DOI's $21M Landsat Data Continuity Mission Operations Element contract awarded to The Hammers Company for system integration and support

Contract Overview

Contract Amount: $21,018,898 ($21.0M)

Contractor: THE Hammers Company

Awarding Agency: Department of the Interior

Start Date: 2008-09-19

End Date: 2013-09-18

Contract Duration: 1,825 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE DESIGN, DEVELOPMENT, INTEGRATION, TESTING, DELIVERY, AND INSTALLATION OF THE LANDSAT DATA CONTINUITY MISSION (LDCM) MISSION OPERATIONS ELEMENT (MOE); SUPPORT FOR GROUND SYSTEM AND MISSION-LEVEL INTEGRATION AND TEST; SUPPORT OF OPERATIONS READINESS ACTIVITIES; ENGINEERING SUPPORT DURING THE LAUNCH AND EARLY-ORBIT PERIOD; AND A PERIOD OF SUSTAINING ENGINEERING.

Place of Performance

Location: GREENBELT, PRINCE GEORGE'S County, MARYLAND, 20770

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $21.0 million to THE HAMMERS COMPANY for work described as: THE DESIGN, DEVELOPMENT, INTEGRATION, TESTING, DELIVERY, AND INSTALLATION OF THE LANDSAT DATA CONTINUITY MISSION (LDCM) MISSION OPERATIONS ELEMENT (MOE); SUPPORT FOR GROUND SYSTEM AND MISSION-LEVEL INTEGRATION AND TEST; SUPPORT OF OPERATIONS READINESS ACTIVITIES; ENGINEERING SUPP… Key points: 1. The contract focuses on critical mission operations, integration, testing, and sustaining engineering for the Landsat Data Continuity Mission. 2. Awarded under full and open competition, indicating a broad search for qualified contractors. 3. The contract type, Cost Plus Award Fee (CPAF), incentivizes performance while allowing for cost reimbursement. 4. The duration of 5 years suggests a long-term need for these specialized services. 5. The geographic focus is Maryland, aligning with potential operational or development centers. 6. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable mission operations contracts. The total value of approximately $21 million over five years, averaging $4.2 million annually, appears reasonable for a complex mission operations element. However, the Cost Plus Award Fee (CPAF) structure means the final cost could fluctuate based on performance, making a definitive value assessment difficult without knowing the award fees paid. Further analysis would require comparing the delivered capabilities and operational uptime against industry standards for similar Earth observation missions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which suggests that while the competition was broad, specific sources might have been excluded for particular reasons. The presence of 5 bids indicates a moderate level of competition. A full and open competition generally promotes price discovery and allows the government to select the best value. However, the 'exclusion of sources' clause warrants further investigation to understand if it limited the competitive landscape more than a standard full and open process.

Taxpayer Impact: The competitive process aimed to secure the best possible price and technical solution for taxpayers. While the exclusion of sources might have slightly narrowed the field, the multiple bids suggest that taxpayers likely benefited from a competitive environment that drove reasonable pricing and quality.

Public Impact

The primary beneficiaries are scientists, researchers, and government agencies relying on Landsat data for environmental monitoring, land use analysis, and climate change studies. The contract ensures the continuous operation and integrity of the Landsat Data Continuity Mission, providing crucial Earth observation data. Geographic impact is global, as Landsat data is used worldwide for a variety of applications. Workforce implications include employment for specialized engineers, technicians, and mission operations personnel within the contractor's organization and potentially supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type could potentially limit competition and lead to higher costs if not fully justified.
The CPAF contract type can lead to cost overruns if award fee criteria are not strictly managed and performance targets are not met efficiently.
Lack of specific performance metrics in the provided data makes it difficult to assess the true value for money and operational effectiveness.
The contract's duration of 5 years, while indicating long-term need, also means a significant financial commitment that requires ongoing scrutiny.

Positive Signals

Awarded under full and open competition, suggesting a robust effort to find the best solution.
The contract supports a critical national asset, the Landsat program, ensuring continuity of vital Earth observation data.
The inclusion of sustaining engineering indicates a commitment to long-term system health and reliability.
The multiple bids received (5) demonstrate industry interest and capability in supporting this complex mission.

Sector Analysis

This contract falls within the Information Technology and Professional Services sector, specifically focusing on computer systems design and integration for a government mission-critical application. The Earth observation satellite market is a specialized segment within aerospace and defense, requiring sophisticated ground systems for data acquisition, processing, and distribution. Comparable spending benchmarks would involve other large-scale government IT integration and mission operations contracts, particularly those supporting scientific or intelligence-gathering satellites, which often run into tens or hundreds of millions of dollars over their lifecycle.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale, complex IT and mission operations contract, it is likely that the prime contractor, The Hammers Company, would engage small businesses as subcontractors for specialized services or components. However, without specific subcontracting plans or reports, the direct impact on the small business ecosystem remains unclear. The focus is likely on large, experienced firms capable of handling the technical demands of a national satellite program.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Geological Survey (USGS) and the Department of the Interior (DOI). Mechanisms likely include regular progress reviews, performance monitoring against contract milestones and award fee criteria, and financial audits. The CPAF structure necessitates close oversight to ensure that award fees are justified by performance. Transparency is typically managed through contract award databases and public reporting of federal spending. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Landsat Program
Earth Observation Satellite Programs
National Geospatial-Intelligence Agency (NGA) Contracts
NASA Mission Operations Contracts
NOAA Satellite Operations

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Cost uncertainty inherent in Cost Plus Award Fee (CPAF) contracts.
Dependence on contractor performance for critical mission operations.
Long-term financial commitment requires ongoing value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $21.0 million to THE HAMMERS COMPANY. THE DESIGN, DEVELOPMENT, INTEGRATION, TESTING, DELIVERY, AND INSTALLATION OF THE LANDSAT DATA CONTINUITY MISSION (LDCM) MISSION OPERATIONS ELEMENT (MOE); SUPPORT FOR GROUND SYSTEM AND MISSION-LEVEL INTEGRATION AND TEST; SUPPORT OF OPERATIONS READINESS ACTIVITIES; ENGINEERING SUPPORT DURING THE LAUNCH AND EARLY-ORBIT PERIOD; AND A PERIOD OF SUSTAINING ENGINEERING.

Who is the contractor on this award?

The obligated recipient is THE HAMMERS COMPANY.

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 $21.0 million.

What is the period of performance?

Start: 2008-09-19. End: 2013-09-18.

What is the track record of The Hammers Company in supporting similar government mission-critical IT and satellite operations contracts?

The provided data identifies The Hammers Company as the contractor for the Landsat Data Continuity Mission (LDCM) MOE. To assess their track record, a deeper dive into their contract history with federal agencies, particularly for complex IT systems integration, mission operations, and satellite ground systems, would be necessary. Information on past performance evaluations, any contract disputes, or successful delivery of comparable projects would provide crucial context. Without this additional data, it's difficult to definitively evaluate their suitability and past performance beyond this specific award. Agencies often maintain performance records (e.g., Contractor Performance Assessment Reporting System - CPARS) that can shed light on a contractor's reliability and effectiveness on previous projects.

How does the $21 million contract value compare to similar mission operations and system integration contracts for Earth observation satellites?

The $21 million total contract value over five years, averaging approximately $4.2 million annually, appears to be on the lower end for comprehensive mission operations and system integration for a national satellite program like Landsat. Larger, more complex missions, especially those involving satellite manufacturing, launch, and extensive ground segment development, can easily reach hundreds of millions or even billions of dollars. However, this contract specifically covers the 'Mission Operations Element' (MOE) and related support, suggesting it might be a component of a larger overall program cost. To provide a precise comparison, one would need to identify contracts for similar scope (e.g., ground system operations, data processing, sustaining engineering) for other Earth observation or scientific satellite missions from agencies like NASA, NOAA, or international space agencies, and then normalize for duration and complexity.

What are the key performance indicators (KPIs) used to assess the performance of The Hammers Company under this Cost Plus Award Fee (CPAF) contract?

The specific Key Performance Indicators (KPIs) for this Cost Plus Award Fee (CPAF) contract are not detailed in the provided data. However, for a mission operations element of an Earth observation satellite program, typical KPIs would likely include metrics related to system availability and uptime, data acquisition success rates, data processing timeliness and accuracy, anomaly resolution time, and adherence to operational schedules. The 'Award Fee' component suggests that performance against these KPIs would be evaluated against pre-defined criteria, and the contractor would earn additional fee (beyond cost reimbursement) for exceeding expectations. A thorough review of the contract's Performance Work Statement (PWS) and the award fee plan would be necessary to identify the precise KPIs and their associated targets.

What is the historical spending trend for the Landsat Data Continuity Mission operations and support?

The provided data reflects a single contract award for the Landsat Data Continuity Mission (LDCM) Mission Operations Element (MOE) from 2008 to 2013, totaling $21,018,897.99. This represents spending for a specific phase and element of the Landsat program. To understand historical spending trends, one would need to examine the entire lifecycle of the Landsat program, including previous missions (e.g., Landsat 7, Landsat 8, Landsat 9) and their associated development, launch, and operations contracts. Analyzing spending across different administrations and budget cycles would reveal trends in investment in Earth observation capabilities. Data from the U.S. Geological Survey (USGS) budget justifications and federal procurement databases would be essential for a comprehensive historical analysis.

What are the potential risks associated with the 'exclusion of sources' clause in the contract's competition type?

The 'exclusion of sources' clause within a 'full and open competition' framework, while allowing for broad initial solicitation, permits the government to exclude specific potential offerors from consideration. The primary risk is that this exclusion, if not rigorously justified and documented, could inadvertently limit the competitive pool, potentially leading to reduced price competition and suboptimal value for the government. It might also raise concerns about fairness and transparency if the reasons for exclusion are not clearly articulated or perceived as arbitrary. For taxpayers, this could translate into higher costs or a less innovative solution if the excluded sources possessed unique capabilities or offered more competitive pricing. Thorough justification and documentation are critical to mitigate these risks.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNG08180412R

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 7474 GREENWAY CENTER DR #710, GREENBELT, MD, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $23,432,444

Exercised Options: $23,432,444

Current Obligation: $21,018,898

Contract Characteristics

Cost or Pricing Data: NO

Timeline