DoD Awards $14.5M for GPNTS Software Support to Raytheon Company
Contract Overview
Contract Amount: $14,542,340 ($14.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2025-05-01
End Date: 2027-09-30
Contract Duration: 882 days
Daily Burn Rate: $16.5K/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
Plain-Language Summary
Department of Defense obligated $14.5 million to RAYTHEON COMPANY for work described as: GPNTS SOFTWARE SUPPORT SERVICES Key points: 1. Significant contract value of $14.5 million for specialized software support. 2. Raytheon Company, a major defense contractor, is the awardee. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under Custom Computer Programming Services (NAICS 541511).
Value Assessment
Rating: good
The contract is a delivery order under a larger award, making direct pricing comparisons difficult. However, the Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement with a negotiated profit, which is common for complex services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the software support services.
Public Impact
Ensures continued operational capability for the Navy's GPNTS software. Supports critical defense systems, contributing to national security. Potential for follow-on work or expanded services based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPFF contract type if not managed closely.
- Dependence on a single contractor for critical software support.
Positive Signals
- Awarded through full and open competition.
- Long-term contract duration provides stability for support services.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across government agencies, with significant benchmarks for similar support services.
Small Business Impact
The awardee, Raytheon Company, is a large business. There is no indication that small businesses were specifically targeted or subcontracted for this particular delivery order.
Oversight & Accountability
As a delivery order under a larger contract, oversight is likely managed by the Department of the Navy. The CPFF structure requires diligent monitoring of costs and performance to ensure accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost overrun potential with CPFF.
- Contractor performance risk.
- Reliance on a single vendor for critical support.
- Potential for scope creep if not managed tightly.
Tags
custom-computer-programming-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 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 $14.5 million.
What is the period of performance?
Start: 2025-05-01. End: 2027-09-30.
What is the benchmark pricing for similar custom computer programming services in the defense sector?
Benchmarking custom computer programming services requires detailed analysis of contract scope, labor categories, and geographic location. For defense contracts, rates can vary significantly based on security clearances and specialized skills. Industry reports and historical government contract data suggest average hourly rates can range from $100 to $300+, depending on complexity and experience required.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for software support?
The primary risk with a CPFF contract is the potential for cost overruns if the contractor's estimated costs are inaccurate or if unforeseen technical challenges arise. While the fixed fee provides profit certainty for the contractor, the government bears the risk of higher-than-expected direct costs. Effective oversight and robust cost tracking are crucial to mitigate this risk.
How does this contract contribute to the overall effectiveness of the Department of the Navy's IT infrastructure?
This contract ensures the continued functionality and maintenance of the GPNTS software, which is likely a critical component of the Navy's operational systems. Reliable software support is essential for maintaining system uptime, addressing bugs, implementing necessary updates, and ensuring the software meets evolving mission requirements, thereby directly contributing to IT infrastructure effectiveness.
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: $31,313,594
Exercised Options: $31,313,594
Current Obligation: $14,542,340
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
Start Date: 2025-05-01
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-09-08
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