DOI's $294M spacecraft contract for Landsat Data Continuity Mission awarded to Orbital Sciences LLC

Contract Overview

Contract Amount: $294,286,450 ($294.3M)

Contractor: Orbital Sciences LLC

Awarding Agency: Department of the Interior

Start Date: 2000-02-15

End Date: 2013-08-10

Contract Duration: 4,925 days

Daily Burn Rate: $59.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: RAPID SPACECRAFT ACQUISITION MASTER CONTRACT THE CONTRACTOR SHALL PROVIDE THE SPACECRAFT AND ALL ASSOCIATED HARDWARE, SOFTWARE, LABOR, DOCUMENTATION AND POST LAUNCH SUPPORT FOR THE LANDSAT DATA CONTINUITY MISSION (LDCM).

Place of Performance

Location: GILBERT, MARICOPA County, ARIZONA, 85233

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $294.3 million to ORBITAL SCIENCES LLC for work described as: RAPID SPACECRAFT ACQUISITION MASTER CONTRACT THE CONTRACTOR SHALL PROVIDE THE SPACECRAFT AND ALL ASSOCIATED HARDWARE, SOFTWARE, LABOR, DOCUMENTATION AND POST LAUNCH SUPPORT FOR THE LANDSAT DATA CONTINUITY MISSION (LDCM). Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 13 years indicates a long-term commitment to the mission. 3. The firm fixed-price structure aims to control costs and transfer risk to the contractor. 4. The contract supports critical Earth observation data continuity for scientific and governmental use. 5. Awarded by the U.S. Geological Survey, highlighting its importance for land resource management. 6. The contract value of $294 million represents a significant investment in space-based remote sensing.

Value Assessment

Rating: good

The contract value of $294 million for a spacecraft and associated services over more than 13 years appears reasonable given the complexity and duration of the Landsat Data Continuity Mission. Benchmarking against similar large-scale satellite acquisition programs is challenging due to unique mission requirements and technological advancements. However, the firm fixed-price nature of the contract suggests an effort to establish a clear cost ceiling and incentivize contractor efficiency. The absence of readily available per-unit cost data for the spacecraft itself makes direct cost comparison difficult, but the overall investment aligns with the strategic importance of continuous Earth observation data.

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 presence of 6 bids suggests a healthy level of interest and competition for this significant program. A competitive process like this is generally expected to drive down prices and encourage innovative solutions as contractors vie for the award. The number of bidders provides a degree of confidence that the selected price reflects market conditions and the contractor's ability to deliver the required services effectively.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for money, ensuring that the significant investment in the Landsat program is managed efficiently and effectively.

Public Impact

Provides continuous, high-quality satellite imagery and data for environmental monitoring and resource management across the United States. Supports scientific research in areas such as climate change, agriculture, forestry, and disaster management. Benefits federal agencies like the Department of the Interior, NASA, and NOAA, as well as state and local governments. Ensures the availability of crucial data for land use planning, mapping, and national security applications. Impacts the scientific community and the public by providing open access to valuable Earth observation data. The contract's execution likely involved a workforce of engineers, scientists, technicians, and support staff, contributing to employment in the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost overruns if not managed tightly.
Firm fixed-price contracts can sometimes limit flexibility if unforeseen technical challenges arise.
Reliance on a single contractor for a critical mission component carries inherent program risk.
Post-launch support costs could be a significant factor not fully detailed in the initial award.
Technological obsolescence could become a concern over the extended mission lifespan.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract provides cost certainty and incentivizes contractor performance.
The contractor, Orbital Sciences LLC, has experience in spacecraft development.
Ensures continuity of vital Landsat data, a critical national asset.
Long-term commitment signals strategic importance and sustained investment in Earth observation.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to aerospace and satellite technology. The market for satellite development and launch services is highly specialized, involving a limited number of experienced contractors capable of undertaking complex missions like the Landsat Data Continuity Mission. Spending in this area is driven by governmental needs for Earth observation, scientific research, and national security. Comparable spending benchmarks would typically involve other large satellite acquisition programs by agencies like NASA or the Department of Defense, which often run into hundreds of millions or even billions of dollars.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The nature of large-scale spacecraft acquisition typically involves prime contractors with extensive capabilities, often leading to prime contracts being awarded to large aerospace companies. While direct small business set-asides may not be present, there is potential for small businesses to participate as subcontractors to Orbital Sciences LLC, providing specialized components, software, or services. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages them in the supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Geological Survey (USGS) and potentially the Department of the Interior's Inspector General. Mechanisms likely include regular progress reviews, technical inspections, and financial audits to ensure compliance with contract terms and performance standards. Transparency is generally maintained through contract award announcements and public reporting on mission status. The Inspector General's office would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Landsat Program
Earth Observation Satellite Programs
National Aeronautics and Space Administration (NASA) Contracts
Department of Defense Satellite Programs
National Oceanic and Atmospheric Administration (NOAA) Contracts
Remote Sensing Technology Development

Risk Flags

Long-term contract duration
Firm Fixed Price contract type
Single prime contractor reliance
Potential for technical obsolescence over mission life

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $294.3 million to ORBITAL SCIENCES LLC. RAPID SPACECRAFT ACQUISITION MASTER CONTRACT THE CONTRACTOR SHALL PROVIDE THE SPACECRAFT AND ALL ASSOCIATED HARDWARE, SOFTWARE, LABOR, DOCUMENTATION AND POST LAUNCH SUPPORT FOR THE LANDSAT DATA CONTINUITY MISSION (LDCM).

Who is the contractor on this award?

The obligated recipient is ORBITAL SCIENCES 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 $294.3 million.

What is the period of performance?

Start: 2000-02-15. End: 2013-08-10.

What is the track record of Orbital Sciences LLC in delivering complex spacecraft projects, particularly those similar in scope to the Landsat Data Continuity Mission?

Orbital Sciences LLC (now part of Northrop Grumman) has a significant track record in developing and operating various spacecraft, including scientific satellites, communication satellites, and Earth observation missions. They have been involved in numerous NASA and other government programs, such as the development of the Cygnus cargo spacecraft for the International Space Station and various small satellite constellations. Their experience with the Landsat program itself, prior to this specific contract, and their subsequent work on other Earth-observing platforms would be key indicators of their capability. A review of their past performance on similar firm fixed-price contracts, adherence to schedule, and budget performance would provide a comprehensive assessment of their reliability for this mission.

How does the per-unit cost of the spacecraft compare to similar Earth observation satellites acquired by other federal agencies or international partners?

Direct per-unit cost comparison for the Landsat Data Continuity Mission spacecraft is challenging without detailed cost breakdowns and specific mission requirements. Earth observation satellites vary significantly in complexity, sensor capabilities, lifespan, and orbit, making direct price-to-price comparisons difficult. However, the total contract value of $294 million over a period exceeding 13 years, encompassing spacecraft, launch support, and post-launch services, suggests a substantial investment. Benchmarking against other large national satellite programs, such as those developed by NASA for Earth science or by the Department of Defense for reconnaissance, would be necessary. These programs often have costs ranging from hundreds of millions to over a billion dollars, depending on their sophistication and objectives. The firm fixed-price nature of this contract implies a negotiated cost ceiling, which, when compared to similar competitive procurements, can offer insights into value for money.

What are the primary risks associated with a firm fixed-price contract for a long-duration, complex project like the Landsat Data Continuity Mission?

The primary risks associated with a firm fixed-price (FFP) contract for a long-duration, complex project like the Landsat Data Continuity Mission (LDCM) revolve around potential scope creep, unforeseen technical challenges, and contractor performance. While FFP contracts are designed to provide cost certainty and transfer risk to the contractor, they can become problematic if the initial requirements are not fully defined or if significant technical hurdles emerge during development and execution. The contractor may face pressure to cut corners to maintain profitability, potentially impacting quality or performance. Conversely, if the government requires changes or upgrades, the contractor may seek significant price adjustments. Managing such a long-term FFP contract requires robust oversight to ensure the contractor meets all specifications without compromising mission success or incurring excessive costs due to unforeseen issues.

How effective has the Landsat program been in providing continuous, reliable Earth observation data prior to and during this contract period?

The Landsat program, initiated in 1972, has been remarkably effective in providing a continuous, long-term record of Earth's land surface. This continuity is crucial for detecting environmental changes, understanding land use patterns, and supporting various scientific disciplines. The Landsat Data Continuity Mission (LDCM) contract was specifically designed to ensure this unbroken data stream following the end of the Landsat 7 mission's operational life. The success of the Landsat program is often measured by the availability and quality of its data, its wide adoption by researchers and operational users globally, and its contribution to numerous scientific discoveries and policy decisions. The sustained funding and commitment to the program, including this significant contract, underscore its perceived effectiveness and value as a national and international asset.

What has been the historical spending trend for the Landsat program and similar Earth observation initiatives within the Department of the Interior?

Historical spending on the Landsat program has been characterized by significant, albeit cyclical, investments in satellite development, launch, and ground systems. Prior to the LDCM contract, the Department of the Interior (DOI) and NASA jointly funded and managed previous Landsat missions, with costs varying based on the complexity of each satellite generation. For instance, the development and launch of Landsat 7 involved substantial funding. Spending on similar Earth observation initiatives within the DOI, such as those managed by the U.S. Geological Survey (USGS) for geological mapping and natural resource monitoring, also represents considerable investment. Analyzing budget allocations over several decades would reveal trends in prioritizing and funding these critical data-gathering capabilities, often influenced by technological advancements and evolving national priorities for environmental monitoring and resource management.

What are the implications of awarding a contract of this magnitude to a single prime contractor for the long-term continuity of critical Earth observation data?

Awarding a contract of this magnitude ($294 million) to a single prime contractor, Orbital Sciences LLC, for the Landsat Data Continuity Mission (LDCM) has several implications. On the positive side, it consolidates responsibility, potentially streamlining project management and ensuring a unified approach to mission execution. It allows for deep specialization and focused development efforts. However, it also concentrates risk. The government becomes heavily reliant on the performance and stability of that single contractor. Any significant issues with the contractor, such as financial instability, technical failures, or management problems, could jeopardize the entire mission and the continuity of vital data. Robust government oversight and contingency planning are therefore critical to mitigate these risks and ensure the long-term success of the program.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: SPACE VEHICLES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 45101 WARP DR, DULLES, VA, 10

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,500,000,000

Exercised Options: $1,500,000,000

Current Obligation: $294,286,450

Timeline