Commerce Awards Raytheon $36.8M for AWIPS II Software Development Over 5 Years

Contract Overview

Contract Amount: $36,788,300 ($36.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Commerce

Start Date: 2011-07-01

End Date: 2017-12-22

Contract Duration: 2,366 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: AWIPS II EXTENDED SOFTWARE DEVELOPMENT SERVICES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $36.8 million to RAYTHEON COMPANY for work described as: AWIPS II EXTENDED SOFTWARE DEVELOPMENT SERVICES Key points: 1. Significant contract value for custom computer programming services. 2. Raytheon Company is the sole awardee, raising questions about competition. 3. Contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 4. The sector is Information Technology, specifically custom software development.

Value Assessment

Rating: fair

The contract value of $36.8 million over approximately 5 years for custom computer programming services appears reasonable given the scope. However, without specific performance metrics or comparable contracts, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the data indicates this is a Delivery Order, implying it might be part of a larger contract vehicle where the initial competition occurred.

Taxpayer Impact: Taxpayer funds are being used for essential software development for weather forecasting systems. The cost-plus-fixed-fee structure requires careful oversight to ensure efficiency and prevent unnecessary expenses.

Public Impact

Enhances critical weather forecasting and data distribution capabilities for NOAA. Supports the National Weather Service's mission to protect life and property. Impacts the accuracy and timeliness of weather-related information for the public and various industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT sector, specifically custom computer programming services. Spending in this area is substantial across government agencies, with benchmarks varying widely based on complexity and duration. NOAA's investment in AWIPS II is crucial for its operational capabilities.

Small Business Impact

The data indicates the awardee is Raytheon Company, a large business. There is no explicit mention of small business participation in this specific delivery order, which warrants further investigation to ensure opportunities for small businesses were considered.

Oversight & Accountability

Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and allocable. The Department of Commerce and NOAA should have robust mechanisms in place to monitor expenditures, performance, and adherence to contract terms.

Related Government Programs

Risk Flags

Tags

custom-computer-programming-services, department-of-commerce, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $36.8 million to RAYTHEON COMPANY. AWIPS II EXTENDED SOFTWARE DEVELOPMENT SERVICES

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 $36.8 million.

What is the period of performance?

Start: 2011-07-01. End: 2017-12-22.

What specific performance metrics were used to evaluate Raytheon's success in delivering AWIPS II software development services, and how do they align with NOAA's operational needs?

The provided data does not detail specific performance metrics. Effective oversight would require NOAA to establish clear, measurable objectives related to software functionality, reliability, and timeliness. These metrics should be directly tied to the operational requirements of AWIPS II, ensuring the delivered software enhances weather forecasting and data distribution capabilities as intended.

Given the Cost Plus Fixed Fee structure, what measures are in place to mitigate the risk of cost overruns and ensure the government receives the best value?

Mitigation strategies for CPFF contracts typically involve stringent oversight, detailed cost audits, and clear definitions of allowable costs. NOAA should actively monitor Raytheon's expenditures, conduct regular reviews of progress against the fixed fee, and ensure all costs incurred are reasonable, allocable, and directly related to the contract's objectives. Regular communication and performance reviews are also key.

How does the continued investment in AWIPS II software development by NOAA compare to industry standards for similar custom programming services, particularly concerning innovation and long-term maint

Benchmarking custom software development requires detailed analysis of scope, complexity, and technology stack. NOAA's investment should be evaluated against industry trends in agile development, cloud integration, and cybersecurity. Ensuring the software is maintainable and adaptable to future technological advancements is crucial for long-term value, rather than just meeting immediate functional requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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

Address: 22260 PACIFIC BLVD, DULLES, VA, 20166

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,127,090

Exercised Options: $36,788,300

Current Obligation: $36,788,300

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DOCDG133W05CQ1067

IDV Type: IDC

Timeline

Start Date: 2011-07-01

Current End Date: 2017-12-22

Potential End Date: 2018-02-16 00:00:00

Last Modified: 2017-12-06

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