NOAA's $26.6M contract for SARSAT operations and maintenance awarded to Earth Resources Technology, LLC

Contract Overview

Contract Amount: $26,653,658 ($26.7M)

Contractor: Earth Resources Technology, LLC

Awarding Agency: Department of Commerce

Start Date: 2013-02-13

End Date: 2018-09-21

Contract Duration: 2,046 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF SARSAT USMCC OPERATIONS MAINTENANCE AND TECHNICAL SUPPORT

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $26.7 million to EARTH RESOURCES TECHNOLOGY, LLC for work described as: IGF::OT::IGF SARSAT USMCC OPERATIONS MAINTENANCE AND TECHNICAL SUPPORT Key points: 1. Contract provides critical support for the Search and Rescue Satellite-Aided Tracking (SARSAT) system. 2. The contract value represents a significant investment in maintaining a vital public safety infrastructure. 3. Performance period spans over five years, indicating a long-term need for these services. 4. The award was made under full and open competition, suggesting a competitive bidding process. 5. The use of Time and Materials pricing may introduce cost variability. 6. The contractor has a track record of supporting government operations.

Value Assessment

Rating: good

The total contract value of $26.6 million over approximately five years suggests a moderate annual spend for critical satellite operations and maintenance. Benchmarking against similar government IT support contracts indicates that this pricing is within a reasonable range, especially considering the specialized nature of supporting a life-saving system like SARSAT. The Time and Materials (T&M) pricing structure, while common for evolving technical requirements, warrants close monitoring to ensure cost efficiency and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and allowed to bid. The presence of four bids (no: 4) suggests a healthy level of competition for this specialized service. A competitive process generally leads to better price discovery and ensures that the government receives services at a fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive award process, which helps to ensure that the funds allocated for SARSAT operations and maintenance are used efficiently and effectively, minimizing unnecessary costs.

Public Impact

The primary beneficiaries are individuals requiring search and rescue services, as the SARSAT system is crucial for locating distress signals. The contract ensures the continuous operation and maintenance of the SARSAT system, a key component of national and international emergency response. Geographic impact is global, as SARSAT is an international program, though the direct support is likely focused within the U.S. Workforce implications include the employment of technical personnel for system maintenance and support, contributing to the specialized IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Reliance on a single contractor for critical, long-term operations could pose a risk if performance degrades.
The specific nature of the services may limit the pool of qualified contractors in future procurements.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contract duration suggests a stable and reliable service provision for a critical system.
Contractor has experience in supporting similar government IT operations.

Sector Analysis

This contract falls within the broader Information Technology and Telecommunications sector, specifically focusing on specialized IT support and maintenance for a critical government system. The market for such services is characterized by a need for highly skilled personnel and adherence to stringent government standards. Comparable spending benchmarks for similar operational support contracts for public safety or critical infrastructure systems would typically range from tens to hundreds of millions of dollars over several years, depending on the system's complexity and scope.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there explicit information regarding subcontracting plans with small businesses. Given the specialized nature of the services and the full and open competition, it is possible that larger, more established firms were the primary bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Performance monitoring, adherence to delivery orders, and financial accountability are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Commerce would have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

NOAA Operations and Maintenance Contracts
Satellite Communication Systems Support
Emergency Response Technology Services
IT Support for Public Safety Agencies
Search and Rescue Technology Programs

Risk Flags

Time and Materials Pricing
Potential for Cost Overruns
Long-Term Reliance on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $26.7 million to EARTH RESOURCES TECHNOLOGY, LLC. IGF::OT::IGF SARSAT USMCC OPERATIONS MAINTENANCE AND TECHNICAL SUPPORT

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 $26.7 million.

What is the period of performance?

Start: 2013-02-13. End: 2018-09-21.

What is the historical spending pattern for SARSAT operations and maintenance by NOAA?

Analyzing historical spending for SARSAT operations and maintenance by NOAA is crucial for understanding cost trends and budget predictability. While this specific contract (ID: IGF::OT::IGF SARSAT USMCC OPERATIONS MAINTENANCE AND TECHNICAL SUPPORT) covers the period from February 2013 to September 2018 with a value of $26.6 million, it represents only one segment of the overall funding. To establish a comprehensive pattern, one would need to examine prior contracts for similar services, including their values, durations, and any modifications. This would help identify if spending has been consistent, increasing, or decreasing, and whether it aligns with system upgrades or operational changes. Furthermore, comparing this spending to the overall NOAA budget for satellite operations and emergency services would provide context on its relative importance and resource allocation over time.

How does the contractor's performance on this contract compare to industry benchmarks for IT support services?

Evaluating Earth Resources Technology, LLC's performance on this $26.6 million SARSAT operations and maintenance contract against industry benchmarks requires access to performance metrics, quality assurance reports, and customer satisfaction data, which are not publicly detailed in the provided data. However, the contract's duration (over five years) and its award through full and open competition suggest a baseline level of capability and reliability. Industry benchmarks for IT support services often focus on metrics such as system uptime, response times to issues, successful resolution rates, and adherence to security protocols. Without specific performance data, a direct comparison is difficult. Generally, government contracts of this nature demand high reliability due to the critical nature of the services. The fact that the contract was completed without immediate red flags in the summary data implies satisfactory performance, but a deeper dive into specific deliverables and user feedback would be necessary for a robust benchmark.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The Time and Materials (T&M) pricing structure used in this contract, valued at $26.6 million, presents several potential risks. Primarily, T&M contracts can lead to cost uncertainty for the government because the final price is determined by the actual labor hours and material costs incurred by the contractor, rather than a fixed price. This can make budgeting more challenging and increases the risk of cost overruns if the project scope expands or if contractor efficiency is lower than anticipated. For taxpayers, this means the final expenditure could exceed initial estimates. To mitigate these risks, effective oversight is crucial. This includes diligent monitoring of labor hours, verification of material costs, and clear definition of work requirements to prevent scope creep. Without strong oversight, T&M contracts can be less cost-effective than fixed-price arrangements.

How critical is the SARSAT system to national security or public safety, and what is the impact of its reliable operation?

The Search and Rescue Satellite-Aided Tracking (SARSAT) system is critically important for national and international public safety, rather than national security in a military sense. Its primary function is to detect and locate distress signals (like those from emergency beacons on aircraft, ships, and individuals) transmitted from remote or inaccessible areas. By relaying these signals to rescue coordination centers, SARSAT significantly reduces the time it takes to initiate and conduct search and rescue operations. The reliable operation of this system, supported by contracts like the one awarded to Earth Resources Technology, LLC, directly contributes to saving lives by enabling faster response to emergencies at sea, in the air, and on land. Disruptions or failures in SARSAT operations could lead to delayed rescues, increased loss of life, and greater costs associated with prolonged search efforts.

What is the typical duration and value range for contracts supporting similar satellite operations and maintenance services?

Contracts supporting satellite operations and maintenance services, particularly those involving critical public safety functions like SARSAT, typically range in duration from 3 to 10 years, reflecting the long-term nature of maintaining complex technological systems. The value of such contracts can vary significantly based on the scope of services, the specific satellite systems involved, and the level of technical expertise required. For instance, contracts for maintaining global satellite constellations or complex ground support infrastructure can easily reach hundreds of millions of dollars over their lifecycle. The $26.6 million contract for SARSAT operations and maintenance awarded to Earth Resources Technology, LLC, over approximately five years, falls within a moderate range for specialized support of a vital, albeit perhaps not the largest, satellite-dependent system. Comparable contracts often involve a mix of hardware maintenance, software updates, system monitoring, and technical support.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6100 FROST PL STE A, LAUREL, MD, 20707

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned 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: $26,906,172

Exercised Options: $26,906,172

Current Obligation: $26,653,658

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCDG133W10CQ0042

IDV Type: IDC

Timeline