State Department awards $224K for Starlink terminals and services, citing a non-competitive process

Contract Overview

Contract Amount: $22,400 ($22.4K)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of State

Start Date: 2026-04-09

End Date: 2026-05-30

Contract Duration: 51 days

Daily Burn Rate: $439/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DT REQUEST FOR STARLINK TERMINALS SERVICES FOR CMR

Plain-Language Summary

Department of State obligated $22,400 to AMENTUM SERVICES, INC. for work described as: DT REQUEST FOR STARLINK TERMINALS SERVICES FOR CMR Key points: 1. The contract's value is relatively small, suggesting a focused need for specific communication capabilities. 2. The sole-source award indicates potential urgency or a lack of readily available alternatives for this specific requirement. 3. The short performance period (51 days) points to an immediate operational need rather than a long-term program. 4. The purchase order award type suggests a direct acquisition for goods and services. 5. The lack of competition may limit opportunities for price optimization and broader market engagement.

Value Assessment

Rating: fair

The contract value of $224,000 for Starlink terminals and services is modest. Without specific details on the number of terminals or service duration beyond the 51-day period, a direct value-for-money assessment is challenging. However, given the rapid deployment and evolving nature of satellite internet services, this price point for immediate operational capability appears within a reasonable range for a sole-source acquisition. Benchmarking against similar sole-source procurements for specialized communication equipment would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of State did not conduct a competitive bidding process. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent and compelling need. The lack of competition means that potential cost savings that might arise from a bidding process were not realized, and the government did not benefit from a wider range of technical solutions or vendor expertise.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive pressure. The government's ability to explore alternative solutions or negotiate more favorable terms was also limited.

Public Impact

The Department of State personnel in potentially remote or underserved areas will benefit from enhanced communication capabilities. The services delivered include the provision of Starlink terminals and associated communication services. The geographic impact is likely focused on locations where traditional terrestrial communication infrastructure is unreliable or unavailable. There are no immediate significant workforce implications directly tied to this specific contract award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition may indicate a reliance on a single vendor, posing a potential risk if that vendor faces disruptions.
The rapid deployment nature of Starlink could imply a need that was not planned for, potentially indicating gaps in contingency planning.

Positive Signals

Provides critical communication infrastructure to support State Department operations.
Addresses potential gaps in connectivity in challenging operational environments.
Leverages a modern, rapidly deployable communication technology.

Sector Analysis

The telecommunications sector, particularly the rapidly growing satellite internet segment, is characterized by significant technological advancement and increasing competition. Starlink, operated by SpaceX, is a prominent player in the Low Earth Orbit (LEO) satellite constellation market, offering broadband internet services globally. While the broader market is competitive, specific government procurements for specialized, rapidly deployable solutions can sometimes be sole-sourced due to unique requirements or urgent needs. The $224,000 award is a small fraction of overall government spending in the telecommunications sector, which encompasses a wide range of services and equipment.

Small Business Impact

This contract was not set aside for small businesses, nor is there any indication of subcontracting requirements for small businesses. The award to Amentum Services, Inc., a large defense contractor, suggests that the primary focus was on fulfilling the requirement directly rather than leveraging the small business ecosystem. This award does not appear to have direct implications for the small business contracting landscape.

Oversight & Accountability

As a purchase order, oversight is typically managed through the contracting officer's representative (COR) responsible for monitoring performance and ensuring compliance with the terms of the award. Transparency is limited due to the sole-source nature of the award. There is no specific mention of an Inspector General (IG) investigation related to this particular contract, but the Department of State's Office of Inspector General would have broad jurisdiction over its contracts.

Related Government Programs

Department of State Communication Services
Satellite Communication Contracts
Emergency Communications Procurement
Information Technology Services

Risk Flags

Sole-source award
Limited performance period
Potential reliance on emerging technology

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22,400 to AMENTUM SERVICES, INC.. DT REQUEST FOR STARLINK TERMINALS SERVICES FOR CMR

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22,400.

What is the period of performance?

Start: 2026-04-09. End: 2026-05-30.

What specific operational needs necessitate the use of Starlink terminals and services for the Department of State, and why was a sole-source award deemed appropriate?

The Department of State likely requires Starlink terminals and services to establish or enhance communication capabilities in locations where traditional terrestrial or other satellite communication infrastructure is unavailable, unreliable, or has been compromised. This could include remote diplomatic missions, temporary operational sites, or areas affected by natural disasters or geopolitical instability. A sole-source award is typically justified under Federal Acquisition Regulation (FAR) 6.302-2 (Urgent and compelling need) or FAR 6.302-1 (Only one responsible source) when a specific technology or vendor is uniquely capable of meeting an immediate and critical requirement, and a competitive process would cause unacceptable delays or compromise the mission's success. The short performance period (51 days) further suggests an urgent operational requirement.

How does the pricing of this Starlink contract compare to other government or commercial procurements for similar services?

Benchmarking the pricing for this $224,000 contract is challenging without detailed specifications on the number of terminals, service plans, and the exact duration of service beyond the 51-day period. Starlink's pricing for terminals and monthly service varies based on the plan and region. Government contracts, especially sole-source ones, may include administrative fees or specific support requirements that differ from standard commercial offerings. However, the overall value appears modest for potentially providing critical, rapidly deployable connectivity. A comprehensive comparison would require access to detailed pricing structures from other government agencies or commercial entities that have procured similar Starlink solutions under comparable circumstances.

What are the potential risks associated with relying on a sole-source provider like Starlink for critical communication needs?

Relying on a sole-source provider, even for a short duration, carries inherent risks. These include a lack of competitive pressure potentially leading to higher costs than might be achieved through a competitive process. There's also a risk of vendor lock-in, where the agency becomes dependent on a single supplier, making future transitions difficult or costly. Furthermore, the agency is exposed to the specific business and operational risks of the sole-source provider, such as service disruptions, changes in service availability, or shifts in the provider's strategic direction. For Starlink, geopolitical considerations related to its ownership and operational control could also be a factor in certain contexts.

What is Amentum Services, Inc.'s track record with the Department of State and in providing satellite communication services?

Amentum Services, Inc. is a large government contractor with a significant presence in defense, intelligence, and federal civilian sectors, often providing complex technical services and support. While specific details of their past performance with the Department of State for satellite communication services are not provided in this data, their broad capabilities suggest they are equipped to manage such procurements. A deeper dive into Amentum's contract history with the State Department, particularly concerning communications and IT services, would be necessary to fully assess their track record and suitability for this specific requirement. Their role here appears to be as an intermediary or integrator, rather than the direct provider of Starlink technology.

How does this contract fit into the Department of State's broader strategy for ensuring secure and reliable communications in challenging environments?

This contract likely represents a tactical solution to address an immediate communication gap in a specific location or for a particular operation. The Department of State, like many federal agencies operating globally, faces the challenge of maintaining secure and reliable communications in diverse and often hostile environments. While Starlink offers a potentially rapid and flexible solution, it is likely part of a larger, more comprehensive communication strategy that may include a mix of terrestrial, satellite, and encrypted systems. The reliance on a sole-source award for this specific instance suggests it complements, rather than replaces, existing communication infrastructure and strategies, addressing a niche or urgent need.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

Address: 4800 WESTFIELDS BLVD STE 400, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $22,400

Exercised Options: $22,400

Current Obligation: $22,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline