Raytheon Company awarded $44.8M for contingency training, with 3 bids received under full and open competition

Contract Overview

Contract Amount: $44,797,692 ($44.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2019-07-10

End Date: 2023-10-20

Contract Duration: 1,563 days

Daily Burn Rate: $28.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONDUCT TRAINING AND TRAINING ASSISTANCE FOR MILITARY AND CIVILIAN RELATED SUBJECTS IN CONTINGENCY AND NON-CONTINGENCY OPERATIONS.

Plain-Language Summary

Department of Defense obligated $44.8 million to RAYTHEON COMPANY for work described as: CONDUCT TRAINING AND TRAINING ASSISTANCE FOR MILITARY AND CIVILIAN RELATED SUBJECTS IN CONTINGENCY AND NON-CONTINGENCY OPERATIONS. Key points: 1. Value for money appears reasonable given the scope of specialized training services. 2. Competition dynamics indicate a healthy bidding environment for this type of contract. 3. Risk indicators are moderate, primarily related to performance execution and timely delivery. 4. Performance context involves critical support for military and civilian readiness. 5. Sector positioning is within professional services supporting defense readiness.

Value Assessment

Rating: good

The contract value of $44.8 million over approximately 4.3 years for specialized training services appears to be within a reasonable range when benchmarked against similar defense training contracts. The firm-fixed-price structure suggests that the government has a clear understanding of costs, and the contractor bears the risk of cost overruns. Without specific per-unit cost data, a direct price assessment is limited, but the overall value seems aligned with the complexity and criticality of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. This level of competition suggests that multiple capable vendors were able to participate, which typically leads to more competitive pricing and a wider selection of qualified contractors. The presence of three bidders indicates a healthy market for these specialized training services.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down the final contract price through competitive bidding, ensuring a better value for the allocated funds.

Public Impact

Military and civilian personnel benefit from enhanced readiness and preparedness for contingency operations. Services delivered include crucial training and training assistance in specialized subject areas. Geographic impact is broad, supporting operations across various contingency and non-contingency environments. Workforce implications include the need for highly skilled trainers and support staff, potentially creating employment opportunities in specialized fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly during the contract period.
Dependence on contractor expertise may lead to challenges if key personnel depart.
Ensuring consistent quality and relevance of training across diverse operational scenarios.

Positive Signals

Contractor's established presence and experience in defense-related services.
Firm-fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, indicating a competitive market.

Sector Analysis

The defense training sector is a significant component of the broader professional services market, focused on equipping military and civilian personnel with the skills necessary for various operational environments. This contract fits within the segment of specialized technical and professional services that support national security objectives. Comparable spending in this sector often involves large, multi-year contracts for simulation, curriculum development, and operational readiness training.

Small Business Impact

There is no indication that this contract included specific small business set-asides. Given the specialized nature of the training and the prime contractor, it is possible that small businesses may be involved as subcontractors. Further analysis would be needed to determine the extent of small business participation and subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to meet defined performance standards. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed cost breakdowns may not always be publicly accessible.

Related Government Programs

Military Readiness Training Programs
Contingency Operations Support
Defense Civilian Training
Professional and Technical Services Contracts

Risk Flags

Performance Risk
Personnel Expertise Risk
Scope Management Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.8 million to RAYTHEON COMPANY. CONDUCT TRAINING AND TRAINING ASSISTANCE FOR MILITARY AND CIVILIAN RELATED SUBJECTS IN CONTINGENCY AND NON-CONTINGENCY OPERATIONS.

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 $44.8 million.

What is the period of performance?

Start: 2019-07-10. End: 2023-10-20.

What is Raytheon Company's track record with similar defense training contracts?

Raytheon Company, now part of RTX, has a long and extensive history of providing complex services and systems to the Department of Defense and other government agencies. Their track record includes significant work in areas such as command and control, intelligence, surveillance, reconnaissance, and training solutions. For defense training specifically, Raytheon has been involved in developing and delivering simulation systems, virtual training environments, and curriculum for various military branches. Their experience often encompasses large-scale, multi-year contracts requiring specialized expertise, suggesting a strong capability to handle the requirements of this specific training and training assistance contract.

How does the $44.8 million contract value compare to similar specialized training contracts awarded by the DoD?

The $44.8 million contract value for approximately 4.3 years of specialized training and training assistance appears to be within a moderate range for large-scale defense support contracts. Contracts for advanced simulation, complex operational training, or specialized technical instruction can range from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and number of personnel involved. Given that this contract covers both military and civilian personnel for contingency and non-contingency operations, and was awarded under full and open competition with three bids, the value suggests a competitive pricing environment for the services rendered. Benchmarking against specific, highly comparable contracts would require access to detailed service descriptions and pricing structures.

What are the primary risks associated with this type of training contract?

The primary risks associated with this type of training contract include performance execution, ensuring the quality and relevance of the training provided, and potential cost overruns if the contract is not managed tightly. For specialized training, there's a risk that the curriculum or delivery methods may not keep pace with evolving operational requirements or technological advancements, leading to outdated training. Contractor personnel expertise is also a risk; the departure of key instructors or subject matter experts could impact service delivery. Furthermore, managing a contract across diverse contingency and non-contingency operations requires robust logistical and administrative oversight to ensure all requirements are met effectively and on time.

How effective is this contract in enhancing military and civilian readiness for contingency operations?

The effectiveness of this contract in enhancing military and civilian readiness is directly tied to the quality of the training and training assistance provided by Raytheon Company. If the training accurately simulates real-world contingency scenarios, equips personnel with relevant skills, and is delivered by competent instructors, it can significantly improve preparedness. The contract's focus on both military and civilian subjects suggests a comprehensive approach to readiness. However, measuring effectiveness requires specific performance metrics, such as post-training assessments, observed improvements in operational performance, and feedback from trainees and operational commanders. Without these specific data points, the assessment remains qualitative.

What are the historical spending patterns for similar training services within the Department of the Army?

Historical spending patterns for similar training services within the Department of the Army are substantial, reflecting the continuous need to maintain high levels of readiness across various operational domains. The Army consistently allocates significant portions of its budget to training and simulation, often through multi-year contracts with large defense contractors. Spending in this category can fluctuate based on global security postures, new equipment fielding, and evolving doctrine. Contracts for specialized training, particularly those supporting contingency operations, are a recurring requirement. Analyzing past budgets and contract awards for 'training services,' 'simulation and training,' and 'readiness support' would reveal trends in annual expenditures and the types of services most frequently procured.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W900KK17R0026

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 12792 RESEARCH PKWY, ORLANDO, FL, 32826

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: $85,046,500

Exercised Options: $44,797,692

Current Obligation: $44,797,692

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK18D0027

IDV Type: IDC

Timeline