US Agency for Global Media awards $2.4M for satellite capacity and teleport services on Yahsat Y1A

Contract Overview

Contract Amount: $2,446,152 ($2.4M)

Contractor: Arqiva Limited

Awarding Agency: U.S. Agency for Global Media

Start Date: 2021-02-19

End Date: 2026-04-18

Contract Duration: 1,884 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SATELLITE CAPACITY AND TELEPORT SERVICES ON YAHSAT Y1A @52.5O EAST

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20237

State: District of Columbia Government Spending

Plain-Language Summary

U.S. Agency for Global Media obligated $2.4 million to ARQIVA LIMITED for work described as: SATELLITE CAPACITY AND TELEPORT SERVICES ON YAHSAT Y1A @52.5O EAST Key points: 1. Contract awarded to ARQIVA LIMITED for satellite services. 2. The contract spans nearly 4 years, from February 2021 to April 2026. 3. Full and open competition was utilized for this procurement. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. The agency procuring these services is the U.S. Agency for Global Media.

Value Assessment

Rating: good

The contract value of $2.45 million over approximately 3.8 years suggests a reasonable annual cost for specialized satellite telecommunications. Benchmarking against similar government satellite service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery, allowing multiple vendors to bid. This method generally leads to more competitive pricing compared to limited or sole-source procurements.

Taxpayer Impact: Full and open competition likely resulted in a fair market price, maximizing the value of taxpayer funds for essential satellite communication services.

Public Impact

Ensures continued global communication capabilities for the U.S. Agency for Global Media. Supports broadcasting and information dissemination efforts worldwide. Provides critical infrastructure for U.S. public diplomacy initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Firm Fixed Price contract type
Long-term service provision

Sector Analysis

This contract falls within the Telecommunications sector, specifically satellite services. Government spending in this area is crucial for national security, intelligence, and public diplomacy, with costs varying significantly based on satellite capabilities, orbital position, and service duration.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors in this procurement. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The U.S. Agency for Global Media is responsible for overseeing this contract. Standard government procurement oversight processes should be in place to ensure performance and adherence to contract terms.

Related Government Programs

Satellite Telecommunications
U.S. Agency for Global Media Contracting
U.S. Agency for Global Media Programs

Risk Flags

Potential single point of failure if the Yahsat Y1A satellite experiences issues.
Geopolitical risks associated with the satellite's operational region.
Long-term reliance on a specific orbital slot and provider.

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $2.4 million to ARQIVA LIMITED. SATELLITE CAPACITY AND TELEPORT SERVICES ON YAHSAT Y1A @52.5O EAST

Who is the contractor on this award?

The obligated recipient is ARQIVA LIMITED.

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 $2.4 million.

What is the period of performance?

Start: 2021-02-19. End: 2026-04-18.

What specific telecommunications capabilities does this satellite capacity provide, and how critical are they to the agency's mission?

This contract provides satellite capacity and teleport services on the Yahsat Y1A satellite. These services are critical for the U.S. Agency for Global Media's mission of broadcasting and disseminating information globally. The specific capabilities likely include broadband internet, voice, and video transmission to support international broadcasting operations and public diplomacy efforts in regions where terrestrial infrastructure may be limited or unreliable.

Are there any potential risks associated with relying on a single satellite provider for these critical services?

While the contract was awarded through full and open competition, reliance on a single satellite (Yahsat Y1A) for the duration of the contract presents potential risks. These could include service disruptions due to satellite malfunction, geopolitical issues affecting the satellite's operational region, or changes in orbital slot availability. Redundancy planning or alternative service options might mitigate these risks.

How does the cost of these satellite services compare to alternative communication methods or other government procurements of similar capacity?

The contract value of $2.45 million over approximately 3.8 years, equating to roughly $643,000 annually, needs to be benchmarked against market rates for similar satellite capacity and teleport services. Factors like bandwidth, data throughput, geographic coverage, and service level agreements influence pricing. A comparison with other government contracts for comparable satellite services would reveal if this represents a competitive price point.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 951700-21-R-IQT002-00002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CRAWLEY COURT, WINCHESTER

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,446,152

Exercised Options: $2,446,152

Current Obligation: $2,446,152

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline