General Dynamics awarded $16.6M for Landsat satellite operations and sustainment
Contract Overview
Contract Amount: $16,608,116 ($16.6M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of the Interior
Start Date: 2022-06-16
End Date: 2023-07-06
Contract Duration: 385 days
Daily Burn Rate: $43.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: CONTRACTOR SUPPORT TO ENSURE SUSTAINED OPERATIONS OF THE LANDSAT 8 (L8) AND THE LANDSAT 9 (L9) SATELLITES AND THE SUSTAINMENT OF THE LANDSAT MULTI-SATELLITE OPERATIONS CENTER (LMOC) AND THE BACKUP LMOC (BLMOC)
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
Department of the Interior obligated $16.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: CONTRACTOR SUPPORT TO ENSURE SUSTAINED OPERATIONS OF THE LANDSAT 8 (L8) AND THE LANDSAT 9 (L9) SATELLITES AND THE SUSTAINMENT OF THE LANDSAT MULTI-SATELLITE OPERATIONS CENTER (LMOC) AND THE BACKUP LMOC (BLMOC) Key points: 1. Contract focuses on critical sustainment of Landsat 8 and 9 satellites and their operations centers. 2. Cost-plus award fee contract type suggests performance incentives for the contractor. 3. The contract duration of 385 days indicates a short-term operational support need. 4. Competition was full and open, implying a potentially competitive bidding process. 5. The contract value is modest for complex satellite operations and sustainment. 6. No small business set-aside was utilized for this contract.
Value Assessment
Rating: good
The contract value of $16.6 million for a period of approximately 13 months appears reasonable for sustaining critical satellite operations. Benchmarking against similar contracts for satellite operations and ground support is challenging due to the unique nature of the Landsat program. However, the cost-plus award fee structure allows for flexibility and incentivizes performance, which can lead to better value if managed effectively. The absence of significant cost overruns or performance issues in the provided data suggests a fair price for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment. This approach is generally expected to yield competitive pricing and encourage innovation from multiple vendors.
Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at the most competitive price, preventing potential overpayment that could occur with less competitive procurement methods.
Public Impact
The primary beneficiaries are scientists and researchers globally who rely on Landsat data for environmental monitoring, land use analysis, and climate change studies. Services delivered include ensuring the sustained operation of the Landsat 8 and 9 satellites, as well as the Landsat Multi-Satellite Operations Center (LMOC) and its backup. The geographic impact is global, as Landsat data is freely available and used for applications worldwide. Workforce implications include the need for specialized engineering and operational expertise to manage complex satellite systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in cost-plus award fee contracts if not closely monitored.
- Dependence on a single contractor for critical satellite operations could pose a risk if performance falters.
- The short duration of the contract may indicate a gap-filling or interim solution, raising questions about long-term sustainment strategy.
Positive Signals
- Full and open competition suggests a robust selection process and potential for competitive pricing.
- The cost-plus award fee structure incentivizes contractor performance and quality.
- General Dynamics Mission Systems is a known entity in defense and aerospace, suggesting technical capability.
Sector Analysis
The contract falls within the aerospace and defense sector, specifically focusing on satellite operations and sustainment. The market for satellite operations and ground support services is highly specialized, with a limited number of companies possessing the requisite expertise. The Landsat program is a flagship Earth observation program, and its continuous operation is vital for a wide range of scientific applications. Spending in this area is critical for maintaining national capabilities in remote sensing and environmental monitoring.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The nature of satellite operations and sustainment typically requires highly specialized technical capabilities that may be concentrated among larger, established aerospace and defense contractors. This means that direct opportunities for small businesses within this specific contract may be limited, though they could potentially participate as subcontractors to the prime.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Geological Survey (USGS) program office within the Department of the Interior. Accountability measures are built into the cost-plus award fee structure, which links contractor payment to performance. Transparency is generally maintained through contract award notices and public reporting of federal spending. The Inspector General for the Department of the Interior would have jurisdiction for audits and investigations if any irregularities were suspected.
Related Government Programs
- NASA Earth Observing System
- NOAA Satellite Operations
- National Geospatial-Intelligence Agency (NGA) Services
- Space Force Satellite Operations
Risk Flags
- Potential for performance issues with aging satellite systems.
- Reliance on contractor for critical operational sustainment.
- Cost management challenges inherent in CPAF contracts.
Tags
satellite-operations, earth-observation, department-of-the-interior, usgs, general-dynamics-mission-systems, cost-plus-award-fee, full-and-open-competition, engineering-services, maryland, federal-spending, aerospace, defense
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $16.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. CONTRACTOR SUPPORT TO ENSURE SUSTAINED OPERATIONS OF THE LANDSAT 8 (L8) AND THE LANDSAT 9 (L9) SATELLITES AND THE SUSTAINMENT OF THE LANDSAT MULTI-SATELLITE OPERATIONS CENTER (LMOC) AND THE BACKUP LMOC (BLMOC)
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, INC..
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 $16.6 million.
What is the period of performance?
Start: 2022-06-16. End: 2023-07-06.
What is the track record of General Dynamics Mission Systems in supporting satellite operations for government agencies?
General Dynamics Mission Systems (GDMS) has a significant track record in supporting complex defense and intelligence programs, including satellite ground systems, command and control, and mission operations. They have been involved in various aspects of space systems, from hardware development to software integration and operational support for numerous government clients. Their experience often includes providing sustainment and modernization services for critical space assets. While specific details on Landsat support prior to this contract are not detailed here, their broader portfolio suggests they possess the technical and operational capabilities required for such a mission. Their history indicates a capacity to manage large-scale, high-stakes government contracts.
How does the $16.6 million contract value compare to historical spending on Landsat satellite sustainment?
The $16.6 million contract value represents a specific award for a defined period (approximately 13 months) covering the sustainment of Landsat 8 and 9 operations. Historical spending on the Landsat program, which spans decades and includes satellite development, launch, and ongoing operations, would be significantly higher. For instance, the development and launch of individual Landsat satellites can cost hundreds of millions of dollars. Annual operational costs, including ground systems, data processing, and personnel, also represent substantial investments. This $16.6 million award appears to be for a specific, relatively short-term operational support phase rather than the entire lifecycle cost of the program. A comprehensive comparison would require analyzing the total budget allocated to Landsat operations over multiple years and comparing this award's proportion.
What are the primary risks associated with the sustainment of aging satellites like Landsat 8 and 9?
The primary risks associated with sustaining aging satellites like Landsat 8 and 9 include component degradation, increased likelihood of system failures, and obsolescence of technology. As satellites age, critical components can wear out or fail, leading to reduced performance or complete loss of functionality. Spare parts may become difficult or impossible to procure due to obsolescence. Furthermore, the software and hardware supporting ground operations may also require significant updates to remain compatible with aging satellite systems. Unexpected technical issues can arise, requiring costly and time-consuming repairs or workarounds. Ensuring continuous data acquisition and processing from aging assets demands robust engineering support and contingency planning.
How effective is the Cost Plus Award Fee (CPAF) contract type for ensuring performance in satellite operations?
The Cost Plus Award Fee (CPAF) contract type is designed to provide flexibility in cost reimbursement while incentivizing contractor performance through award fees. For satellite operations, where technical performance, reliability, and responsiveness are critical, CPAF can be effective. The base fee covers costs and a minimum profit, while the award fee is earned based on the government's evaluation of the contractor's performance against pre-defined criteria. This structure encourages the contractor to go beyond minimum requirements to achieve higher levels of service, such as exceeding uptime goals or resolving issues rapidly. However, the effectiveness hinges on the clarity and objectivity of the performance criteria and the rigor of the government's evaluation process. Poorly defined criteria or subjective evaluations can undermine the incentive structure.
What are the implications of having a backup LMOC (BLMOC) for the Landsat program?
The existence of a Backup Landsat Multi-Satellite Operations Center (BLMOC) is a critical redundancy measure designed to ensure the continuity of operations for the Landsat program in the event of a failure or disruption at the primary LMOC. This redundancy significantly enhances the resilience and reliability of the entire Landsat mission. It protects against a wide range of potential disruptions, including natural disasters, cyberattacks, power outages, or hardware failures at the main facility. By having a backup, the program can maintain essential satellite command, control, and data downlink capabilities, minimizing data loss and ensuring that scientific data continues to be acquired and disseminated even under adverse conditions. This is vital for maintaining the long-term scientific value and operational integrity of the Landsat constellation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,145,476
Exercised Options: $17,145,476
Current Obligation: $16,608,116
Actual Outlays: $16,300,695
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $502,398
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: ING17PC00017
IDV Type: IDC
Timeline
Start Date: 2022-06-16
Current End Date: 2023-07-06
Potential End Date: 2023-07-06 00:00:00
Last Modified: 2026-02-19
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