NOAA Awards Parsons $158M for Polar Satellite Operations, Extending Critical Weather Data Services
Contract Overview
Contract Amount: $15,816,885 ($15.8M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Commerce
Start Date: 2022-09-15
End Date: 2025-09-14
Contract Duration: 1,095 days
Daily Burn Rate: $14.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: POLAR OPERATIONAL ENVIRONMENTAL SATELLITES (POES) EXTENDED LIFE (EL) OPERATIONS SUPPORT
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919
State: Colorado Government Spending
Plain-Language Summary
Department of Commerce obligated $15.8 million to PARSONS GOVERNMENT SERVICES INC. for work described as: POLAR OPERATIONAL ENVIRONMENTAL SATELLITES (POES) EXTENDED LIFE (EL) OPERATIONS SUPPORT Key points: 1. Significant contract for essential weather monitoring infrastructure. 2. Parsons Government Services Inc. secures a major award. 3. Potential for cost overruns or schedule delays exists. 4. Engineering services sector sees substantial government investment.
Value Assessment
Rating: good
The contract value of $158.17M over 3 years appears reasonable for extended life operations support of complex satellite systems. Benchmarking against similar long-term engineering support contracts for national infrastructure would provide further validation.
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 that likely drove price discovery. This method generally leads to more favorable pricing for the government.
Taxpayer Impact: Taxpayers benefit from competitive pricing on essential weather data services, ensuring efficient use of funds for critical national infrastructure.
Public Impact
Ensures continuity of vital polar-orbiting satellite data for weather forecasting and climate monitoring. Supports national security and public safety through improved environmental prediction capabilities. Sustains critical scientific research and data collection for climate change studies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in extended life operations.
- Reliance on a single contractor for critical infrastructure.
- Technical obsolescence of aging satellite systems.
Positive Signals
- Firm fixed price contract limits cost uncertainty.
- Full and open competition promotes value.
- Long-term contract provides stability for operations.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting complex government IT and operational systems. Spending benchmarks for similar long-term support contracts for national infrastructure projects are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is not a small business. Opportunities for small businesses may exist further down the subcontracting chain.
Oversight & Accountability
The contract is managed by the National Oceanic and Atmospheric Administration (NOAA) under the Department of Commerce. Oversight will focus on performance, adherence to schedule, and cost control throughout the contract period.
Related Government Programs
- Engineering Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Contractor performance risk
- Technical obsolescence risk
- Schedule slippage risk
- Cost overrun risk (despite FFP, due to complexity)
Tags
engineering-services, department-of-commerce, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $15.8 million to PARSONS GOVERNMENT SERVICES INC.. POLAR OPERATIONAL ENVIRONMENTAL SATELLITES (POES) EXTENDED LIFE (EL) OPERATIONS SUPPORT
Who is the contractor on this award?
The obligated recipient is PARSONS GOVERNMENT SERVICES INC..
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 $15.8 million.
What is the period of performance?
Start: 2022-09-15. End: 2025-09-14.
What is the projected cost per year for these extended life operations?
The total contract value is $158,168,850 over 1095 days (3 years). This equates to an approximate annual cost of $52,722,950. This figure represents the total obligated amount and includes all anticipated costs for maintaining and operating the POES EL systems.
What are the primary risks associated with extending the life of aging satellite systems?
Key risks include increased likelihood of component failures due to age, higher maintenance and repair costs, potential for technical obsolescence rendering data less useful, and challenges in finding replacement parts. Ensuring system reliability and data integrity becomes paramount.
How effectively will this contract ensure the continuity of critical weather data?
The contract's firm fixed price and extended duration aim to ensure continuity. However, effectiveness hinges on the contractor's technical expertise, proactive maintenance, and the underlying reliability of the aging satellite hardware. NOAA's oversight will be crucial.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 1332KP22BNEEB0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Parsons Corporation
Address: 5875 TRINITY PKWY STE 230, CENTREVILLE, VA, 20120
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,934,054
Exercised Options: $15,816,885
Current Obligation: $15,816,885
Actual Outlays: $9,572,262
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $5,066,633
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-15
Current End Date: 2025-09-14
Potential End Date: 2025-09-14 00:00:00
Last Modified: 2025-09-16
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