US Agency for Global Media awards $4.5M for satellite content delivery to SES Space & Defense

Contract Overview

Contract Amount: $4,493,435 ($4.5M)

Contractor: SES Space & Defense, Inc.

Awarding Agency: U.S. Agency for Global Media

Start Date: 2020-01-15

End Date: 2025-01-14

Contract Duration: 1,826 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: KU-BAND SATELLITE VIDEO AND AUDIO CONTENT DELIVERY

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

U.S. Agency for Global Media obligated $4.5 million to SES SPACE & DEFENSE, INC. for work described as: KU-BAND SATELLITE VIDEO AND AUDIO CONTENT DELIVERY Key points: 1. Contract value appears reasonable for satellite telecommunications services. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 5 years indicates a stable, long-term need. 4. Fixed-price contract type helps mitigate cost overrun risks. 5. The award is for satellite video and audio content delivery, a critical function for global media outreach.

Value Assessment

Rating: good

The contract value of $4.5 million over five years for satellite telecommunications services appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for global media content delivery via satellite would provide a more precise value-for-money assessment. However, given the specialized nature of satellite bandwidth and content delivery, the pricing is likely competitive due to the full and open competition.

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 bids. The presence of 3 bidders suggests a healthy level of competition for this satellite telecommunications service. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The U.S. Agency for Global Media benefits by securing reliable satellite bandwidth for content dissemination. Audiences worldwide will receive video and audio content, supporting the agency's mission. The geographic impact is global, reaching diverse international audiences. The contract supports the operational workforce of the U.S. Agency for Global Media.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type limits cost uncertainty.
Contract duration of 5 years provides stability for service delivery.

Sector Analysis

The satellite telecommunications sector is characterized by high infrastructure costs and specialized technical expertise. This contract fits within the broader market for broadcasting and content delivery services, where satellite communication remains a vital component for reaching remote or widespread audiences. Comparable spending benchmarks would involve analyzing other government or commercial contracts for similar satellite bandwidth and content delivery solutions.

Small Business Impact

There is no specific indication of small business set-asides or subcontracting requirements in the provided data. The primary contractor, SES Space & Defense, Inc., is a large entity. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for this delivery order.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Agency for Global Media's internal contracting and program management offices. Transparency is generally maintained through contract award databases. Specific accountability measures would be detailed within the contract terms and conditions, focusing on service delivery and performance standards.

Related Government Programs

Satellite Communications Services
Broadcasting and Content Distribution
International Information Dissemination

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $4.5 million to SES SPACE & DEFENSE, INC.. KU-BAND SATELLITE VIDEO AND AUDIO CONTENT DELIVERY

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: U.S. Agency for Global Media (U.S. Agency for Global Media).

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2020-01-15. End: 2025-01-14.

What is the track record of SES Space & Defense, Inc. with the U.S. Agency for Global Media and similar government contracts?

SES Space & Defense, Inc. has a history of providing satellite services to various government agencies, including the U.S. military and intelligence community. Their experience encompasses a wide range of satellite communications solutions, including broadcasting, secure data transmission, and global coverage. For the U.S. Agency for Global Media specifically, this contract represents a direct award for content delivery. A deeper dive into their past performance ratings on similar contracts, particularly those involving media content delivery and fixed-price structures, would offer further insight into their reliability and performance history. Analyzing contract modifications, past due dates, and any reported issues on previous awards would provide a comprehensive view of their contractor performance.

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

The awarded value of $4.5 million over five years for KU-band satellite video and audio content delivery needs to be benchmarked against current market rates. Factors influencing market rates include bandwidth allocation, geographic coverage, service level agreements (SLAs), and the specific technologies employed. Given that this was a full and open competition with three bidders, it suggests that the pricing achieved is likely competitive. However, without access to detailed pricing structures from competing bids or industry reports on satellite bandwidth costs for media distribution, a precise comparison is difficult. The U.S. Agency for Global Media likely conducted a price reasonableness analysis as part of the procurement process to ensure the selected offer represented good value.

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

Key risks for this contract include potential disruptions in satellite service due to technical failures, orbital debris, or geopolitical events affecting ground stations or satellite operations. Another risk is the potential for cost increases if the firm-fixed-price contract does not adequately account for fluctuations in bandwidth demand or operational expenses. Mitigation strategies likely include robust service level agreements (SLAs) with SES Space & Defense, Inc., requiring performance guarantees and penalties for service interruptions. The firm-fixed-price structure itself mitigates cost overrun risks for the government, shifting that burden to the contractor. Furthermore, the agency may have contingency plans or alternative communication methods to ensure continuity of operations in case of primary service failure.

What is the expected effectiveness of this contract in achieving the U.S. Agency for Global Media's mission objectives?

This contract is expected to be highly effective in supporting the U.S. Agency for Global Media's mission of informing, engaging, and connecting people around the world through accurate and compelling media. By securing reliable KU-band satellite delivery for video and audio content, the agency can ensure its programming reaches target audiences across diverse geographic locations, including areas with limited terrestrial infrastructure. The stability provided by a five-year contract term allows for consistent and predictable dissemination of information, crucial for maintaining ongoing communication efforts and countering disinformation. The effectiveness will ultimately depend on the quality of the content delivered and the reach achieved, which are core functions of the agency.

How has the U.S. Agency for Global Media's spending on satellite telecommunications evolved over the past five years?

Analyzing the historical spending patterns of the U.S. Agency for Global Media on satellite telecommunications would provide valuable context. This specific contract, valued at approximately $4.5 million over five years (averaging $900,000 annually), needs to be compared against previous expenditures. If the agency has historically relied on similar satellite services, understanding the trend in contract values, durations, and service providers can reveal shifts in strategy or technological adoption. For instance, an increase in spending might indicate an expansion of global outreach efforts or a move towards higher-bandwidth services. Conversely, a decrease could suggest greater reliance on alternative distribution methods or improved cost efficiencies. Without prior spending data, it's difficult to ascertain if this award represents a significant change or a continuation of established practices.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFQ1404307

Offers Received: 3

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, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $4,493,435

Exercised Options: $4,493,435

Current Obligation: $4,493,435

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NRD4015

IDV Type: IDC

Timeline