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
- Cost Plus Fixed Fee contract type can incentivize higher costs if not managed strictly.
- Lack of specific performance metrics makes it hard to gauge true value for money.
- Long contract duration (over 5 years) may not adapt well to rapidly changing IT needs.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- Supports a vital government function (weather forecasting).
- Clear awardee and agency identified.
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
- Custom Computer Programming Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Lack of detailed performance metrics in provided data.
- Long contract duration may not align with rapid IT evolution.
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 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: 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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