DoD's $16.7M satellite service contract awarded to Peraton Government Communications Inc. for 4 years

Contract Overview

Contract Amount: $16,677,732 ($16.7M)

Contractor: Peraton Government Communications Inc.

Awarding Agency: Department of Defense

Start Date: 2007-04-11

End Date: 2011-08-15

Contract Duration: 1,587 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SATELLITE SERVICE

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to PERATON GOVERNMENT COMMUNICATIONS INC. for work described as: SATELLITE SERVICE Key points: 1. Contract value appears reasonable given the duration and service type. 2. Full and open competition after exclusion of sources suggests a competitive process. 3. Contract duration of over 4 years indicates a need for stable service provision. 4. The contract falls within the IT sector, specifically satellite telecommunications. 5. Awarded by the Defense Information Systems Agency, highlighting its strategic importance for defense communications.

Value Assessment

Rating: good

The contract's total value of approximately $16.7 million over 1587 days (roughly 4.3 years) averages to about $3.8 million per year. This appears to be a fair price for dedicated satellite telecommunications services, especially considering the specialized nature of defense-grade satellite infrastructure. Benchmarking against similar large-scale satellite service contracts for government entities suggests this pricing is within expected ranges, though specific service level agreements would provide a more precise comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was open, certain sources may have been excluded based on specific criteria, potentially related to technical capabilities or security clearances required for satellite communications. The presence of at least one bidder (implied by the award) suggests some level of competition, but the exclusion of sources might limit the breadth of competitive offers.

Taxpayer Impact: This procurement method aims to balance competition with the need for specialized capabilities, potentially leading to a reasonable price for taxpayers while ensuring essential defense communication needs are met.

Public Impact

Provides critical satellite communication services to the Department of Defense. Ensures reliable data and voice transmission for military operations. Supports national security objectives by maintaining robust communication networks. Benefits military personnel by enabling secure and continuous connectivity. Geographic impact is global, supporting deployed forces wherever they operate.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Reliance on a single contractor for critical satellite services could pose a risk if performance issues arise.

Positive Signals

Awarded through a competitive process, indicating potential for value.
Long-term contract suggests stability and reliability of service.
Contractor has experience in government communications.

Sector Analysis

This contract falls within the Information Technology sector, specifically the niche of satellite telecommunications. The market for government satellite services is characterized by high barriers to entry due to technological complexity, regulatory requirements, and security demands. Spending in this area is crucial for defense agencies requiring global reach and resilient communication capabilities. Comparable spending benchmarks are difficult to establish without detailed service specifications, but large government satellite contracts can range from tens to hundreds of millions of dollars annually.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the specialized nature of satellite telecommunications, it is likely that the prime contractor is a large business. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific technical requirements of the service. The overall impact on the small business ecosystem for this particular contract is likely minimal unless significant subcontracting is mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and service level agreements. Transparency is generally maintained through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Systems Agency (DISA) Contracts
Department of Defense Satellite Communications
Government Telecommunications Services
Information Technology Services Contracts

Risk Flags

Potential for limited competition
Reliance on single contractor for critical service

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to PERATON GOVERNMENT COMMUNICATIONS INC.. SATELLITE SERVICE

Who is the contractor on this award?

The obligated recipient is PERATON GOVERNMENT COMMUNICATIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2007-04-11. End: 2011-08-15.

What is the track record of Peraton Government Communications Inc. in delivering similar satellite services to the DoD?

Peraton Government Communications Inc. has a significant history of providing telecommunications and IT services to the U.S. government, including the Department of Defense. Their expertise spans various communication technologies, including satellite services. While specific performance metrics for this particular contract are not detailed in the provided data, Peraton's broader portfolio suggests they possess the necessary technical capabilities and experience to manage complex satellite service requirements. Government contract databases often contain past performance reviews and award histories that can offer further insights into their reliability and effectiveness in fulfilling similar obligations.

How does the annual cost of this contract compare to other similar satellite service contracts awarded by the DoD?

The annual cost for this contract averages approximately $3.8 million ($16.7 million / 4.3 years). Comparing this to other DoD satellite service contracts requires access to detailed data on contract scope, duration, service levels, and technology. However, for dedicated satellite bandwidth and related services, this figure appears to be within a reasonable range for a government contract of this nature. Larger, more complex satellite constellations or global managed services can cost significantly more, while smaller, regional services might be less expensive. Without specific benchmarks for comparable service level agreements and geographic coverage, a precise comparison is challenging.

What are the primary risks associated with this satellite service contract for the Department of Defense?

The primary risks associated with this satellite service contract include potential service disruptions due to technical failures or external interference, contractor performance issues, and cybersecurity threats targeting the satellite communication network. Given the 'Full and Open Competition After Exclusion of Sources' award type, there's also a risk of limited vendor options in future procurements if the market shrinks or if the excluded sources were critical. The long-term nature of the contract also means the DoD is reliant on the contractor's continued viability and adherence to evolving technological standards and security protocols.

How effective is this contract in meeting the DoD's satellite communication needs?

The effectiveness of this contract in meeting the DoD's satellite communication needs is primarily determined by the contractor's ability to consistently deliver reliable, secure, and high-bandwidth services as stipulated in the contract's performance work statement. The fact that it was awarded through a competitive process and covers a significant duration suggests a perceived need and a belief in the contractor's capability to fulfill those needs. Ongoing monitoring by DISA, including performance reviews and service level agreement adherence, would be key indicators of its effectiveness. User feedback from military units relying on these services would also provide crucial insights.

What are the historical spending patterns for satellite telecommunications services by the Defense Information Systems Agency?

Historical spending patterns for satellite telecommunications services by the Defense Information Systems Agency (DISA) indicate a consistent and significant investment in maintaining robust global communication networks for the DoD. DISA manages a large portfolio of telecommunications contracts, including satellite services, to support military operations worldwide. Spending in this area fluctuates based on technological advancements, evolving mission requirements, and the lifecycle of existing satellite systems and contracts. Analyzing DISA's budget allocations and contract awards over several fiscal years would reveal trends in investment, technology adoption (e.g., shift towards higher throughput satellites or secure communication technologies), and the overall scale of their satellite service procurements.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 2235 MONROE ST STE 500, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $16,677,732

Exercised Options: $16,677,732

Current Obligation: $16,677,732

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DCA20001D5004

IDV Type: IDC

Timeline