Raytheon Company awarded $12.16M for technical publications, serving the Department of the Army

Contract Overview

Contract Amount: $12,157,506 ($12.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2008-03-31

End Date: 2012-01-20

Contract Duration: 1,390 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TECHNICAL PUBLICATIONS

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to RAYTHEON COMPANY for work described as: TECHNICAL PUBLICATIONS Key points: 1. Contract value of $12.16M for technical publications indicates a significant investment in documentation support. 2. The contract was awarded via full and open competition, suggesting a competitive bidding process. 3. A Cost Plus Fixed Fee (CPFF) contract type can pose risks if cost overruns are not managed effectively. 4. The duration of 1390 days (approximately 3.8 years) suggests a long-term need for these services. 5. The award to Raytheon Company, a major defense contractor, places this within a context of established industry players. 6. The North American Industry Classification System (NAICS) code 336413 points to a specialized manufacturing support sector.

Value Assessment

Rating: fair

Benchmarking the value of technical publications can be challenging without specific service level agreements or comparable contract data. However, a $12.16 million award over nearly four years suggests a substantial requirement. The CPFF structure warrants scrutiny to ensure costs remain aligned with the fixed fee and that the government receives good value. Without more granular data on the scope and complexity of the publications, a definitive value assessment is difficult, but the amount suggests a critical need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust price discovery process and potentially better pricing for the government. The number of bidders is not specified, but the open competition suggests a healthy market for technical publication services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are likely military personnel and support staff who rely on accurate and up-to-date technical documentation for equipment operation and maintenance. The services delivered include the creation, updating, and dissemination of technical publications, crucial for operational readiness. The geographic impact is likely concentrated where Army equipment is deployed and maintained, potentially worldwide. Workforce implications may include the need for skilled technical writers, editors, and illustrators, both within the contractor's organization and potentially supporting government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
Lack of specific details on the scope of 'technical publications' makes it difficult to assess the true value for money.
The duration of the contract (1390 days) may indicate a long-term commitment that could be subject to changing technological needs.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially fair pricing.
The contract is with Raytheon Company, a large and experienced defense contractor with a track record in complex projects.
The substantial award amount suggests a critical need for these technical publications, implying importance to Army operations.

Sector Analysis

The technical publications sector is a critical support industry within the broader aerospace and defense market. Companies in this space provide essential documentation for complex systems, ensuring safe and effective operation and maintenance. Spending in this area is often tied to the procurement and sustainment of major defense platforms. Comparable spending benchmarks would typically be found within the sustainment and logistics budgets of military branches.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contract was awarded to a large business, and opportunities for small businesses would likely be through subcontracting if Raytheon chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency would be enhanced through regular reporting requirements mandated by the contract. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Technical Information Center (DTIC)
Army Logistics Modernization Program
Aerospace Technical Documentation Services
Military Manuals and Handbooks

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Scope definition for technical publications can be complex and prone to change.
Dependence on timely technical data from other sources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to RAYTHEON COMPANY. TECHNICAL PUBLICATIONS

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 $12.2 million.

What is the period of performance?

Start: 2008-03-31. End: 2012-01-20.

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

Raytheon Company, now part of RTX, has a long history of providing complex technical solutions and support services to the Department of Defense. This includes extensive experience in developing and managing technical data packages, manuals, and other publications for various platforms, including aircraft, missiles, and command and control systems. Their track record typically involves large-scale, long-term contracts requiring sophisticated content management systems and adherence to stringent military standards. While specific details on past technical publication contracts require deeper database searches, their overall performance in defense contracting suggests a capacity to handle significant documentation requirements. Past performance reviews and contract awards databases would provide more granular insights into their specific successes and challenges in this niche.

How does the $12.16 million value compare to similar technical publication contracts for aircraft parts and auxiliary equipment?

Comparing the $12.16 million value requires context on the scope and duration. For a contract spanning approximately 3.8 years (1390 days), this award suggests a substantial volume and complexity of technical publications. Similar contracts for major defense platforms or complex systems can range from millions to tens of millions of dollars annually, depending on the number of systems supported, the required update frequency, and the level of detail. Contracts focused solely on parts documentation might be smaller, while those encompassing entire system manuals and training materials would be larger. Without knowing the exact deliverables (e.g., number of manuals, update cycles, digital vs. print), it's difficult to provide a precise benchmark, but $12.16M over nearly four years for specialized aircraft parts documentation is a significant investment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for technical publications?

The primary risk with a CPFF contract for technical publications lies in cost control. While the contractor is reimbursed for allowable costs, they receive a predetermined fixed fee. If costs escalate significantly beyond initial projections due to unforeseen complexities, scope creep, or inefficiencies, the contractor may face reduced profit margins. Conversely, the government bears the risk of paying higher-than-expected costs if not managed diligently. For technical publications, risks include underestimating the effort required for complex documentation, changes in technical specifications requiring extensive revisions, or delays in receiving necessary technical data from the government or manufacturers. Effective oversight, clear scope definition, and robust cost tracking are crucial to mitigate these risks and ensure value.

How effective are technical publications in ensuring the operational readiness and safety of Army aircraft parts and equipment?

Technical publications are absolutely critical for ensuring the operational readiness and safety of Army aircraft parts and equipment. They provide the essential instructions for maintenance, repair, troubleshooting, and safe operation. Accurate, up-to-date, and easily accessible technical manuals enable maintenance personnel to perform their duties correctly, reducing the risk of errors that could lead to equipment failure or safety incidents. For specialized parts and auxiliary equipment, detailed documentation ensures that technicians understand specific installation, calibration, and servicing requirements. Inadequate or outdated publications can lead to prolonged downtime, increased maintenance costs, and, most importantly, compromise the safety of flight operations and personnel.

What is the historical spending trend for technical publications within the Department of the Army for aircraft components?

Historical spending trends for technical publications within the Department of the Army for aircraft components are generally tied to major acquisition programs and sustainment efforts. As the Army procures new aircraft or upgrades existing fleets, there is a corresponding need for updated technical documentation. Spending typically increases during the initial fielding phases and then continues through the lifecycle for maintenance and upgrades. Factors influencing trends include the complexity of the aircraft, the number of platforms in service, and the adoption of digital documentation standards. While specific historical data for this NAICS code (336413) and agency requires detailed analysis of federal procurement databases (like FPDS-NG or USASpending.gov), overall defense spending on technical data and support services has remained substantial, reflecting the high cost of maintaining complex military assets.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W31P4Q08R0176

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 350 LOWELL ST, ANDOVER, MA, 01810

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,059,353

Exercised Options: $12,212,484

Current Obligation: $12,157,506

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline