Commerce Department's $11.4M AWIPS contract awarded to Raytheon Company for custom computer programming services

Contract Overview

Contract Amount: $11,404,721 ($11.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Commerce

Start Date: 2006-09-15

End Date: 2012-09-30

Contract Duration: 2,207 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWIPS PRELIMINARY ENGINEERING CHANGE PROPOSALS

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $11.4 million to RAYTHEON COMPANY for work described as: AWIPS PRELIMINARY ENGINEERING CHANGE PROPOSALS Key points: 1. Contract value appears reasonable given the duration and scope of custom programming services. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include integration challenges with existing systems and contractor performance. 4. This contract supports critical weather forecasting and data dissemination capabilities. 5. The National Oceanic and Atmospheric Administration (NOAA) is the primary beneficiary. 6. The contract falls within the IT services sector, specifically custom computer programming.

Value Assessment

Rating: good

The contract value of $11.4 million over approximately 6 years for custom computer programming services for the AWIPS system seems within a reasonable range. Benchmarking against similar large-scale IT development and integration contracts for government systems suggests that the overall investment is not excessive, especially considering the specialized nature of weather data processing and dissemination. Without specific per-unit cost data or detailed task breakdowns, a precise value-for-money assessment is challenging, but the total obligation appears aligned with the project's complexity and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of four bidders (as suggested by 'no': 4) signifies a competitive environment. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government. It suggests that the market has sufficient capacity and interest in providing these specialized services.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging innovation among contractors.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its National Weather Service (NWS) operations. The contract delivers essential custom computer programming services for the Advanced Weather Interactive Processing System (AWIPS). This system is crucial for processing, analyzing, and disseminating weather data, supporting forecasting and public safety. The geographic impact is nationwide, as NWS offices across the United States rely on AWIPS for their operations. Workforce implications include the need for skilled software engineers and IT professionals to develop and maintain the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if change requests are not managed effectively.
Dependence on a single contractor for critical system enhancements could pose a risk if performance falters.
Integration complexities with legacy systems may lead to unforeseen technical challenges and delays.

Positive Signals

Awarded under full and open competition, suggesting a robust market and potential for competitive pricing.
The contract duration of over 2000 days indicates a long-term commitment to system improvement.
The firm-fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services. The market for such services is large and diverse, encompassing software development, system integration, and maintenance for complex government systems. The AWIPS system is a critical piece of national infrastructure for weather forecasting, and contracts supporting its development and enhancement are vital for maintaining operational capabilities. Comparable spending benchmarks would involve other large-scale government IT modernization projects, particularly those related to scientific data processing and dissemination.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The primary contractor, Raytheon Company, is a large aerospace and defense corporation. The focus appears to be on specialized technical expertise rather than broad small business participation. Further analysis would be needed to determine if any subcontracting plans were mandated or voluntarily pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and delivery schedules. Transparency is generally facilitated through contract award databases and public reporting, though detailed project-specific oversight mechanisms are internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

National Weather Service Modernization Programs
NOAA IT Infrastructure Investments
Federal Weather Data Systems
Advanced Weather Interactive Processing System (AWIPS)

Risk Flags

Potential for integration challenges
Reliance on contractor performance
Complexity of weather data systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $11.4 million to RAYTHEON COMPANY. AWIPS PRELIMINARY ENGINEERING CHANGE PROPOSALS

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 $11.4 million.

What is the period of performance?

Start: 2006-09-15. End: 2012-09-30.

What is the track record of Raytheon Company in delivering similar custom computer programming services for large-scale government IT systems, particularly within the meteorological or scientific data

Raytheon Company, now part of RTX, has a long history of providing complex IT solutions and systems integration for government agencies, including defense, intelligence, and civilian sectors. Their experience spans large-scale software development, data management, and operational support for critical infrastructure. While specific details on their performance on the AWIPS preliminary engineering change proposals are not publicly detailed in this data, their broader portfolio suggests a capability to handle such projects. However, a deeper dive into past performance reviews, contract modifications, and any disputes or challenges encountered on similar projects would be necessary for a comprehensive assessment of their track record in this specific niche.

How does the total contract value of $11.4 million compare to the estimated cost of developing or significantly upgrading similar weather processing systems in the public or private sector?

Comparing the $11.4 million contract value directly to other weather processing systems is challenging without detailed scope and feature parity. However, large-scale IT modernization projects for government agencies, especially those involving specialized scientific data and real-time processing like AWIPS, often run into tens or hundreds of millions of dollars over their lifecycle. This $11.4 million appears to be for 'preliminary engineering change proposals,' suggesting it might represent a phase of development or enhancement rather than the entire system's cost. Given the duration (over 2000 days) and the complexity of weather data, this figure seems plausible for specific engineering efforts, though a full system replacement or major overhaul would likely cost significantly more.

What are the primary risks associated with this contract, and what mitigation strategies were likely employed by NOAA?

Key risks for this contract include technical integration challenges with the existing AWIPS infrastructure, potential for schedule delays due to the complexity of engineering changes, and ensuring the delivered software meets stringent performance and reliability requirements for weather forecasting. Contractor performance issues, such as quality of work or responsiveness, also pose a risk. Mitigation strategies likely involved robust contract oversight by NOAA program managers, clearly defined performance metrics and acceptance criteria, phased delivery schedules, and potentially contingency planning for unforeseen technical hurdles. The firm-fixed-price nature of the contract also shifts some cost risk to the contractor.

What is the historical spending pattern for the AWIPS system or similar weather data processing systems under NOAA, and how does this $11.4 million award fit within that context?

Historical spending on the AWIPS system and its predecessors has been substantial, reflecting the ongoing need to maintain and upgrade critical weather infrastructure. NOAA has invested hundreds of millions of dollars over the years in the development, deployment, and sustainment of AWIPS. This $11.4 million award for 'preliminary engineering change proposals' represents a specific investment within a broader, continuous modernization effort. It is likely one of many contracts awarded over the system's lifecycle to address evolving technological requirements and operational needs, fitting into a pattern of sustained funding for essential weather services.

Given the 'Custom Computer Programming Services' NAICS code (541511), what is the typical market size and competitive landscape for such services provided to the federal government?

The NAICS code 541511, 'Custom Computer Programming Services,' represents a significant segment of the federal IT market. The federal government is a major consumer of these services, contracting for everything from software development and system integration to IT consulting and cybersecurity. The market is highly competitive, with numerous large system integrators, specialized software firms, and smaller businesses vying for contracts. Federal spending in this category often runs into the tens of billions of dollars annually across various agencies. The landscape is dynamic, with continuous demand driven by modernization efforts, evolving threats, and the need for new digital capabilities.

Industry Classification

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12160 SUNRISE VALLEY DR, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,404,721

Exercised Options: $11,404,721

Current Obligation: $11,404,721

Parent Contract

Parent Award PIID: DOCDG133W05CQ1067

IDV Type: IDC

Timeline