NOAA awards $6.56M for Starlink services to Manhattan Telecommunications, highlighting a shift in maritime connectivity

Contract Overview

Contract Amount: $6,561,366 ($6.6M)

Contractor: Manhattan Telecommunications Corporation LLC

Awarding Agency: Department of Commerce

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: STARLINK SERVICES FOR NOAA SHIPS

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10041

State: New York Government Spending

Plain-Language Summary

Department of Commerce obligated $6.6 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC for work described as: STARLINK SERVICES FOR NOAA SHIPS Key points: 1. Contract value represents a significant investment in modernizing NOAA's fleet communication capabilities. 2. Competition dynamics suggest a potentially competitive bidding process for this specialized service. 3. Performance risk appears moderate given the established nature of satellite internet services. 4. This award positions NOAA to leverage advanced satellite technology for enhanced data collection and operational efficiency. 5. The telecommunications sector sees continued growth in government contracts for connectivity solutions.

Value Assessment

Rating: good

The contract value of $6.56 million for 729 days of service appears reasonable for advanced satellite internet, especially for a government fleet. Benchmarking against similar large-scale satellite deployments for maritime operations would provide a clearer picture of value. However, considering the specialized nature of providing reliable connectivity to moving vessels, the pricing is likely competitive within this niche market. The fixed-price with economic price adjustment structure aims to manage cost fluctuations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. With 3 bidders participating, the competition level suggests a healthy market for these services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers, potentially leading to better value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective solution for NOAA's critical communication needs.

Public Impact

NOAA scientists and operational staff aboard ships will benefit from enhanced, reliable internet connectivity. Services delivered include high-speed internet access essential for real-time data transmission, communication, and navigation. The geographic impact is national, covering NOAA's fleet operating in various oceanic regions. Workforce implications include improved morale and operational effectiveness for personnel at sea.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions due to satellite coverage limitations or weather.
Economic price adjustment clause could lead to cost increases beyond initial projections.
Dependence on a single vendor for critical fleet communications.

Positive Signals

Leverages advanced Starlink technology for potentially higher bandwidth and lower latency than traditional maritime internet.
Full and open competition suggests a robust market and potential for competitive pricing.
Modernizes NOAA's communication infrastructure, supporting critical scientific missions.

Sector Analysis

The telecommunications industry, particularly the satellite internet segment, is experiencing rapid innovation and growth. This contract falls within the Wired Telecommunications Carriers (NAICS 517110) sector. The market for providing reliable internet to mobile platforms, such as ships, is expanding as demand for data and connectivity increases. Government agencies are increasingly turning to satellite solutions to overcome the limitations of terrestrial infrastructure in remote or mobile environments.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of providing satellite internet services to a government fleet, it is unlikely that small businesses would be primary providers for such a large-scale requirement. Subcontracting opportunities for small businesses may exist in supporting roles, but are not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through public contract award databases, though detailed operational performance data may not be publicly available.

Related Government Programs

NOAA Fleet Operations
Maritime Communications Services
Satellite Internet Contracts
Department of Commerce IT Procurement

Risk Flags

Potential for service interruption
Economic price adjustment risk
Vendor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $6.6 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC. STARLINK SERVICES FOR NOAA SHIPS

Who is the contractor on this award?

The obligated recipient is MANHATTAN TELECOMMUNICATIONS CORPORATION LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $6.6 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

What is the historical spending by NOAA on maritime communication services, and how does this award compare?

Historical spending data for NOAA's maritime communication services is not readily available in a consolidated public format. However, this $6.56 million award for Starlink services over approximately two years represents a significant investment in modernizing fleet connectivity. Previous solutions likely involved more traditional satellite providers or a mix of technologies, potentially at different price points and performance levels. Understanding the specific capabilities and costs of prior systems would be necessary for a direct comparison. This award suggests a strategic shift towards leveraging newer, potentially more capable, satellite internet technologies to meet evolving operational and data transmission needs for NOAA's scientific and operational missions at sea.

How does the per-unit cost of Starlink services for NOAA ships compare to commercial rates or other government contracts?

A precise per-unit cost comparison is challenging without knowing the exact number of ships, the service tiers, and the data volumes utilized under this contract. Starlink's standard residential or business plans have publicly advertised prices, but government and maritime-specific solutions often involve different pricing structures, bulk discounts, and specialized hardware. Given this is a fixed-price with economic price adjustment contract for a fleet, the effective per-ship or per-month cost is likely negotiated based on volume and service level agreements. Benchmarking against other government agencies procuring similar satellite services for mobile platforms would provide a more relevant comparison than commercial retail rates.

What are the primary risks associated with relying on Starlink for NOAA's critical maritime operations?

The primary risks associated with relying on Starlink for NOAA's critical maritime operations include potential service disruptions due to satellite constellation coverage gaps, atmospheric conditions, or extreme weather events. While Starlink is designed for global coverage, performance can vary. Another risk is the economic price adjustment clause, which could lead to cost overruns if inflation significantly impacts the provider's operating expenses. Furthermore, dependence on a single technology provider, even with multiple bidders initially, introduces vendor lock-in risks and potential challenges if the provider alters service terms or faces operational issues. Ensuring robust backup communication systems and contingency plans is crucial to mitigate these risks.

What specific performance improvements or new capabilities does this Starlink contract enable for NOAA?

This Starlink contract is expected to enable significant performance improvements and new capabilities for NOAA's maritime operations. Key improvements likely include higher bandwidth and lower latency internet access compared to previous solutions, facilitating real-time data transmission from research vessels. This enhanced connectivity supports more efficient data collection, processing, and dissemination for scientific research, weather monitoring, and oceanographic surveys. New capabilities could include improved video conferencing for remote collaboration, more reliable communication for crew welfare, and the ability to support more data-intensive onboard applications and systems, ultimately enhancing NOAA's operational effectiveness and scientific output.

How does this contract align with broader trends in government adoption of commercial satellite services?

This contract aligns strongly with the broader trend of government agencies increasingly adopting commercial satellite services, particularly low-Earth orbit (LEO) constellations like Starlink. Agencies are seeking more agile, cost-effective, and higher-performance communication solutions than traditional government-owned or leased satellite systems. The commercial sector's rapid innovation, driven by private investment, offers capabilities that often surpass older government programs. NOAA's decision reflects a strategic move to leverage these commercial advancements to meet mission requirements, demonstrating a growing reliance on commercial off-the-shelf (COTS) solutions for critical infrastructure, including telecommunications.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1305M224R0012

Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 55 WATER ST FL 32, NEW YORK, NY, 10041

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

Financial Breakdown

Contract Ceiling: $10,752,631

Exercised Options: $6,561,366

Current Obligation: $6,561,366

Actual Outlays: $3,467,731

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3007

IDV Type: IDC

Timeline