, is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting is not detailed in this award notice, but it is a common practice in large federal contracts to meet small business utilization goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Naval Software Development Contracts
Custom Computer Programming Services
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Lack of detailed performance metrics in award data.
Potential for vendor lock-in due to long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.3 million to RAYTHEON COMPANY. GPNTS SOFTWARE SUPPORT SERVICES

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 $51.3 million.

What is the period of performance?

Start: 2020-04-24. End: 2025-04-30.

What is the historical spending pattern for GPNTS software support services with Raytheon Company or other contractors?

Analyzing historical spending for GPNTS software support requires access to detailed contract databases and specific contract line item numbers (CLINs) related to this service. Without that granular data, it's challenging to provide a precise historical spending pattern. However, the current award of $51.3M over approximately five years suggests a consistent need for ongoing support. If previous contracts for similar services were awarded to Raytheon or competitors, comparing their values, durations, and scope would offer insight into trends. Generally, the defense sector sees significant, often increasing, investment in software support due to evolving threats and technological advancements, implying that historical spending may have been substantial and could continue to be.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar software support services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there's a high degree of uncertainty, allowing for flexibility. However, they generally carry a higher risk of cost overruns for the government compared to Firm-Fixed-Price (FFP) contracts, as the contractor is reimbursed for allowable costs plus a fixed fee. For routine software support and maintenance, FFP contracts are often preferred for better cost control. If the GPNTS support involves significant research, development, or undefined modifications, CPFF might be justified. Benchmarking against similar DoD software support contracts awarded under FFP would likely show lower overall costs for the government, assuming comparable scope and quality.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. In a Cost Plus Fixed Fee contract for software support, KPIs and SLAs are critical for ensuring the contractor meets performance expectations and for justifying the costs incurred. Typical KPIs for software support might include system uptime, response times for issue resolution, patch deployment rates, and successful completion of maintenance tasks. SLAs would define the acceptable thresholds for these metrics and potential remedies or incentives tied to performance. Robust oversight would involve regular reviews of the contractor's performance against these defined metrics.

What is Raytheon Company's track record with similar software support contracts for the Department of Defense?

Raytheon Company, now part of RTX, has an extensive track record of providing a wide range of services to the Department of Defense, including complex software development, integration, and sustainment. They are a major defense contractor with deep experience in critical systems. For software support contracts specifically, their history likely includes managing large-scale, long-term engagements across various platforms. Assessing their specific performance on similar GPNTS-related or comparable command-and-control software support contracts would require a review of past performance evaluations and contract histories. Generally, their size and established presence suggest a capacity to handle such requirements, though individual contract performance can vary.

What is the potential impact of this contract on the broader defense IT market and competition?

This contract, awarded under full and open competition to a major defense contractor, signifies continued investment in specialized IT capabilities within the defense sector. It reinforces the position of large, established players like Raytheon in providing critical software support. While full and open competition aims to foster broader market participation, the nature of highly specialized defense software often favors contractors with existing expertise and security clearances. The award may signal a trend towards consolidating support for complex systems with proven providers, potentially making it more challenging for smaller, newer entrants to compete for such large-scale, mission-critical contracts without strategic partnerships.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0003919R0005

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8650 BALBOA AVE, SAN DIEGO, CA, 92123

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

Financial Breakdown

Contract Ceiling: $51,301,426

Exercised Options: $51,301,426

Current Obligation: $51,301,426

Actual Outlays: $2,679,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003920D0021

IDV Type: IDC

Timeline