NOAA Systems Engineering and Technical Services (SETS)

Award of a competitive, cost-plus fixed fee type contract. The rationale (explanation) for other than a fixed price contract is: This is not an acquisition for services where the Government would or could pay a firm-fixed price. Given the scope of the work and performance requirements, a firm-fixed price contract would require a high baseline cost to account for the many performance risks. The Government does not have the budget for a high priced firm-fixed price contract and must look to incentivizing the contractor to control costs without sacrificing performance in the face of performance uncertainties. A cost-type contract provides for the maximum flexibility to change contract requirements as the systems being developed and satellite data products being distributed by NOAA change. There are often changes to contract requirements as system development and weather priorities change. New information, technology components, and systems are integrated into NOAA processes. Accordingly, this contract must be agile and easily suitable to immediate changes (ramping up and ramping down) without the added administrative burden and cost of successive requests for equitable adjustment or partial terminations for convenience as systems are added or completed. The full justification for awarding other than a fixed-price type contract is in the official contract file.