USGS awards $185M contract for Landsat satellite instrument, ensuring critical land imaging data continuity

Contract Overview

Contract Amount: $185,379,119 ($185.4M)

Contractor: BAE Systems Space & Mission Systems Inc.

Awarding Agency: Department of the Interior

Start Date: 2007-07-20

End Date: 2013-05-31

Contract Duration: 2,142 days

Daily Burn Rate: $86.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: THIS PROCUREMENT IS FOR THE OLI INSTRUMENT FOR THE NEXT SPACECRAFT IN THE LANDSAT SERIES OF SATELLITES. THIS PROCUREMENT WILL RESULT IN THE AWARD OF A SINGLE COST-PLUS-AWARD-FEE (CPAF) CONTRACT WITH A PERFORMANCE INCENTIVE. LANDSAT SATELLITES HAVE PROVIDED THE ONLY CONTINUOUS LAND IMAGES SINCE 1972; THE ARCHIVE OF THESE IMAGES IS IN THE CARE OF THE USGS. THE OLI INSTRUMENT IS SCHEDULED TO BE LAUNCHED ON THE LANDSAT SATELLITE IN 2011. PUBLIC LAW 102-155, LAND REMOTE SENSING POLICY ACT OF 1992, STATES THAT NASA MUST MAINTAIN LANDSAT DATA CONTINUITY, AND PUBLIC LAW 105-303, COMMERCIAL SPACE ACT OF 1998, STATES THAT NASA SHOULD ACQUIRE REMOTE SENSING DATA. WHILE COMPLIANCE WITH THE LAWS IS REQUIRED FROM NASA, THE DEVELOPMENT OF LANDSAT IS DONE THROUGH A PARTNERSHIP WITH THE USGS FOR SATELLITE OPERATIONS AND DATA COLLECTION. FOLLOWING LAUNCH AND ACCEPTANCE OF THE LANDSAT SATELLITE, THE CONTRACT WILL BE TRANSITIONED TO USGS FOR SATELLITE OPERATIONS AND DATA COLLECTION.

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80301

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $185.4 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: THIS PROCUREMENT IS FOR THE OLI INSTRUMENT FOR THE NEXT SPACECRAFT IN THE LANDSAT SERIES OF SATELLITES. THIS PROCUREMENT WILL RESULT IN THE AWARD OF A SINGLE COST-PLUS-AWARD-FEE (CPAF) CONTRACT WITH A PERFORMANCE INCENTIVE. LANDSAT SATELLITES HAVE PROVIDED THE ONLY CONTINUOUS L… Key points: 1. Contract ensures continuity of vital land imaging data, a federal mandate. 2. Sole contractor BAE Systems Space & Mission Systems Inc. will provide the OLI instrument. 3. Performance-based contract structure incentivizes successful delivery. 4. Long-standing Landsat program history underscores the importance of this procurement. 5. Procurement aligns with legislative mandates for land remote sensing data. 6. Potential for cost overruns inherent in Cost-Plus-Award-Fee contracts.

Value Assessment

Rating: fair

The total contract value of $185.4 million for the OLI instrument is substantial, reflecting the complexity and criticality of the technology. Benchmarking this specific instrument's cost is challenging without detailed technical specifications and market comparisons for similar advanced sensor systems. However, given the Landsat program's long history and the specialized nature of the OLI instrument, the pricing appears to be within a reasonable range for such a high-stakes, technologically advanced component. The Cost-Plus-Award-Fee structure allows for flexibility but also necessitates careful oversight to ensure value for money.

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 data shows 3 bids were received. While the specific number of bidders is not excessively high, full and open competition generally promotes a competitive environment that can lead to better pricing and innovation. The selection of BAE Systems suggests they offered the best value proposition among the competing entities.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs and improving the quality of the final product through innovation.

Public Impact

The primary beneficiaries are federal agencies like the USGS and NASA, who rely on Landsat data for environmental monitoring, resource management, and scientific research. The contract delivers a critical instrument (OLI) for the next Landsat satellite, ensuring the continuation of a 40-year archive of global land surface imagery. The geographic impact is global, as Landsat satellites provide continuous imagery of the Earth's landmasses. The procurement supports a specialized segment of the aerospace and defense workforce involved in satellite instrument development and manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-Plus-Award-Fee contracts can lead to cost overruns if not managed tightly.
Reliance on a single contractor for a critical component poses supply chain risk.
The long duration of the contract (over 5 years) increases exposure to potential performance issues or changing technological landscapes.

Positive Signals

Awarding to BAE Systems, a known entity in space and mission systems, suggests a level of confidence in their capabilities.
The contract includes performance incentives, which can drive contractor focus on quality and timely delivery.
The Landsat program's established track record and importance provide a strong framework for successful execution.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on satellite technology and instrumentation. The market for such specialized components is relatively niche, dominated by a few key players with the requisite expertise. The total value of $185.4 million is significant for a single instrument procurement, reflecting the advanced technology and rigorous testing required for space-based assets. Comparable spending benchmarks would typically involve other national satellite programs or major scientific space missions.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the highly specialized nature of developing a satellite instrument like the OLI, it is likely that large, experienced aerospace contractors are best positioned to fulfill the requirements. There is no explicit information regarding subcontracting plans for small businesses, but it is common for large prime contractors in this sector to engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Geological Survey (USGS) and potentially NASA, given the program's history and interagency collaboration. As a Cost-Plus-Award-Fee contract, performance metrics and cost controls would be key areas of scrutiny. The contract's structure with award fees necessitates regular reviews of contractor performance against defined milestones and objectives. Transparency would be facilitated through standard government reporting mechanisms for major procurements.

Related Government Programs

Landsat Program
Earth Observation Satellites
Remote Sensing Technology
NASA Space Missions
USGS Data Management

Risk Flags

Potential for cost overruns due to CPAF contract type.
Risk of technical issues with advanced sensor development.
Dependence on a single contractor for a critical component.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $185.4 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. THIS PROCUREMENT IS FOR THE OLI INSTRUMENT FOR THE NEXT SPACECRAFT IN THE LANDSAT SERIES OF SATELLITES. THIS PROCUREMENT WILL RESULT IN THE AWARD OF A SINGLE COST-PLUS-AWARD-FEE (CPAF) CONTRACT WITH A PERFORMANCE INCENTIVE. LANDSAT SATELLITES HAVE PROVIDED THE ONLY CONTINUOUS LAND IMAGES SINCE 1972; THE ARCHIVE OF THESE IMAGES IS IN THE CARE OF THE USGS. THE OLI INSTRUMENT IS SCHEDULED TO BE LAUNCHED ON THE LANDSAT SATELLITE IN 2011. PUBLIC LAW 102-155, LAND REMOTE SENSING POLICY ACT OF 1992

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS SPACE & 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 $185.4 million.

What is the period of performance?

Start: 2007-07-20. End: 2013-05-31.

What is the historical performance of BAE Systems Space & Mission Systems Inc. on similar government contracts, particularly those involving satellite instruments?

BAE Systems is a major defense and aerospace contractor with a long history of delivering complex systems. While specific performance data for this exact contract is not available as it's a future award, the company has a track record in space systems, including satellite components and ground support. Their experience with previous Landsat missions or similar NASA/DoD programs would be a key indicator of their capability. A thorough review would involve examining past contract performance reports (e.g., CPARS), any past performance issues, and their success rate in meeting cost, schedule, and technical requirements on comparable projects. Given their established presence, it's likely they have demonstrated competence, but a deep dive into their specific history related to advanced sensor development is crucial for a complete assessment.

How does the estimated cost of the OLI instrument compare to previous Landsat instruments or similar remote sensing payloads from other agencies?

Direct cost comparisons are difficult without knowing the exact specifications and technological advancements of the OLI instrument relative to its predecessors or comparable payloads. However, the $185.4 million figure for a single, advanced satellite instrument is substantial. Previous Landsat instruments, developed in different technological eras and with varying capabilities, would have different cost structures. For instance, the Landsat 7 Enhanced Thematic Mapper Plus (ETM+) instrument development costs would need to be adjusted for inflation and technological complexity. Similarly, comparing to instruments on other agency satellites (e.g., NOAA's GOES or NASA's Earth Observing System) requires careful normalization for mission scope, sensor type, and development lifecycle. The Cost-Plus-Award-Fee structure suggests that the final cost could vary, making a precise benchmark challenging until project completion.

What are the primary technical risks associated with the OLI instrument, and how are they being mitigated by the contract structure and contractor selection?

The primary technical risks for the OLI instrument likely revolve around the development of advanced sensor technology, ensuring high reliability for a long-duration space mission, and meeting stringent calibration and data quality requirements. Risks include potential failures in sensitive optical components, integration challenges with the Landsat satellite platform, and achieving the desired signal-to-noise ratio and spectral resolution. The selection of BAE Systems, a company with demonstrated expertise in space systems, is a mitigation strategy. The Cost-Plus-Award-Fee (CPAF) contract structure, with its performance incentives, aims to motivate the contractor to manage these risks effectively and achieve technical success. Clear performance metrics and milestones within the contract will guide the mitigation efforts and allow for early detection of potential issues.

What is the projected impact of this procurement on the continuity and availability of Landsat data for scientific and governmental users?

This procurement is critical for ensuring the continuity of the Landsat data archive, a unique and invaluable resource for global land surface monitoring since 1972. The OLI instrument is designed to provide advanced imaging capabilities, potentially enhancing the quality and types of data available compared to previous missions. By securing this instrument, the program aims to prevent data gaps, which would disrupt long-term trend analysis in areas like deforestation, urban sprawl, agriculture, and climate change impacts. The successful launch and operation of the satellite carrying the OLI will guarantee uninterrupted data flow, supporting a wide range of applications for researchers, policymakers, and resource managers worldwide.

How does the $185.4 million total contract value compare to overall historical spending on the Landsat program?

The $185.4 million allocated for the OLI instrument represents a significant portion of the budget for a single Landsat mission, reflecting the complexity of modern satellite payloads. Historical spending on the Landsat program, which spans over four decades, includes the development, launch, and operation of multiple satellites and their associated instruments. While precise historical figures vary, the total cost for individual Landsat missions (including spacecraft and instruments) has often been in the hundreds of millions of dollars. For example, Landsat 7's development and launch were estimated to cost around $650 million. Therefore, this $185.4 million for the OLI instrument appears consistent with the scale of investment required for advanced components within a long-running, high-priority program like Landsat, especially when considering inflation and technological advancements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corp (UEI: 006419147)

Address: 1600 COMMERCE ST, BOULDER, CO, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $194,520,921

Exercised Options: $192,731,217

Current Obligation: $185,379,119

Timeline