NOAA's $46.4M satellite engineering contract awarded to Arctic Slope Technical Services shows fair value with 2 bids

Contract Overview

Contract Amount: $46,433,197 ($46.4M)

Contractor: Arctic Slope Technical Services, Inc.

Awarding Agency: Department of Commerce

Start Date: 2016-06-29

End Date: 2021-06-28

Contract Duration: 1,825 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF THE SCOPE OF THE CONTRACT WILL BE TO PROVIDE SPACECRAFT AND GROUND SYSTEM SUSTAINING ENGINEERING SUPPORT FOR ENVIRONMENTAL OPERATIONAL SATELLITES OPERATED BY NESDIS UNDER OSPO, SUSTAINING ENGINEERING SUPPORT FOR U.S. INSTRUMENTS ON THE METOP SATELLITES, OPERATIONAL AND GROUND SYSTEMS ENGINEERING SUPPORT FOR JASON-2, ENGINEERING CONFIGURATION MANAGEMENT OF MISSION OPERATIONAL DATABASES AND PRODUCTS FOR ALL CONSTELLATIONS, AND SUPPORT FOR FUTURE OSPO OPERATIONAL ENVIRONMENTAL SATELLITE PROGRAMS TO INCLUDE JASON-3, GOES-R/S/U AND JPSS-1.

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $46.4 million to ARCTIC SLOPE TECHNICAL SERVICES, INC. for work described as: IGF::OT::IGF THE SCOPE OF THE CONTRACT WILL BE TO PROVIDE SPACECRAFT AND GROUND SYSTEM SUSTAINING ENGINEERING SUPPORT FOR ENVIRONMENTAL OPERATIONAL SATELLITES OPERATED BY NESDIS UNDER OSPO, SUSTAINING ENGINEERING SUPPORT FOR U.S. INSTRUMENTS ON THE METOP SATELLITES, OPERATIONAL A… Key points: 1. Contract provides critical sustaining engineering support for environmental operational satellites, ensuring continuity of vital data. 2. The contract's scope covers multiple satellite programs, including METOP, JASON-2, GOES-R/S/U, and JPSS, indicating broad operational impact. 3. Arctic Slope Technical Services, Inc. secured the contract through full and open competition, suggesting a competitive bidding process. 4. The cost-plus-fixed-fee contract type allows for flexibility while managing costs for complex engineering services. 5. Performance period of 5 years (1825 days) aligns with the long-term operational needs of satellite systems. 6. The contract value of approximately $46.4 million over five years suggests a significant investment in maintaining critical space infrastructure.

Value Assessment

Rating: good

The contract value of $46.4 million over five years for sustaining engineering support for environmental satellites appears reasonable given the complexity and criticality of the services. Benchmarking against similar contracts for satellite operations and engineering support would provide a more precise value assessment. The cost-plus-fixed-fee structure, while allowing for cost flexibility, necessitates careful oversight to ensure cost containment. The number of bids received (2) suggests a moderate level of competition, which can influence pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that proposals were solicited from all eligible sources. Two bids were received, which suggests a moderate level of competition. While more bidders could potentially drive prices lower, two bids still provide a basis for price comparison and selection of the most advantageous offer.

Taxpayer Impact: With two bids, taxpayers benefit from a competitive process that likely prevented excessive pricing. However, a higher number of bidders could have potentially led to even greater cost savings.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its National Environmental Satellite, Data, and Information Service (NESDIS), which rely on uninterrupted satellite data for weather forecasting and climate monitoring. Services delivered include crucial engineering support for spacecraft and ground systems, configuration management, and support for future satellite programs. The geographic impact is global, as the data from these environmental satellites informs weather patterns and climate research worldwide. Workforce implications include the employment of skilled engineers and technical personnel required for complex satellite operations and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus-fixed-fee contracts if not managed diligently.
Dependence on a single contractor for critical sustaining engineering could pose a risk if performance issues arise.
The limited number of bidders (2) might indicate potential barriers to entry or a concentrated market for these specialized services.

Positive Signals

Contract ensures continuity of essential environmental satellite data, crucial for national security and public safety.
Arctic Slope Technical Services, Inc. has a track record of supporting government contracts, suggesting experience in this domain.
The contract covers a broad range of vital satellite systems, demonstrating a comprehensive approach to operational support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the aerospace and defense industry's critical space infrastructure. The market for satellite operations and sustaining engineering is highly specialized, often dominated by a few key players with the requisite technical expertise. Spending in this area is driven by the government's need to maintain its constellation of environmental satellites, which are essential for weather forecasting, climate research, and disaster management. Comparable spending benchmarks would likely be found in other large-scale government contracts for satellite ground support and operations.

Small Business Impact

The 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 arising from a small business set-aside. The prime contractor, Arctic Slope Technical Services, Inc., is likely a large business, and their subcontracting plans, if any, would be determined by the terms of the contract and their own business practices.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Oceanic and Atmospheric Administration (NOAA) and the National Environmental Satellite, Data, and Information Service (NESDIS). As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring are essential to ensure that costs are reasonable and that the contractor is meeting all performance requirements. Transparency is facilitated through contract reporting requirements. While specific Inspector General jurisdiction is not detailed, the Department of Commerce's Office of Inspector General would likely have oversight responsibilities for contracts awarded by NOAA.

Related Government Programs

NOAA Satellite Operations
Environmental Satellite Programs
Spacecraft Engineering Support
Ground Systems Engineering
NESDIS Operations
JPSS Program

Risk Flags

Cost-Plus-Fixed-Fee Contract Type
Limited Competition (2 Bidders)
Critical Infrastructure Support
Long-Term Operational Dependence

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $46.4 million to ARCTIC SLOPE TECHNICAL SERVICES, INC.. IGF::OT::IGF THE SCOPE OF THE CONTRACT WILL BE TO PROVIDE SPACECRAFT AND GROUND SYSTEM SUSTAINING ENGINEERING SUPPORT FOR ENVIRONMENTAL OPERATIONAL SATELLITES OPERATED BY NESDIS UNDER OSPO, SUSTAINING ENGINEERING SUPPORT FOR U.S. INSTRUMENTS ON THE METOP SATELLITES, OPERATIONAL AND GROUND SYSTEMS ENGINEERING SUPPORT FOR JASON-2, ENGINEERING CONFIGURATION MANAGEMENT OF MISSION OPERATIONAL DATABASES AND PRODUCTS FOR ALL CONSTELLATIONS, AND SUPPORT FOR FUTURE OSPO OPERATIONAL ENVIRONMENTAL SATELLIT

Who is the contractor on this award?

The obligated recipient is ARCTIC SLOPE TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $46.4 million.

What is the period of performance?

Start: 2016-06-29. End: 2021-06-28.

What is the track record of Arctic Slope Technical Services, Inc. in supporting similar satellite engineering contracts?

Arctic Slope Technical Services, Inc. (ASTS) has a history of performing government contracts, including those related to engineering and technical support. While specific details on past satellite engineering contracts of this exact scope are not provided in the summary data, ASTS has experience supporting various federal agencies. Their ability to secure this contract through full and open competition suggests they met the technical and financial qualifications required. Further investigation into their past performance reviews and contract history with agencies like NOAA or the Department of Defense would provide a more comprehensive understanding of their track record in this specialized area. The fact that they were awarded this significant contract indicates a level of trust and demonstrated capability by the awarding agency.

How does the value of this contract compare to similar satellite sustaining engineering contracts?

The contract value of approximately $46.4 million over five years for sustaining engineering support for environmental operational satellites is substantial, reflecting the complexity and criticality of maintaining space-based assets. To benchmark this value effectively, comparisons would need to be made with contracts for similar services, such as ground system maintenance, spacecraft operations support, and engineering configuration management for other NOAA, NASA, or Department of Defense satellite programs. Factors such as the number of satellites supported, the specific technologies involved, and the duration of the contract are crucial for a fair comparison. Without access to a database of comparable contract values, it is difficult to definitively state whether this represents excellent, fair, or concerning value for money. However, the presence of two bidders suggests a degree of market validation.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns due to the cost-plus-fixed-fee (CPFF) structure, performance failures that could disrupt critical satellite operations, and contractor dependency. CPFF contracts inherently carry a risk of costs exceeding initial estimates if not managed stringently. Performance failures could lead to gaps in vital environmental data, impacting weather forecasting and climate research. Contractor dependency is a risk if the sole provider experiences significant issues. Mitigation strategies likely include robust oversight by NOAA/NESDIS, detailed performance metrics and reporting requirements, regular audits of contractor expenditures, and contingency planning for potential disruptions. The competitive nature of the award, even with two bidders, also provides some leverage.

How effective is the competition level in ensuring optimal pricing and service quality for taxpayers?

The contract was awarded under 'full and open competition after exclusion of sources,' with two bids received. While two bids represent a competitive process, it is not as robust as a situation with numerous bidders, which typically drives prices down more aggressively. However, two bids still provide a basis for price comparison and ensure that the government is not awarding the contract without exploring multiple options. The effectiveness in ensuring optimal pricing and service quality depends on the thoroughness of the evaluation process and the specific terms negotiated within the cost-plus-fixed-fee structure. Taxpayers benefit from the competition that did occur, preventing a sole-source situation, but there may be an opportunity for greater cost savings if more firms were able to bid.

What is the historical spending pattern for similar satellite engineering support services by NOAA or related agencies?

Historical spending patterns for satellite engineering support services by NOAA and related agencies like NASA and the Department of Defense are typically substantial and ongoing, reflecting the long-term commitment required for space programs. These contracts often span multiple years and involve significant dollar amounts due to the specialized nature of the work, the high cost of technology, and the need for continuous operational support. Agencies like NOAA invest heavily in sustaining their environmental satellite fleets (e.g., GOES, JPSS) to ensure uninterrupted data flow for critical applications. Analyzing past contract awards for similar services, such as ground segment operations, mission control, and spacecraft maintenance, would reveal trends in contract values, durations, and the types of contractors typically engaged. This specific contract's value of ~$46.4M over 5 years aligns with the expected scale of such long-term, critical infrastructure support.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AB-133E-16-RP-0019

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR, BELTSVILLE, MD, 20705

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,084,175

Exercised Options: $47,084,175

Current Obligation: $46,433,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline