DOI's Landsat Contract Awarded to Leidos for $15.3M, Aiming for Data Continuity

Contract Overview

Contract Amount: $15,355,505 ($15.4M)

Contractor: Leidos, Inc.

Awarding Agency: Department of the Interior

Start Date: 2008-04-01

End Date: 2011-06-02

Contract Duration: 1,157 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: LANDSAT DATA CONTINUITY CONTRACT

Place of Performance

Location: SIOUX FALLS, MINNEHAHA County, SOUTH DAKOTA, 57198, UNITED STATES OF AMERICA

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $15.4 million to LEIDOS, INC. for work described as: LANDSAT DATA CONTINUITY CONTRACT Key points: 1. The contract focuses on ensuring the continuity of Landsat data, a critical national asset. 2. Leidos, Inc. secured the award, indicating their competitive position in geospatial services. 3. The primary risk lies in potential disruptions to data continuity if contract performance falters. 4. The sector involves critical earth observation and remote sensing services.

Value Assessment

Rating: fair

The contract's cost-plus award fee structure allows for flexibility but requires careful monitoring to ensure cost-effectiveness. Benchmarking against similar data continuity contracts is difficult without more specific performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: Taxpayer funds are used to ensure the uninterrupted availability of vital Landsat data, supporting numerous scientific and commercial applications.

Public Impact

Ensures continued access to invaluable satellite imagery for environmental monitoring, climate research, and disaster management. Supports scientific research and commercial applications reliant on long-term, consistent Earth observation data. Maintains a critical national capability in remote sensing and geospatial intelligence.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting critical earth observation infrastructure. Spending benchmarks for similar data continuity contracts are not readily available, but the amount reflects the complexity and importance of the Landsat program.

Small Business Impact

The data provided does not indicate specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to assess small business involvement.

Oversight & Accountability

The U.S. Geological Survey is responsible for overseeing this contract. The cost-plus award fee structure necessitates diligent oversight to ensure performance and cost control.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-the-interior, sd, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $15.4 million to LEIDOS, INC.. LANDSAT DATA CONTINUITY CONTRACT

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 2008-04-01. End: 2011-06-02.

What specific performance metrics are used to determine award fees, and how do they ensure value for money?

The contract utilizes a Cost Plus Award Fee (CPAF) structure, implying performance metrics are tied to achieving specific technical, schedule, and cost objectives. The 'award fee' component is determined by the government's assessment of contractor performance against these pre-defined criteria. While this incentivizes good performance, the exact metrics and their weighting are crucial for ensuring value. Without detailed insight into these metrics, it's difficult to definitively assess if the fee structure maximizes taxpayer value.

What are the contingency plans if Leidos fails to meet critical performance requirements for data continuity?

Contingency plans typically involve contract remedies such as withholding award fees, issuing cure notices, or potentially terminating the contract for default. The government would likely have pre-identified alternative solutions or contractors to ensure minimal disruption to Landsat data services. However, the transition to an alternative could still involve significant costs and potential data gaps, highlighting the inherent risk in relying on a single entity for such a critical national asset.

How does the cost-plus award fee structure compare to fixed-price contracts for similar services in terms of overall cost-effectiveness?

Cost-plus award fee contracts offer flexibility for complex projects where scope may evolve, potentially leading to better technical outcomes. However, they generally carry a higher risk of cost overruns compared to fixed-price contracts, as the government bears the cost of performance. While the award fee mechanism incentivizes efficiency, fixed-price contracts often provide greater cost certainty for taxpayers, assuming the scope is well-defined upfront. The effectiveness depends heavily on the specific project's nature and the government's ability to manage the CPAF structure.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 08HQSS0009

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121

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

Financial Breakdown

Contract Ceiling: $15,435,265

Exercised Options: $15,435,265

Current Obligation: $15,355,505

Timeline

Start Date: 2008-04-01

Current End Date: 2011-06-02

Potential End Date: 2012-04-30 00:00:00

Last Modified: 2015-06-29

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