NOAA's GOES-R Ground System Contract Exceeds $1.8 Billion for Satellite Data Processing

Contract Overview

Contract Amount: $1,826,088,582 ($1.8B)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Commerce

Start Date: 2009-05-27

End Date: 2024-01-31

Contract Duration: 5,362 days

Daily Burn Rate: $340.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE PURPOSE OF THIS CONTRACT IS TO DEVELOP THE GROUND SYSTEM THAT WILL SUPPORT NOAA S NEXT GENERATION GEOSTATIONARY SATELLITE SERIES, GOES-R. THIS NEW SERIES OF SPACECRAFT, SET TO BEGIN LAUNCHING IN 2015, IS EXPECTED TO DOUBLE THE CLARITY OF TODAY S SATELLITE IMAGERY AND PROVIDE AT LEAST 20 TIMES MORE ATMOSPHERIC OBSERVATIONS FROM SPACE. THE CONTRACTOR IS TO DESIGN, DEVELOP, TEST AND IMPLEMENT THE GOES-R GROUND SYSTEM. THE GROUND SYSTEM WILL CAPTURE DATA FROM THE GOES-R SATELLITES, AND PROCESS AND DISTRIBUTE THE INFORMATION TO OPERATIONAL USERS.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32902

State: Florida Government Spending

Plain-Language Summary

Department of Commerce obligated $1.83 billion to L3HARRIS TECHNOLOGIES, INC. for work described as: THE PURPOSE OF THIS CONTRACT IS TO DEVELOP THE GROUND SYSTEM THAT WILL SUPPORT NOAA S NEXT GENERATION GEOSTATIONARY SATELLITE SERIES, GOES-R. THIS NEW SERIES OF SPACECRAFT, SET TO BEGIN LAUNCHING IN 2015, IS EXPECTED TO DOUBLE THE CLARITY OF TODAY S SATELLITE IMAGERY AND PROVIDE … Key points: 1. Contract supports NOAA's next-generation geostationary satellite series, GOES-R, aiming to double imagery clarity and increase atmospheric observations. 2. L3Harris Technologies is the contractor for designing, developing, testing, and implementing the crucial ground system. 3. The system will capture, process, and distribute vital data from GOES-R satellites to operational users. 4. This contract represents a significant investment in enhancing weather forecasting and climate monitoring capabilities.

Value Assessment

Rating: questionable

The contract's Cost Plus Award Fee structure, with a total value exceeding $1.8 billion over its extended period, raises concerns about cost control and potential overruns. Benchmarking against similar complex system development contracts is difficult due to the unique nature of the GOES-R program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which is positive for price discovery. However, the extended duration and cost-plus nature may have diminished the competitive pressure on price over time.

Taxpayer Impact: Taxpayers are funding a critical upgrade to national weather and climate monitoring infrastructure, with the ultimate benefit of improved public safety and economic forecasting.

Public Impact

Enhanced weather forecasting accuracy and lead times, potentially saving lives and reducing property damage. Improved understanding of climate change through more detailed and frequent atmospheric observations. Support for various industries reliant on weather data, such as aviation, agriculture, and energy. Advancement of U.S. leadership in space-based environmental monitoring technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns due to Cost Plus Award Fee structure
Extended contract duration may lead to scope creep or inefficiencies
Potential for vendor lock-in with specialized ground system development

Positive Signals

Supports critical national infrastructure for weather and climate monitoring
Utilizes advanced technology for significantly improved data quality
Awarded through full and open competition

Sector Analysis

This contract falls under Computer Systems Design Services, a sector crucial for managing and processing large datasets. Spending in this area is generally high for government agencies requiring sophisticated data handling capabilities, especially for scientific and operational missions like NOAA's.

Small Business Impact

While the primary contract was awarded to a large business, opportunities for small businesses may exist further down the supply chain as subcontractors for specialized components or services. However, the data does not indicate direct small business participation in this prime contract.

Oversight & Accountability

The extended duration and cost-plus award fee structure necessitate robust oversight to ensure cost efficiency and adherence to program objectives. Regular performance reviews and audits are crucial for accountability.

Related Government Programs

Computer Systems Design Services
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Cost Plus Award Fee structure can lead to cost overruns.
Extended contract duration increases risk of scope creep and inefficiency.
Potential for vendor lock-in due to specialized system development.
Complexity of integrating a new ground system with next-generation satellites.
Reliance on a single prime contractor for a critical national asset.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $1.83 billion to L3HARRIS TECHNOLOGIES, INC.. THE PURPOSE OF THIS CONTRACT IS TO DEVELOP THE GROUND SYSTEM THAT WILL SUPPORT NOAA S NEXT GENERATION GEOSTATIONARY SATELLITE SERIES, GOES-R. THIS NEW SERIES OF SPACECRAFT, SET TO BEGIN LAUNCHING IN 2015, IS EXPECTED TO DOUBLE THE CLARITY OF TODAY S SATELLITE IMAGERY AND PROVIDE AT LEAST 20 TIMES MORE ATMOSPHERIC OBSERVATIONS FROM SPACE. THE CONTRACTOR IS TO DESIGN, DEVELOP, TEST AND IMPLEMENT THE GOES-R GROUND SYSTEM. THE GROUND SYSTEM WILL CAPTURE DATA FROM THE GOES-R SATELLITES, AND PROCESS A

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, 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 $1.83 billion.

What is the period of performance?

Start: 2009-05-27. End: 2024-01-31.

What specific performance metrics are tied to the 'award fee' component, and how are they objectively measured to ensure contractor performance aligns with taxpayer value?

The award fee structure is designed to incentivize contractor performance beyond minimum requirements. Specific metrics typically relate to schedule adherence, technical performance, and quality of deliverables. Objective measurement involves rigorous testing, independent verification, and comparison against pre-defined benchmarks. The agency's oversight team is responsible for evaluating performance against these criteria to determine the award fee amount, ensuring that additional compensation is tied to demonstrable success and value delivered to the government.

Given the contract's length and complexity, what mechanisms are in place to mitigate the risk of technological obsolescence in the ground system by its projected end date?

Mitigating technological obsolescence requires a proactive approach. This contract likely includes provisions for phased development, modular design, and regular technology refresh cycles. The agency should be actively monitoring technological advancements in satellite ground systems and ensuring that the contractor's development roadmap incorporates flexibility to adopt newer, more efficient technologies. Periodic reviews and potential contract modifications to incorporate upgrades are essential to maintain the system's relevance and effectiveness throughout its operational life.

How does the data processing and distribution capability of the GOES-R ground system compare to previous NOAA satellite systems in terms of speed, volume, and accessibility for end-users?

The GOES-R ground system is designed for a significant leap in capability compared to previous NOAA satellite systems. It is expected to process and distribute at least 20 times more atmospheric observations and deliver imagery with double the clarity. This translates to faster data availability, higher resolution imagery, and more comprehensive atmospheric data, enabling more timely and accurate weather forecasts and climate analyses for a wider range of operational users.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 2400 PALM BAY RD NE, PALM BAY, FL, 32905

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: $1,832,957,655

Exercised Options: $1,828,143,138

Current Obligation: $1,826,088,582

Actual Outlays: $27,362,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline