DOI's Landsat 7 flight operations contract awarded to KBR WYLE SERVICES for $4.86M over 2 years

Contract Overview

Contract Amount: $4,856,529 ($4.9M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-05-15

End Date: 2026-05-15

Contract Duration: 730 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LANDSAT 7 FLIGHT OPERATIONS

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $4.9 million to KBR WYLE SERVICES, LLC for work described as: LANDSAT 7 FLIGHT OPERATIONS Key points: 1. Contract value appears reasonable for specialized flight operations support. 2. Full and open competition suggests potential for competitive pricing. 3. Contract duration of 2 years allows for stable operations. 4. Fixed-price contract type shifts performance risk to the contractor. 5. This contract supports critical Earth observation data continuity. 6. The contractor has experience in aerospace and government services.

Value Assessment

Rating: good

The contract value of approximately $4.86 million over two years for Landsat 7 flight operations appears to be within a reasonable range for specialized aerospace support. Benchmarking against similar government contracts for satellite operations and maintenance suggests that this pricing is competitive. The firm fixed-price structure further indicates that the government has secured a defined cost for these services, with the contractor bearing the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a moderate level of competition for this specialized service. While more bidders could potentially drive prices lower, the existing competition likely provided sufficient price discovery and ensured a fair market price was achieved.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for specialized satellite operations, ensuring funds are used efficiently for critical scientific missions.

Public Impact

Benefits scientists and researchers globally by ensuring the continuity of Earth observation data from the Landsat 7 satellite. Delivers essential flight operations and maintenance services for a long-standing and vital scientific instrument. Geographic impact is global, as Landsat data is used for environmental monitoring, resource management, and disaster response worldwide. Workforce implications include employment for specialized aerospace engineers, technicians, and support staff within KBR WYLE SERVICES.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is highly concentrated with the incumbent.
Reliance on a single contract for critical flight operations could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract aligns incentives for cost control and efficient service delivery.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Contractor's experience in similar aerospace services provides a positive signal for performance reliability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the aerospace and defense sub-sector. The market for satellite operations and maintenance is highly specialized, with a limited number of companies possessing the requisite expertise and security clearances. Government spending in this area is driven by the need for continuous data acquisition from Earth-observing satellites for scientific, environmental, and national security purposes. Comparable spending benchmarks would involve other satellite operations contracts, which can range from millions to hundreds of millions of dollars depending on the satellite's complexity and mission duration.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, the prime contractor, KBR WYLE SERVICES, LLC, may engage small businesses for subcontracting opportunities to fulfill specific components of the flight operations. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of specialized small businesses in the aerospace support ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the U.S. Geological Survey (USGS) program office responsible for the Landsat program. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases and public reporting, although detailed operational performance metrics may be internal. The Inspector General for the Department of the Interior would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

Landsat Program
Satellite Operations
Earth Observation Systems
Aerospace Engineering Services
NASA Satellite Contracts

Risk Flags

Contract duration may be short for long-term operational needs.
Limited number of bidders could indicate market concentration or high barriers to entry.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.9 million to KBR WYLE SERVICES, LLC. LANDSAT 7 FLIGHT OPERATIONS

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

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 $4.9 million.

What is the period of performance?

Start: 2024-05-15. End: 2026-05-15.

What is the track record of KBR WYLE SERVICES, LLC in supporting satellite flight operations?

KBR WYLE SERVICES, LLC, and its predecessor entities, have a significant track record in supporting government aerospace and defense programs, including various aspects of satellite operations, engineering, and maintenance. Their experience often spans complex projects requiring specialized technical expertise and adherence to stringent quality and safety standards. While specific details for Landsat 7 flight operations would require deeper analysis of past performance reports and contract history, the company's general profile suggests a capability to handle such critical missions. This includes managing ground systems, telemetry, command and control, and ensuring the overall health and longevity of satellite assets. Their involvement in numerous NASA and Department of Defense programs indicates a familiarity with the unique demands of space-based systems.

How does the $4.86 million contract value compare to similar Landsat mission support contracts?

The $4.86 million contract value for two years of Landsat 7 flight operations appears to be a moderate figure within the context of long-term satellite sustainment. Landsat missions, being foundational to Earth observation, require continuous support that can span decades. Annual operational costs for complex satellite systems can vary widely, but typically range from several hundred thousand to millions of dollars, depending on the scope of services (e.g., ground station operations, data processing, anomaly resolution, orbit maintenance). Given that Landsat 7 is an older satellite, the focus might be on sustainment and ensuring data continuity rather than extensive upgrades. This contract's value suggests a focused scope on essential flight operations, making it potentially cost-effective compared to contracts for newer, more technologically advanced satellites or those involving significant research and development.

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

The primary risks associated with this contract include potential performance failures by the contractor leading to data gaps or satellite anomalies, and the risk of cost overruns if the fixed-price structure is not managed effectively by the contractor. Mitigation strategies are multi-faceted. The firm fixed-price nature of the contract inherently places the financial risk of cost overruns on KBR WYLE SERVICES, incentivizing efficient management. The government (USGS) will likely maintain oversight through performance metrics, regular reviews, and defined deliverables. Furthermore, the full and open competition process aims to select a contractor with a proven track record and robust technical capabilities, reducing the likelihood of performance failures. Contingency planning and robust ground systems also serve as backstops for potential satellite issues.

How effective is the full and open competition process in ensuring value for taxpayer money in this specific contract?

The full and open competition process is generally considered effective in ensuring value for taxpayer money, as it allows multiple qualified vendors to bid on the contract, fostering price competition. For this Landsat 7 flight operations contract, the fact that it was competed openly suggests that the government sought the best possible offer. While only two bids were received, this level of competition can still lead to a competitive price discovery. The effectiveness is further enhanced by the firm fixed-price contract type, which locks in costs. Taxpayers benefit from the assurance that the selected contractor, KBR WYLE SERVICES, was chosen through a process designed to identify both technical capability and cost-effectiveness, minimizing the risk of overpayment for essential services.

What is the historical spending pattern for Landsat 7 flight operations, and how does this contract fit?

Historical spending on Landsat 7 flight operations would have involved previous contracts for its launch, initial operations, and ongoing sustainment. As Landsat 7 has been operational since 1999, there would have been multiple contract vehicles over its lifespan. Early operational phases might have seen higher spending related to commissioning and initial data acquisition. As the satellite matures, spending typically shifts towards sustainment, maintenance, and ensuring continued data flow, which often involves more predictable, albeit still significant, costs. This $4.86 million, two-year contract represents a segment of this ongoing sustainment expenditure. Understanding the total lifecycle cost requires examining all prior contracts and projecting future needs, potentially including transition to newer Landsat missions.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Root Industrial Services Holdings, LLC

Address: 22309 EXPLORATION DRIVE, LEXINGTON PARK, MD, 20653

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

Financial Breakdown

Contract Ceiling: $21,821,302

Exercised Options: $5,481,109

Current Obligation: $4,856,529

Actual Outlays: $4,585,439

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F200CA

IDV Type: FSS

Timeline