NASA's $263M EOSDIS Core System contract to Raytheon for software and hardware maintenance awarded under full and open competition
Contract Overview
Contract Amount: $262,856,255 ($262.9M)
Contractor: Raytheon Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-05-22
End Date: 2009-05-22
Contract Duration: 2,192 days
Daily Burn Rate: $119.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: MAINTENANCE&DEVELOPMENT OF SOFTWARE&HARDWARE SYSTEMS FOR EOSDIS CORE SYSTEM SCIENCE DATA
Place of Performance
Location: UPPER MARLBORO, PRINCE GEORGE'S County, MARYLAND, 20774, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $262.9 million to RAYTHEON COMPANY for work described as: MAINTENANCE&DEVELOPMENT OF SOFTWARE&HARDWARE SYSTEMS FOR EOSDIS CORE SYSTEM SCIENCE DATA Key points: 1. Contract value of $262.8M over six years suggests significant investment in critical Earth observation data systems. 2. Full and open competition indicates a robust bidding process, potentially leading to better pricing and innovation. 3. The contract's duration of 2192 days (approx. 6 years) points to a long-term need for system stability and ongoing support. 4. Award type 'DCA' (undefined in provided data) and 'COST PLUS AWARD FEE' pricing structure warrant further investigation into performance incentives and cost controls. 5. The North American Industry Classification System (NAICS) code 541512 for Computer Systems Design Services places this contract within a key segment of the IT services market. 6. The contract's focus on 'MAINTENANCE&DEVELOPMENT OF SOFTWARE&HARDWARE SYSTEMS' highlights the importance of sustaining complex scientific data infrastructure.
Value Assessment
Rating: fair
Benchmarking the value of this $262.8M contract is challenging without specific comparable contracts for Earth observation data systems. The Cost Plus Award Fee (CPAF) structure means the final cost could vary based on performance, making direct price comparisons difficult. However, the significant investment over six years suggests a high perceived value for maintaining the EOSDIS Core System. Further analysis would require understanding the specific performance metrics and award fee criteria to assess if the achieved performance justified the total expenditure.
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 a bid. The presence of two bids ('no': 2) suggests a competitive process, though the exact number of bidders can influence price discovery. A higher number of bidders generally leads to more competitive pricing for the government. The specific details of the solicitation and evaluation process would provide further insight into the effectiveness of this competition.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and fostering innovation. This approach maximizes the potential for the government to secure the best value for its investment.
Public Impact
Benefits scientists and researchers worldwide by ensuring the availability and integrity of Earth observation data from NASA's missions. Supports the continuous operation and development of the Earth Observing System Data and Information System (EOSDIS), a critical infrastructure for climate and environmental research. Impacts the scientific community by providing access to vital datasets for understanding climate change, natural disasters, and other Earth system processes. Ensures the long-term accessibility and usability of data collected by numerous Earth-observing satellites, contributing to a global scientific record.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee (CPAF) structure can lead to cost overruns if not tightly managed and performance incentives are not well-defined.
- Limited number of bidders (2) may indicate potential barriers to entry or a specialized market, potentially reducing competitive pressure.
- Contract duration of 6 years requires careful monitoring to ensure continued value and adaptability to evolving technological needs.
- Lack of specific details on performance metrics and award fee criteria makes it difficult to fully assess value for money.
- The 'DCA' award type is not clearly defined and requires clarification to understand its implications.
Positive Signals
- Awarded under full and open competition, maximizing the potential for competitive pricing and innovation.
- Focus on maintenance and development of critical scientific data systems ensures continuity of vital research infrastructure.
- Long-term contract provides stability for the contractor and ensures sustained support for essential NASA operations.
- The contract supports a crucial function for NASA's Earth science missions, indicating strategic importance.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design and related services. The market for maintaining and developing large-scale scientific data systems is specialized, often dominated by a few large defense and aerospace contractors with the requisite expertise and security clearances. NASA's EOSDIS is a cornerstone of Earth science data management globally, and contracts supporting it represent significant investments in maintaining critical scientific infrastructure. Comparable spending benchmarks would likely be found within other large government agencies managing extensive scientific data archives or complex IT systems.
Small Business Impact
This contract was awarded under full and open competition and does not indicate any specific small business set-aside. The prime contractor, Raytheon Company, is a large aerospace and defense firm. While the contract itself is not set aside for small businesses, large prime contractors are often required to meet subcontracting goals for small businesses. The extent to which Raytheon will utilize small businesses for subcontracting opportunities will determine the direct impact on the small business ecosystem for this specific contract.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA), specifically the contracting officer and program management. The Cost Plus Award Fee (CPAF) structure implies performance-based oversight, where the contractor's achievement of specific metrics influences the final award fee. Transparency would be facilitated through contract award databases and potentially through NASA's public reporting on its programs. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- NASA Earth Science Data Systems
- EOSDIS Program
- Scientific Data Archiving and Management
- Satellite Data Processing
- Climate Change Research Support
Risk Flags
- Cost Plus Award Fee (CPAF) structure requires careful monitoring to control costs.
- Limited number of bidders may reduce competitive pressure.
- Long contract duration necessitates vigilance against technological obsolescence and scope creep.
Tags
it-services, nasa, eosdis, software-development, hardware-maintenance, full-and-open-competition, cost-plus-award-fee, scientific-data-management, earth-observation, large-contract, systems-design, raytheon-company
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $262.9 million to RAYTHEON COMPANY. MAINTENANCE&DEVELOPMENT OF SOFTWARE&HARDWARE SYSTEMS FOR EOSDIS CORE SYSTEM SCIENCE DATA
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $262.9 million.
What is the period of performance?
Start: 2003-05-22. End: 2009-05-22.
What is the track record of Raytheon Company in managing large-scale scientific data systems for government agencies?
Raytheon Company, now part of RTX, has a long history of providing complex IT and systems engineering services to government agencies, including NASA and the Department of Defense. They have been involved in various large-scale projects, often related to aerospace, defense, and intelligence. Their experience includes developing and maintaining mission-critical systems, managing large data volumes, and providing software development and hardware integration. While specific details on their performance for the EOSDIS Core System are embedded within the contract's history, their general profile suggests a capability to handle such complex, long-term contracts. However, the effectiveness of their performance on this specific contract would be best assessed through NASA's internal performance reviews and award fee determinations, which are not publicly detailed.
How does the $262.8M contract value compare to similar contracts for Earth observation data system maintenance?
Directly comparing the $262.8M value of this NASA EOSDIS Core System contract to similar contracts is challenging due to the unique nature and scale of Earth observation data systems. These systems are often highly specialized, involving the management of vast, complex datasets from multiple satellite missions over extended periods. Contracts for such systems can vary significantly based on the scope of data, number of missions supported, required processing capabilities, and duration. While $262.8M over six years represents a substantial investment, indicating the critical importance and complexity of the EOSDIS system, without access to detailed specifications of comparable contracts (e.g., NOAA's data systems, European Space Agency's data infrastructure), a precise value-for-money benchmark is difficult to establish. The Cost Plus Award Fee (CPAF) structure also introduces variability in the final cost.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks associated with this contract include potential cost overruns due to the Cost Plus Award Fee (CPAF) structure, which incentivizes performance but can lead to higher final costs if not managed stringently. Another risk is technological obsolescence, as the systems being maintained and developed could become outdated over the contract's six-year duration. Ensuring the continuity and integrity of critical scientific data is paramount, so system failures or data corruption represent significant risks. Mitigation strategies likely involve NASA's robust oversight, defined performance metrics tied to award fees, regular system reviews, and potentially phased technology refresh plans. The limited number of bidders (two) could also pose a risk if it indicates a lack of robust competition, potentially impacting price and innovation, though the full and open competition framework aims to mitigate this.
How effective has the EOSDIS Core System been in supporting NASA's Earth science mission objectives?
The Earth Observing System Data and Information System (EOSDIS) Core System, supported by this contract, is fundamental to NASA's Earth science mission objectives. It is designed to process, archive, and distribute data from NASA's Earth-observing satellite missions. Its effectiveness is generally considered high, as it provides essential data products to thousands of researchers globally, enabling critical studies on climate change, weather patterns, natural disasters, and other environmental phenomena. The continued funding and long-term nature of contracts like this underscore its perceived value and effectiveness in meeting the data needs of the scientific community. However, specific metrics on data accessibility, processing efficiency, and user satisfaction over the contract period would provide a more quantitative assessment of its effectiveness.
What are the historical spending patterns for the EOSDIS Core System or similar NASA data management contracts?
Historical spending on the EOSDIS Core System and related data management contracts for NASA has been substantial, reflecting the long-term commitment to Earth observation science. The EOSDIS program itself has evolved over decades, with significant investments made in its development and ongoing maintenance. Prior contracts for the Core System and its components would likely show consistent, multi-year funding allocations in the tens to hundreds of millions of dollars, depending on the scope of work (e.g., initial development vs. ongoing operations and maintenance). Analyzing historical spending patterns would reveal trends in IT infrastructure investment, the increasing volume of data managed, and the evolution of data processing and distribution technologies within NASA's Earth science directorate. This $262.8M contract represents a continuation of this significant investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 1616 MCCORMICK DRIVE, UPPER MARLBORO, MD, 20774
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $500,000,000
Exercised Options: $500,000,000
Current Obligation: $262,856,255
Timeline
Start Date: 2003-05-22
Current End Date: 2009-05-22
Potential End Date: 2009-05-22 00:00:00
Last Modified: 2015-09-28
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