HHS awards $26M for satellite phones and services, with a 5-year performance period

Contract Overview

Contract Amount: $26,091 ($26.1K)

Contractor: Communications Professionals Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-02-01

End Date: 2027-04-14

Contract Duration: 1,898 days

Daily Burn Rate: $14/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HHCC, IRIDIUM SATELLITE PHONE, ACCESSORIES AND SERVICES, COMMUNICATION PROFESSIONALS INC, IHS1445226

Place of Performance

Location: POLACCA, NAVAJO County, ARIZONA, 86042

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26,091.3 to COMMUNICATIONS PROFESSIONALS INC. for work described as: HHCC, IRIDIUM SATELLITE PHONE, ACCESSORIES AND SERVICES, COMMUNICATION PROFESSIONALS INC, IHS1445226 Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. Performance period extends over five years, indicating a long-term need. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. No small business set-aside was utilized, suggesting a focus on specialized capabilities. 5. The award is a Delivery Order against an existing contract, implying a streamlined process. 6. The North American Industry Classification System (NAICS) code points to computer and software stores.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services and equipment provided. The total award amount of $26 million over nearly five years suggests a significant investment in communication infrastructure. However, without comparable contract data for similar satellite phone services, it's difficult to definitively assess if this represents excellent value for money. The firm fixed-price nature of the contract provides cost certainty but could lead to overpayment if the contractor's costs are significantly lower than anticipated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data provided does not specify the number of bids received or the evaluation process. A full and open competition generally promotes price discovery and can lead to more competitive pricing for the government. The fact that it resulted in a single award suggests that only one offer met all the requirements or was the most advantageous.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing through a wide range of potential suppliers.

Public Impact

Provides essential communication capabilities for personnel who may operate in areas with limited or no terrestrial network coverage. Supports critical government functions, potentially including emergency response, remote operations, or secure communications. The services are delivered to the Department of Health and Human Services, indicating a focus on supporting their operational needs. The contract has a nationwide scope, with services delivered in Arizona, suggesting potential for broader deployment. Impacts the workforce by providing tools necessary for effective communication in diverse and challenging environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess service quality and reliability.
The specific nature of 'accessories and services' is broad and could encompass a wide range of costs.
Limited transparency on the number of bids received hinders a full assessment of competitive pressure.

Positive Signals

Firm Fixed Price contract structure provides budget certainty for the agency.
Awarded under Full and Open Competition, theoretically allowing for the best value.
Long-term performance period suggests a stable and reliable service provision.

Sector Analysis

The market for satellite communication services is a specialized sector within the broader telecommunications industry. This contract falls under the category of communication equipment and services, often procured by government agencies for operations in remote or secure environments. The total spending in this niche can vary significantly based on agency needs, technological advancements, and geopolitical factors. Comparable spending benchmarks would typically involve analyzing other government contracts for satellite phones, data services, and related hardware across different agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. This suggests that the primary contractor, Communications Professionals Inc., is likely a larger entity or that the nature of the required services did not lend itself to a small business set-aside. The absence of explicit small business provisions means there may be limited direct benefit or opportunity for the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services' contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Inspector General's office for HHS may also conduct audits or investigations into the contract's execution and expenditure if specific concerns arise regarding waste, fraud, or abuse. Transparency is facilitated through contract databases, but detailed operational oversight is internal to the agency.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA)
General Services Administration (GSA) Schedules
Department of Defense (DoD) Satellite Communications

Risk Flags

Potential for technological obsolescence given the long performance period.
Lack of specific performance metrics makes objective evaluation difficult.
Limited insight into the competitive landscape despite 'full and open' designation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26,091.3 to COMMUNICATIONS PROFESSIONALS INC.. HHCC, IRIDIUM SATELLITE PHONE, ACCESSORIES AND SERVICES, COMMUNICATION PROFESSIONALS INC, IHS1445226

Who is the contractor on this award?

The obligated recipient is COMMUNICATIONS PROFESSIONALS INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $26,091.3.

What is the period of performance?

Start: 2022-02-01. End: 2027-04-14.

What specific types of satellite phones and services are included in this contract, and what is the expected usage volume?

The provided data does not specify the exact models of satellite phones or the detailed breakdown of services covered under this contract. It is described broadly as 'IRIDIUM SATELLITE PHONE, ACCESSORIES AND SERVICES'. The expected usage volume, such as minutes of airtime, data transfer, or number of devices, is also not detailed. Understanding these specifics is crucial for a thorough value assessment, as the cost per unit and the overall necessity of the services depend heavily on these factors. Without this granular information, it's difficult to determine if the $26 million award is commensurate with the actual operational requirements and anticipated usage.

How does the pricing of this contract compare to similar satellite communication contracts awarded by other federal agencies?

Direct comparison of pricing is difficult without knowing the specific models, service plans, and quantities involved in this contract. However, the total award of $26 million over approximately five years suggests a significant expenditure. To benchmark effectively, one would need to identify comparable contracts for Iridium satellite phones and services procured by agencies like the Department of Defense or FEMA, which often have substantial needs for such communication tools. Factors like volume discounts, service level agreements, and the inclusion of accessories would heavily influence price points. A preliminary assessment suggests that firm-fixed-price contracts can sometimes be less cost-effective than other pricing structures if usage is lower than anticipated, but they offer budget certainty.

What are the key performance indicators (KPIs) used to measure the success and reliability of the satellite communication services provided under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for satellite communication services, KPIs would include metrics such as network uptime/availability (e.g., 99.9% availability), call completion rates, data throughput speeds, latency, and response times for technical support. The contract's success would be measured against these defined standards. The absence of explicit KPIs in the summary data makes it challenging to objectively assess the contractor's performance and the overall effectiveness of the service in meeting HHS's operational needs. A review of the full contract documentation would be necessary to identify these performance metrics.

What is the track record of Communications Professionals Inc. in delivering similar satellite communication solutions to government agencies?

The provided data indicates that Communications Professionals Inc. (CPI) is the contractor for this award. To assess their track record, one would need to examine past performance evaluations, contract history, and any reported issues or successes with previous government contracts, particularly those involving satellite communication systems. Information on CPI's experience with Iridium technology, their ability to manage complex service delivery, and their history of meeting deadlines and performance standards would be crucial. Without access to this historical performance data, it is difficult to gauge their reliability and expertise in fulfilling the requirements of this significant HHS contract.

Are there any identified risks associated with the long performance period (nearly 5 years) of this contract, such as technological obsolescence or changing operational requirements?

A long performance period of nearly five years for a technology-dependent contract like satellite communications does carry inherent risks. Technological obsolescence is a primary concern; satellite technology, devices, and network capabilities evolve rapidly. There's a risk that the equipment or services procured early in the contract could become outdated before its completion. Additionally, the operational requirements of the Department of Health and Human Services might change over five years due to shifts in mission priorities, budget constraints, or emerging threats. Mitigation strategies could include contract clauses for technology refresh, flexible service level adjustments, or periodic reviews to ensure continued relevance and value.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFQ1533609

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2265 LIVERNOIS RD STE 900, TROY, MI, 48083

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,091

Exercised Options: $26,091

Current Obligation: $26,091

Actual Outlays: $22,871

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0033N

IDV Type: FSS

Timeline