DISA TIM III HAWAII contract awarded to Satellite Services Inc. for $9.5M

Contract Overview

Contract Amount: $9,487,870 ($9.5M)

Contractor: Satellite Services Inc

Awarding Agency: General Services Administration

Start Date: 2020-02-15

End Date: 2025-07-14

Contract Duration: 1,976 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DISA TIM III HAWAII

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96818

State: Hawaii Government Spending

Plain-Language Summary

General Services Administration obligated $9.5 million to SATELLITE SERVICES INC for work described as: DISA TIM III HAWAII Key points: 1. Contract value appears reasonable for satellite services in Hawaii. 2. Full and open competition suggests potential for competitive pricing. 3. Contract duration of nearly 5 years warrants performance monitoring. 4. Services are critical for maintaining essential communications infrastructure. 5. Geographic focus on Hawaii may present unique logistical challenges. 6. Fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $9.5 million over its period of performance appears to be within a reasonable range for specialized satellite services in a geographically isolated area like Hawaii. Benchmarking against similar contracts for satellite communications in remote locations would provide a more precise value-for-money assessment. The firm fixed-price structure indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data does not specify the number of bidders, but the competitive nature of the award process is a positive sign for price discovery and potentially achieving a fair market price. The government likely received multiple proposals, allowing for comparison and selection of the most advantageous offer.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The Department of Defense (via DISA) benefits from reliable satellite communication services. Essential communication infrastructure in Hawaii is maintained and supported. The geographic impact is concentrated on the state of Hawaii. Workforce implications are likely for the contractor's technical and support staff in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the telecommunications and facilities support services sector, specifically focusing on satellite communications. The market for such services is characterized by specialized technology and often requires significant infrastructure investment. Government spending in this area is crucial for maintaining secure and reliable communication networks, especially in remote or strategically important locations like Hawaii. Comparable spending benchmarks would involve analyzing other satellite service contracts awarded by federal agencies.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this award. However, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) and the Defense Information Systems Agency (DISA), the awarding and using agencies, respectively. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

telecommunications, satellite-services, disa, gsa, hawaii, full-and-open-competition, firm-fixed-price, facilities-support-services, it-services, defense, delivery-order

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.5 million to SATELLITE SERVICES INC. DISA TIM III HAWAII

Who is the contractor on this award?

The obligated recipient is SATELLITE SERVICES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.5 million.

What is the period of performance?

Start: 2020-02-15. End: 2025-07-14.

What is the track record of Satellite Services Inc. in performing similar federal contracts?

A thorough review of Satellite Services Inc.'s past performance is crucial for assessing their capability to fulfill the DISA TIM III HAWAII contract. This would involve examining their history with similar telecommunications and satellite service contracts, particularly those with the Department of Defense or other federal agencies. Key aspects to investigate include on-time delivery, adherence to technical specifications, customer satisfaction ratings, and any history of contract disputes or terminations. Analyzing past contract values and durations can also provide insight into their operational capacity and experience level. Without specific past performance data for Satellite Services Inc., it is difficult to definitively assess their reliability for this critical service.

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

To assess the value for money, the awarded price of approximately $9.5 million needs to be benchmarked against prevailing market rates for comparable satellite communication services in Hawaii. This comparison should consider factors such as bandwidth, service level agreements, equipment provision, installation, and ongoing maintenance. Given Hawaii's geographic isolation, logistical costs can be higher, potentially influencing market rates. Researching pricing from commercial satellite providers operating in the region and analyzing other government contracts for similar services in comparable locations would provide a basis for comparison. If the awarded price is significantly lower than market rates, it could indicate aggressive pricing by the contractor or potential risks to service quality. Conversely, a substantially higher price might suggest a lack of sufficient competition or inflated costs.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this contract include potential service disruptions due to technical failures, environmental factors unique to Hawaii, or contractor performance issues. Given the reliance on satellite technology, weather events and signal interference are inherent risks. Contractor performance risk is mitigated by the firm fixed-price contract type, which incentivizes the contractor to maintain service quality to avoid financial penalties. The contract duration of nearly five years also necessitates robust oversight from GSA and DISA to ensure ongoing compliance and address any emerging issues promptly. Furthermore, the full and open competition award process suggests a selection of a capable provider, but continuous monitoring remains essential. Contingency planning by DISA for potential service outages would also be a critical mitigation strategy.

How effective is the chosen contract vehicle (GSA Schedule) for procuring these types of services?

GSA Schedule contracts are generally considered an effective vehicle for procuring a wide range of goods and services, including telecommunications and IT support, due to their pre-negotiated pricing and streamlined ordering process. For services like satellite communications, using a GSA Schedule can expedite the acquisition process, allowing agencies like DISA to obtain necessary resources more quickly than through traditional, lengthy procurement methods. The 'full and open competition' aspect indicates that the specific GSA Schedule offering was competed, further enhancing the likelihood of competitive pricing. However, the effectiveness also depends on whether the specific GSA Schedule used offers the most competitive pricing and appropriate service options compared to other potential procurement avenues, such as direct solicitations or other agency-specific contracts.

What is the historical spending pattern for satellite services by DISA or GSA in Hawaii?

Analyzing historical spending patterns for satellite services by DISA or GSA specifically in Hawaii would provide valuable context for the current $9.5 million contract. This involves examining previous contract awards for similar services in the region, noting their values, durations, and the contractors involved. Understanding trends in spending—whether it has been increasing, decreasing, or remaining stable—can indicate market dynamics and the agency's evolving needs. Significant fluctuations in spending could signal changes in technology, strategic priorities, or competitive landscape. Comparing the current contract's value against historical averages can help determine if it represents a typical investment or an outlier, potentially prompting further investigation into the reasons behind any deviations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID08200007

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 309 S FRONT ST, MARQUETTE, MI, 49855

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

Financial Breakdown

Contract Ceiling: $11,214,019

Exercised Options: $10,935,681

Current Obligation: $9,487,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS21F015CA

IDV Type: FSS

Timeline

Start Date: 2020-02-15

Current End Date: 2025-07-14

Potential End Date: 2025-07-14 00:00:00

Last Modified: 2026-04-10

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