DOI spent $11.8M on Landsat 5 satellite operations, with KBR Wyle Services delivering services over 5 years

Contract Overview

Contract Amount: $11,793,686 ($11.8M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2006-11-01

End Date: 2011-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $6.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OPERATION OF LANDSAT 5 SATELLITE

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $11.8 million to KBR WYLE SERVICES, LLC for work described as: OPERATION OF LANDSAT 5 SATELLITE Key points: 1. Value for money appears reasonable given the specialized nature of satellite operations and the 5-year duration. 2. Competition dynamics were competitive, with 2 bidders indicating a healthy market for these services. 3. Risk indicators are low, as the contract was a delivery order with a defined scope and duration. 4. Performance context is specific to the operation of a critical scientific asset, Landsat 5. 5. Sector positioning is within the 'Other Computer Related Services' NAICS code, reflecting IT and technical support.

Value Assessment

Rating: good

The total award of $11.8 million over five years for operating a satellite like Landsat 5 suggests a cost of approximately $2.36 million per year. This figure needs to be benchmarked against similar satellite operations contracts, which are often highly specialized and expensive. Without direct comparable contracts for Landsat 5 operations, it's difficult to definitively assess value, but the duration and scope suggest a potentially fair price for maintaining a critical scientific instrument.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors had the opportunity to bid. With two bidders participating, the competition level suggests a moderately contested market for these specialized services. While not an extremely high number of bidders, it indicates that the government was able to solicit offers from more than one source, likely leading to a more favorable price discovery than a sole-source award.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more cost-effective outcome compared to a non-competitive procurement.

Public Impact

The U.S. Geological Survey (USGS) and the scientific community benefit from the continued operation of the Landsat 5 satellite. Essential data for Earth observation, environmental monitoring, and resource management is delivered through these services. The geographic impact is global, as Landsat data is used worldwide for scientific research and applications. Workforce implications include employment for highly skilled technical personnel in satellite operations and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical issues arise with the aging satellite.
Dependence on a single contractor for critical operations could pose a risk if performance degrades.
The 'Other Computer Related Services' NAICS code is broad and may not fully capture the specialized nature of satellite operations.

Positive Signals

The contract was competitively awarded, suggesting a baseline of fair pricing.
The defined duration and delivery order structure provide clear expectations and scope.
KBR Wyle Services, LLC has a track record in government contracting, implying some level of established capability.

Sector Analysis

The contract falls under the 'Other Computer Related Services' category, which is broad. However, the actual service provided is highly specialized: operating a satellite. The market for satellite operations is niche, dominated by a few large aerospace and defense contractors. Spending in this area is typically high due to the complexity and criticality of maintaining space-based assets. Comparable spending would be found in other government agencies operating similar Earth observation or communication satellites.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the specialized nature of satellite operations, it is likely that larger, more experienced companies with specific aerospace and engineering capabilities would be the primary bidders. Subcontracting opportunities for small businesses might exist in supporting roles, but the prime contract is unlikely to be awarded to a small business without significant demonstrated expertise in this field.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Geological Survey (USGS) contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement, requiring adherence to operational standards and reporting requirements. Transparency is generally maintained through contract award databases, though specific operational details might be sensitive. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

NASA Earth Science Programs
NOAA Satellite Operations
Department of Defense Space Programs
National Reconnaissance Office (NRO) Contracts

Risk Flags

Aging Satellite Systems
Potential for Technical Obsolescence
Reliance on Specialized Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $11.8 million to KBR WYLE SERVICES, LLC. OPERATION OF LANDSAT 5 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 $11.8 million.

What is the period of performance?

Start: 2006-11-01. End: 2011-10-31.

What is the specific technical expertise KBR Wyle Services, LLC brought to the operation of Landsat 5?

KBR Wyle Services, LLC, as a contractor specializing in aerospace and defense, likely provided a range of technical expertise crucial for operating a complex satellite system like Landsat 5. This would include mission operations, ground system maintenance, command and control, data downlink and processing, and anomaly resolution. Their expertise would encompass systems engineering, software development and maintenance for ground control, and the management of specialized hardware components. The company's background in supporting government and commercial space missions suggests they possess the necessary personnel and processes to ensure the satellite's continued functionality and data acquisition capabilities throughout the contract period.

How does the $11.8 million award compare to the operational costs of other Earth observation satellites?

Directly comparing the $11.8 million award for Landsat 5 operations over five years (approximately $2.36 million annually) to other Earth observation satellites is challenging due to variations in satellite complexity, mission lifespan, data acquisition rates, and the scope of operational support required. However, for context, major Earth observation satellite programs often incur annual operational costs ranging from a few million dollars to tens of millions, depending on the sophistication of the satellite and its instruments. Factors like the age of the satellite (Landsat 5 was launched in 1984), the need for specialized legacy system support, and the criticality of its data can influence these costs. Without specific benchmark data for similarly aged and utilized satellites, it's difficult to definitively state if this award represents exceptional value, but it falls within a plausible range for maintaining a long-standing, critical asset.

What were the primary risks associated with operating Landsat 5 during this contract period?

The primary risks associated with operating Landsat 5 during the 2006-2011 period were largely related to the satellite's age and the potential for component failure. As a satellite launched in 1984, Landsat 5 was well beyond its designed operational lifespan, increasing the probability of hardware malfunctions, sensor degradation, or system failures. Another significant risk was the obsolescence of ground support systems and software, requiring continuous maintenance and adaptation. Furthermore, the reliance on a single contractor, KBR Wyle Services, LLC, introduced performance risk; any lapse in their operational efficiency or technical capability could jeopardize data continuity. Ensuring the availability of skilled personnel with expertise in legacy satellite systems also presented a potential risk.

What was the historical spending trend for Landsat 5 operations prior to this contract?

Historical spending data for Landsat 5 operations prior to this specific $11.8 million contract (2006-2011) would reveal a pattern of sustained investment necessary for maintaining the satellite's functionality. Landsat 5 had been operational for over two decades before this contract began, implying significant prior expenditures on its operation, maintenance, and data processing. While the exact figures for each preceding year or contract are not provided in the summary data, it's reasonable to infer that annual operational costs would have been in a similar order of magnitude, adjusted for inflation and technological changes. The USGS has consistently funded the Landsat program, indicating a long-term commitment to its data continuity, which would be reflected in consistent, albeit potentially fluctuating, spending on satellite operations over the years.

How did the 'Other Computer Related Services' NAICS code accurately reflect the scope of work for Landsat 5 operations?

The classification of 'Other Computer Related Services' (NAICS code 541519) for the operation of Landsat 5 is a broad categorization that may not fully capture the highly specialized nature of satellite mission operations. While computer systems and software are integral to satellite control, data processing, and ground station management, this NAICS code typically encompasses services like IT consulting, systems integration, and data processing. Operating a satellite involves a much wider array of disciplines, including aerospace engineering, orbital mechanics, sensor technology, and specialized hardware maintenance, which are not explicitly represented by this code. Therefore, while computer services are a component, the code serves as a general placeholder rather than a precise descriptor of the full scope of aerospace and mission-critical operations involved.

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 Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

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: $13,853,356

Exercised Options: $11,793,686

Current Obligation: $11,793,686

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5381H

IDV Type: FSS

Timeline