DOI's EROS Landsat Mission Operations & Development Project Awarded $13.7M to The Aerospace Corporation
Contract Overview
Contract Amount: $13,685,587 ($13.7M)
Contractor: THE Aerospace Corporation
Awarding Agency: Department of the Interior
Start Date: 2020-12-01
End Date: 2026-05-29
Contract Duration: 2,005 days
Daily Burn Rate: $6.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: EARTH RESOURCES OBSERVATION AND SCIENCE CENTER (EROS) LANDSAT MISSION OPERATIONS PROJECT AND LANDSAT 9 DEVELOPMENT PROJECT
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of the Interior obligated $13.7 million to THE AEROSPACE CORPORATION for work described as: EARTH RESOURCES OBSERVATION AND SCIENCE CENTER (EROS) LANDSAT MISSION OPERATIONS PROJECT AND LANDSAT 9 DEVELOPMENT PROJECT Key points: 1. The Aerospace Corporation secured a $13.7M contract for critical Landsat mission operations and development. 2. This contract was not competed, raising questions about potential price discovery. 3. The project falls under R&D for Physical, Engineering, and Life Sciences, a broad category. 4. The contract duration extends to May 2026, indicating a long-term commitment.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts for space missions is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits opportunities for other contractors and may not result in the best possible price for the government.
Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a competed contract.
Public Impact
Ensures continuity of vital Earth observation data from the Landsat program. Supports the development of the next generation of Earth-observing satellites. Impacts scientific research and resource management reliant on satellite imagery. Potential for increased costs due to sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Critical mission continuity
- Support for future satellite development
Sector Analysis
This contract is within the Research and Development sector, specifically for physical and engineering sciences. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is performing efficiently and that costs are reasonable. The USGS should provide detailed justifications for the lack of competition.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of the Interior Contracting
- U.S. Geological Survey Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of detailed cost breakdown for benchmarking.
- Potential for reduced price discovery due to non-competitive nature.
Tags
research-and-development-in-the-physical, department-of-the-interior, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $13.7 million to THE AEROSPACE CORPORATION. EARTH RESOURCES OBSERVATION AND SCIENCE CENTER (EROS) LANDSAT MISSION OPERATIONS PROJECT AND LANDSAT 9 DEVELOPMENT PROJECT
Who is the contractor on this award?
The obligated recipient is THE AEROSPACE CORPORATION.
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 $13.7 million.
What is the period of performance?
Start: 2020-12-01. End: 2026-05-29.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or circumstances. For this contract, the specific reasons need to be clearly documented by the Department of the Interior. To ensure fair pricing, the government should conduct thorough cost analyses and potentially negotiate the fixed fee based on detailed proposals and historical data, even without open competition.
How does the Cost Plus Fixed Fee structure mitigate risks associated with R&D projects of this nature?
A Cost Plus Fixed Fee (CPFF) contract aims to provide the contractor with cost reimbursement plus a predetermined fixed fee. For R&D, this can incentivize efficiency as the contractor's profit is fixed, not a percentage of costs. However, it still carries risk if the initial cost estimates are inaccurate or if scope creep occurs, potentially leading to higher overall government expenditure than anticipated.
What is the long-term strategic value of this contract for the Landsat program and Earth observation capabilities?
This contract is strategically vital as it ensures the continued operation of the Landsat mission, a cornerstone of global Earth observation for decades. It also funds the development of Landsat 9, crucial for maintaining data continuity and advancing scientific understanding of our planet. The investment supports critical applications in environmental monitoring, resource management, and climate change research.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 140G0120R0019
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2310 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,907,164
Exercised Options: $15,374,216
Current Obligation: $13,685,587
Actual Outlays: $12,355,025
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-12-01
Current End Date: 2026-05-29
Potential End Date: 2026-05-29 00:00:00
Last Modified: 2025-09-18
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