NOAA awards $66M for satellite O&M, with Earth Resources Technology, LLC managing operations through 2026

Contract Overview

Contract Amount: $66,146,758 ($66.1M)

Contractor: Earth Resources Technology, LLC

Awarding Agency: Department of Commerce

Start Date: 2021-03-29

End Date: 2026-03-28

Contract Duration: 1,825 days

Daily Burn Rate: $36.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPERATIONS AND MAINTENANCE (O&M) SUPPORT (TASK ORDER 2) UNDER THE SATELLITE OPERATIONS, MAINTENANCE, AND SUSTAINMENT (OMS) IDIQ

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $66.1 million to EARTH RESOURCES TECHNOLOGY, LLC for work described as: OPERATIONS AND MAINTENANCE (O&M) SUPPORT (TASK ORDER 2) UNDER THE SATELLITE OPERATIONS, MAINTENANCE, AND SUSTAINMENT (OMS) IDIQ Key points: 1. Contract value represents a significant investment in maintaining critical satellite infrastructure. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. Fixed-price contract type shifts performance risk to the contractor, incentivizing efficient delivery. 4. The contract duration of five years allows for sustained support and operational stability. 5. This award falls within the broader category of IT services, specifically supporting complex government operations.

Value Assessment

Rating: good

The contract value of $66.15 million over five years equates to approximately $13.23 million annually. Benchmarking this against similar large-scale IT operations and maintenance contracts for federal agencies requires detailed analysis of scope and complexity. However, the fixed-price nature suggests that the contractor is expected to deliver services within this budget, implying a degree of cost control. Without specific comparable contract data, a definitive value-for-money assessment is challenging, but the competitive award process is a positive indicator.

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 offers. This typically involves a comprehensive solicitation process designed to maximize the pool of potential bidders. While the number of bidders is not specified, full and open competition generally fosters a more competitive environment, which can lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by encouraging a wide range of qualified contractors to bid, driving down costs through market forces.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its various scientific and operational programs that rely on satellite data. Services delivered include essential operations and maintenance for satellite systems, ensuring their continuous functionality. The geographic impact is national, supporting NOAA's mission to monitor climate, weather, and oceans across the United States and globally. Workforce implications may include specialized technical roles for satellite operations and maintenance, potentially creating or sustaining high-skilled jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance needs exceed initial projections.
Reliance on a single contractor for critical satellite operations could pose a risk if performance issues arise.
Ensuring continued technological relevance and upgrade paths for aging satellite systems.

Positive Signals

Fixed-price contract structure incentivizes cost efficiency and performance.
Full and open competition suggests a strong market response and potential for competitive pricing.
Long-term contract duration provides stability for essential satellite operations.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on specialized IT services for government operations. The market for satellite operations and maintenance is highly specialized, involving complex engineering and technical expertise. Comparable spending benchmarks would likely be found within other agencies managing large satellite constellations or complex aerospace systems, such as NASA or the Department of Defense, though specific figures vary widely based on system complexity and age.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, Earth Resources Technology, LLC, will likely manage the majority of the work, and any subcontracting would be at their discretion to meet operational needs.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The contract's fixed-price nature 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 and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

NOAA Satellite Operations
Satellite Maintenance and Sustainment Programs
IT Services for Federal Agencies
Earth Observation Systems

Risk Flags

Contract duration may exceed the useful life of some satellite components.
Reliance on a single vendor for critical infrastructure.
Potential for scope creep if maintenance requirements evolve significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $66.1 million to EARTH RESOURCES TECHNOLOGY, LLC. OPERATIONS AND MAINTENANCE (O&M) SUPPORT (TASK ORDER 2) UNDER THE SATELLITE OPERATIONS, MAINTENANCE, AND SUSTAINMENT (OMS) IDIQ

Who is the contractor on this award?

The obligated recipient is EARTH RESOURCES TECHNOLOGY, LLC.

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 $66.1 million.

What is the period of performance?

Start: 2021-03-29. End: 2026-03-28.

What is the track record of Earth Resources Technology, LLC in managing large-scale federal IT contracts, particularly those involving satellite operations?

Assessing the track record of Earth Resources Technology, LLC requires a review of their past performance on similar federal contracts. Information on previous awards, contract values, performance evaluations (e.g., CPARS), and any history of disputes or contract terminations would be crucial. Without access to these specific performance details, it is difficult to definitively gauge their capability in managing complex satellite operations and maintenance. Federal procurement databases and agency performance review systems are the primary sources for such information. A history of successful, on-time, and within-budget delivery on comparable contracts would indicate a strong capability, while any negative performance indicators would raise concerns.

How does the annual cost of this contract compare to similar satellite operations and maintenance contracts awarded by other federal agencies?

Comparing the annual cost of approximately $13.23 million for this NOAA contract requires access to a database of similar federal contracts. Factors such as the number of satellites supported, their complexity, age, the specific services included (e.g., ground station operations, data processing, software maintenance), and the contract type (fixed-price vs. cost-plus) significantly influence pricing. Contracts for maintaining older, less complex satellite systems might be cheaper, while those for advanced constellations with extensive data requirements could be substantially more expensive. A comprehensive benchmark would involve analyzing contracts with similar scope and technical requirements from agencies like NASA or the Department of Defense, adjusting for inflation and specific mission needs.

What are the key performance indicators (KPIs) used to measure the success of Earth Resources Technology, LLC under this contract, and how are they monitored?

Key Performance Indicators (KPIs) for satellite operations and maintenance contracts typically focus on system availability, uptime, data quality, response times for anomalies, and adherence to maintenance schedules. For this fixed-price contract, NOAA's contracting officer's representative (COR) would likely monitor these KPIs through regular reporting from Earth Resources Technology, LLC, system performance dashboards, and potentially site visits. Specific KPIs might include satellite operational readiness rates, successful data downlink percentages, and the timeliness of corrective actions for system failures. The contract's statement of work (SOW) would detail these requirements and the metrics for success, ensuring accountability for maintaining critical satellite functions.

What is the historical spending trend for satellite operations and maintenance within NOAA, and how does this award fit into that pattern?

Analyzing historical spending trends for NOAA's satellite operations and maintenance (O&M) requires access to budget documents and contract databases over several fiscal years. This $66.15 million award over five years represents a significant, but potentially consistent, investment in maintaining NOAA's satellite fleet. Trends might show increasing costs due to aging infrastructure, investments in new satellite technologies, or shifts in operational strategies. Understanding whether this award is an increase, decrease, or continuation of previous spending levels provides context on NOAA's commitment to its satellite programs and the overall budget allocation for these critical services. This specific task order under an IDIQ suggests it's part of a larger, ongoing strategy for satellite sustainment.

What are the potential risks associated with a five-year fixed-price contract for satellite O&M, and what mitigation strategies are in place?

A significant risk with a five-year fixed-price contract for satellite O&M is the potential for unforeseen technical challenges or escalating costs of components and labor that could impact the contractor's profitability or performance. If the contractor underestimates the complexity or maintenance needs, they might cut corners, affecting service quality. Mitigation strategies often include robust contract language defining scope, clear performance standards, regular progress reviews, and contingency planning within the contractor's own operational framework. NOAA's oversight would focus on ensuring the contractor meets all performance requirements and addressing any deviations promptly. The fixed-price nature itself acts as a risk mitigation for the government regarding cost overruns, provided the scope is well-defined.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14401 SWEITZER LN STE 300, LAUREL, MD, 20707

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $67,849,839

Exercised Options: $67,849,839

Current Obligation: $66,146,758

Actual Outlays: $33,390,026

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1332KP21DNEEB0011

IDV Type: IDC

Timeline