NASA's EOSDIS Core System contract awarded to Raytheon for $607M, spanning 1999-2005

Contract Overview

Contract Amount: $607,157,422 ($607.2M)

Contractor: Raytheon Company

Awarding Agency: National Aeronautics and Space Administration

Start Date: 1999-10-15

End Date: 2005-04-01

Contract Duration: 1,995 days

Daily Burn Rate: $304.3K/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 & INFORMATION SYSTEM (EOSDIS) CORE SYSTEM (ECS)

Place of Performance

Location: SPRINGDALE, PRINCE GEORGE'S County, MARYLAND, 20774, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $607.2 million to RAYTHEON COMPANY for work described as: EARTH OBSERVING SYSTEM DATA & INFORMATION SYSTEM (EOSDIS) CORE SYSTEM (ECS) Key points: 1. Significant investment in Earth observation data systems. 2. Raytheon Company is the sole contractor. 3. Potential for cost overruns given Cost Plus Award Fee structure. 4. IT sector spending focused on data management and systems design.

Value Assessment

Rating: fair

The contract's Cost Plus Award Fee structure allows for potential overruns beyond the base cost. Benchmarking against similar large-scale IT system development contracts is difficult without more granular cost data.

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 Cost Plus Award Fee pricing model may not always yield the lowest possible price.

Taxpayer Impact: Taxpayer funds are supporting critical Earth observation data infrastructure, with potential for cost efficiencies through competitive bidding.

Public Impact

Supports vital scientific research and climate monitoring. Ensures accessibility of crucial Earth science data for researchers globally. Underpins long-term environmental and climate change studies.

Waste & Efficiency Indicators

Waste Risk Score: 65 / 10

Warning Flags

  • Cost Plus Award Fee structure can lead to higher costs.
  • Lack of small business participation noted.

Positive Signals

  • Full and open competition utilized.
  • Supports critical scientific data infrastructure.

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. The $607 million value is substantial for a single system development contract, reflecting the complexity of managing large-scale data systems.

Small Business Impact

The data indicates no small business participation in this contract. This suggests opportunities may have been structured in a way that favored larger prime contractors, potentially limiting small business involvement.

Oversight & Accountability

The contract's oversight would involve monitoring Raytheon's performance against award fee criteria and ensuring adherence to cost controls. NASA's contracting office is responsible for this oversight.

Related Government Programs

  • Computer Systems Design Services
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Cost Plus Award Fee structure.
  • No small business participation.
  • Long contract duration may increase risk.
  • Potential for scope creep.

Tags

computer-systems-design-services, national-aeronautics-and-space-administr, md, dca, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $607.2 million to RAYTHEON COMPANY. EARTH OBSERVING SYSTEM DATA & INFORMATION SYSTEM (EOSDIS) CORE SYSTEM (ECS)

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 $607.2 million.

What is the period of performance?

Start: 1999-10-15. End: 2005-04-01.

What was the final cost compared to the initial estimated cost, and how did award fees impact the total expenditure?

The provided data shows the awarded amount but not the final expenditure. Understanding the final cost relative to initial estimates and the specific impact of award fees is crucial for assessing value for money. Without this, it's difficult to determine if the 'award' aspect truly incentivized efficiency or simply increased the total payout.

What specific performance metrics were used for the award fee structure, and how were they measured?

The effectiveness of the award fee structure hinges on the clarity and measurability of its performance metrics. Knowing these metrics (e.g., system uptime, data accuracy, delivery timeliness) and how NASA assessed Raytheon's performance against them is key to understanding if the fee truly reflected exceptional service or was awarded based on less stringent criteria.

Were there any identified risks related to data security or system integrity during the contract period, and how were they mitigated?

Given the critical nature of Earth observation data, potential risks to data security and system integrity are paramount. Information on any identified risks, the mitigation strategies employed by Raytheon, and NASA's oversight of these measures would provide insight into the contract's effectiveness in safeguarding vital scientific information.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 1616 MCCORMICK DR, UPPER MARLBORO, MD, 20774

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

Financial Breakdown

Contract Ceiling: $1,181,042,840

Exercised Options: $1,181,042,840

Current Obligation: $607,157,422

Timeline

Start Date: 1999-10-15

Current End Date: 2005-04-01

Potential End Date: 2005-04-01 00:00:00

Last Modified: 2015-09-28

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