DOI Awards $16.3M for Landsat Satellite Operations to General Dynamics Mission Systems
Contract Overview
Contract Amount: $16,283,190 ($16.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of the Interior
Start Date: 2023-07-07
End Date: 2024-06-22
Contract Duration: 351 days
Daily Burn Rate: $46.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: LMO TO 10 - SUSTAINED OPERATIONS OF THE L8 AND L9 SATELLITES AND THE SUSTAINMENT OF THE LANDSAT MULTI-SATELLITE OPERATIONS CENTER (LMOC) AND THE BACKUP LMOC
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
Department of the Interior obligated $16.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: LMO TO 10 - SUSTAINED OPERATIONS OF THE L8 AND L9 SATELLITES AND THE SUSTAINMENT OF THE LANDSAT MULTI-SATELLITE OPERATIONS CENTER (LMOC) AND THE BACKUP LMOC Key points: 1. Sustained operations for L8 and L9 satellites secured. 2. General Dynamics Mission Systems is the sole awardee. 3. Contract type is Cost Plus Award Fee. 4. Focus on LMOC and backup LMOC sustainment.
Value Assessment
Rating: fair
The Cost Plus Award Fee contract type allows for performance incentives but can lead to higher costs if not managed tightly. Benchmarking against similar satellite operations contracts is difficult without more detailed cost breakdowns.
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. However, the specific award mechanism (Delivery Order) and the nature of sustained operations may limit the scope for future price discovery.
Taxpayer Impact: Taxpayer funds are allocated for critical Earth observation data continuity, supporting scientific research and resource management.
Public Impact
Ensures continuity of vital Earth observation data from Landsat satellites. Supports scientific research, environmental monitoring, and natural resource management. Maintains operational readiness of critical satellite ground infrastructure. Contributes to long-term climate and land-use change studies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires careful monitoring to ensure cost efficiency.
- Reliance on a single contractor for sustained operations may pose future risk.
- Limited insight into specific performance metrics and award fee triggers.
Positive Signals
- Secures essential services for critical national assets (Landsat satellites).
- Supports long-term scientific data collection.
- Awarded under full and open competition.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting complex aerospace and satellite operations. Spending benchmarks for sustained satellite operations are highly variable, depending on satellite complexity, lifespan, and required ground support.
Small Business Impact
This contract was not awarded to small businesses, as indicated by the prime contractor. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The contract is managed by the U.S. Geological Survey, a bureau within the Department of the Interior. Oversight will focus on ensuring the sustained operational integrity of the Landsat satellites and associated ground facilities.
Related Government Programs
- Engineering Services
- Department of the Interior Contracting
- U.S. Geological Survey Programs
Risk Flags
- Cost Plus Award Fee contract type.
- Sole awardee for sustained operations.
- Limited transparency on performance metrics.
- Potential for contractor lock-in.
Tags
engineering-services, department-of-the-interior, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $16.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. LMO TO 10 - SUSTAINED OPERATIONS OF THE L8 AND L9 SATELLITES AND THE SUSTAINMENT OF THE LANDSAT MULTI-SATELLITE OPERATIONS CENTER (LMOC) AND THE BACKUP LMOC
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (U.S. Geological Survey).
What is the total obligated amount?
The obligated amount is $16.3 million.
What is the period of performance?
Start: 2023-07-07. End: 2024-06-22.
What is the projected cost-effectiveness of the Cost Plus Award Fee structure for sustaining these specific satellites over their remaining lifespan?
The cost-effectiveness of a Cost Plus Award Fee (CPAF) contract for sustaining satellites hinges on clearly defined performance metrics and achievable award fee criteria. Without these details, it's difficult to assess if the incentive structure will truly drive value or simply inflate costs. Regular performance reviews and audits are crucial to ensure the government receives optimal value for the funds expended on operational sustainment.
What are the key risks associated with relying on General Dynamics Mission Systems for sustained operations, and how are they being mitigated?
Key risks include potential cost overruns due to the CPAF structure, contractor performance issues impacting satellite uptime, and vendor lock-in for future sustainment needs. Mitigation strategies likely involve stringent performance monitoring, clear contract deliverables, and potentially building in options for competitive re-competition in the future. The government must actively manage the relationship and ensure adherence to contract terms.
How does the sustainment of the L8 and L9 satellites contribute to the overall effectiveness of the Landsat program and its scientific objectives?
The sustained operations are fundamental to the effectiveness of the Landsat program. These satellites provide continuous, long-term, and consistent data crucial for monitoring Earth's land surface. This data underpins a vast array of scientific research, from climate change studies and agricultural monitoring to urban planning and disaster response, ensuring the program's objectives are met effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,421,510
Exercised Options: $16,421,510
Current Obligation: $16,283,190
Actual Outlays: $15,963,819
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $432,179
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: ING17PC00017
IDV Type: IDC
Timeline
Start Date: 2023-07-07
Current End Date: 2024-06-22
Potential End Date: 2024-06-22 00:00:00
Last Modified: 2026-02-19
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