NOAA Awards Raytheon $40.2M for NWS IT Security and Operations Support

Contract Overview

Contract Amount: $40,201,136 ($40.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Commerce

Start Date: 2024-02-01

End Date: 2026-08-31

Contract Duration: 942 days

Daily Burn Rate: $42.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF CT IGF OPERATIONS AND MAINTENANCE (O&M) O&M IT SECURITY SUPPORT PRODUCT IMPROVEMENT AND COMMUNICATIONS SERVICES FOR THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATIONS (NOAAS) NATIONAL WEATHER SERVICE (NWS) ADVANCED WEATHER INTERACTIVE

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $40.2 million to RAYTHEON COMPANY for work described as: IGF CT IGF OPERATIONS AND MAINTENANCE (O&M) O&M IT SECURITY SUPPORT PRODUCT IMPROVEMENT AND COMMUNICATIONS SERVICES FOR THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATIONS (NOAAS) NATIONAL WEATHER SERVICE (NWS) ADVANCED WEATHER INTERACTIVE Key points: 1. Contract value of $40.2 million for IT security and operational support. 2. Raytheon Company is the sole awardee. 3. Risk of vendor lock-in due to sole-source nature. 4. IT sector spending focused on critical weather infrastructure.

Value Assessment

Rating: fair

The contract value of $40.2 million for a 2.5-year period appears reasonable for specialized IT security and operational support services. Benchmarking against similar custom computer programming services contracts is difficult without more granular data on service scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded via sole-source, limiting price discovery and competition. While the data indicates a delivery order, the initial award mechanism is critical for understanding competitive pressure.

Taxpayer Impact: Taxpayer funds are being used for essential IT support for the National Weather Service. The lack of competition raises concerns about potential overpayment.

Public Impact

Ensures continued operation and security of critical weather forecasting systems. Supports NOAA's mission to provide weather, water, and climate data. Potential for increased costs due to sole-source award. Impacts the reliability of advanced weather interactive systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Lack of small business participation noted.
Contract duration is substantial (942 days).

Positive Signals

Supports critical national infrastructure (NWS).
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending on IT security and operational maintenance for critical infrastructure like the National Weather Service is common, but the $40.2M value for this duration warrants scrutiny given the sole-source nature.

Small Business Impact

The data indicates that small businesses were not a factor in this award (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this sole-source contract.

Oversight & Accountability

Oversight will be crucial to ensure Raytheon delivers on all contract requirements and that NOAA exercises due diligence in managing this sole-source award. Regular performance reviews and cost analysis are recommended.

Related Government Programs

Custom Computer Programming Services
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Sole-source award
Lack of small business participation
High contract value for the duration
Potential for cost overruns without competition
Reliance on a single vendor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $40.2 million to RAYTHEON COMPANY. IGF CT IGF OPERATIONS AND MAINTENANCE (O&M) O&M IT SECURITY SUPPORT PRODUCT IMPROVEMENT AND COMMUNICATIONS SERVICES FOR THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATIONS (NOAAS) NATIONAL WEATHER SERVICE (NWS) ADVANCED WEATHER INTERACTIVE

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $40.2 million.

What is the period of performance?

Start: 2024-02-01. End: 2026-08-31.

What is the justification for the sole-source award, and how does NOAA ensure fair pricing without competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available alternatives. NOAA must provide a detailed justification, and the Defense Contract Audit Agency (DCAA) or equivalent may review pricing to ensure it's fair and reasonable, even without competitive bids. This often involves analyzing cost elements and historical pricing.

What are the specific risks associated with relying on a single vendor for critical IT security and operations for the National Weather Service?

The primary risks include vendor lock-in, where switching providers becomes prohibitively expensive or complex. There's also a risk of complacency from the vendor, potentially leading to reduced innovation or service quality. Furthermore, a sole-source arrangement can lead to inflated costs over time as competitive pressures are absent, impacting the overall value for taxpayer money.

How does this contract contribute to the overall effectiveness and modernization of the National Weather Service's advanced weather interactive systems?

This contract is essential for maintaining the operational integrity and security of the NWS's advanced weather interactive systems. By ensuring robust IT support and product improvement, it directly contributes to the reliability and effectiveness of weather forecasting and dissemination, which is critical for public safety and economic activities. Modernization efforts would depend on specific task orders within this contract.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 22260 PACIFIC BLVD, DULLES, VA, 20166

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: $40,201,136

Exercised Options: $40,201,136

Current Obligation: $40,201,136

Actual Outlays: $32,494,121

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCEA133W17CQ0082

IDV Type: IDC

Timeline