Interior Department awards $24M R&D contract to Maxar Mission Solutions for data hub development

Contract Overview

Contract Amount: $24,080,428 ($24.1M)

Contractor: Maxar Mission Solutions Inc

Awarding Agency: Department of the Interior

Start Date: 2020-06-01

End Date: 2025-05-08

Contract Duration: 1,802 days

Daily Burn Rate: $13.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DATAHUB DEVELOPMENT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $24.1 million to MAXAR MISSION SOLUTIONS INC for work described as: DATAHUB DEVELOPMENT Key points: 1. Contract awarded on a sole-source basis, limiting potential for competitive pricing. 2. Research and Development focus suggests innovation and future capability development. 3. Long contract duration of 1802 days may indicate complex or ongoing needs. 4. Cost Plus Fixed Fee pricing structure can incentivize cost overruns. 5. Contractor has a single award, suggesting limited prior federal experience in this specific area. 6. Virginia location for contractor may have implications for regional economic impact.

Value Assessment

Rating: questionable

The contract's value of $24 million over approximately five years for R&D services requires careful benchmarking. Without comparable sole-source R&D contracts or detailed cost breakdowns, assessing value for money is challenging. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, can lead to higher costs if not managed diligently. The absence of competition further complicates a direct value assessment, as market-driven pricing is not a factor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The rationale for a sole-source award, such as unique capabilities or urgency, would need to be clearly justified to ensure taxpayer funds are used efficiently.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process, potentially leading to a higher overall expenditure for the government.

Public Impact

The Department of the Interior benefits from the development of a data hub, likely to improve its internal data management and analytical capabilities. This contract supports research and development in physical, engineering, and life sciences, potentially leading to advancements in these fields. The primary beneficiary is the agency itself, through enhanced operational efficiency and data utilization. Workforce implications are likely limited to the contractor's personnel and potentially DOI staff involved in the project oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contract type can incentivize higher costs if not closely monitored.
Limited contractor award history may indicate a higher risk profile for performance.
Lack of transparency in the sole-source justification raises concerns about fair opportunity.

Positive Signals

Contract supports critical R&D for the Department of the Interior.
Long-term contract provides stability for the contractor and project continuity.
Focus on data hub development aligns with modern government efficiency goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on data infrastructure. The R&D services market is diverse, with significant government spending aimed at advancing scientific and technological capabilities. Comparable spending benchmarks for data hub development within federal agencies would be necessary for a precise comparison, but the $24 million award is substantial for a single R&D project.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the award is sole-source and the contractor is Maxar Mission Solutions Inc., a large business. There is no indication of small business set-asides or subcontracting requirements within the provided data. This contract is unlikely to have a direct positive impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency regarding the sole-source justification and performance metrics would be key accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Data Strategy
Research and Development Funding
Information Technology Infrastructure
Department of the Interior IT Modernization

Risk Flags

Sole-source award lacks competitive justification.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Limited contractor federal award history may indicate performance uncertainty.
Lack of transparency regarding specific R&D deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $24.1 million to MAXAR MISSION SOLUTIONS INC. DATAHUB DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is MAXAR MISSION SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2020-06-01. End: 2025-05-08.

What is the specific nature of the 'data hub development' and its intended use by the Department of the Interior?

The provided data does not detail the specific functionalities or intended uses of the 'data hub development.' However, in the context of federal agencies, a data hub typically refers to a centralized repository designed to store, manage, and analyze large volumes of diverse data from various sources. For the Department of the Interior, such a hub could be crucial for consolidating information related to land management, natural resources, environmental monitoring, and other mission-critical functions. Its development likely aims to improve data accessibility, enable advanced analytics, support decision-making, and enhance operational efficiency across the department's bureaus and offices. Further details would likely be found in the contract's Statement of Work (SOW).

What is the justification for awarding this $24 million contract on a sole-source basis?

The provided data indicates the contract was awarded on a 'NOT COMPETED' basis, signifying a sole-source procurement. Federal regulations (e.g., FAR Part 6) permit sole-source awards under specific circumstances, such as when only one responsible source is available or possesses unique capabilities, or in cases of urgent and compelling need. Without access to the official justification document (e.g., Justification and Approval - J&A), the precise reason for this sole-source award remains unknown. However, for a research and development contract of this magnitude, potential justifications could include the contractor possessing proprietary technology, unique expertise essential for the project, or a pre-existing relationship that makes them the only viable option for timely project initiation.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and cost efficiency?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work is not precisely defined at the outset. Under CPFF, the contractor is reimbursed for allowable costs incurred, plus a fixed fee representing profit. This structure shifts some cost risk to the government, as the final cost can exceed initial estimates if costs overrun. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for evolving R&D projects but can be less cost-efficient for the government if not managed rigorously. Other R&D contract types include Cost Plus Incentive Fee (CPIF), which adds performance incentives, and Cost No-Reimbursable (CNR), where the contractor bears more risk. The CPFF structure here suggests a need for strong government oversight to control costs.

What is Maxar Mission Solutions Inc.'s track record with federal contracts, particularly in R&D and data hub development?

The provided data indicates that Maxar Mission Solutions Inc. has one federal contract award, which is this current $24 million definitive contract. This limited award history suggests that their experience with federal contracts, especially in the specific domain of R&D and data hub development for the Department of the Interior, may be nascent or not extensively documented in public federal procurement databases. A comprehensive assessment of their track record would require delving into contract performance reports (e.g., CPARS), other contract vehicles they may hold, and their broader commercial experience in relevant technology areas. The sole-source nature of this award might imply that the agency perceived them as having unique qualifications, despite the limited visible federal contract history.

Are there any comparable federal spending benchmarks for similar 'Research and Development in the Physical, Engineering, and Life Sciences' contracts awarded to large businesses?

Benchmarking this $24 million R&D contract requires comparing it to similar procurements within the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences). While the specific 'data hub development' aspect is unique, the overall R&D nature is key. Federal spending in this broad category is substantial, with numerous contracts awarded annually. However, direct comparisons are challenging due to the variability in project scope, duration, and specific scientific or engineering focus. Contracts can range from millions to hundreds of millions of dollars. To establish a benchmark, one would need to filter for contracts of similar duration (approx. 5 years), contract type (CPFF), and agency (e.g., DOI or similar science-focused agencies), and analyze the price per year or total value relative to the defined scope of work. The sole-source nature of this award also complicates direct competitive benchmarking.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140D0420R0011

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4501 SINGER CT STE 220, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $26,807,709

Exercised Options: $26,805,485

Current Obligation: $24,080,428

Actual Outlays: $23,804,331

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,122,582

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline