State Department awards $2.96M contract for satellite internet services to Delta Bridge, Inc

Contract Overview

Contract Amount: $2,958,208 ($3.0M)

Contractor: Delta Bridge, Inc.

Awarding Agency: Department of State

Start Date: 2024-08-01

End Date: 2025-07-31

Contract Duration: 364 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INTERNET SERVICE PROVIDER

Plain-Language Summary

Department of State obligated $3.0 million to DELTA BRIDGE, INC. for work described as: INTERNET SERVICE PROVIDER Key points: 1. Contract value represents a significant investment in ensuring reliable connectivity for critical operations. 2. The full and open competition suggests a robust market for these specialized telecommunications services. 3. Performance risk appears moderate given the fixed-price nature and defined delivery period. 4. This contract supports essential communication infrastructure, vital for diplomatic and operational continuity. 5. The provider's role in delivering satellite telecommunications highlights the importance of resilient networks. 6. Spending on satellite services is a key component of modernizing federal communication capabilities.

Value Assessment

Rating: good

The contract's value of approximately $2.96 million for a one-year period for satellite telecommunications appears reasonable when benchmarked against similar government contracts for specialized internet services. While specific per-unit cost data is not provided, the overall price reflects the high cost associated with deploying and maintaining satellite infrastructure. The firm fixed-price structure helps manage cost certainty for the government. Further analysis would require comparing the service levels and bandwidth provided against market rates for comparable government and commercial satellite internet solutions.

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 were likely solicited and had the opportunity to bid. The presence of a competitive bidding process is a positive sign for price discovery and ensuring the government receives a fair market price. The specific number of bidders is not detailed, but the 'full and open' designation suggests a healthy level of interest and capability within the market for these services.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs through market forces. It also promotes innovation as companies vie to offer the best value.

Public Impact

The Department of State is the primary beneficiary, receiving essential internet connectivity. Services delivered include satellite telecommunications, crucial for remote or underserved locations. The geographic impact is likely global, supporting diplomatic missions and operations worldwide. Workforce implications are minimal in terms of direct job creation from this contract, but it enables the existing workforce to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if satellite coverage is impacted by environmental factors or technical issues.
Dependence on a single vendor for a critical service could pose a risk if performance issues arise.
Ensuring consistent bandwidth and low latency for real-time communication applications.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and fair pricing.
Firm fixed-price contract provides cost certainty and limits the government's financial exposure.
Defined performance period (one year) allows for regular re-evaluation of needs and vendor performance.
Supports critical government functions, ensuring operational continuity.

Sector Analysis

The satellite telecommunications sector is a critical component of the broader information technology and communications industry, enabling connectivity in areas where terrestrial infrastructure is unavailable or unreliable. This contract fits within the government's ongoing need for robust and secure communication solutions, particularly for agencies operating globally like the Department of State. Spending in this sector is driven by increasing demand for high-bandwidth, low-latency services, and the unique capabilities offered by satellite technology. Comparable spending benchmarks would involve analyzing other federal awards for similar satellite internet services, considering factors like data volume, service level agreements, and geographic coverage.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the specialized nature of satellite telecommunications, it is common for larger, established companies to hold prime contracts. However, Delta Bridge, Inc. may engage small businesses as subcontractors to fulfill certain aspects of the contract, such as installation, maintenance, or specialized support services. The impact on the small business ecosystem would depend on the extent of any subcontracting opportunities created.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officers and program managers within the Department of State. The firm fixed-price nature of the award provides a degree of accountability by capping costs. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance. Regular performance reviews and reporting requirements will also ensure accountability.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Department of Defense satellite communication programs
Federal Acquisition Service (FAS) telecommunications services
Broadband Technology Opportunities Program (BTOP) - historical context

Risk Flags

Potential for service interruption
Vendor performance risk
Cybersecurity vulnerabilities
Dependence on satellite infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.0 million to DELTA BRIDGE, INC.. INTERNET SERVICE PROVIDER

Who is the contractor on this award?

The obligated recipient is DELTA BRIDGE, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2024-08-01. End: 2025-07-31.

What is Delta Bridge, Inc.'s track record with federal contracts, particularly for satellite telecommunications?

A review of federal procurement data indicates that Delta Bridge, Inc. has a history of receiving federal contracts, though the volume and scope may vary. Specific to satellite telecommunications, their past performance would need to be assessed based on contract awards, delivery orders, and any associated performance evaluations. Analyzing their prior engagements with agencies like the Department of State or other entities requiring similar services would provide insight into their reliability, technical expertise, and ability to meet government requirements. Information on past contract values, durations, and the nature of services rendered would be crucial for a comprehensive assessment of their track record in this specialized field.

How does the awarded price compare to market rates for similar satellite internet services?

Benchmarking the $2.96 million contract value against market rates for comparable satellite internet services requires detailed analysis of the service level agreements (SLAs), bandwidth, latency, and geographic coverage offered. Without these specifics, a direct comparison is challenging. However, government contracts often benefit from bulk purchasing power and competitive bidding, which can lead to favorable pricing. Conversely, specialized government requirements, such as enhanced security or specific uptime guarantees, can sometimes increase costs. A thorough assessment would involve obtaining quotes from commercial providers for similar service packages and evaluating the unique demands placed on Delta Bridge, Inc. by the Department of State.

What are the primary risks associated with this satellite telecommunications contract?

The primary risks associated with this satellite telecommunications contract include potential service disruptions due to atmospheric conditions, satellite malfunctions, or ground station issues. There is also a risk of performance degradation, such as increased latency or reduced bandwidth, impacting the effectiveness of communication. Vendor lock-in could be a concern if alternative providers are not readily available or if switching costs are high. Furthermore, cybersecurity threats targeting satellite communication networks pose a significant risk. Ensuring robust contingency plans, regular maintenance, and adherence to strict security protocols by Delta Bridge, Inc. are crucial mitigation strategies.

How effective is the firm fixed-price contract type in managing costs for this service?

The firm fixed-price (FFP) contract type is generally effective in managing costs for services where the scope of work is well-defined and risks are understood. For satellite telecommunications, an FFP contract provides the Department of State with cost certainty, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to perform efficiently and control their expenses. However, if unforeseen technical challenges or significant changes in operational requirements arise, the contractor may be less willing to accommodate them without additional compensation, potentially leading to contract modifications or disputes. For a service like satellite internet, where technological advancements and operational needs can evolve, careful scope definition is paramount for the FFP structure to be most effective.

What is the historical spending pattern for satellite telecommunications by the Department of State?

Analyzing the Department of State's historical spending on satellite telecommunications would reveal trends in their reliance on this technology. This includes examining the frequency of awards, the average contract values, and the duration of previous contracts. Understanding whether spending has been consistent, increasing, or decreasing provides context for the current $2.96 million award. It also helps identify key periods of investment or shifts in strategy related to communication infrastructure. Such analysis can highlight the growing importance of reliable global connectivity for diplomatic operations and identify potential areas for cost optimization or strategic sourcing in the future.

What are the implications of this contract for ensuring communication resilience in challenging environments?

This contract is crucial for ensuring communication resilience, particularly in challenging or remote environments where traditional terrestrial networks are unavailable or have been compromised. Satellite telecommunications offer a robust alternative, providing a vital link for diplomatic missions, emergency response, and operations in politically unstable regions. The Department of State's investment in these services underscores the recognition that reliable communication is fundamental to national security and effective foreign policy execution. The resilience provided by satellite technology allows for continuity of operations, secure data transmission, and effective coordination, even under adverse conditions.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19GE5022R0057

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 1400-A DUKE ST, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $2,958,208

Exercised Options: $2,958,208

Current Obligation: $2,958,208

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19GE5022D0043

IDV Type: IDC

Timeline