DOI Awards $54.3M to General Dynamics for Landsat Satellite Operations
Contract Overview
Contract Amount: $54,280,537 ($54.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of the Interior
Start Date: 2017-06-29
End Date: 2022-06-22
Contract Duration: 1,819 days
Daily Burn Rate: $29.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IGF::OT::IGF LANDSAT MULTI-SATELLITE OPERATIONS CENTER DEVELOPMENT AND L9 OPERATIONS READINESS
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
Department of the Interior obligated $54.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: IGF::OT::IGF LANDSAT MULTI-SATELLITE OPERATIONS CENTER DEVELOPMENT AND L9 OPERATIONS READINESS Key points: 1. Significant investment in critical Earth observation infrastructure. 2. General Dynamics Mission Systems is a major defense contractor. 3. Potential for cost overruns given Cost Plus Award Fee contract type. 4. Engineering services sector sees substantial federal spending.
Value Assessment
Rating: fair
The Cost Plus Award Fee contract type allows for potential overruns, making direct price comparison difficult. The award amount of $54.3M over five years suggests a significant but not necessarily excessive cost for complex satellite operations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the Cost Plus Award Fee structure may incentivize higher costs to achieve award fees.
Taxpayer Impact: Taxpayer funds are used for essential scientific data collection and national security interests related to Earth observation.
Public Impact
Ensures continuity of vital Landsat satellite data for environmental monitoring and resource management. Supports scientific research and decision-making across various government agencies and the public. Contributes to national capabilities in remote sensing and geospatial intelligence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can lead to higher than anticipated costs.
- Long contract duration increases exposure to potential scope creep or inefficiencies.
- Reliance on a single prime contractor for critical operations.
Positive Signals
- Awarded through full and open competition.
- Supports a critical national asset (Landsat program).
- Contract aims to ensure operational readiness.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting complex aerospace and defense operations. Federal spending in this area is often driven by national security and scientific research needs.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Large prime contractors often subcontract, but direct involvement is not indicated.
Oversight & Accountability
The contract's oversight would typically involve the U.S. Geological Survey ensuring performance metrics and cost controls are met, especially given the Cost Plus Award Fee structure.
Related Government Programs
- Engineering Services
- Department of the Interior Contracting
- U.S. Geological Survey Programs
Risk Flags
- Cost Plus Award Fee structure.
- Long contract duration.
- Potential for contractor cost escalation.
- Reliance on a single prime contractor for critical systems.
Tags
engineering-services, department-of-the-interior, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $54.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. IGF::OT::IGF LANDSAT MULTI-SATELLITE OPERATIONS CENTER DEVELOPMENT AND L9 OPERATIONS READINESS
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, 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 $54.3 million.
What is the period of performance?
Start: 2017-06-29. End: 2022-06-22.
What is the projected cost per year for Landsat operations under this contract?
The total award is $54.3 million over approximately five years (1819 days). This averages to roughly $10.86 million per year. However, the Cost Plus Award Fee structure means actual spending could fluctuate based on performance and incurred costs.
What are the specific risks associated with the Cost Plus Award Fee (CPAF) contract type for this project?
The primary risk with CPAF is that the contractor may incur higher costs to achieve the performance targets that trigger award fees, potentially leading to overall spending exceeding initial estimates. It can also complicate price negotiation and oversight.
How does this contract ensure the long-term effectiveness and reliability of the Landsat program?
The contract focuses on development and operations readiness, implying it addresses immediate needs for system functionality and maintenance. Long-term effectiveness relies on the contractor's ability to meet performance standards and the agency's ongoing oversight of the satellite's lifecycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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 AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corporation
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,280,537
Exercised Options: $54,280,537
Current Obligation: $54,280,537
Actual Outlays: $33,519,596
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: ING17PC00017
IDV Type: IDC
Timeline
Start Date: 2017-06-29
Current End Date: 2022-06-22
Potential End Date: 2022-06-22 00:00:00
Last Modified: 2024-05-10
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