DoD's $19.25M Raytheon Contract for Risk Management Framework Services Faces Limited Competition

Contract Overview

Contract Amount: $19,253,580 ($19.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2019-09-29

End Date: 2024-08-25

Contract Duration: 1,792 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: RISK MANAGEMENT FRAMEWORK SERVICES

Place of Performance

Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to RAYTHEON COMPANY for work described as: RISK MANAGEMENT FRAMEWORK SERVICES Key points: 1. Significant contract value of $19.25 million awarded to a single large business. 2. Limited competition raises concerns about potential overpricing and reduced innovation. 3. Contract duration extends over five years, indicating a long-term need. 4. Engineering services sector often involves specialized expertise, potentially justifying limited competition.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Without a clear benchmark or competitive pricing, assessing the value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited source award. This lack of competition limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The absence of competitive bidding for a contract of this magnitude could lead to inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the lack of competitive bidding. The long-term nature of the contract could lock the government into a specific vendor. Ensuring effective risk management is crucial for national security, but the procurement method warrants scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost Plus Fixed Fee contract type
Long contract duration

Positive Signals

Addresses critical risk management needs for the Department of Defense.

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for complex government projects. Benchmarks for similar RMF services contracts are often influenced by the level of specialization and security requirements.

Small Business Impact

The contract was awarded to Raytheon Company, a large business. There is no indication of small business participation in this specific award, missing an opportunity to support smaller enterprises.

Oversight & Accountability

Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and deliverables meet requirements. The limited competition necessitates robust monitoring by the Department of the Navy.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns
Limited vendor alternatives
Long-term commitment without demonstrated value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to RAYTHEON COMPANY. RISK MANAGEMENT FRAMEWORK 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 $19.3 million.

What is the period of performance?

Start: 2019-09-29. End: 2024-08-25.

What is the justification for awarding this contract on a limited competition basis?

The justification for limited competition typically stems from unique capabilities, urgent needs, or specific technical requirements that only a particular contractor can meet. Without further details, it's difficult to ascertain the precise reason, but it warrants investigation to ensure it aligns with federal procurement regulations and truly serves the government's best interest.

How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness of this contract?

Cost Plus Fixed Fee contracts allow the contractor to recover costs plus a predetermined fixed fee. While intended to incentivize efficiency, they can lead to cost overruns if the government's oversight is insufficient. The fixed fee component provides some cost certainty, but the variable cost component requires diligent monitoring to prevent unnecessary expenditures.

What are the potential risks associated with a sole-source or limited-source award for critical risk management services?

The primary risks include inflated pricing due to lack of competition, reduced incentive for innovation, and potential vendor lock-in. If the contractor underperforms or faces issues, the government has limited alternatives. This underscores the importance of strong contract management and performance monitoring to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018919RZ013

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752

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: $19,881,103

Exercised Options: $19,881,103

Current Obligation: $19,253,580

Actual Outlays: $1,645,034

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018919DZ030

IDV Type: IDC

Timeline