DOI's $13.6M Landsat satellite O&M contract awarded to General Dynamics Mission Systems

Contract Overview

Contract Amount: $13,615,974 ($13.6M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-07-10

End Date: 2025-07-07

Contract Duration: 362 days

Daily Burn Rate: $37.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: LANDSAT MULTI-SATELLITE O&M

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $13.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: LANDSAT MULTI-SATELLITE O&M Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Cost-plus award fee contract type allows for flexibility but requires careful oversight of costs and performance. 3. The contract duration of 362 days indicates a focus on operational maintenance rather than long-term development. 4. The award amount of $13.6M falls within typical ranges for complex satellite operations and maintenance. 5. General Dynamics Mission Systems has a significant presence in the aerospace and defense sector, indicating relevant experience. 6. The contract supports critical Earth observation data collection through the Landsat program.

Value Assessment

Rating: good

The contract value of $13.6 million for a one-year period for satellite operations and maintenance appears reasonable given the complexity of managing a multi-satellite program. Benchmarking against similar satellite O&M contracts is challenging due to proprietary data, but the cost structure (Cost Plus Award Fee) suggests that performance incentives are tied to cost control and mission success. Without specific performance metrics and award fee payouts, a definitive value-for-money assessment is difficult, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and allows the government to select the best value offer. The open competition suggests that the government sought a wide range of potential contractors, potentially leading to more competitive pricing and innovative solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified contractors, ensuring that the government secures services at a fair market value.

Public Impact

The Landsat program provides critical Earth observation data used by scientists, policymakers, and the public for environmental monitoring, resource management, and disaster response. Benefits include improved understanding of land use change, agricultural productivity, forest health, and water resources. Geographic impact is global, as Landsat data is freely available and used worldwide. The contract supports a specialized workforce in aerospace engineering, satellite operations, and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can lead to cost overruns if not managed diligently, requiring robust oversight of expenditures and performance metrics.
Reliance on a single contractor for critical satellite operations necessitates strong performance monitoring to ensure continuity and reliability.
The specific performance metrics and award fee structure are not detailed, making it difficult to fully assess the incentive alignment for cost efficiency and mission success.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should drive value.
General Dynamics Mission Systems is an established contractor with experience in aerospace and defense, suggesting technical capability.
The contract supports the vital Landsat program, which provides significant public benefits through Earth observation data.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, significant R&D investment, and stringent quality requirements. Satellite operations and maintenance fall within this domain, requiring specialized expertise and infrastructure. The global market for satellite services is substantial, with government contracts forming a key segment. This contract for Landsat O&M represents a portion of the government's investment in maintaining its critical Earth observation capabilities, aligning with broader trends in remote sensing and geospatial intelligence.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, General Dynamics Mission Systems, may engage small businesses as subcontractors for specialized services or components, depending on their subcontracting plan and the specific needs of the contract.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract will likely be managed by the U.S. Geological Survey (USGS) contracting officers and technical representatives. Robust oversight will involve monitoring contractor performance against defined metrics, reviewing incurred costs, and determining award fee payouts based on achieved objectives. Transparency is facilitated through contract reporting requirements. The Inspector General for the Department of the Interior may conduct audits or investigations as deemed necessary to ensure accountability and prevent fraud, waste, or abuse.

Related Government Programs

NASA Earth Science Programs
NOAA Satellite Operations
National Geospatial-Intelligence Agency (NGA) Services
Defense Meteorological Satellite Program (DMSP)

Risk Flags

Cost-Plus Award Fee contract requires robust oversight to manage costs and ensure performance.
Reliance on a single contractor for critical satellite operations necessitates strong performance monitoring.
Potential for cost overruns if performance incentives are not clearly defined and rigorously applied.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $13.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. LANDSAT MULTI-SATELLITE O&M

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 $13.6 million.

What is the period of performance?

Start: 2024-07-10. End: 2025-07-07.

What is the historical spending trend for Landsat satellite operations and maintenance?

Analyzing historical spending for Landsat O&M requires access to detailed budget data over multiple fiscal years. Typically, such programs involve recurring costs for ground station operations, data processing, satellite health monitoring, and minor repairs or upgrades. Spending can fluctuate based on the number of active satellites, the age of the constellation, and the complexity of ongoing research or data dissemination requirements. Without specific historical data for this contract or the broader Landsat program, it's difficult to provide precise figures. However, it's reasonable to assume consistent annual expenditures in the multi-million dollar range to maintain such a critical and long-standing scientific asset.

How does the performance of General Dynamics Mission Systems on similar contracts compare?

General Dynamics Mission Systems (GDMS) has a substantial track record in aerospace, defense, and C4ISR systems. Assessing their performance on similar satellite operations and maintenance contracts would involve reviewing past performance evaluations, award fee scores, and any documented instances of contract disputes or overruns. GDMS has supported various government satellite programs, including those for military and intelligence agencies. A detailed comparison would require access to specific past performance reports and contract histories, which are often proprietary or not publicly available. However, their continued success in securing large government contracts suggests a generally positive performance history.

What are the key performance indicators (KPIs) for this contract, and how are they measured?

The specific Key Performance Indicators (KPIs) for this Landsat Multi-Satellite O&M contract are not detailed in the provided data. However, for satellite operations and maintenance, typical KPIs often include satellite uptime/availability, data acquisition success rates, data quality metrics (e.g., signal-to-noise ratio), timeliness of data processing and delivery, and adherence to operational schedules. For a Cost Plus Award Fee (CPAF) contract, these KPIs are crucial as they directly influence the 'award fee' portion of the contractor's compensation. The government technical team would monitor these metrics rigorously to determine the extent to which the contractor has met or exceeded performance expectations.

What is the risk associated with the Cost Plus Award Fee (CPAF) contract type for this service?

The Cost Plus Award Fee (CPAF) contract type introduces specific risks for the government. While it offers flexibility and incentivizes performance through award fees, it also requires diligent oversight to prevent cost escalation. The risk lies in ensuring that the 'cost' component remains reasonable and that the 'award fee' is genuinely earned based on exceptional performance, rather than being an automatic add-on. Without clear, objective, and measurable performance criteria, there's a risk that award fees could be paid for mediocre performance. Effective management by the contracting officer and technical team is paramount to mitigate these risks and ensure the government receives good value.

How does the $13.6M award compare to the total budget for the Landsat program?

The $13.6 million award represents a significant portion of the operational budget for the Landsat program for the contract period. The total annual budget for the Landsat program encompasses more than just O&M, including data acquisition, research, development of new missions, and data dissemination infrastructure. Therefore, this $13.6M figure should be viewed as the cost for maintaining the existing satellite constellation and its associated ground systems for approximately one year. The overall Landsat program budget can vary significantly year-to-year depending on mission phases (e.g., development vs. operations), but O&M costs are a substantial and consistent component.

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: $13,915,835

Exercised Options: $13,915,835

Current Obligation: $13,615,974

Actual Outlays: $13,368,396

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,566,486

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