DoD Awards $2.1M CPFF Task Order to Raytheon for Engineering Services

Contract Overview

Contract Amount: $2,107,007 ($2.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2026-01-07

End Date: 2027-01-07

Contract Duration: 365 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS TASK ORDER IS FOR CLINS 2601, 2602 & 2603 BASE YEAR OF THE 5-YEAR COST-PLUS FIXED-FEE (CPFF) SUBSUMABLE CONTRACT (NO FEE ON TRAVEL) WITH A BASE PERIOD OF PERFORMANCE OF TWELVE MONTHS BEGINNING IN FY26 AND FOUR 12-MONTH OPTION PERIODS IN FY27-30.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $2.1 million to RAYTHEON COMPANY for work described as: THIS TASK ORDER IS FOR CLINS 2601, 2602 & 2603 BASE YEAR OF THE 5-YEAR COST-PLUS FIXED-FEE (CPFF) SUBSUMABLE CONTRACT (NO FEE ON TRAVEL) WITH A BASE PERIOD OF PERFORMANCE OF TWELVE MONTHS BEGINNING IN FY26 AND FOUR 12-MONTH OPTION PERIODS IN FY27-30. Key points: 1. Contract awarded to Raytheon Company for engineering services. 2. Task order is for the base year of a 5-year CPFF contract. 3. Performance period begins in FY26 with four 12-month option periods. 4. No fee is applied to travel expenses. 5. This is a delivery order under an existing subsumable contract.

Value Assessment

Rating: fair

The contract type is Cost-Plus Fixed-Fee (CPFF), which can lead to cost overruns if not managed carefully. The fee structure on travel is a positive, but the overall CPFF nature warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was not competed, indicating a sole-source award. Lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for this task order may result in a higher cost to taxpayers than if it had been competitively bid.

Public Impact

Taxpayers may be paying more due to the lack of competition. The contract is for engineering services, a critical area for defense. The 5-year duration with option periods suggests a long-term need. The awardee, Raytheon Company, is a major defense contractor. The contract is managed by the Defense Logistics Agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
CPFF contract type
Potential for cost overruns

Positive Signals

No fee on travel
Existing subsumable contract

Sector Analysis

This award falls under Engineering Services (NAICS 541330), a sector crucial for defense operations. Spending benchmarks for this category vary widely based on project scope and complexity.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this task order. As a sole-source award to a large prime contractor, small business participation is unlikely to be a direct focus.

Oversight & Accountability

The award is a delivery order under an existing contract, suggesting some level of prior oversight. However, the sole-source nature of this specific task order warrants close monitoring to ensure fair pricing and effective service delivery.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Lack of competition
Cost-Plus Fixed-Fee contract type
Potential for cost overruns
No small business set-aside identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.1 million to RAYTHEON COMPANY. THIS TASK ORDER IS FOR CLINS 2601, 2602 & 2603 BASE YEAR OF THE 5-YEAR COST-PLUS FIXED-FEE (CPFF) SUBSUMABLE CONTRACT (NO FEE ON TRAVEL) WITH A BASE PERIOD OF PERFORMANCE OF TWELVE MONTHS BEGINNING IN FY26 AND FOUR 12-MONTH OPTION PERIODS IN FY27-30.

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2026-01-07. End: 2027-01-07.

What specific engineering services are being procured under this task order, and how do they align with the agency's strategic objectives?

The provided data does not detail the specific engineering services. Understanding the scope is crucial to assess value. Alignment with strategic objectives would require further information on the Defense Logistics Agency's current priorities and the nature of the engineering support required for their operations.

Given the sole-source nature, what steps are being taken to mitigate the risk of inflated pricing and ensure cost-effectiveness?

Without competition, robust cost realism analyses and detailed negotiation strategies are essential. The agency should leverage historical cost data, industry benchmarks, and potentially independent cost estimates to validate Raytheon's proposed costs. Continuous monitoring of performance and expenditures throughout the contract lifecycle is also critical.

How will the effectiveness of the engineering services provided under this task order be measured and evaluated?

Effectiveness should be measured against clearly defined performance metrics and deliverables outlined in the task order. Key Performance Indicators (KPIs) related to service quality, timeliness, and impact on agency operations should be established. Regular performance reviews and feedback mechanisms will be necessary to ensure the services meet the intended objectives.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 1151 E HERMANS RD, TUCSON, AZ, 85756

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: $2,107,007

Exercised Options: $2,107,007

Current Obligation: $2,107,007

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRRA226D0001

IDV Type: IDC

Timeline