NOAA's $98.7M High Performance Computing System Awarded to Raytheon Company
Contract Overview
Contract Amount: $98,678,697 ($98.7M)
Contractor: Raytheon Company
Awarding Agency: Department of Commerce
Start Date: 2006-05-05
End Date: 2012-09-07
Contract Duration: 2,317 days
Daily Burn Rate: $42.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NOAA'S RESEARCH AND DEVELOPMENT HIGH PERFORMANCE COMPUTING SYSTEM
Place of Performance
Location: UPPER MARLBORO, PRINCE GEORGE'S County, MARYLAND, 20774
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $98.7 million to RAYTHEON COMPANY for work described as: NOAA'S RESEARCH AND DEVELOPMENT HIGH PERFORMANCE COMPUTING SYSTEM Key points: 1. Significant investment in advanced computing for NOAA's research and development. 2. Raytheon Company, a major defense contractor, secured this award. 3. Potential risks include vendor lock-in and the rapid obsolescence of technology. 4. The IT sector is characterized by high costs and continuous innovation.
Value Assessment
Rating: fair
The contract value of $98.7 million over approximately 6.4 years suggests a substantial investment. Benchmarking against similar high-performance computing systems is difficult without more granular cost data, but the duration implies a significant, long-term need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for this critical research infrastructure.
Public Impact
Enhances NOAA's ability to conduct complex climate and weather modeling. Supports scientific research and data analysis for critical environmental insights. Potential for advancements in weather forecasting and climate change prediction.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Technology obsolescence risk
- High initial investment cost
- Dependence on a single vendor for maintenance and upgrades
Positive Signals
- Supports critical scientific research
- Utilizes competitive procurement
- Long-term system development
Sector Analysis
This contract falls within the Information Technology sector, specifically high-performance computing. Spending in this area is driven by the need for advanced processing power for complex simulations and data analysis, often seen in scientific research and defense.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Large prime contractors like Raytheon often utilize subcontractors, but direct small business participation is not evident from this award.
Oversight & Accountability
The contract was awarded by the Department of Commerce, with NOAA as the end-user agency. Oversight would involve monitoring performance, adherence to contract terms, and ensuring the system meets research objectives.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Risk of technology becoming outdated quickly
- High cost of acquisition and maintenance
- Potential for vendor lock-in
- Dependence on a single contractor for critical infrastructure
Tags
electronic-computer-manufacturing, department-of-commerce, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $98.7 million to RAYTHEON COMPANY. NOAA'S RESEARCH AND DEVELOPMENT HIGH PERFORMANCE COMPUTING SYSTEM
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 $98.7 million.
What is the period of performance?
Start: 2006-05-05. End: 2012-09-07.
What is the expected lifespan of this high-performance computing system, and how will NOAA address technological obsolescence?
The contract duration is approximately 2317 days (over 6 years), suggesting an expected operational lifespan within that timeframe. NOAA will likely need to plan for upgrades or replacements as technology evolves rapidly in the HPC sector. This may involve future contract actions for modernization or new system procurements to maintain cutting-edge capabilities.
How does the $98.7 million cost compare to similar high-performance computing procurements by other federal agencies?
Direct comparison is challenging without detailed specifications and performance metrics. However, $98.7 million for a multi-year HPC system is within the expected range for federal agencies requiring significant computational power for research and development. Factors like processing capacity, storage, and software complexity heavily influence cost.
What specific research and development activities will this computing system support, and what are the anticipated scientific breakthroughs?
This system is intended for NOAA's core mission areas, including climate modeling, weather forecasting, atmospheric research, and oceanographic studies. Anticipated breakthroughs could involve more accurate long-range forecasts, improved understanding of climate change impacts, and enhanced prediction of severe weather events, ultimately benefiting public safety and economic planning.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1616 MCCORMICK DR, UPPER MARLBORO, MD, 05
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $370,572,449
Exercised Options: $100,185,514
Current Obligation: $98,678,697
Timeline
Start Date: 2006-05-05
Current End Date: 2012-09-07
Potential End Date: 2012-09-07 00:00:00
Last Modified: 2012-09-07
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Commerce Contracts
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (L3harris Technologies, Inc.)
- Engineering Services and Development Leading to the Delivery of the Jpss Common Ground System Instrument and Support — $1.6B (Raytheon Company)
- Enterprise Solutions Framework (ESF) for Multi-Tiered Acquisition Framework for Systems Engineering and Integration - Program Tier Work Order 003 - 2020 Census Technical Integrator — $1.5B (T-Rex Solutions LLC)
- THE Goal of the Decennial Response Integration System (dris) Contract IS to Obtain a Practical Solution to Providing Respondent Assistance and Data Capture for the 2010 Census — $930.7M (Lockheed Martin Services, LLC)
- 2020 Census Questionnaire Assistance (2020 CQA) — $918.3M (Maximus Federal Services, Inc.)