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 Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Space 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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