Interior's USGS awards $25.6M contract for Landsat 9 technical support to KBR Wyle Services

Contract Overview

Contract Amount: $25,564,594 ($25.6M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2017-03-01

End Date: 2020-12-01

Contract Duration: 1,371 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF TECHNICAL SUPPORT SERVICES CONTRACT FOR THE EARTH RESOURCES OBSERVATION AND SCIENCE CENTER (EROS), U.S. GEOLOGICAL SURVEY LOCATED IN SIOUX FALLS, SOUTH DAKOTA. TO 73 FOR THE LANDSAT 9 PROJECT.

Place of Performance

Location: SIOUX FALLS, MINNEHAHA County, SOUTH DAKOTA, 57198

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $25.6 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF TECHNICAL SUPPORT SERVICES CONTRACT FOR THE EARTH RESOURCES OBSERVATION AND SCIENCE CENTER (EROS), U.S. GEOLOGICAL SURVEY LOCATED IN SIOUX FALLS, SOUTH DAKOTA. TO 73 FOR THE LANDSAT 9 PROJECT. Key points: 1. Contract provides essential technical support for the Landsat 9 project, crucial for Earth observation. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The contract duration of over three years indicates a significant, ongoing need for services. 4. Performance is tied to the success of the Landsat 9 mission, a key national asset. 5. The IT services category highlights the digital infrastructure supporting Earth science data. 6. KBR Wyle Services, LLC, is the incumbent contractor for these critical support functions.

Value Assessment

Rating: good

The contract value of $25.6 million over approximately three years for technical support services appears reasonable given the scope of supporting a major Earth observation project like Landsat 9. Benchmarking against similar IT support contracts for large-scale scientific missions would provide further context, but the fixed-fee structure suggests a degree of cost control. The absence of extensive modifications or overruns, if applicable, would further support a 'good' rating.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and allows the government to select the best value offer. The competitive nature is a positive sign for cost-effectiveness.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most advantageous pricing and technical solution for essential Earth observation support services.

Public Impact

The primary beneficiaries are the scientists, researchers, and government agencies relying on Landsat 9 data for environmental monitoring, resource management, and climate change research. Services delivered include critical technical support for the Landsat 9 project, ensuring its operational continuity and data integrity. The geographic impact is global, as Landsat data is used worldwide for Earth observation. Workforce implications include the employment of skilled IT and technical support personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-fee structure does not adequately account for unforeseen technical challenges.
Dependence on a single contractor for critical technical support could pose a risk if performance issues arise.
The long duration of the contract may lead to vendor lock-in, potentially limiting future competitive opportunities.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract supports a vital national asset (Landsat 9) contributing to scientific understanding.
The contractor, KBR Wyle Services, LLC, has experience in supporting complex government projects.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer facilities management services. The market for IT support services for large-scale government scientific projects is specialized, often involving contractors with deep technical expertise and security clearances. Spending in this area is driven by the need to maintain and operate complex data acquisition and processing systems, such as those used by the USGS for Earth observation.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The prime contractor, KBR Wyle Services, LLC, would be responsible for its own subcontracting strategy, which may or may not include small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Geological Survey (USGS) contracting officers and program managers. Accountability measures are embedded within the contract's performance work statement and delivery order terms. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Landsat Program
Earth Resources Observation and Science (EROS) Center
NASA Earth Science Programs
NOAA Satellite Operations
Geospatial Data Services

Risk Flags

Potential for cost overruns under CPFF structure.
Dependence on single contractor for critical support.
Need for robust government oversight of costs and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $25.6 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF TECHNICAL SUPPORT SERVICES CONTRACT FOR THE EARTH RESOURCES OBSERVATION AND SCIENCE CENTER (EROS), U.S. GEOLOGICAL SURVEY LOCATED IN SIOUX FALLS, SOUTH DAKOTA. TO 73 FOR THE LANDSAT 9 PROJECT.

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

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 $25.6 million.

What is the period of performance?

Start: 2017-03-01. End: 2020-12-01.

What is the track record of KBR Wyle Services, LLC in supporting similar large-scale government IT and technical services contracts?

KBR Wyle Services, LLC, has a significant history of supporting complex government programs, including those in aerospace, defense, and science. Their experience often involves providing a wide range of technical, engineering, and operational support. For instance, they have been involved in NASA's space operations and other scientific research initiatives. This background suggests a capacity to handle the technical demands of the Landsat 9 project. However, a detailed review of past performance on contracts of similar size and scope, including any past performance issues or awards, would be necessary for a comprehensive assessment. Their ability to manage budgets, meet deadlines, and deliver quality technical support on previous projects is a key indicator of their suitability for this USGS contract.

How does the awarded value of $25.6 million compare to the estimated cost of similar technical support services for Earth observation satellites?

Benchmarking the $25.6 million award for technical support of the Landsat 9 project requires comparison with contracts for similar satellite missions and Earth observation programs. While specific comparable data is not readily available in the provided snippet, contracts supporting major scientific instruments and their data pipelines can range from tens to hundreds of millions of dollars over their lifecycle. Factors influencing cost include the complexity of the technology, the duration of support required, the level of expertise needed (e.g., specialized engineering, data processing), and the security requirements. Given that Landsat 9 is a critical national asset for continuous Earth observation, a multi-year support contract in the tens of millions is plausible. A more precise comparison would involve analyzing the scope of work, contract type (Cost Plus Fixed Fee), and duration against other USGS, NASA, or NOAA contracts for similar satellite ground systems and data support.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for technical support?

The Cost Plus Fixed Fee (CPFF) contract structure presents specific risks for both the government and the contractor. For the government, the primary risk is that the contractor's costs could exceed initial estimates, even though the fee is fixed. If the contractor is inefficient or encounters unforeseen technical challenges, the total cost to the government could be higher than anticipated. This structure incentivizes the contractor to control costs to maximize their profit margin (the fixed fee), but it also requires robust government oversight to ensure costs are reasonable and allocable. The contractor bears the risk of cost overruns if actual expenses exceed the estimated costs, as their fee is capped. Effective risk mitigation involves detailed cost monitoring, clear definition of allowable costs, and strong program management to ensure efficient execution of the technical support services.

How has historical spending on the Landsat program evolved, and does this contract represent a significant shift?

Historical spending on the Landsat program has been substantial, reflecting the long-term commitment to Earth observation. The program, a joint effort between USGS and NASA, involves significant investment in satellite development, launch, and ongoing operations and data management. The $25.6 million awarded to KBR Wyle Services, LLC, for technical support for Landsat 9 represents a component of the overall program's operational and sustainment costs. It is not indicative of a major shift in overall spending but rather a specific allocation for essential technical services for a particular mission phase. Analyzing year-over-year spending on Landsat operations and data processing would provide a clearer picture of trends and how this contract fits within the broader financial landscape of the program.

What are the implications of this contract being awarded to KBR Wyle Services, LLC, for the continuity of Landsat 9 operations?

The award of this contract to KBR Wyle Services, LLC, is crucial for ensuring the continuity of Landsat 9 operations. As the technical support provider, the contractor plays a vital role in maintaining the systems that collect, process, and distribute the satellite's data. Their expertise is essential for troubleshooting issues, performing routine maintenance, and implementing necessary upgrades. The continuity of these services directly impacts the availability and reliability of the invaluable Earth observation data that Landsat 9 provides to researchers and policymakers worldwide. A stable, experienced contractor like KBR Wyle Services, LLC, contributes to minimizing downtime and ensuring that the mission objectives are met throughout the satellite's operational life.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc.

Address: 7701 GREENBELT RD STE 400, GREENBELT, MD, 20770

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

Financial Breakdown

Contract Ceiling: $25,564,594

Exercised Options: $25,564,594

Current Obligation: $25,564,594

Actual Outlays: $7,680,766

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: ING15PC00012

IDV Type: IDC

Timeline