NOAA's $23.7M R&D Contract for Earth Observation Sensors Awarded to Earth Resources Technology, LLC

Contract Overview

Contract Amount: $23,680,726 ($23.7M)

Contractor: Earth Resources Technology, LLC

Awarding Agency: Department of Commerce

Start Date: 2012-09-21

End Date: 2018-06-20

Contract Duration: 2,098 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: OT SENSOR

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98115

State: Washington Government Spending

Plain-Language Summary

Department of Commerce obligated $23.7 million to EARTH RESOURCES TECHNOLOGY, LLC for work described as: OT SENSOR Key points: 1. Contract focused on research and development for earth observation sensors, aligning with NOAA's mission. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of nearly 6 years indicates a significant, long-term investment. 4. Time and Materials pricing structure may pose cost control challenges if not closely managed. 5. The contract's value is substantial within the R&D sector for physical and engineering sciences. 6. Performance occurred primarily in Washington, D.C., indicating a localized impact. 7. The contract was awarded as a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

The contract's value of $23.7 million over nearly six years for R&D in physical and engineering sciences is substantial. Benchmarking this specific R&D effort against similar contracts is challenging due to the specialized nature of earth observation sensors. The Time and Materials (T&M) pricing structure, while flexible for evolving research needs, can present risks for cost overruns if not meticulously monitored. Without detailed performance metrics or comparison data, assessing the precise value-for-money is difficult, but the duration suggests a sustained need for these specialized R&D services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'Full and Open Competition After Exclusion of Sources' mechanism, indicating that multiple bidders were likely considered after an initial exclusion period. The presence of 5 bids suggests a moderate level of competition for this specialized R&D requirement. While not a completely unrestricted open competition, it implies that the agency sought to ensure a competitive environment to obtain the best value.

Taxpayer Impact: The competitive nature of the award, despite the exclusion clause, likely helped taxpayers by ensuring that Earth Resources Technology, LLC's pricing was scrutinized against other potential providers, potentially leading to a more favorable outcome than a sole-source award.

Public Impact

Benefits NOAA's mission to understand and predict changes in climate, weather, oceans, and coasts through advanced sensor technology. Delivers critical research and development services for the advancement of earth observation capabilities. Geographic impact is primarily centered in Washington, D.C., where the contractor performed the work. Supports a specialized workforce in the fields of physical sciences, engineering, and R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost escalation if not managed rigorously.
The specialized nature of R&D makes direct cost comparisons difficult, potentially obscuring inefficiencies.
Long contract duration requires sustained oversight to ensure continued relevance and value.
Performance data is not readily available to assess the effectiveness of the R&D outcomes.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
The contract supports NOAA's core mission-critical R&D objectives.
The contractor, Earth Resources Technology, LLC, has a track record with federal contracts.
The contract duration suggests a stable, long-term need for these services.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). The market for earth observation sensors is highly specialized, driven by government agencies like NOAA, NASA, and defense departments, as well as commercial entities involved in remote sensing and geospatial data. Spending in this niche R&D area is often project-specific and tied to technological advancements and national priorities in environmental monitoring and scientific research.

Small Business Impact

The contract was awarded to Earth Resources Technology, LLC, and there is no explicit indication of a small business set-aside. The value of the contract suggests it was likely competed among established firms capable of handling large-scale R&D projects. Subcontracting opportunities for small businesses may exist, but are not detailed in the provided data. The primary focus appears to be on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NOAA Satellite Operations
NASA Earth Science Research
Department of Defense Sensor Development
National Science Foundation Research Grants

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Difficulty in benchmarking specialized R&D costs.
Need for sustained government oversight over the contract's duration.
Limited public information on specific R&D outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $23.7 million to EARTH RESOURCES TECHNOLOGY, LLC. OT SENSOR

Who is the contractor on this award?

The obligated recipient is EARTH RESOURCES TECHNOLOGY, LLC.

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 $23.7 million.

What is the period of performance?

Start: 2012-09-21. End: 2018-06-20.

What is the track record of Earth Resources Technology, LLC with federal contracts, particularly in R&D for sensor technology?

Earth Resources Technology, LLC has a history of federal contracting, primarily with agencies like NOAA and the Department of Commerce. Their involvement in R&D, particularly concerning earth observation and sensor technology, aligns with the nature of this contract. Reviewing their past performance on similar projects, including adherence to schedules, budget management, and technical success, would provide further insight into their capabilities and reliability. Data from contract databases often shows a pattern of awards and performance history, which can be analyzed for consistency and quality of delivery across different contracts.

How does the $23.7 million contract value compare to similar R&D efforts in earth observation sensors?

Benchmarking the $23.7 million contract value for earth observation sensor R&D is complex due to the specialized and often unique nature of such projects. However, this figure represents a significant investment, suggesting a substantial scope of work or a long-term research objective. Comparable contracts might involve developing new satellite-based instruments, advanced ground-based sensor networks, or novel data processing algorithms for environmental monitoring. The value should be assessed against the technological advancements sought, the duration of the research, and the number of bids received, which indicated moderate competition. Without access to specific project details and market analyses for sensor R&D, a precise comparison is difficult, but the amount suggests a project of considerable national importance.

What are the primary risks associated with a Time and Materials (T&M) contract for R&D in this sector?

The primary risk with a Time and Materials (T&M) contract for R&D in sensor technology is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and materials used, plus a fee. If project scope creeps, inefficiencies arise, or labor rates increase unexpectedly, the total cost can escalate beyond initial estimates. For R&D, where the path to innovation is often uncertain, T&M offers flexibility but requires stringent oversight from the government to monitor hours, control material costs, and ensure efficient progress. Without robust government oversight, the contractor may have less incentive to control costs, potentially leading to a higher overall expenditure for taxpayers.

How effective has NOAA been in managing R&D contracts of this magnitude and duration?

Assessing NOAA's overall effectiveness in managing R&D contracts of this magnitude requires a broader analysis of their procurement history and program outcomes. NOAA manages numerous complex research and development initiatives critical to its mission. The success of individual contracts like this one depends heavily on the specific program managers, contracting officers, and the oversight mechanisms in place. Factors such as clear statement of work, regular performance reviews, and proactive risk management are crucial. While this contract ran for nearly six years, indicating sustained need and presumably satisfactory performance, a comprehensive evaluation would involve examining a portfolio of NOAA's R&D contracts to identify trends in cost, schedule, and technical achievement.

What is the historical spending pattern for earth observation sensor R&D within the Department of Commerce?

Historical spending patterns for earth observation sensor R&D within the Department of Commerce, particularly through NOAA, reflect a consistent investment in advancing scientific understanding and operational capabilities. This spending is driven by the need for improved climate monitoring, weather forecasting, and environmental management. Over the years, budgets have allocated significant resources towards developing next-generation satellite instruments, data acquisition technologies, and analytical tools. Fluctuations in spending can be attributed to specific program cycles, technological breakthroughs, and evolving national priorities. Analyzing multi-year spending data would reveal trends in funding levels, the types of research prioritized, and the key contractors involved in this specialized domain.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6100 FROST PL STE A, LAUREL, MD, 20707

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $24,744,564

Exercised Options: $24,744,564

Current Obligation: $23,680,726

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCDG133E12CQ0020

IDV Type: IDC

Timeline