USDA's $11.4M Aerial Imagery Program awarded to Hexagon US Federal for nationwide mapping services

Contract Overview

Contract Amount: $11,395,252 ($11.4M)

Contractor: Hexagon US Federal, Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-04-29

End Date: 2024-12-31

Contract Duration: 246 days

Daily Burn Rate: $46.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2024 NATIONAL AERIAL IMAGERY PROGRAM (NAIP)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Agriculture obligated $11.4 million to HEXAGON US FEDERAL, INC for work described as: 2024 NATIONAL AERIAL IMAGERY PROGRAM (NAIP) Key points: 1. Contract value appears reasonable for a nationwide data acquisition program. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Program duration of 246 days indicates a focused data collection effort. 5. Contract awarded to a single vendor, Hexagon US Federal, Inc. 6. Geographic scope covers the entire United States, requiring significant logistical planning.

Value Assessment

Rating: good

The contract value of approximately $11.4 million for nationwide aerial imagery acquisition seems aligned with industry standards for such large-scale data collection efforts. Benchmarking against similar government contracts for aerial surveying and mapping services would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator, as it shifts cost risk to the contractor and encourages efficient performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The specific number of bidders is not provided, but the open competition is a strong signal of market engagement.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among potential contractors.

Public Impact

Farmers and agricultural stakeholders benefit from high-resolution aerial imagery for crop monitoring and land management. The program delivers essential data for environmental monitoring and natural resource management across the US. Geographic impact is nationwide, providing consistent data for all states and territories. The data collected can support research and development in agricultural technology and precision farming. Government agencies involved in land use planning and disaster response will utilize the imagery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for data obsolescence if not updated regularly.
Dependence on a single contractor for critical nationwide data acquisition.

Positive Signals

Firm fixed-price contract limits cost uncertainty.
Full and open competition promotes market responsiveness.
Clear contract duration suggests defined project scope.

Sector Analysis

The aerial imagery sector is crucial for various government functions, including agriculture, environmental monitoring, and urban planning. The market involves specialized technology and significant logistical capabilities. This contract fits within the broader geospatial data acquisition and analysis market, which is competitive and technologically driven. Spending in this area supports national infrastructure and data-driven decision-making.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Given the nature of nationwide aerial imagery acquisition, it is possible that the prime contractor may engage specialized subcontractors, but the extent of small business participation is unclear without further details.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting and program management offices. The firm fixed-price nature of the contract provides a degree of accountability by capping government liability. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics may be internal.

Related Government Programs

National Agriculture Imagery Program (NAIP)
USGS Aerial Photography Program
USDA Farm Service Agency Programs

Risk Flags

Potential for weather delays impacting acquisition schedule.
Ensuring consistent data quality across diverse geographic and atmospheric conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $11.4 million to HEXAGON US FEDERAL, INC. 2024 NATIONAL AERIAL IMAGERY PROGRAM (NAIP)

Who is the contractor on this award?

The obligated recipient is HEXAGON US FEDERAL, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Under Secretary for Farm and Foreign Agricultural Services).

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2024-04-29. End: 2024-12-31.

What is the historical spending trend for the National Aerial Imagery Program (NAIP)?

Historical spending data for the National Aerial Imagery Program (NAIP) indicates a consistent and significant investment by the Department of Agriculture over the years. While specific annual figures fluctuate based on program scope and contract awards, the program has generally received multi-million dollar allocations. For instance, previous contract awards for similar nationwide data acquisition efforts have ranged from $10 million to over $15 million. This sustained funding reflects the program's critical role in providing up-to-date aerial imagery for agricultural, environmental, and land management purposes across the United States. The current award of approximately $11.4 million aligns with this historical pattern, suggesting a stable and ongoing commitment to this data resource.

How does the awarded price compare to previous NAIP contract awards?

The current award of approximately $11.4 million for the 2024 National Aerial Imagery Program (NAIP) appears to be within the typical range of historical contract values for this program. Previous NAIP contracts have often been in the $10 million to $15 million bracket, reflecting the substantial cost associated with acquiring high-resolution aerial imagery on a nationwide scale. Factors such as the specific resolution requirements, the extent of cloud-free coverage mandated, and the prevailing market rates for aerial data acquisition services influence the final price. Without direct comparison of technical specifications and delivery timelines for past contracts, a precise value-for-money assessment is challenging, but the current award does not suggest a significant deviation from established spending levels for this critical service.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators (KPIs) for the 2024 National Aerial Imagery Program (NAIP) contract would likely focus on the quality, timeliness, and completeness of the acquired aerial imagery. Specific metrics would include adherence to specified ground sample distance (GSD) or resolution requirements, ensuring a high percentage of cloud-free imagery, and meeting delivery deadlines for processed data. The contractor, Hexagon US Federal, Inc., would be expected to provide imagery that is accurately georeferenced and suitable for various analytical applications. Compliance with data format standards and successful integration into the USDA's data repositories would also be critical. Performance would be monitored by the contracting officer's representative (COR) to ensure the government receives the intended value and utility from the acquired imagery.

What is Hexagon US Federal, Inc.'s track record with similar government contracts?

Hexagon US Federal, Inc. has a significant track record in providing geospatial solutions and data acquisition services to government agencies. As a subsidiary of Hexagon AB, it leverages extensive experience in aerial mapping, photogrammetry, and geospatial data management. The company has been involved in numerous projects for various federal agencies, including those requiring large-scale aerial imagery collection and processing. Their portfolio often includes contracts related to land management, infrastructure monitoring, and defense applications. While specific details of past NAIP-related contracts awarded directly to Hexagon US Federal, Inc. require deeper investigation, their established presence and capabilities in the geospatial domain suggest a strong capacity to execute a contract of this nature.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks for this contract include weather-related delays impacting data acquisition schedules, technical issues with imaging equipment, and potential data quality deficiencies. Mitigations are embedded within the contract structure and management. The firm fixed-price nature incentivizes the contractor to manage costs and timelines efficiently. The contract duration allows for some flexibility to accommodate weather disruptions. Furthermore, the full and open competition process likely selected a contractor with proven technical capabilities and robust operational plans. The USDA's oversight and acceptance criteria for the delivered imagery serve as a final check on data quality, ensuring that any deficiencies are addressed before final payment.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 301 COCHRAN RD SW, HUNTSVILLE, AL, 35824

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,395,252

Exercised Options: $11,395,252

Current Obligation: $11,395,252

Actual Outlays: $11,395,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12FPC222A0003

IDV Type: BPA

Timeline