Commerce awards $41.7M for satellite mission operations, a significant investment in NOAA's space capabilities

Contract Overview

Contract Amount: $41,685,858 ($41.7M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Department of Commerce

Start Date: 2019-07-27

End Date: 2021-06-26

Contract Duration: 700 days

Daily Burn Rate: $59.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SATELLITE MISSION OPERATIONS AND MAINTENANCE SUPPORT (SMOMS) BRIDGE TASK ORDER AWARD

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $41.7 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: SATELLITE MISSION OPERATIONS AND MAINTENANCE SUPPORT (SMOMS) BRIDGE TASK ORDER AWARD Key points: 1. The contract value represents a substantial commitment to maintaining critical satellite infrastructure. 2. Full and open competition suggests a robust market for these specialized services. 3. The firm-fixed-price structure aims to control costs and provide predictable spending. 4. This award supports the ongoing operational readiness of vital national security and scientific assets. 5. The duration of the contract indicates a long-term need for these support services.

Value Assessment

Rating: good

The $41.7 million award for satellite mission operations and maintenance support appears reasonable given the critical nature of NOAA's satellite assets. Benchmarking against similar large-scale, long-term support contracts for complex government systems suggests this price point is within expected ranges. The firm-fixed-price contract type further aids in cost predictability, although the specific value-for-money assessment would benefit from a detailed breakdown of labor categories, overhead, and profit margins compared to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach typically fosters a competitive environment, driving down prices and encouraging innovation. The presence of multiple bidders suggests a healthy market for satellite mission operations and maintenance support, allowing the government to select the most capable and cost-effective solution.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of innovative solutions, ensuring the government receives the best value for its investment in critical satellite infrastructure.

Public Impact

Ensures the continuous operation and maintenance of NOAA's satellite fleet, crucial for weather forecasting, climate monitoring, and environmental research. Supports scientific research and data collection that informs policy decisions and public safety initiatives. Maintains critical infrastructure that underpins various government and commercial applications reliant on satellite data. Potentially supports a specialized workforce in the aerospace and telecommunications sectors through the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price structure.
Reliance on a single contractor for extended periods could lead to vendor lock-in.
Ensuring adequate technical expertise within the government to oversee contractor performance.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market and potential for best value.
Long contract duration indicates a stable and ongoing need for these critical services.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on the operational support of satellite systems. The market for satellite operations and maintenance is highly specialized, requiring significant technical expertise and infrastructure. Spending in this area is driven by the government's continuous need to operate and maintain its constellation of satellites for scientific, national security, and economic purposes. Comparable spending benchmarks would likely involve other large-scale government contracts for satellite ground systems, launch services, or satellite manufacturing.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Given the specialized nature of satellite mission operations and maintenance, the prime contractor, MAXIMUS FEDERAL SERVICES, INC., likely possesses the extensive capabilities required. However, opportunities for small businesses may exist further down the subcontracting chain, depending on the prime contractor's sourcing strategy and the specific technical requirements of the task order.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Oceanic and Atmospheric Administration (NOAA) within the Department of Commerce. Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. The firm-fixed-price nature of the award provides a degree of financial oversight by limiting the government's liability to the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly disclosed.

Related Government Programs

NOAA Satellite Operations
National Security Space Support Contracts
Aerospace Systems Maintenance
Government IT and Telecommunications Support

Risk Flags

Potential for performance degradation if contractor prioritizes cost savings over quality.
Risk of vendor lock-in due to specialized nature of services and contract duration.
Need for strong government oversight to manage scope and ensure technical requirements are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $41.7 million to MAXIMUS FEDERAL SERVICES, INC.. SATELLITE MISSION OPERATIONS AND MAINTENANCE SUPPORT (SMOMS) BRIDGE TASK ORDER AWARD

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $41.7 million.

What is the period of performance?

Start: 2019-07-27. End: 2021-06-26.

What is the historical spending trend for satellite mission operations and maintenance support by NOAA?

Analyzing historical spending for NOAA's satellite mission operations and maintenance support requires accessing detailed budget and contract award data over several fiscal years. Generally, such spending tends to be consistent, reflecting the long lifecycle of satellite systems and the ongoing need for their operation. Fluctuations might occur due to the launch of new satellites, the decommissioning of older ones, or significant upgrades. Without specific historical data for this particular contract vehicle or similar ones, it's difficult to provide precise figures. However, it's reasonable to assume that NOAA's investment in maintaining its operational satellite fleet represents a significant and recurring portion of its overall budget, likely in the tens to hundreds of millions of dollars annually, depending on the scope of active missions and required support.

How does the awarded price compare to similar satellite operations support contracts awarded by other federal agencies?

Comparing the $41.7 million award for MAXIMUS FEDERAL SERVICES, INC. to similar contracts requires access to a comprehensive database of federal procurements and a clear definition of 'similar.' Contracts for satellite mission operations and maintenance can vary widely based on the complexity of the satellite systems, the scope of services (e.g., ground control, data processing, anomaly resolution, software updates), the duration of the contract, and the specific agency's requirements. Generally, large-scale, multi-year contracts for operating complex government satellite constellations can range from tens of millions to hundreds of millions of dollars. The firm-fixed-price nature of this award suggests a focus on cost control. A detailed comparison would necessitate examining contracts with comparable service scopes, satellite types (e.g., weather, earth observation, communication), and contract lengths from agencies like the Department of Defense (Space Force, NRO) or NASA.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this award?

While the specific Key Performance Indicators (KPIs) for this particular contract are not publicly detailed in the provided data, typical KPIs for satellite mission operations and maintenance support contracts often include metrics related to system availability and uptime, data downlink success rates, timeliness of data delivery, response times to anomalies or critical events, and adherence to maintenance schedules. For a firm-fixed-price contract, the government would closely monitor the contractor's ability to meet these performance standards within the agreed-upon budget. Performance evaluations might also consider the accuracy and completeness of reporting, the effectiveness of problem resolution, and compliance with security protocols. The contract's success hinges on the contractor consistently meeting or exceeding these operational benchmarks to ensure the uninterrupted functioning of NOAA's vital satellite assets.

What is the track record of MAXIMUS FEDERAL SERVICES, INC. in supporting similar government satellite programs?

MAXIMUS FEDERAL SERVICES, INC. is a large government contractor with a broad portfolio of services, often focused on health and human services programs, IT, and administrative support. While their primary focus may not be directly on satellite operations and maintenance, they do engage in various federal IT and technical support contracts. To assess their track record specifically for satellite mission operations, one would need to examine their past performance on contracts involving complex aerospace systems, ground station operations, or related technical support for agencies like NOAA, NASA, or the Department of Defense. Their experience in managing large, complex federal contracts, coupled with their ability to potentially subcontract specialized aerospace expertise, would be critical factors. A review of their contract history, past performance evaluations, and any relevant certifications would provide a clearer picture of their capabilities in this niche area.

What are the potential risks associated with a firm-fixed-price contract for satellite mission operations?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty, they carry specific risks, particularly for complex, long-term service contracts like satellite mission operations. One primary risk is that the contractor may cut corners on quality or maintenance to protect their profit margin if unforeseen technical challenges arise or costs escalate beyond their initial estimates. This could lead to reduced system reliability or performance degradation. Conversely, if the contractor accurately anticipates all costs and potential issues, the government might end up paying a premium compared to a cost-reimbursable contract where savings could be shared. Scope creep, where the government requests additional services not initially defined, can also be problematic under FFP, potentially leading to costly change orders or disputes if not managed carefully. Ensuring robust technical oversight is crucial to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maximus Inc

Address: 3120 FAIRVIEW PARK DR STE 400, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,938,556

Exercised Options: $48,938,556

Current Obligation: $41,685,858

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F685GA

IDV Type: FSS

Timeline