DoD's Army awards Raytheon $150M for Custom Computer Programming Services via Full and Open Competition

Contract Overview

Contract Amount: $150,081,960 ($150.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2007-11-27

End Date: 2008-04-25

Contract Duration: 150 days

Daily Burn Rate: $1.0M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: IT

Official Description: SOTM URGENCY

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46808

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $150.1 million to RAYTHEON COMPANY for work described as: SOTM URGENCY Key points: 1. Significant contract value of $150M awarded to a major defense contractor. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. The contract is for custom computer programming services, a critical IT function.

Value Assessment

Rating: good

The contract value of $150M is substantial for custom computer programming. Without specific per-unit data or detailed scope, a direct pricing comparison is difficult, but the fixed-price nature suggests an attempt to establish a clear ceiling.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition is a positive sign for taxpayer value, as it aims to secure the best possible price through a broad bidding process.

Public Impact

Defense spending on IT services impacts national security capabilities. Raytheon's role as a major contractor highlights industry concentration. The fixed-price structure aims to protect taxpayer funds from cost overruns. Competition in IT services can drive innovation and efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 150 days is relatively short for a $150M award, potentially indicating a focused scope or a phased approach.
Lack of specific performance metrics makes it hard to assess ultimate value realization.

Positive Signals

Awarded via full and open competition.
Fixed-price contract type.
Awarded to a well-established defense contractor.

Sector Analysis

The Department of Defense is a major consumer of IT services, with significant spending allocated to custom software development and programming. Benchmarks for such services vary widely based on complexity and scope, but $150M represents a substantial investment.

Small Business Impact

The data indicates this contract was awarded to Raytheon Company, a large business. There is no explicit information suggesting small business participation in this specific award, which is common for large prime contracts.

Oversight & Accountability

The award falls under the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for contract management. The fixed-price nature provides some cost control, but ongoing monitoring of performance and deliverables is crucial.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Large contract value awarded to a single large business.
Contract duration is relatively short for the award amount.
Specific performance metrics and deliverables are not detailed in the summary data.
Potential for scope creep in custom programming contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $150.1 million to RAYTHEON COMPANY. SOTM URGENCY

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 Army).

What is the total obligated amount?

The obligated amount is $150.1 million.

What is the period of performance?

Start: 2007-11-27. End: 2008-04-25.

What specific custom computer programming services were procured, and how do they align with the Army's strategic IT objectives?

The provided data specifies 'Custom Computer Programming Services' under NAICS code 541511. However, the exact nature of these services (e.g., software development, system integration, cybersecurity programming) and their alignment with the Army's broader IT strategy are not detailed. Further analysis would require examining the contract's statement of work to understand its specific technical requirements and intended outcomes.

Given the $150M award value and fixed-price structure, what are the primary risks associated with potential scope creep or unforeseen technical challenges?

The primary risks with a $150M fixed-price contract for custom programming include scope creep, where requirements expand beyond the initial agreement, and unforeseen technical challenges that increase development costs. While the fixed price caps the government's financial exposure, the contractor may face reduced profit margins or pressure to cut corners if costs escalate significantly. Clear contract definition and robust change management are essential.

How effectively did the 'full and open competition' process ensure competitive pricing and identify the most capable vendor for these custom programming services?

Full and open competition is designed to maximize vendor participation and drive competitive pricing. The effectiveness in this case depends on the number and quality of bids received, the clarity of the solicitation, and the evaluation criteria used. Without access to the bidding data, it's presumed that this process yielded a fair market price and selected a capable provider, but a deeper dive into the procurement record would confirm the extent of competition and the rationale for award.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W15P7T08RK411

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12220 SUNRISE VALLEY DR, RESTON, VA, 20191

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $150,081,960

Exercised Options: $150,081,960

Current Obligation: $150,081,960

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4097G

IDV Type: FSS

Timeline