DoD's $192M GEOINT Cloud Contract with Maxar Raises Questions on Value and Competition

Contract Overview

Contract Amount: $19,225,339 ($19.2M)

Contractor: Maxar Mission Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2019-08-08

End Date: 2022-09-07

Contract Duration: 1,126 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RED WING NEXT GENERATION GEOINT CLOUD

Place of Performance

Location: YPSILANTI, WASHTENAW County, MICHIGAN, 48197

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to MAXAR MISSION SOLUTIONS INC for work described as: RED WING NEXT GENERATION GEOINT CLOUD Key points: 1. Significant investment in advanced GEOINT cloud capabilities. 2. Maxar Mission Solutions Inc. secured the contract. 3. Potential concerns regarding the effectiveness of the cost-plus-fixed-fee structure. 4. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 5. Limited information available on specific performance metrics and taxpayer impact.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. Without detailed performance data, it's difficult to assess if the $192.25M spent represents excellent value compared to similar R&D contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing strategies and how they were evaluated to ensure the best price are not detailed.

Taxpayer Impact: The substantial cost of this R&D contract warrants scrutiny to ensure taxpayer funds are used efficiently and effectively for national security objectives.

Public Impact

Enhances national security through advanced geospatial intelligence. Supports critical defense operations with cloud-based data. Potential for technological advancements in satellite imagery analysis. Long-term implications for the defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can incentivize higher costs.
Lack of detailed performance metrics makes value assessment difficult.
No indication of small business participation.

Positive Signals

Awarded under full and open competition.
Addresses critical national security needs.
Invests in advanced cloud and GEOINT technology.

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS code 541715. Spending in this area is crucial for maintaining technological superiority, but often involves higher risk and less predictable outcomes compared to procurement contracts.

Small Business Impact

The data indicates that small businesses were not involved in this contract (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small business participation in this significant R&D effort.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is critical for CPFF contracts to manage costs and ensure deliverables meet requirements.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Overruns Potential (CPFF)
Lack of Measurable Performance Metrics
No Small Business Participation
Limited Transparency on Value Proposition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to MAXAR MISSION SOLUTIONS INC. RED WING NEXT GENERATION GEOINT CLOUD

Who is the contractor on this award?

The obligated recipient is MAXAR MISSION SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2019-08-08. End: 2022-09-07.

What specific technological advancements or capabilities were achieved with the $192.25M investment in the RED WING NEXT GENERATION GEOINT CLOUD?

Without detailed performance reports or a public breakdown of deliverables, it is challenging to quantify the specific technological advancements. The contract's R&D nature suggests the goal was to develop next-generation capabilities, but the tangible outcomes and their impact on the GEOINT mission require further disclosure to assess the return on investment.

How effectively did the full and open competition process ensure competitive pricing for this complex R&D contract?

While 'full and open competition' indicates a broad solicitation, the effectiveness in achieving competitive pricing for R&D is harder to gauge. The Cost Plus Fixed Fee structure, while allowing flexibility, can sometimes lead to less aggressive price negotiation compared to fixed-price contracts. A thorough review of the bidding process and awarded price against independent cost estimates would be necessary.

What is the long-term strategic value of this GEOINT cloud investment for the Department of Defense?

The long-term strategic value lies in enhancing the DoD's ability to process, analyze, and disseminate critical geospatial intelligence. A next-generation cloud infrastructure is essential for leveraging AI/ML, handling vast datasets, and providing timely intelligence to warfighters. The success of this investment hinges on its ability to adapt to evolving threats and technological advancements.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA875017S7004

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Stratagem Group LLC

Address: 1200 JOE HALL DR, YPSILANTI, MI, 48197

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,225,339

Exercised Options: $19,225,339

Current Obligation: $19,225,339

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $189,540

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline