DoD Awards $425M Engineering Services Contract to Raytheon Company, Raising Competition Concerns
Contract Overview
Contract Amount: $425,416,731 ($425.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-02-01
End Date: 2022-07-31
Contract Duration: 545 days
Daily Burn Rate: $780.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: Other
Official Description: PATRIOT ENGINEERING SERVICES
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $425.4 million to RAYTHEON COMPANY for work described as: PATRIOT ENGINEERING SERVICES Key points: 1. Significant contract value of $425.4 million awarded to Raytheon Company. 2. Lack of competition indicated by 'NOT COMPETED' status. 3. Potential risk associated with sole-source or limited competition awards. 4. Engineering Services sector sees substantial government expenditure.
Value Assessment
Rating: questionable
The contract value of $425.4 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar engineering services contracts. Benchmarking is challenging due to the lack of competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED', indicating a limited competition approach. This method may lead to higher prices and reduced innovation compared to a full and open competition, as market forces are not fully leveraged.
Taxpayer Impact: The lack of competition in this large contract could result in taxpayers paying more than necessary for engineering services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited visibility into the necessity and scope of services provided. Potential for reduced quality or innovation without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- High Contract Value
- Limited Transparency
Positive Signals
- Specific Agency Awarded
- Defined Contract Type
Sector Analysis
This contract falls within the Engineering Services sector, which is critical for various government projects. The $425.4 million award is a significant expenditure, and benchmarks for similar services are essential for evaluating value.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight is crucial for 'NOT COMPETED' contracts to ensure the awarded price is fair and the services are necessary. Accountability mechanisms should be in place to justify the lack of competition.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition raises concerns about fair pricing and value for money.
- High contract value necessitates robust oversight to ensure accountability.
- Absence of small business participation noted.
- Limited transparency regarding the justification for non-competition.
Tags
engineering-services, department-of-defense, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $425.4 million to RAYTHEON COMPANY. PATRIOT 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 $425.4 million.
What is the period of performance?
Start: 2021-02-01. End: 2022-07-31.
What justification was provided for not competing this $425 million contract?
The justification for not competing this $425 million contract is not provided in the data. Typically, agencies must document reasons such as urgent need, sole-source availability of the product or service, or specific statutory authority. Without this documentation, it's impossible to assess the validity of the non-competitive award.
What is the potential cost overrun risk associated with this fixed-price contract?
While the contract is 'FIXED PRICE LEVEL OF EFFORT', the risk of cost overrun is generally low for the government as the contractor bears the risk of cost increases. However, the 'level of effort' aspect means the contractor is paid for the time and resources expended up to a certain point. If the scope or efficiency is poorly defined, the government might still pay for unproductive effort.
How does the lack of competition impact the effectiveness of the engineering services provided?
The lack of competition can negatively impact the effectiveness of engineering services by removing the incentive for the contractor to innovate, improve efficiency, or offer the best possible solutions. Without market pressure, there's a risk of complacency, potentially leading to services that meet minimum requirements but are not optimized for performance or long-term value.
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: 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: $425,416,731
Exercised Options: $425,416,731
Current Obligation: $425,416,731
Actual Outlays: $904,763
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $190,707
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15QKN18D0015
IDV Type: IDC
Timeline
Start Date: 2021-02-01
Current End Date: 2022-07-31
Potential End Date: 2022-07-31 00:00:00
Last Modified: 2025-07-22
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