State Dept. Awards $2.3M for Satellite Comms to Bushtex Inc
Contract Overview
Contract Amount: $2,300 ($2.3K)
Contractor: Bushtex Inc
Awarding Agency: Department of State
Start Date: 2026-04-20
End Date: 2027-04-19
Contract Duration: 364 days
Daily Burn Rate: $6/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SATELLITE COMMUNICATIONS EQUIPMENT AND SERVICE.
Place of Performance
Location: GILBERT, MARICOPA County, ARIZONA, 85233
State: Arizona Government Spending
Plain-Language Summary
Department of State obligated $2,300 to BUSHTEX INC for work described as: SATELLITE COMMUNICATIONS EQUIPMENT AND SERVICE. Key points: 1. Contract awarded to Bushtex Inc. for satellite communications equipment and services. 2. The contract has a duration of 364 days, ending April 19, 2027. 3. Awarded under a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated agreement. 4. The North American Industry Classification System (NAICS) code is 517410 for Satellite Telecommunications.
Value Assessment
Rating: fair
The contract value of $2.3 million for a one-year term appears reasonable for specialized satellite communication services. Benchmarking against similar government contracts for satellite equipment and service provision is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Special Acquisition Procedures (SAP) and awarded via a BPA Call. While some competition likely occurred within the BPA, the specific method limits broad market visibility and potentially impacts price discovery compared to a full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential satellite communication services, with the cost efficiency dependent on the competitive nature of the BPA.
Public Impact
Ensures continued satellite communication capabilities for the Department of State. Supports critical diplomatic and operational needs requiring reliable connectivity. Potential for future contract renewals or expansions based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to BPA Call.
- Potential for price escalation in future BPA calls.
- Dependence on a single vendor for critical services.
Positive Signals
- Provides essential communication infrastructure.
- Established vendor relationship through BPA.
- Firm Fixed Price contract limits cost overruns.
Sector Analysis
The IT sector, specifically satellite telecommunications, is crucial for government operations requiring secure and reliable data transmission. Spending benchmarks vary widely based on service type, bandwidth, and duration, but this award falls within a typical range for specialized equipment and service contracts.
Small Business Impact
The contract was awarded to Bushtex Inc., a small business located in Arizona. While this award supports a small business, the overall impact on the small business sector is limited given the specific nature of the contract and the vendor's size.
Oversight & Accountability
Oversight will be managed by the Department of State, ensuring adherence to contract terms and performance standards. The BPA structure implies some level of pre-existing oversight during its establishment.
Related Government Programs
- Satellite Telecommunications
- Department of State Contracting
- Department of State Programs
Risk Flags
- Limited competition.
- Potential vendor lock-in.
- Reliance on specialized technology.
- Geopolitical risks affecting satellite operations.
Tags
satellite-telecommunications, department-of-state, az, bpa-call, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $2,300 to BUSHTEX INC. SATELLITE COMMUNICATIONS EQUIPMENT AND SERVICE.
Who is the contractor on this award?
The obligated recipient is BUSHTEX INC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $2,300.
What is the period of performance?
Start: 2026-04-20. End: 2027-04-19.
What is the specific nature of the satellite communication services being procured, and how do they align with the Department of State's mission requirements?
The services procured are for satellite communications equipment and service, falling under NAICS code 517410. These are critical for ensuring reliable and secure communication channels for the Department of State's global operations, supporting diplomatic missions, intelligence gathering, and emergency response efforts where terrestrial infrastructure may be unavailable or compromised.
What were the specific criteria used to limit competition under SAP and the BPA Call, and what is the potential impact on overall cost savings?
Competition was likely limited due to the nature of specialized satellite equipment and services, potentially requiring specific technical expertise or existing infrastructure compatibility. The BPA Call suggests that Bushtex Inc. was a pre-qualified vendor. While this streamlines acquisition, it may reduce the potential for achieving the lowest possible price compared to a broader, more competitive solicitation.
How does the performance of Bushtex Inc. under this contract compare to industry benchmarks for satellite telecommunications providers in terms of reliability and service quality?
Performance benchmarks are not yet available as the contract is new. However, the Department of State will monitor key performance indicators (KPIs) such as uptime, latency, data throughput, and customer support responsiveness. Comparison to industry standards will be crucial for evaluating the value and effectiveness of the procured services over the contract's duration.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 19AQMM25R0273
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 723 W GUADALUPE RD, GILBERT, AZ, 85233
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $2,300
Exercised Options: $2,300
Current Obligation: $2,300
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 19AQMM25A1225
IDV Type: BPA
Timeline
Start Date: 2026-04-20
Current End Date: 2027-04-19
Potential End Date: 2027-04-19 00:00:00
Last Modified: 2026-04-07
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