Maxar Intelligence Inc. awarded $4.59M contract for satellite imagery by Department of Agriculture

Contract Overview

Contract Amount: $4,590 ($4.6K)

Contractor: Maxar Intelligence Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-08-03

End Date: 2024-08-02

Contract Duration: 365 days

Daily Burn Rate: $13/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WORLDVIEW 3 SATELLITE IMAGERY

Place of Performance

Location: DENVER, ADAMS County, COLORADO, 80234

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $4,590 to MAXAR INTELLIGENCE INC for work described as: WORLDVIEW 3 SATELLITE IMAGERY Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration is one year, with a firm-fixed-price structure. 3. This award represents a small portion of the agency's overall spending. 4. The service provided is crucial for agricultural research and monitoring. 5. No small business set-aside was indicated for this procurement.

Value Assessment

Rating: fair

The contract value of $4.59 million for satellite imagery services is difficult to benchmark without more specific details on the resolution, coverage, and frequency of the imagery. Given the sole-source nature of the award, it's challenging to assess if this represents competitive pricing. However, for a single-year contract of this type, the amount appears within a plausible range for specialized geospatial data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Maxar Intelligence Inc., was solicited. This approach is typically used when a unique capability or proprietary technology is required, or when only one source is capable of meeting the agency's needs. The lack of competition means that the agency did not benefit from a bidding process that could drive down prices or encourage innovative solutions from multiple providers.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. The agency relied on its assessment of fair and reasonable pricing without the benefit of market-driven price discovery.

Public Impact

The Agricultural Research Service benefits from access to high-resolution satellite imagery. This imagery supports critical research in areas such as crop monitoring, land use analysis, and environmental studies. The services provided have a national geographic impact, aiding agricultural practices across the United States. The contract supports the workforce involved in geospatial analysis and agricultural research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Lack of transparency in the justification for sole-source procurement.
Potential for higher costs due to absence of competition.

Positive Signals

Contract supports critical agricultural research and monitoring.
Maxar Intelligence is a known provider of satellite imagery.
Firm-fixed-price contract provides cost certainty.

Sector Analysis

The market for satellite imagery is dominated by a few key players, including Maxar Technologies. This contract falls within the broader geospatial intelligence sector, which is vital for various government functions, including defense, intelligence, and civilian agencies like agriculture. Spending in this sector can range from millions to billions depending on the scope and duration of services required.

Small Business Impact

This contract was not awarded as a small business set-aside, nor were there indications of significant subcontracting opportunities for small businesses. The nature of high-resolution satellite imagery services often requires specialized capabilities and infrastructure typically found in larger, established companies.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's internal procurement and financial management systems. The Agricultural Research Service is responsible for ensuring the contractor meets the terms of the purchase order. Transparency is limited due to the sole-source nature, and there is no specific mention of an Inspector General's active involvement in this particular award.

Related Government Programs

Satellite Imagery Services
Geospatial Data Acquisition
Agricultural Research Support
Remote Sensing Technologies

Risk Flags

Sole-source award may limit cost-effectiveness.
Lack of competitive bidding reduces price discovery.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4,590 to MAXAR INTELLIGENCE INC. WORLDVIEW 3 SATELLITE IMAGERY

Who is the contractor on this award?

The obligated recipient is MAXAR INTELLIGENCE INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $4,590.

What is the period of performance?

Start: 2023-08-03. End: 2024-08-02.

What specific types of satellite imagery are being procured under this contract, and what are their technical specifications?

The provided data does not specify the exact types or technical specifications of the satellite imagery. However, given the contractor, Maxar Intelligence Inc., it is likely to be high-resolution optical imagery from their WorldView constellation. These satellites typically offer resolutions down to 30 cm (panchromatic) and 1.24 meters (multispectral). The Agricultural Research Service would have detailed these requirements in their solicitation documents, which are not publicly available in this data snippet. The specific use cases would dictate the need for different spectral bands, revisit rates, and coverage areas.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from situations where only one responsible source is available or capable of meeting the agency's needs. For satellite imagery, this could be due to unique technological capabilities, proprietary data access, existing infrastructure integration, or specific coverage requirements that only one provider can fulfill. Without the specific justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), it's impossible to know the precise reasons. However, agencies must demonstrate that full and open competition is not feasible or not in the government's best interest.

How does the $4.59 million contract value compare to previous spending on similar satellite imagery services by the Agricultural Research Service or other agencies?

Comparing this $4.59 million contract value requires access to historical spending data for similar services. Without that data, a direct comparison is difficult. However, Maxar Intelligence is a major provider in the commercial satellite imagery market, and contracts of this magnitude are not uncommon for agencies requiring extensive or specialized geospatial data. For context, other federal agencies like the National Reconnaissance Office (NRO) or the National Geospatial-Intelligence Agency (NGA) procure imagery services at much larger scales, often in the hundreds of millions or billions. For a specific research-focused service like this, $4.59 million for a year appears to be a significant but not extraordinary investment.

What are the potential risks associated with relying on a single contractor for critical satellite imagery data?

Relying on a single contractor for critical satellite imagery data presents several risks. Firstly, there's a risk of vendor lock-in, where the agency becomes dependent on the contractor's technology, pricing, and service levels, making it difficult to switch providers. Secondly, the lack of competition can lead to higher prices and potentially less incentive for the contractor to innovate or maintain the highest service standards. Thirdly, there's a risk associated with the contractor's business stability; if the company faces financial difficulties or ceases operations, the agency could lose access to essential data. Finally, a sole-source award bypasses the opportunity for diverse solutions that might emerge from a competitive process.

What specific agricultural research applications will this satellite imagery support?

The satellite imagery procured under this contract will support a range of agricultural research applications for the Agricultural Research Service (ARS). These can include, but are not limited to: precision agriculture initiatives, where imagery helps optimize fertilizer and water application; crop yield prediction and monitoring; early detection of pests and diseases through spectral analysis; land cover and land use change mapping; soil moisture assessment; and monitoring the impact of climate change on agricultural systems. The high-resolution data likely allows for detailed analysis at the field or even sub-field level, providing valuable insights for improving agricultural practices and food security.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › All Other Publishers

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maxar Technologies Inc.

Address: 1300 W 120TH AVE, WESTMINSTER, CO, 80234

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

Financial Breakdown

Contract Ceiling: $4,590

Exercised Options: $4,590

Current Obligation: $4,590

Actual Outlays: $4,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline