NASA awards Raytheon $252.8M contract for Earth Observing System Data and Information System Evolution and Development
Contract Overview
Contract Amount: $252,766,463 ($252.8M)
Contractor: Raytheon Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2021-08-01
End Date: 2026-07-31
Contract Duration: 1,825 days
Daily Burn Rate: $138.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: EARTH OBSERVING SYSTEM DATA AND INFORMATION SYSTEM (EOSDIS) EVOLUTION AND DEVELOPMENT (EED)-3 EOSDIS EED-3 SERVICES
Place of Performance
Location: RIVERDALE, PRINCE GEORGES County, MARYLAND, 20737
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $252.8 million to RAYTHEON COMPANY for work described as: EARTH OBSERVING SYSTEM DATA AND INFORMATION SYSTEM (EOSDIS) EVOLUTION AND DEVELOPMENT (EED)-3 EOSDIS EED-3 SERVICES Key points: 1. Contract value represents significant investment in critical Earth science data infrastructure. 2. Full and open competition suggests a robust market for these specialized IT services. 3. Cost Plus Award Fee structure incentivizes performance but requires careful oversight. 4. Contract duration of five years allows for long-term development and sustainment. 5. Focus on system evolution and development indicates a need for ongoing modernization. 6. Geographic concentration in Maryland may point to specific NASA facility needs.
Value Assessment
Rating: good
The contract value of $252.8 million over five years for IT system design services appears reasonable given the critical nature of NASA's Earth Observing System Data and Information System (EOSDIS). Benchmarking against similar large-scale, long-term IT development contracts for federal agencies suggests this pricing is within expected ranges. The Cost Plus Award Fee (CPAF) structure, while potentially leading to higher costs than fixed-price contracts, allows for flexibility in evolving requirements and incentivizes contractor performance through award fees, which can drive value if managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though the exact number of bidders is relatively low for a contract of this magnitude. This level of competition is generally positive for price discovery, as it encourages bidders to offer competitive terms to secure the award. However, further analysis would be needed to determine if the market truly supported more bidders.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, potentially leading to better value for the government's investment.
Public Impact
Benefits NASA's Earth science research by ensuring the continued evolution and development of its data and information systems. Supports the delivery of critical Earth observation data to scientists, policymakers, and the public. Impacts the scientific community globally by providing access to vital climate, weather, and environmental data. Workforce implications include specialized IT and systems engineering roles within the contractor organization and potentially at NASA facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts require diligent oversight to ensure award fees are earned based on objective performance metrics and not inflated costs.
- The limited number of bidders (two) warrants monitoring to ensure sufficient market competition is maintained for future procurements in this area.
- Dependence on a single contractor for critical system evolution could pose a risk if contractor performance falters or if key personnel depart.
Positive Signals
- Awarding under full and open competition signals a commitment to leveraging the broadest possible market for solutions.
- The five-year contract duration allows for sustained focus and development, potentially leading to more robust and stable system enhancements.
- The Cost Plus Award Fee structure, if managed well, can align contractor incentives with NASA's performance goals.
Sector Analysis
The Earth Observing System Data and Information System (EOSDIS) is a cornerstone of NASA's Earth science mission, providing essential data management and distribution capabilities. This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The market for such specialized IT support for large-scale scientific data systems is often dominated by a few key players with demonstrated expertise in handling complex, mission-critical infrastructure. Comparable spending benchmarks for similar federal IT modernization and sustainment contracts can vary widely but often run into hundreds of millions of dollars over several years.
Small Business Impact
This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor, Raytheon Company, is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the work packages. Analysis of subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this Cost Plus Award Fee contract will be critical, focusing on the achievement of performance objectives that trigger award fees. NASA's contracting officers and technical representatives will be responsible for monitoring contractor performance, costs, and adherence to the contract terms. Transparency will be facilitated through regular reporting requirements and contract reviews. While specific Inspector General (IG) jurisdiction is not detailed here, NASA's Office of Inspector General typically has oversight authority over NASA contracts to ensure efficiency and prevent fraud, waste, and abuse.
Related Government Programs
- NASA Earth Science Division Programs
- NASA Advanced Information Systems Contracts
- Federal Civilian IT Modernization Initiatives
- Large-Scale Data Management Systems Contracts
Risk Flags
- Cost Plus Award Fee structure requires robust performance monitoring.
- Potential for limited competition in highly specialized IT sectors.
- Cybersecurity risks associated with large data systems.
- Dependency on contractor performance for critical system evolution.
Tags
nasa, it-services, computer-systems-design, full-and-open-competition, cost-plus-award-fee, large-contract, earth-science, data-management, maryland, raytheon-company, system-evolution, information-systems
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $252.8 million to RAYTHEON COMPANY. EARTH OBSERVING SYSTEM DATA AND INFORMATION SYSTEM (EOSDIS) EVOLUTION AND DEVELOPMENT (EED)-3 EOSDIS EED-3 SERVICES
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $252.8 million.
What is the period of performance?
Start: 2021-08-01. End: 2026-07-31.
What is Raytheon Company's track record with NASA, particularly on large-scale IT development contracts?
Raytheon Company, now part of RTX, has a long history of contracting with NASA and other federal agencies on complex technology and IT programs. Their experience spans various domains, including space exploration, defense systems, and IT infrastructure. For NASA specifically, Raytheon has been involved in numerous projects related to mission operations, data processing, and systems engineering. While specific details on past EOSDIS-related contracts would require deeper investigation, Raytheon's general profile suggests they possess the technical capabilities and experience necessary for a contract of this nature. Performance on previous large contracts, including adherence to schedule, budget, and technical requirements, would be a key indicator of their suitability and potential success on the EOSDIS EED-3 Services contract. Reviewing past performance evaluations and any documented issues or commendations would provide further insight.
How does the $252.8 million contract value compare to historical spending on EOSDIS evolution and development?
To accurately compare the $252.8 million contract value to historical spending on EOSDIS evolution and development, a detailed analysis of past NASA budgets and contract awards related to EOSDIS would be necessary. This would involve examining contract databases and NASA's historical financial reports to identify previous investments in system upgrades, maintenance, and new development phases for EOSDIS. Without this specific historical data, a direct comparison is difficult. However, given the increasing complexity of data management, the need for advanced analytics, and the ongoing modernization of IT infrastructure across government, it is plausible that investments in critical systems like EOSDIS would continue to be substantial. The five-year duration of this contract suggests a significant, ongoing commitment to the system's lifecycle.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for this type of IT development?
The primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for IT development, such as the EOSDIS EED-3 Services contract, revolve around cost control and the potential for contractor inefficiency. In a CPAF arrangement, the contractor is reimbursed for allowable costs plus a fee that consists of a fixed base amount and an award amount that is earned based on meeting or exceeding performance objectives. The risk for the government is that the contractor may have less incentive to control costs rigorously compared to a fixed-price contract, as costs are reimbursed. Furthermore, the award fee determination process requires robust and objective performance metrics; if these are poorly defined or managed, the government might pay higher fees than warranted, or conversely, fail to adequately reward exceptional performance. Diligent oversight, clear performance standards, and rigorous evaluation are essential to mitigate these risks and ensure the government receives good value.
How effective is the 'full and open competition' approach likely to be in ensuring the best value for this NASA contract?
The 'full and open competition' approach is generally considered the most effective method for ensuring the best value for government contracts, including this NASA IT development contract. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing, innovative technical solutions, and a wider range of capabilities. This broad competition drives down prices as contractors vie for the award. For a complex system like EOSDIS, full and open competition ensures that NASA can select the offeror best suited to meet its evolving technical requirements and performance objectives. The fact that two bids were received indicates a level of competition, though assessing its full effectiveness would involve understanding the market size and the capabilities of the bidders.
What are the potential performance challenges or indicators of concern for the EOSDIS Evolution and Development contract?
Potential performance challenges for the EOSDIS Evolution and Development contract could include scope creep, integration issues with existing systems, cybersecurity vulnerabilities, and delays in delivering key functionalities. Given the complexity of evolving a large-scale data system, managing changes effectively and ensuring seamless integration are critical. Cybersecurity is paramount, as EOSDIS handles vast amounts of sensitive Earth science data. Delays in development or deployment could impact the availability and usability of crucial data for researchers. Indicators of concern would include frequent change requests not adequately justified, missed milestones, negative feedback from system users, security incidents, or cost overruns that are not clearly attributable to unforeseen circumstances. The CPAF structure also means that failure to meet performance targets could result in reduced award fees, serving as an early warning signal.
How does this contract align with NASA's broader strategic goals for Earth science and data management?
This contract directly aligns with NASA's strategic goals for Earth science and data management by ensuring the continued modernization, evolution, and operational effectiveness of the Earth Observing System Data and Information System (EOSDIS). EOSDIS is fundamental to NASA's mission of understanding Earth as a complex, interconnected system and to advancing knowledge about its climate, weather, and natural hazards. By investing in the evolution and development of EOSDIS, NASA is enabling the acquisition, processing, distribution, and long-term stewardship of critical Earth observation data. This supports a wide range of scientific research, informs policy decisions, and provides valuable information to the public. The contract's focus on development ensures that EOSDIS remains a state-of-the-art platform capable of handling new data streams and analytical requirements, thereby supporting NASA's ongoing commitment to Earth science exploration and application.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 80GSFC20R0026
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 5700 RIVERTECH CT, RIVERDALE, MD, 20737
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $275,000,000
Exercised Options: $275,000,000
Current Obligation: $252,766,463
Actual Outlays: $229,326,363
Subaward Activity
Number of Subawards: 78
Total Subaward Amount: $16,069,938
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-08-01
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-01-23
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