Raytheon's $68.9M NextGen Weather Processor contract aims to enhance aviation safety with advanced weather data

Contract Overview

Contract Amount: $68,904,216 ($68.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Transportation

Start Date: 2018-04-16

End Date: 2021-06-25

Contract Duration: 1,166 days

Daily Burn Rate: $59.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: FUNDING FOR NWP (AJM-333) PRIME CONTRACT (RAYTHEON DTFAWA-15-D-00004) (YEAR 3 INCREMENTAL/YEAR4 INCREMENTAL). THE FAA HAS IDENTIFIED A NEED FOR MORE ACCURATE, TIMELY, AND IMPROVED WEATHER INFORMATION. TO ADDRESS THIS NEED, THE FAA AND NEXTGEN CREATED THE NEXTGEN WEATHER PROCESSOR (NWP) PROGRAM TO ESTABLISH A COMMON WEATHER PROCESSING PLATFORM THAT FUNCTIONALLY REPLACES THE LEGACY FAA WEATHER PROCESSOR SYSTEMS AND HOSTS NEW CAPABILITIES. THE NWP SOLUTION WILL ALSO ACCESS THE LATEST FAA AND NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION (NOAA) WEATHER INFORMATION AND USE SOPHISTICATED ALGORITHMS TO CREATE HIGHLY ACCURATE, AVIATION-SPECIFIC, WEATHER PRODUCTS. THE COMMON SUPPORT SERVICE-WEATHER (CSS-WX) SYSTEM WILL PROVIDE THIS INFORMATION TO LEGACY AND NEXTGEN USER SYSTEMS INCLUDING DSTS VIA THE SYSTEM WIDE INFORMATION MANAGEMENT (SWIM). THE NEW WEATHER DISPLAY SYSTEM, THE AVIATION WEATHER DISPLAY (AWD), WILL REPLACE LEGACY WEATHER DISPLAYS AND PROVIDE ENHANCED DISPLAY CAPABILITIES.

Place of Performance

Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $68.9 million to RAYTHEON COMPANY for work described as: FUNDING FOR NWP (AJM-333) PRIME CONTRACT (RAYTHEON DTFAWA-15-D-00004) (YEAR 3 INCREMENTAL/YEAR4 INCREMENTAL). THE FAA HAS IDENTIFIED A NEED FOR MORE ACCURATE, TIMELY, AND IMPROVED WEATHER INFORMATION. TO ADDRESS THIS NEED, THE FAA AND NEXTGEN CREATED THE NEXTGEN WEATHER PROCESSO… Key points: 1. The contract focuses on replacing legacy weather systems with a common processing platform for improved accuracy and timeliness. 2. It leverages data from FAA and NOAA, employing sophisticated algorithms for aviation-specific weather products. 3. The NextGen Weather Processor (NWP) is a key component of the FAA's broader NextGen air traffic modernization effort. 4. The contract's value suggests a significant investment in critical aviation infrastructure and safety. 5. Performance is tied to the successful integration and delivery of advanced weather information to various user systems. 6. The use of a Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring of costs against the fixed fee.

Value Assessment

Rating: good

The contract value of $68.9 million for the NextGen Weather Processor (NWP) program appears reasonable given its critical role in modernizing aviation weather systems. While direct comparisons are difficult without specific program details, the NWP aims to replace multiple legacy systems, suggesting potential long-term cost savings through consolidation and improved efficiency. The CPFF contract type, while allowing for flexibility, necessitates robust oversight to ensure costs remain within projected bounds and that the fixed fee appropriately reflects the contractor's risk and effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovative solutions for the government. This approach aligns with best practices for acquiring complex IT and system integration services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing competitive pricing and high-quality services, maximizing the value of federal investment in critical infrastructure like the NextGen Weather Processor.

Public Impact

Aviation safety is the primary beneficiary, with improved weather data leading to more informed flight operations and reduced weather-related incidents. Air traffic control systems and pilots will receive more accurate and timely weather information, enhancing operational efficiency. The program supports the broader NextGen air traffic management modernization, aiming to improve the capacity and efficiency of the National Airspace System. The development and implementation of the NWP will likely involve skilled IT professionals and aerospace engineers, potentially creating or sustaining jobs in these sectors. The geographic impact is nationwide, as the NWP is intended to serve the entire U.S. National Airspace System.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee.
The complexity of integrating new weather processing capabilities with legacy systems presents technical risks.
Dependence on external data sources (FAA and NOAA) introduces potential risks related to data quality and availability.
The long-term sustainment and upgrade costs of the NWP system need to be considered beyond the initial development and deployment.

Positive Signals

The contract addresses a critical need for improved aviation weather information, directly enhancing safety and efficiency.
Leveraging advanced algorithms and integrating data from multiple sources (FAA, NOAA) suggests a technologically sophisticated approach.
The program is a key component of the FAA's NextGen initiative, indicating strategic alignment with national aviation goals.
Full and open competition suggests a robust procurement process aimed at achieving best value.
The use of a delivery order under a prime contract allows for phased implementation and flexibility.

Sector Analysis

The NextGen Weather Processor (NWP) falls within the broader Information Technology and Aerospace sectors, specifically focusing on advanced data processing and aviation systems. The market for aviation technology and weather forecasting systems is highly specialized, with a few key players like Raytheon possessing the expertise to handle such complex government contracts. This contract represents a significant investment in modernizing critical infrastructure, aligning with government efforts to enhance safety and efficiency in air transportation. Comparable spending benchmarks would typically involve large-scale IT system modernization projects within defense or civilian agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this prime contract. While the contract itself may not have direct small business set-aside clauses, large prime contractors like Raytheon are often required to have subcontracting plans that include goals for engaging small businesses. The impact on the small business ecosystem would depend on Raytheon's specific subcontracting efforts and whether opportunities exist for specialized small businesses in areas like software development, data analysis, or system integration.

Oversight & Accountability

Oversight for this contract is likely managed by the Federal Aviation Administration (FAA), a division of the Department of Transportation. The FAA would employ program managers, contracting officers, and technical representatives to monitor performance, costs, and adherence to contract terms. Given the nature of the project, it may also be subject to reviews by the Department of Transportation's Office of Inspector General (OIG) to ensure accountability and prevent fraud, waste, and abuse. Transparency would be facilitated through contract reporting mechanisms and public contract databases.

Related Government Programs

NextGen Air Traffic Management
FAA Weather Systems
NOAA Weather Data Services
Aviation Safety Programs
IT System Modernization Contracts

Risk Flags

Cost Plus Fixed Fee Contract Type
System Integration Complexity
Data Source Reliability
Cybersecurity Vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $68.9 million to RAYTHEON COMPANY. FUNDING FOR NWP (AJM-333) PRIME CONTRACT (RAYTHEON DTFAWA-15-D-00004) (YEAR 3 INCREMENTAL/YEAR4 INCREMENTAL). THE FAA HAS IDENTIFIED A NEED FOR MORE ACCURATE, TIMELY, AND IMPROVED WEATHER INFORMATION. TO ADDRESS THIS NEED, THE FAA AND NEXTGEN CREATED THE NEXTGEN WEATHER PROCESSOR (NWP) PROGRAM TO ESTABLISH A COMMON WEATHER PROCESSING PLATFORM THAT FUNCTIONALLY REPLACES THE LEGACY FAA WEATHER PROCESSOR SYSTEMS AND HOSTS NEW CAPABILITIES. THE NWP SOLUTION WILL ALSO ACCESS THE LATEST FAA AND NATIO

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $68.9 million.

What is the period of performance?

Start: 2018-04-16. End: 2021-06-25.

What is the historical spending trend for the NextGen Weather Processor (NWP) program and its predecessor systems?

The provided data focuses on a specific prime contract (DTFAWA-15-D-00004) awarded to Raytheon for the NWP, with a total value of $68.9 million over its period of performance (April 2018 - June 2021). This represents a significant investment in the NWP initiative. To understand the broader spending trend, one would need to examine historical FAA budgets allocated to weather systems modernization, including funding for legacy systems that NWP is intended to replace, as well as any other contracts or task orders related to the NWP program. Analyzing multi-year budget data and contract awards for related programs would provide a more comprehensive view of the overall financial commitment to improving aviation weather processing capabilities.

How does the cost per unit or per function of the NWP compare to similar weather processing systems in other government agencies or the private sector?

Benchmarking the cost per unit or function for the NWP is challenging with the provided data alone. The contract value of $68.9 million covers a complex system integration and development effort, not a simple per-unit purchase. To perform a valid comparison, one would need to define specific functional units (e.g., weather data processing throughput, number of weather products generated, accuracy metrics) and identify comparable systems. This would involve researching contracts for similar weather intelligence platforms within agencies like the National Oceanic and Atmospheric Administration (NOAA), the Department of Defense, or even large private sector aviation operators. Factors such as system complexity, data sources, algorithm sophistication, and required uptime would significantly influence cost comparisons.

What is Raytheon's track record with large-scale IT and aviation system integration contracts for the FAA or other government agencies?

Raytheon (now RTX) has a long and extensive track record of delivering complex IT, aerospace, and defense systems to government agencies, including the FAA. They have been involved in various aspects of the NextGen program, as well as other critical infrastructure projects. Their experience includes developing and integrating sophisticated command and control systems, communication networks, and data processing platforms. For the FAA specifically, Raytheon has previously been a key contractor for air traffic management systems. While specific performance details for each contract vary, their sustained presence as a prime contractor on major programs indicates a general capability to meet government requirements, though like any large contractor, they may have faced challenges on specific projects that would require deeper investigation.

What are the key performance indicators (KPIs) used to measure the success of the NextGen Weather Processor (NWP) program?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for the NWP program. However, based on the program's objectives, likely KPIs would focus on the accuracy, timeliness, and reliability of the weather data and products generated. This could include metrics such as: reduction in weather-related flight delays or cancellations, improvement in the lead time for hazardous weather warnings, increased accuracy of precipitation forecasts, successful integration with existing and future air traffic management systems, and system uptime/availability. The contract's success would ultimately be measured by its contribution to enhanced aviation safety and operational efficiency within the National Airspace System.

How has the funding for the NWP program evolved since its inception, and are there plans for future increments or phases?

The provided data references 'Year 3 Incremental/Year 4 Incremental' funding for the specific Raytheon contract (DTFAWA-15-D-00004), indicating a phased approach to funding the program. This suggests that the NWP program has been funded incrementally over several years. To understand the full evolution of funding, one would need to examine the FAA's budget justifications and contract awards across multiple fiscal years, tracing the program from its initial concept through development and deployment phases. Future increments or phases are highly probable, as large-scale modernization programs like NWP are typically executed in stages, with subsequent funding dependent on successful completion of earlier phases and evolving technological requirements.

What are the primary risks associated with the implementation of the NWP, and what mitigation strategies are in place?

Key risks associated with the NWP implementation include technical challenges in integrating complex algorithms and data sources, potential cybersecurity threats to the weather data processing platform, reliance on the quality and availability of data from FAA and NOAA, and the possibility of cost overruns, particularly given the Cost Plus Fixed Fee (CPFF) contract type. Mitigation strategies would typically involve rigorous testing and validation of algorithms and system integration, robust cybersecurity protocols, establishing clear data-sharing agreements and quality control measures with NOAA, and strong program management oversight to monitor costs and performance. The FAA's contracting and technical teams would be responsible for identifying, assessing, and managing these risks throughout the program lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752

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: $69,039,606

Exercised Options: $68,904,216

Current Obligation: $68,904,216

Actual Outlays: $33,213,201

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA15D00004

IDV Type: IDC

Timeline