GSA awards $16.6M for VSAT satellite network services to SES Space & Defense, Inc

Contract Overview

Contract Amount: $16,565,766 ($16.6M)

Contractor: SES Space & Defense, Inc.

Awarding Agency: General Services Administration

Start Date: 2022-09-16

End Date: 2026-06-15

Contract Duration: 1,368 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VSAT SATELLITE NETWORK SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $16.6 million to SES SPACE & DEFENSE, INC. for work described as: VSAT SATELLITE NETWORK SERVICES Key points: 1. Contract value of $16.6M over its period of performance. 2. Services are for VSAT Satellite Network. 3. Contract awarded to SES Space & Defense, Inc. 4. Contract type is Firm Fixed Price. 5. Contract duration is 1368 days. 6. Awarded as a Delivery Order under an existing contract.

Value Assessment

Rating: good

The contract value of $16.6 million for VSAT satellite network services appears reasonable given the duration of over three years and the nature of satellite telecommunications. Benchmarking against similar large-scale satellite network contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that cost risks are largely borne by the contractor, which can be beneficial for the government if the contractor manages costs effectively.

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 had the opportunity to bid. The specific number of bidders is not provided, but the competition type suggests a robust process aimed at achieving competitive pricing. This approach generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation from multiple providers.

Public Impact

Provides essential VSAT satellite network services to government agencies. Supports critical communication infrastructure, potentially for remote or mobile operations. Benefits agencies requiring reliable and secure satellite connectivity. Ensures continuity of operations for essential government functions. Geographic impact is likely nationwide, supporting various agency deployments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type helps manage cost certainty for the government.
Contract duration of over three years allows for stable service provision.
Contractor is SES Space & Defense, Inc., a known entity in the defense and space sector.

Sector Analysis

The VSAT (Very Small Aperture Terminal) satellite network services market is a critical component of the telecommunications sector, particularly for government and defense applications where terrestrial infrastructure may be unavailable or unreliable. This contract fits within the broader satellite telecommunications industry, which is characterized by high upfront investment in satellite technology and ground infrastructure. Spending in this sector often supports national security, emergency communications, and remote operations. Comparable spending benchmarks would typically be found within large-scale telecommunications and defense procurement data.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside. This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist if SES Space & Defense, Inc. chooses to engage them, but this is not guaranteed by the contract terms. The impact on the small business ecosystem would be minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration (GSA) and the specific agency utilizing the services. As a delivery order under an existing contract, the initial award process was subject to GSA's procurement regulations. Ongoing performance monitoring and accountability would be managed by the contracting officer's representative (COR) within the using agency. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Satellite Communications Services
Telecommunications Network Services
Defense Communications
Government IT Infrastructure

Risk Flags

Potential for service disruption due to satellite or ground station issues.
Cybersecurity risks associated with satellite communication networks.
Dependence on a single contractor for critical network services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.6 million to SES SPACE & DEFENSE, INC.. VSAT SATELLITE NETWORK SERVICES

Who is the contractor on this award?

The obligated recipient is SES SPACE & DEFENSE, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2022-09-16. End: 2026-06-15.

What is the historical spending pattern for VSAT satellite network services by the General Services Administration?

Analyzing historical spending patterns for VSAT satellite network services by the GSA requires access to detailed procurement data over several fiscal years. Typically, GSA procures such services to support various federal agencies. Spending can fluctuate based on agency needs, technological advancements (e.g., transition to higher throughput satellites), and the expiration of existing contracts. A review of past awards would reveal trends in contract values, durations, and the primary contractors. For instance, if there's a recent surge in spending, it might indicate an increased reliance on satellite communications for specific missions or a consolidation of services. Conversely, a decline could suggest a shift towards terrestrial or other communication methods where feasible. Understanding these patterns helps in forecasting future needs and budgeting effectively.

How does the awarded price compare to market rates for similar VSAT network services?

To assess if the awarded price of $16.6 million for VSAT satellite network services is competitive, it needs to be benchmarked against prevailing market rates. This involves comparing the price per unit of service (e.g., per megabit per second of bandwidth, per terminal) against similar contracts awarded to other government agencies or commercial entities. Factors such as service level agreements (SLAs), geographic coverage, latency requirements, and the specific satellite technology used significantly influence pricing. If this contract's unit costs are lower than or comparable to market benchmarks, it suggests good value for money. Conversely, if it's substantially higher, it may indicate potential overpricing or unique service requirements justifying the premium. Detailed analysis of the contract's specific deliverables and performance metrics is crucial for an accurate comparison.

What are the key performance indicators (KPIs) for this VSAT network contract, and how is performance monitored?

Key performance indicators (KPIs) for a VSAT satellite network contract typically revolve around service availability, bandwidth performance, latency, jitter, and packet loss, all defined within the Service Level Agreement (SLA). For this contract, monitoring would likely involve regular reporting from SES Space & Defense, Inc. on these metrics, alongside potential independent testing by the government. The contracting officer's representative (COR) is usually responsible for overseeing performance, ensuring that the contractor meets the contractual obligations. Failure to meet KPIs can result in penalties, reduced payment, or even contract termination. The firm fixed-price nature of this contract means that while the price is fixed, the quality and performance of the service are still subject to stringent monitoring to ensure value is delivered.

What is the track record of SES Space & Defense, Inc. in delivering similar satellite communication services to the government?

SES Space & Defense, Inc. has a significant track record in providing satellite communication services, including VSAT networks, to government and defense clients. As a subsidiary of SES S.A., a major global satellite operator, they possess extensive experience and a robust infrastructure. Their past performance would likely include contracts for secure communications, broadband internet access in remote areas, and support for military operations. Government agencies often evaluate a contractor's past performance, including their ability to meet deadlines, adhere to technical specifications, and manage costs, as a critical factor in award decisions. A review of their contract history, past performance evaluations, and any documented issues or successes would provide insight into their reliability for this specific VSAT network services contract.

Are there any identified risks associated with relying on SES Space & Defense, Inc. for these critical VSAT services?

Potential risks associated with relying on SES Space & Defense, Inc. for VSAT services could include technical failures of their satellite or ground infrastructure, cybersecurity vulnerabilities, geopolitical instability affecting satellite operations or ground stations, and potential disruptions in service delivery. Additionally, dependence on a single provider, even if awarded through competition, carries inherent risks. The government might mitigate these risks through robust SLAs with performance penalties, contingency planning, maintaining alternative communication channels, and thorough vetting of the contractor's security protocols and business continuity plans. The firm fixed-price nature, while beneficial for cost certainty, could also incentivize the contractor to cut corners on maintenance or upgrades if not strictly monitored, posing a performance risk.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFPA22Q0011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Global Enterprise Solutions Inc.

Address: 11790 SUNRISE VALLEY DR STE 300, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $25,223,234

Exercised Options: $17,562,361

Current Obligation: $16,565,766

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0328V

IDV Type: FSS

Timeline