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

Positive Signals

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

Risk Flags

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 ServicesArchitectural, Engineering, and Related ServicesEngineering 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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