CLIMATEWIRE | A rising number of unprocessed NOAA contracts, reaching into the hundreds, has significantly slowed down the operations of the agency. This situation has grown so problematic that even Senator Ted Cruz, who was generally supportive of the Trump administration, has voiced his concerns over the operational standstill.
The primary cause of this bottleneck can be traced back to one individual: Commerce Secretary Howard Lutnick, who oversees the National Oceanic and Atmospheric Administration. Since his appointment in February, Lutnick has mandated that he personally review every contract worth over $100,000.
This policy, which was originally intended to eliminate unnecessary spending and duplication, has instead wreaked havoc across the premier climate and weather organization in the country, according to both past and present NOAA officials.
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Currently, over 200 NOAA contracts are on hold, pending Lutnick’s approval. This includes critical contracts designed to aid communities in preparing for severe weather conditions. The delay has led to the furlough of employees and a workplace atmosphere where staff are more often preoccupied with defending their projects instead of actively working on them, as per agency reports.
“Operations are virtually at a standstill,” confided a NOAA official who wished to remain anonymous due to fear of repercussions. “We’re constantly preparing briefings and filling out new forms, but decisions are delayed until the last possible moment, creating a high-stress, high-urgency environment.”
Contracts that are eventually approved are often processed just in the nick of time, such as one necessary for updating flight software on two polar weather satellites. Others are left unattended long past their expiry dates before any action is considered.
Senator Cruz, along with another anonymous NOAA official, pointed out that Lutnick reviews roughly two dozen contracts weekly—a fraction of the total pending contracts. Cruz expressed concern that the backlog could worsen, potentially causing significant issues, especially in his home state of Texas.
“At a recent Senate hearing, Cruz highlighted that NOAA has around 5,700 contracts due to expire this year alone,” he noted. These contracts cover a wide range, from post-hurricane flood assessments to basic janitorial services. He also mentioned a data center at Texas A&M University that had to shut down temporarily, affecting vital services like drought forecasts and hurricane tracking.
Requests for additional comments from Cruz’s office went unanswered.
Commerce Department officials declined to provide an interview with Lutnick or respond to a list of questions from POLITICO’s E&E News. However, Commerce spokeswoman Kristen Eichamer defended the department’s strategy, stating, “NOAA is dedicated to modernizing by integrating state-of-the-art technologies. We remain committed to our mission-critical services and continue to serve the American populace effectively.”
Former NOAA Administrator Rick Spinrad criticized the policy of reviewing every contract above $100,000, questioning its efficiency given the sheer volume of contracts and Lutnick’s inability to keep up with them. He noted that NOAA heavily relies on contractors, and the current policy effectively halts operations.
Spinrad also expressed concerns that this approach could undermine trust within the agency. “If there’s a perceived lack of trust in the employees’ decision-making, it could lead to unnecessary micromanagement,” he remarked.
Lutnick isn’t working alone in this endeavor. Before contracts reach his desk, they must first be approved by Keegan McLaughlin and Bryton Shang, members of a team promoting government efficiency. Despite their limited experience, they play a critical role in the preliminary contract review process.
The backlog includes contracts as varied as shoreline mapping, flood modeling, and critical internet services necessary for disseminating weather data during emergencies.
Although Lutnick vowed to maintain NOAA’s integrity during his confirmation hearing, his engagement with the agency has been minimal and largely perfunctory.
Overall, the combination of inexperienced oversight and significant delays in contract processing poses a serious risk to NOAA’s operations and its ability to fulfill its crucial environmental and weather-related missions.
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