Raytheon Awarded $30M for NOAA Weather System Communications, Facing Limited Competition
Contract Overview
Contract Amount: $30,185,379 ($30.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Commerce
Start Date: 2017-09-14
End Date: 2026-07-31
Contract Duration: 3,242 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF ADVANCED WEATHER INTERACTIVE PROCESSING SYSTEM (AWIPS) SATELLITE BROADCAST NETWORK COMMUNICATIONS SERVICES FOR THE NATIONAL WEATHER SERVICE.
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $30.2 million to RAYTHEON COMPANY for work described as: IGF::CT::IGF ADVANCED WEATHER INTERACTIVE PROCESSING SYSTEM (AWIPS) SATELLITE BROADCAST NETWORK COMMUNICATIONS SERVICES FOR THE NATIONAL WEATHER SERVICE. Key points: 1. Significant contract value of $30.19 million for critical weather data dissemination. 2. Raytheon Company is the sole awardee, raising questions about competition. 3. The contract spans nearly 9 years, indicating long-term reliance on the provider. 4. Custom Computer Programming Services (NAICS 541511) is the sector focus.
Value Assessment
Rating: fair
The $30.19 million contract value over 9 years appears reasonable for specialized satellite broadcast network communications. Benchmarking against similar NOAA or NWS contracts for weather data systems would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION' but the data indicates Raytheon Company as the sole awardee. This suggests potential limitations in the competitive landscape or a specific requirement that favored a single bidder.
Taxpayer Impact: Taxpayer funds are being utilized for essential weather forecasting infrastructure. The limited competition aspect warrants scrutiny to ensure the best possible price was achieved.
Public Impact
Ensures continuous operation of the National Weather Service's critical data dissemination network. Supports accurate and timely weather forecasts, impacting public safety and emergency response. Funds advanced technology for weather data processing and distribution across the nation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about potential overpricing.
- Long contract duration could lead to vendor lock-in.
- Reliance on a single provider for critical infrastructure.
Positive Signals
- Supports essential government function for public safety.
- Utilizes established technology for reliable service.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the IT and professional services sector, specifically custom computer programming. Spending benchmarks for similar government IT contracts vary widely, but this value is moderate for a long-term, specialized system.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The prime contractor, Raytheon Company, is a large corporation, suggesting limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
The contract is managed by the National Oceanic and Atmospheric Administration (NOAA) under the Department of Commerce. Oversight would typically involve regular performance reviews and financial audits to ensure compliance and value.
Related Government Programs
- Custom Computer Programming Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Limited competition
- Sole awardee
- Long contract duration
- Reliance on a single vendor for critical infrastructure
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 $30.2 million to RAYTHEON COMPANY. IGF::CT::IGF ADVANCED WEATHER INTERACTIVE PROCESSING SYSTEM (AWIPS) SATELLITE BROADCAST NETWORK COMMUNICATIONS SERVICES FOR THE NATIONAL WEATHER SERVICE.
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 $30.2 million.
What is the period of performance?
Start: 2017-09-14. End: 2026-07-31.
What specific technical requirements or market conditions led to Raytheon being the sole awardee despite a 'FULL AND OPEN COMPETITION' designation?
Further investigation into the solicitation documents and award justification is needed to understand the specific technical requirements, unique capabilities, or market dynamics that resulted in Raytheon Company being the sole awardee. This could involve proprietary technology, specialized expertise, or a lack of other qualified bidders responding to the solicitation.
How does the per-unit cost of the satellite broadcast network communications services compare to industry benchmarks for similar systems?
Without specific unit cost breakdowns or access to comparable industry benchmarks for specialized satellite broadcast network communications, a precise comparison is difficult. The total contract value of $30.19 million over 3242 days suggests an average annual cost of approximately $9.3 million. Benchmarking would require detailed service level agreements and technical specifications.
What is the contingency plan if Raytheon Company is unable to fulfill its contractual obligations for the AWIPS satellite broadcast network?
Government contracts typically include clauses addressing contractor default or failure to perform. NOAA would likely have contingency plans involving identifying alternative providers, potentially invoking contract termination clauses, and initiating a new procurement process if Raytheon were unable to fulfill its obligations. The long duration and critical nature of the service would necessitate robust continuity planning.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
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: $30,458,612
Exercised Options: $30,458,612
Current Obligation: $30,185,379
Actual Outlays: $7,949,171
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
Start Date: 2017-09-14
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-01-29
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