US Agency for Global Media awards $13.2M for satellite and telecom services, with SES Space & Defense Inc. as prime

Contract Overview

Contract Amount: $13,192,572 ($13.2M)

Contractor: SES Space & Defense, Inc.

Awarding Agency: U.S. Agency for Global Media

Start Date: 2023-08-01

End Date: 2026-10-31

Contract Duration: 1,187 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SATELLITE CAPACITY, MANAGED TELEPORT SERVICES, DEDICATED MEDIA FIBER (DMF) CONNECTIVITY, DIRECT INTERNET ACCESS (DIA) CONNECTIVITY, AND SIGNAL MONITORING SERVICES

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 $13.2 million to SES SPACE & DEFENSE, INC. for work described as: SATELLITE CAPACITY, MANAGED TELEPORT SERVICES, DEDICATED MEDIA FIBER (DMF) CONNECTIVITY, DIRECT INTERNET ACCESS (DIA) CONNECTIVITY, AND SIGNAL MONITORING SERVICES Key points: 1. Contract value of $13.2M over approximately 3.3 years suggests a moderate annual spend for critical communication infrastructure. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Services include satellite capacity, teleport, fiber, and internet connectivity, vital for global information dissemination. 5. The duration of 1187 days (approx. 3.3 years) provides a stable period for service delivery. 6. SES Space & Defense, Inc. is the sole awardee, highlighting their role in providing these specialized services.

Value Assessment

Rating: good

The contract value of $13.2M for satellite capacity, managed teleport, fiber, and internet connectivity over 3.3 years appears reasonable for specialized telecommunications services. Benchmarking against similar government contracts for global communication infrastructure is necessary for a precise value assessment. However, the firm fixed-price nature of the contract suggests that the agency has secured a defined cost for these services, mitigating potential overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive environment was sought.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through vendor rivalry, leading to more efficient use of public funds for essential communication services.

Public Impact

The U.S. Agency for Global Media (USAGM) is the primary beneficiary, receiving critical communication infrastructure and services. Services delivered include satellite capacity, managed teleport, dedicated media fiber, direct internet access, and signal monitoring. The geographic impact is likely global, supporting USAGM's mission to inform and engage audiences worldwide. The contract supports the operational workforce of USAGM by providing the necessary technological backbone for their broadcasting and digital media activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized equipment or integration is required.
Reliance on a single contractor for critical global communication infrastructure carries inherent operational risks.

Positive Signals

Firm Fixed Price contract structure limits cost uncertainty for the agency.
Full and open competition suggests a competitive process was utilized.
Long-term contract provides stability for essential service delivery.

Sector Analysis

This contract falls within the telecommunications and satellite services sector, a critical component of modern global communication infrastructure. The market is characterized by a few large, established players capable of providing the specialized capacity and global reach required by government agencies. Spending in this sector often involves significant upfront investment in infrastructure and technology, with ongoing operational costs for service delivery. Comparable spending benchmarks would involve analyzing other government contracts for similar satellite and managed network services.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large-scale telecommunications service award, it is likely that the prime contractor, SES Space & Defense, Inc., will manage the majority of the service delivery. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Agency for Global Media's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Global Broadcast Support Services
Satellite Communications Services
Telecommunications Infrastructure Contracts
Information Dissemination Services

Risk Flags

Potential for service disruption impacting global operations.
Reliance on a single provider for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $13.2 million to SES SPACE & DEFENSE, INC.. SATELLITE CAPACITY, MANAGED TELEPORT SERVICES, DEDICATED MEDIA FIBER (DMF) CONNECTIVITY, DIRECT INTERNET ACCESS (DIA) CONNECTIVITY, AND SIGNAL MONITORING SERVICES

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 $13.2 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-10-31.

What is the track record of SES Space & Defense, Inc. in fulfilling similar government contracts?

SES Space & Defense, Inc., a subsidiary of SES S.A., has a significant history of providing satellite communications and related services to government and defense clients. They are known for their global satellite network and ground infrastructure. While specific performance details for this exact contract are not yet available due to its recent award, their broader experience suggests a capability to manage complex telecommunications requirements. Past performance evaluations on similar contracts, if publicly accessible, would offer more granular insights into their reliability, technical proficiency, and adherence to delivery schedules and quality standards. Government contract databases often contain past performance information, which is crucial for assessing a contractor's suitability for ongoing or future awards.

How does the pricing of this contract compare to similar government procurements for satellite and managed teleport services?

A direct comparison of pricing for this $13.2 million contract against similar government procurements requires access to detailed pricing structures and service level agreements of comparable contracts. Factors such as bandwidth, geographic coverage, service level guarantees (e.g., uptime, latency), and the specific mix of services (satellite, fiber, teleport) significantly influence cost. The firm fixed-price nature of this award provides cost certainty for the US Agency for Global Media. Benchmarking would involve identifying contracts with similar scope and duration awarded to different vendors or agencies. Without such comparative data, assessing whether this contract represents superior or inferior value is challenging, though the full and open competition suggests an effort to achieve competitive rates.

What are the primary risks associated with this contract for the U.S. Agency for Global Media?

The primary risks for the U.S. Agency for Global Media (USAGM) in this contract revolve around service reliability and potential vendor dependency. Although SES Space & Defense, Inc. is an established provider, any disruption in satellite capacity or ground infrastructure could impact USAGM's global broadcasting and information dissemination capabilities. The reliance on a single prime contractor for such critical services presents a concentration risk. Furthermore, while the contract is firm fixed-price, unforeseen technical challenges or changes in operational requirements could necessitate contract modifications, potentially leading to scope creep or renegotiations. Ensuring robust service level agreements (SLAs) and contingency planning within the contract is crucial to mitigate these risks.

How effective is the use of satellite and managed teleport services for the agency's mission?

Satellite and managed teleport services are fundamentally critical to the mission of the U.S. Agency for Global Media (USAGM), which aims to inform, engage, and connect people around the world. These services provide the necessary bandwidth and connectivity to broadcast television, radio, and digital content across vast geographic areas, often reaching regions where terrestrial infrastructure is limited or unreliable. The ability to transmit signals globally and ensure reliable internet access is paramount for maintaining a consistent presence and delivering programming. The contract's inclusion of Direct Internet Access (DIA) and signal monitoring further enhances the agency's operational effectiveness by ensuring quality control and robust connectivity for its digital platforms and personnel.

What is the historical spending pattern for satellite and telecommunications services by the U.S. Agency for Global Media?

Analyzing the historical spending patterns of the U.S. Agency for Global Media (USAGM) on satellite and telecommunications services is essential for contextualizing this $13.2 million award. Without specific historical data readily available in the provided snippet, a comprehensive assessment requires examining past contract awards within the Federal Procurement Data System (FPDS). Typically, agencies like USAGM would have recurring needs for such services, potentially leading to multi-year contracts or a series of awards to different vendors. Understanding the trend in spending—whether it's increasing, decreasing, or stable—and the types of services procured historically can reveal strategic shifts, technological adoption, or changes in operational scope. This context helps evaluate if the current award aligns with past investment levels and future requirements.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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

Financial Breakdown

Contract Ceiling: $32,124,897

Exercised Options: $13,192,572

Current Obligation: $13,192,572

Actual Outlays: $108,776

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NRD4015

IDV Type: IDC

Timeline