NOAA's AWIPS Software Support Contract Awarded to Raytheon Company for $41M

Contract Overview

Contract Amount: $41,014,949 ($41.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Commerce

Start Date: 2018-01-19

End Date: 2025-12-31

Contract Duration: 2,903 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ADVANCED WEATHER INTERACTIVE PROCESSING SYSTEM (AWIPS) SOFTWARE DEVELOP SUPPORT SERVICES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $41.0 million to RAYTHEON COMPANY for work described as: ADVANCED WEATHER INTERACTIVE PROCESSING SYSTEM (AWIPS) SOFTWARE DEVELOP SUPPORT SERVICES Key points: 1. Contract awarded to Raytheon Company for $41M for AWIPS software development support. 2. The contract falls under Custom Computer Programming Services (NAICS 541511). 3. Full and open competition was utilized for this award. 4. The contract duration is approximately 2903 days, ending in December 2025. 5. This award represents a significant investment in weather data processing capabilities.

Value Assessment

Rating: good

The contract value of $41M over its duration suggests a reasonable investment for specialized software development support. Benchmarking against similar custom computer programming services contracts would provide further insight into its pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, potentially leading to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Taxpayer funds are being utilized through a competitive process, aiming for value in advanced weather processing capabilities.

Public Impact

Enhances critical weather forecasting and data processing for NOAA. Supports the National Oceanic and Atmospheric Administration's mission. Ensures continued development and maintenance of advanced weather systems. Impacts the accuracy and timeliness of weather information for the public.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in Time and Materials contracts.
Dependence on a single vendor for critical software support.

Positive Signals

Full and open competition utilized.
Supports a vital government function (weather forecasting).

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is crucial for government agencies to maintain and upgrade their technological infrastructure for data processing and analysis.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this procurement.

Oversight & Accountability

The contract is managed by the National Oceanic and Atmospheric Administration (NOAA) under the Department of Commerce. Oversight would involve monitoring performance, costs, and adherence to contract terms.

Related Government Programs

Custom Computer Programming Services
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Time and Materials contract type can lead to cost overruns.
Potential for vendor lock-in due to specialized software support.
Reliance on a single vendor for critical system maintenance.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $41.0 million to RAYTHEON COMPANY. ADVANCED WEATHER INTERACTIVE PROCESSING SYSTEM (AWIPS) SOFTWARE DEVELOP SUPPORT 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 $41.0 million.

What is the period of performance?

Start: 2018-01-19. End: 2025-12-31.

What is the projected cost per year for this contract, and how does it compare to industry benchmarks for similar software development support?

The total contract value is approximately $41 million over a period of roughly 2903 days (about 8 years). This averages to approximately $5.1 million per year. Benchmarking this against industry standards for custom computer programming services would require detailed analysis of specific service levels, complexity, and vendor rates within the IT sector.

What are the key performance indicators (KPIs) for this contract, and how will NOAA ensure Raytheon Company meets them to mitigate performance risks?

Key performance indicators would likely include software development timelines, bug resolution rates, system uptime, and adherence to technical specifications. NOAA would typically monitor these through regular progress reports, performance reviews, and potentially service level agreements (SLAs) to ensure Raytheon Company delivers the required support effectively and on time.

Given the Time and Materials (T&M) contract type, what mechanisms are in place to control costs and prevent scope creep, ensuring taxpayer value?

While T&M contracts offer flexibility, they carry inherent cost risks. NOAA likely employs mechanisms such as detailed cost tracking, regular budget reviews, defined labor categories with capped rates, and strict change control processes. Exercising strong contract management and oversight is crucial to prevent uncontrolled cost escalation and ensure the project remains within budget.

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

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 22260 PACIFIC BLVD, DULLES, VA, 20166

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: $57,444,688

Exercised Options: $57,444,688

Current Obligation: $41,014,949

Actual Outlays: $11,025,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCEA133W17CQ0082

IDV Type: IDC

Timeline