USDA awards $2.3M for High-Resolution Satellite Imagery to Maxar Intelligence Inc

Contract Overview

Contract Amount: $2,298,529 ($2.3M)

Contractor: Maxar Intelligence Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-09-28

End Date: 2026-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $2.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HIGH RESOLUTION SATELLITE IMAGERY FOR SELECT AREAS OF INTEREST (AOI)

Place of Performance

Location: NORTHGLENN, ADAMS County, COLORADO, 80234

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.3 million to MAXAR INTELLIGENCE INC for work described as: HIGH RESOLUTION SATELLITE IMAGERY FOR SELECT AREAS OF INTEREST (AOI) Key points: 1. Contract awarded to a single, well-known provider in the geospatial intelligence sector. 2. Pricing appears reasonable given the specialized nature of high-resolution satellite imagery. 3. Potential risk of limited competition due to the niche capabilities required. 4. Spending aligns with the Department of Agriculture's need for detailed land and resource monitoring.

Value Assessment

Rating: good

The contract value of $2.3M over three years for high-resolution satellite imagery seems competitive for specialized geospatial services. Benchmarking against similar contracts for aerial or satellite imagery acquisition suggests this pricing is within a reasonable range for the quality and scope of data provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach may limit price discovery and potentially lead to higher costs compared to a competitive bidding process. The justification for sole-source should be carefully reviewed.

Taxpayer Impact: Taxpayer funds are being used for a specialized service. While the need is likely justified, the lack of competition warrants scrutiny to ensure value for money.

Public Impact

Enhances agricultural monitoring and resource management capabilities for the USDA. Provides critical data for understanding land use, crop health, and environmental changes. Supports farm and foreign agricultural services with detailed visual intelligence.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for higher costs due to sole-source award

Positive Signals

High-quality, specialized data acquisition
Supports critical USDA functions

Sector Analysis

The geospatial intelligence sector provides critical data for various government functions. Spending benchmarks for similar services vary widely based on resolution, coverage, and frequency. This contract appears to be a moderate investment for specialized imagery.

Small Business Impact

This contract was awarded to Maxar Intelligence Inc., a large business. There is no indication of small business participation in this specific award, which is common for highly specialized, large-scale geospatial contracts.

Oversight & Accountability

The Department of Agriculture's Under Secretary for Farm and Foreign Agricultural Services is overseeing this contract. Standard procurement oversight processes should apply, with a focus on ensuring deliverables meet the specified requirements and that the sole-source justification remains valid.

Related Government Programs

Geophysical Surveying and Mapping Services
Department of Agriculture Contracting
Under Secretary for Farm and Foreign Agricultural Services Programs

Risk Flags

Sole-source award limits competition
Potential for overpayment without competitive pressure
Dependence on a single provider for critical data
Lack of transparency in the procurement process

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.3 million to MAXAR INTELLIGENCE INC. HIGH RESOLUTION SATELLITE IMAGERY FOR SELECT AREAS OF INTEREST (AOI)

Who is the contractor on this award?

The obligated recipient is MAXAR INTELLIGENCE INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Under Secretary for Farm and Foreign Agricultural Services).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-09-27.

What is the specific justification for awarding this contract on a sole-source basis, and have alternative sources been thoroughly evaluated?

The justification for a sole-source award typically rests on unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. For high-resolution satellite imagery, specialized sensor technology and data processing expertise held by a limited number of firms like Maxar could be a factor. A thorough review would involve documenting why other capable firms could not meet the requirement and exploring if any portion could be competed.

How will the effectiveness of the high-resolution satellite imagery be measured to ensure it meets the USDA's agricultural and foreign service needs?

Effectiveness will likely be measured through key performance indicators (KPIs) outlined in the contract. These could include image resolution accuracy, data delivery timeliness, coverage completeness, and the successful integration of the imagery into USDA's analytical workflows. Regular performance reviews and user feedback from the Under Secretary's office will be crucial for assessing the imagery's utility and impact.

What is the long-term strategy for acquiring satellite imagery, and will future requirements be subject to competitive bidding?

The long-term strategy is unclear from this single contract. While this award is sole-source, future requirements may be re-evaluated for competition. Agencies often aim to compete larger, more standardized requirements over time. If Maxar's capabilities remain unique and essential, future sole-source awards might continue, but agencies are generally encouraged to seek competitive solutions where feasible to ensure cost-effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Geophysical Surveying and Mapping Services

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12FPC223Q0061

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $2,298,529

Exercised Options: $2,298,529

Current Obligation: $2,298,529

Actual Outlays: $2,298,529

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline