Raytheon Company awarded $58M NOAA contract for Next Generation Water Prediction Capability

Contract Overview

Contract Amount: $58,050,341 ($58.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Commerce

Start Date: 2023-10-02

End Date: 2026-10-01

Contract Duration: 1,095 days

Daily Burn Rate: $53.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEXT GENERATION WATER PREDICTION CAPABILITY (NGWPC)

Place of Performance

Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451

State: Massachusetts Government Spending

Plain-Language Summary

Department of Commerce obligated $58.1 million to RAYTHEON COMPANY for work described as: NEXT GENERATION WATER PREDICTION CAPABILITY (NGWPC) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days indicates a medium-term project. 3. The use of Time and Materials pricing may present cost control challenges. 4. This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code. 5. The award is a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. 6. The contract value of approximately $58 million is a significant investment in weather prediction technology.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific scope of the 'Next Generation Water Prediction Capability'. However, the Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not managed closely. The number of bids received (3) is moderate, and further analysis would be needed to determine if the pricing is competitive relative to similar system development contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. Three bids were received, which suggests a moderate level of competition for this requirement. While three bidders is better than a sole-source award, a higher number of bids would typically be preferred to ensure the most competitive pricing and innovative solutions.

Taxpayer Impact: The full and open competition provides a degree of assurance that taxpayer funds are being used efficiently by allowing multiple companies to vie for the contract, potentially driving down costs through competitive pricing.

Public Impact

The primary beneficiaries are likely the National Oceanic and Atmospheric Administration (NOAA) and its operational divisions, which will receive enhanced water prediction capabilities. The services delivered will focus on advancing weather and hydrological modeling and forecasting systems. The geographic impact is national, as improved water prediction affects disaster preparedness and resource management across the United States. Workforce implications may include specialized roles in software development, data science, and meteorological research within the contractor's organization and potentially NOAA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not meticulously managed and monitored.
The moderate number of bidders (3) might indicate potential limitations in market competition or specialized requirements.
The specific details of the 'Next Generation Water Prediction Capability' are not fully elaborated, posing a risk of scope creep or unmet expectations.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential bidders.
The contract is for a critical national capability in weather prediction, aligning with NOAA's mission.
The selected contractor, Raytheon Company, is a large and experienced defense and aerospace firm.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on advanced systems and instrumentation for environmental monitoring and prediction. The market for weather forecasting and climate modeling technology is significant, driven by increasing needs for climate resilience, disaster management, and resource planning. Comparable spending benchmarks would involve other large-scale IT and systems development contracts within government agencies focused on scientific research and data analysis.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the nature of the requirement and the prime contractor, it is unlikely that significant subcontracting opportunities for small businesses will be a primary focus, though some may arise depending on Raytheon's internal sourcing strategies.

Oversight & Accountability

Oversight will primarily be conducted by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. The contract's Time and Materials nature necessitates close monitoring of labor hours and material costs to ensure adherence to the contract ceiling and prevent cost overruns. Transparency will depend on NOAA's reporting practices and any public disclosures related to the program's progress and outcomes.

Related Government Programs

NOAA Weather and Climate Research Programs
National Weather Service Modernization Efforts
Advanced Hydrological Modeling Systems
Environmental Satellite Data Processing Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Moderate competition level may impact price competitiveness.
Integration complexity with existing NOAA systems.
Reliance on contractor for specialized technical expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $58.1 million to RAYTHEON COMPANY. NEXT GENERATION WATER PREDICTION CAPABILITY (NGWPC)

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 $58.1 million.

What is the period of performance?

Start: 2023-10-02. End: 2026-10-01.

What is Raytheon Company's track record with NOAA and similar government agencies for complex system development contracts?

Raytheon Company, now part of RTX, has a long history of performing complex system development and integration for various government agencies, including NOAA and the Department of Defense. Their experience spans areas like sensor technology, data processing, and command and control systems. While specific performance metrics for past NOAA contracts are not detailed here, their extensive portfolio suggests a capacity to handle large-scale, technologically advanced projects. However, as with any large contractor, past performance reviews and contract close-outs would provide a more granular understanding of their reliability, cost control, and adherence to schedule on similar endeavors.

How does the $58 million contract value compare to other NOAA investments in weather prediction technology?

The $58 million contract value represents a substantial investment, but its relative size within NOAA's overall budget for weather and climate initiatives requires broader context. NOAA's annual budget often runs into billions of dollars, with significant allocations for satellite programs, research, and operational systems. This contract for the 'Next Generation Water Prediction Capability' likely represents a key component of NOAA's modernization efforts in hydrological forecasting. To assess its comparative value, one would need to examine historical spending on similar system development projects and the projected long-term benefits and operational improvements this new capability is expected to deliver.

What are the primary risks associated with a Time and Materials (T&M) contract for developing advanced prediction capabilities?

The primary risk with a Time and Materials (T&M) contract, especially for developing advanced capabilities, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for actual labor hours and material costs incurred, plus a fixed fee or profit. If project scope is not tightly controlled, or if development proves more complex than initially estimated, the total cost can escalate significantly beyond initial projections. This necessitates robust oversight from the government to monitor labor effort, ensure efficiency, and validate the necessity of all expenditures. There's also a risk that the contractor may not be as incentivized to control costs as they would be under a fixed-price arrangement.

What is the expected impact of the 'Next Generation Water Prediction Capability' on NOAA's operational effectiveness?

The 'Next Generation Water Prediction Capability' (NGWPC) is expected to significantly enhance NOAA's ability to forecast water-related events, such as floods, droughts, and water availability. By leveraging advanced modeling, data assimilation, and potentially AI/ML techniques, the NGWPC aims to provide more accurate, timely, and localized predictions. This improved forecasting capability directly supports NOAA's mission to understand and predict changes in climate, weather, ocean, and coasts. The ultimate impact is enhanced public safety through better disaster preparedness, more efficient water resource management for agriculture and industry, and improved environmental stewardship.

How has NOAA's spending on weather prediction systems evolved over the past five years?

Analyzing NOAA's spending evolution on weather prediction systems over the past five years would reveal a trend towards modernization and the integration of advanced technologies. This includes investments in upgrading supercomputing capabilities, enhancing satellite observation systems (like GOES-R series), developing sophisticated numerical weather prediction models, and exploring the use of artificial intelligence and machine learning for improved forecasting. Contracts for software development, data analytics, and hardware infrastructure form a significant portion of this spending. The $58 million award to Raytheon for NGWPC aligns with this strategic direction of enhancing predictive capabilities through technological advancement.

What are the potential challenges in integrating the new prediction capability with existing NOAA infrastructure?

Integrating the 'Next Generation Water Prediction Capability' (NGWPC) with NOAA's existing infrastructure presents several potential challenges. These include ensuring compatibility between new software and data formats with legacy systems, managing the transition of data streams without disruption to ongoing operations, and training NOAA personnel to effectively utilize the new capabilities. Interoperability issues, cybersecurity concerns, and the need for robust data governance frameworks are also critical considerations. Successful integration will require careful planning, phased implementation, and close collaboration between the contractor and NOAA's IT and operational teams to minimize risks and maximize the benefits of the new system.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

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: 1305M323QNWWY0029

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1100 WILSON BLVD, ARLINGTON, VA, 22209

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: $80,541,270

Exercised Options: $59,733,324

Current Obligation: $58,050,341

Actual Outlays: $36,552,634

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $2,591,554

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F204GA

IDV Type: FSS

Timeline