DOI's Landsat 7 satellite operations contract awarded to KBR Wyle Services, LLC for over $30M
Contract Overview
Contract Amount: $30,198,727 ($30.2M)
Contractor: KBR Wyle Services, LLC
Awarding Agency: Department of the Interior
Start Date: 2004-05-16
End Date: 2012-11-15
Contract Duration: 3,105 days
Daily Burn Rate: $9.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: 04-8836-20000 - OPERATION OF LANDSAT 7 SATELLITE
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of the Interior obligated $30.2 million to KBR WYLE SERVICES, LLC for work described as: 04-8836-20000 - OPERATION OF LANDSAT 7 SATELLITE Key points: 1. Contract value appears reasonable given the duration and complexity of operating a satellite. 2. Competition dynamics for this specific contract are not detailed, but the nature of satellite operations often limits broad competition. 3. Risk indicators include potential for technical failures, reliance on a single contractor, and long-term operational costs. 4. Performance context involves maintaining a critical Earth observation asset for scientific research and data collection. 5. Sector positioning places this contract within the specialized aerospace and government IT services industry.
Value Assessment
Rating: good
The contract value of approximately $30.2 million over an 8-year period for operating Landsat 7 is within a reasonable range for such a specialized and critical service. Benchmarking against similar satellite operations contracts is challenging due to the unique nature of each mission, but the cost per year is approximately $3.77 million. This figure needs to be assessed against the scientific return and data availability provided by the satellite.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The provided data indicates the contract was a 'COMPETITIVE DELIVERY ORDER' but does not specify the number of bidders or the full extent of the competition. For highly specialized services like satellite operations, the pool of qualified bidders can be limited, potentially impacting price discovery. Further investigation into the solicitation documents would be needed to confirm the level of competition.
Taxpayer Impact: A limited competition could potentially lead to higher costs for taxpayers if fewer companies are vying for the contract. However, if the competition was robust among the few qualified entities, it could still result in a fair price.
Public Impact
Benefits scientists and researchers worldwide by providing continuous Earth observation data. Delivers crucial data for climate change monitoring, land use analysis, and natural resource management. Has a global geographic impact through the data collected and disseminated. Supports a specialized workforce in aerospace engineering, satellite operations, and data analysis.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical issues arise with the aging satellite.
- Risk of contractor performance issues impacting data continuity and quality.
- Dependence on a single contractor for a critical national asset.
Positive Signals
- Successful operation of a long-standing and valuable scientific instrument.
- Contract awarded to a known entity in the aerospace services sector.
- Long contract duration suggests a stable operational environment.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on satellite operations and maintenance. The market for such services is highly specialized, dominated by a few large contractors with the requisite technical expertise and security clearances. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of each satellite mission, but the overall federal spending on space operations is substantial.
Small Business Impact
The provided data does not indicate any small business set-aside provisions for this contract. Given the specialized nature of satellite operations, it is unlikely that small businesses would be the primary awardees, though they may participate as subcontractors to larger prime contractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Geological Survey (USGS) within the Department of the Interior. Mechanisms would include performance reviews, technical inspections, and financial audits. Transparency is generally maintained through contract award databases, but detailed operational performance metrics may not always be publicly disclosed.
Related Government Programs
- Landsat Program
- Earth Observation Satellites
- NASA Satellite Operations
- NOAA Satellite Programs
Risk Flags
- Potential for aging satellite hardware failures.
- Reliance on a single contractor for critical operations.
- Limited public information on competition details.
- Long-term operational costs for legacy systems.
Tags
department-of-the-interior, u-s-geological-survey, landsat-7, satellite-operations, aerospace, it-services, competitive-delivery-order, time-and-materials, kbr-wyle-services, maryland
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $30.2 million to KBR WYLE SERVICES, LLC. 04-8836-20000 - OPERATION OF LANDSAT 7 SATELLITE
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 $30.2 million.
What is the period of performance?
Start: 2004-05-16. End: 2012-11-15.
What is the track record of KBR Wyle Services, LLC in managing satellite operations contracts?
KBR Wyle Services, LLC, and its predecessor entities, have a significant history in supporting government aerospace and defense programs, including satellite operations and maintenance. Their experience often spans various phases of satellite lifecycles, from development to launch support and ongoing operations. While specific details on their performance for Landsat 7 would require deeper analysis of performance reports and contract modifications, their presence in this sector suggests a level of established capability. It's important to review past performance evaluations and any documented issues or successes related to their management of similar complex, long-duration government contracts to fully assess their track record.
How does the cost per year of operating Landsat 7 compare to similar satellite missions?
The annual cost for operating Landsat 7 under this contract is approximately $3.77 million ($30.2M / 8 years). Comparing this figure directly to other satellite missions is complex, as costs vary significantly based on satellite age, complexity, mission objectives, data processing requirements, and the specific services included (e.g., ground station operations, data archiving, scientific support). For instance, operating a more advanced, newer satellite with higher data throughput or more sophisticated instruments could incur higher costs. Conversely, simpler or older satellites might have lower operational expenses. Without a standardized benchmark for 'satellite operations' across different mission types, this figure should be viewed in the context of the Landsat program's specific needs and its long-standing scientific value.
What are the primary risks associated with the long-term operation of Landsat 7 under this contract?
The primary risks associated with the long-term operation of Landsat 7 involve technical obsolescence and potential hardware failures. As an older satellite, the risk of component failure increases over time, which could lead to data gaps or reduced data quality. Contractor performance is another key risk; any lapse in service by KBR Wyle Services, LLC could impact the continuity and reliability of data collection. Furthermore, the reliance on a single contractor for such a critical asset presents a risk if the contractor faces financial instability or operational challenges. Ensuring robust contingency plans and performance monitoring by the USGS is crucial to mitigate these risks.
What is the historical spending pattern for Landsat satellite operations, and how does this contract fit?
The Landsat program has a long history of federal investment, with spending on satellite operations spanning several decades and multiple satellite generations. Historical spending has fluctuated based on the launch cycles of new satellites and the operational needs of existing ones. This contract for Landsat 7 operations represents a continuation of that long-term investment in Earth observation capabilities. While specific historical dollar amounts for Landsat 7 operations prior to this contract are not detailed here, the overall trend indicates consistent federal commitment to maintaining the Landsat data archive and operational continuity. This contract fits within that pattern by ensuring the ongoing functionality of a key component of the program.
What is the potential impact of this contract on the broader Earth observation data market?
This contract ensures the continued availability of valuable data from Landsat 7, which is a cornerstone of global Earth observation. The data generated supports a wide range of applications, from environmental monitoring and disaster response to agricultural planning and urban development. By maintaining the operational status of Landsat 7, this contract indirectly supports the ecosystem of researchers, commercial entities, and government agencies that rely on this data. It contributes to the overall supply of publicly accessible, high-quality satellite imagery, influencing the market by providing a baseline against which commercial data products are often compared or integrated.
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: COMPETITIVE DELIVERY ORDER
Solicitation ID: 04CRQQ0008
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 7000 COLUMBIA GATEWAY DR, COLUMBIA, MD, 21046
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $58,714,608
Exercised Options: $33,764,721
Current Obligation: $30,198,727
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F5381H
IDV Type: FSS
Timeline
Start Date: 2004-05-16
Current End Date: 2012-11-15
Potential End Date: 2012-11-15 00:00:00
Last Modified: 2021-12-02
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