DoD Awards $246M Engineering Services Contract to Raytheon Company
Contract Overview
Contract Amount: $246,075,720 ($246.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2017-02-01
End Date: 2019-11-30
Contract Duration: 1,032 days
Daily Burn Rate: $238.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: Defense
Official Description: IGF::OT::IGF THIS MODIFICATION IS TO EXERCISE CY 17 ENGINEERING SERVICES
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $246.1 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF THIS MODIFICATION IS TO EXERCISE CY 17 ENGINEERING SERVICES Key points: 1. Significant contract value of $246 million for engineering services. 2. Awarded to a single, large defense contractor, Raytheon Company. 3. Contract duration spans over 1000 days, indicating a long-term need. 4. Engineering services sector is critical for defense operations.
Value Assessment
Rating: fair
The contract value of $246 million is substantial. Without specific benchmarks for similar engineering services contracts of this scope and duration, a precise value assessment is difficult. However, the fixed-price level-of-effort structure suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process. The rationale for sole-sourcing is not provided.
Taxpayer Impact: The lack of competition for a $246 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract could lock in potentially suboptimal pricing. Dependence on a single contractor for critical engineering services poses a risk. The specific engineering services provided are vital for national defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency in the justification for sole-sourcing.
- Significant contract value without clear competitive benchmarks.
Positive Signals
- Contract addresses a critical need for engineering services.
- Fixed-price structure aims to provide some cost control.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for the Department of Defense's operational capabilities and technological advancements. Spending in this sector can vary widely based on specific project needs and technological complexity.
Small Business Impact
The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract was awarded by the Department of the Army. Oversight mechanisms would typically involve contract performance monitoring and financial reviews to ensure adherence to terms and conditions, though specific oversight details are not provided.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition raises concerns about price fairness.
- Potential for cost overruns due to sole-source award.
- Limited transparency regarding the justification for sole-sourcing.
- Long contract duration without clear competitive re-evaluation.
Tags
engineering-services, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $246.1 million to RAYTHEON COMPANY. IGF::OT::IGF THIS MODIFICATION IS TO EXERCISE CY 17 ENGINEERING 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 Army).
What is the total obligated amount?
The obligated amount is $246.1 million.
What is the period of performance?
Start: 2017-02-01. End: 2019-11-30.
What was the specific justification for awarding this contract on a sole-source basis, and what analysis was performed to ensure fair and reasonable pricing?
The provided data indicates a sole-source award, meaning it was not competed. Typically, agencies must justify sole-source awards based on specific criteria, such as unique capabilities or urgent needs. A thorough review of the justification and any associated price analyses would be necessary to determine if fair and reasonable pricing was achieved and if taxpayer funds were used efficiently.
What are the key performance indicators (KPIs) for this engineering services contract, and how is Raytheon Company's performance being measured against them?
The data does not specify the key performance indicators (KPIs) for this contract. Effective oversight would require clearly defined KPIs related to the engineering services delivered, such as technical accuracy, timeliness, and adherence to specifications. Regular performance reviews and reporting against these KPIs are essential to ensure the contractor is meeting expectations and delivering value.
What is the potential long-term impact on the Department of Defense's engineering capabilities if this sole-source relationship continues or is not adequately benchmarked?
A prolonged sole-source relationship without competitive benchmarking can stifle innovation and lead to complacency in cost management. The DoD might become overly reliant on Raytheon, potentially missing out on advancements or cost efficiencies offered by other providers. This could impact the long-term strategic advantage and cost-effectiveness of the department's engineering support.
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
Offers Received: 1
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $246,075,720
Exercised Options: $246,075,720
Current Obligation: $246,075,720
Subaward Activity
Number of Subawards: 644
Total Subaward Amount: $81,521,454
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-02-01
Current End Date: 2019-11-30
Potential End Date: 2019-11-30 00:00:00
Last Modified: 2025-08-04
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