DOT awards $35.5M for satellite telecommunications, extending services through 2026

Contract Overview

Contract Amount: $35,479,294 ($35.5M)

Contractor: Peraton Government Communications Inc.

Awarding Agency: Department of Transportation

Start Date: 2017-09-18

End Date: 2026-07-31

Contract Duration: 3,238 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FUNDING FOR OPTION PERIOD 3

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $35.5 million to PERATON GOVERNMENT COMMUNICATIONS INC. for work described as: IGF::OT::IGF FUNDING FOR OPTION PERIOD 3 Key points: 1. Contract value represents a significant investment in critical communication infrastructure. 2. The award was made under full and open competition, suggesting a competitive market. 3. Long contract duration indicates a need for sustained service delivery. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The services provided are essential for maintaining operational capabilities. 6. The contractor has a history of performing government contracts.

Value Assessment

Rating: good

The contract value of $35.5 million over its period of performance appears reasonable for satellite telecommunications services. Benchmarking against similar contracts for large-scale government telecommunications infrastructure would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the government has secured a defined cost for the services, which is generally favorable for budget predictability. However, without detailed service level agreements and performance metrics, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive favorable pricing and ensure the government receives the best value. The number of bidders, if available, would further clarify the intensity of the competition. A robust competitive landscape generally leads to more innovative solutions and cost efficiencies.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that typically results in lower prices and higher quality services compared to sole-source or limited competition awards.

Public Impact

The Federal Aviation Administration (FAA) benefits from reliable satellite telecommunications. Essential services are delivered to support the agency's operational needs. Services are likely to have a national geographic impact, supporting widespread FAA operations. The contract supports jobs within the telecommunications sector, including those at the prime contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contract scope expands beyond initial estimates.
Dependence on a single contractor for critical satellite telecommunications infrastructure.
Risk of service disruption due to satellite or ground station failures.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Long-term contract provides service stability and predictability.
Full and open competition suggests a healthy market and potential for competitive pricing.

Sector Analysis

Satellite telecommunications is a vital sector supporting government operations, providing connectivity in areas where terrestrial infrastructure is unavailable or unreliable. The market is characterized by significant technological investment and a mix of large established players and specialized providers. This contract fits within the broader IT and telecommunications spending of the federal government, which relies heavily on such services for mission-critical functions. Comparable spending benchmarks would involve analyzing other large-scale government satellite communication awards.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It is possible that subcontracting opportunities may exist for small businesses within the telecommunications industry, but this would depend on the prime contractor's subcontracting plan. Without further information, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Federal Aviation Administration. Performance monitoring, adherence to contract terms, and quality assurance are key oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Aviation Administration IT Services
Department of Transportation Telecommunications Contracts
Satellite Communications Services for Government

Risk Flags

Long-term contract duration may limit flexibility for future technological upgrades.
Reliance on satellite technology can be subject to atmospheric conditions and orbital congestion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $35.5 million to PERATON GOVERNMENT COMMUNICATIONS INC.. IGF::OT::IGF FUNDING FOR OPTION PERIOD 3

Who is the contractor on this award?

The obligated recipient is PERATON GOVERNMENT COMMUNICATIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $35.5 million.

What is the period of performance?

Start: 2017-09-18. End: 2026-07-31.

What is the track record of PERATON GOVERNMENT COMMUNICATIONS INC. with federal contracts, particularly in satellite telecommunications?

PERATON GOVERNMENT COMMUNICATIONS INC. has a history of performing federal contracts, including those related to telecommunications and satellite services. Analyzing their past performance on similar contracts, including on-time delivery, quality of service, and adherence to budget, would provide insight into their reliability. Specific data on past contract values, durations, and agencies served would offer a more comprehensive picture of their experience and capabilities in supporting government requirements. Their ability to successfully manage complex satellite communication systems is a key factor in assessing their suitability for this ongoing award.

How does the awarded amount of $35.5 million compare to similar satellite telecommunications contracts awarded by the federal government?

The $35.5 million award for satellite telecommunications services over its period of performance needs to be benchmarked against comparable federal contracts to assess its value. Factors such as the scope of services, bandwidth requirements, geographic coverage, and service level agreements significantly influence contract costs. Contracts for similar durations and service levels awarded to other agencies or for different branches of the Department of Transportation could serve as benchmarks. A detailed comparison would involve analyzing the price per unit of service (e.g., per Mbps of bandwidth) and the overall cost relative to the criticality and complexity of the supported operations.

What are the primary risks associated with this satellite telecommunications contract, and how are they being mitigated?

Key risks for this contract include potential service disruptions due to satellite malfunctions, ground station issues, or cybersecurity threats. Dependence on a single provider for critical infrastructure also poses a risk. Mitigation strategies likely involve robust service level agreements with penalties for downtime, contingency planning for service continuity, and strong cybersecurity protocols. The firm-fixed-price nature of the contract shifts some financial risk to the contractor, incentivizing them to manage operational risks effectively. Regular performance reviews and technical assessments by the FAA are also crucial for ongoing risk management.

How effective has PERATON GOVERNMENT COMMUNICATIONS INC. been in delivering satellite telecommunications services under previous government contracts?

Assessing the effectiveness of PERATON GOVERNMENT COMMUNICATIONS INC. requires a review of their past performance metrics on similar government contracts. This includes evaluating their record on meeting delivery schedules, maintaining service uptime, adhering to technical specifications, and managing customer satisfaction. Data from contract performance reports, past performance questionnaires, and any documented issues or commendations would be valuable. A consistent record of successful performance indicates a higher likelihood of continued effectiveness in fulfilling the current contract requirements for the FAA.

What are the historical spending patterns for satellite telecommunications services within the Federal Aviation Administration?

Analyzing historical spending patterns for satellite telecommunications within the FAA would reveal trends in investment, contract durations, and the number of awards over time. This data can indicate whether spending has been consistent, increasing, or decreasing, and whether the agency relies on a few large contracts or multiple smaller ones. Understanding these patterns helps contextualize the current $35.5 million award, showing if it represents a typical investment or a significant shift in strategy. It also informs future budget planning and procurement strategies for essential communication services.

What is the potential impact of this contract on the broader satellite telecommunications market and competition?

This contract, awarded through full and open competition, suggests a healthy competitive environment within the satellite telecommunications sector serving government needs. The award to PERATON GOVERNMENT COMMUNICATIONS INC. signifies their strong position in this market. The sustained demand from a major agency like the FAA supports market stability and encourages continued investment in satellite technology and infrastructure. Future competition may be influenced by the performance and pricing demonstrated in this contract, potentially impacting how other government agencies procure similar services.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12975 WORLDGATE DR STE 7103, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,479,294

Exercised Options: $35,479,294

Current Obligation: $35,479,294

Actual Outlays: $19,736,571

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $8,857,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA13D00015

IDV Type: IDC

Timeline