DoD Spends $215M on Inmarsat BGAN Satellite Equipment via Full & Open Competition

Contract Overview

Contract Amount: $215,361,533 ($215.4M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-27

End Date: 2014-12-05

Contract Duration: 2,991 days

Daily Burn Rate: $72.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INMARSAT BGAN EQUIPMENT

Place of Performance

Location: VICTOR, ONTARIO County, NEW YORK, 14564

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $215.4 million to L3 TECHNOLOGIES, INC. for work described as: INMARSAT BGAN EQUIPMENT Key points: 1. Significant investment of $215.36M in satellite telecommunications equipment. 2. L3 Technologies, Inc. is the primary contractor. 3. Procurement utilized full and open competition after exclusion of sources. 4. Spending occurred over an 8-year period (2006-2014).

Value Assessment

Rating: fair

The total award amount of $215.36M over 8 years suggests a substantial but potentially variable per-year cost. Without specific unit pricing or comparison to similar satellite terminal contracts, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process that aimed to maximize participation while potentially addressing specific technical requirements. This method generally supports price discovery.

Taxpayer Impact: Taxpayers funded a significant investment in critical satellite communication infrastructure, with the competitive nature of the award aiming for a reasonable price.

Public Impact

Ensures critical communication capabilities for Department of Defense operations. Supports global reach and connectivity for military personnel. Investment in advanced satellite technology for secure data transmission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (8 years) may lead to price increases or outdated technology.
Lack of specific per-unit cost data hinders detailed value analysis.
Reliance on a single primary contractor for a large sum.

Positive Signals

Utilized full and open competition, promoting a competitive bidding environment.
Procurement of essential communication equipment for national security.

Sector Analysis

This spending falls within the Information Technology sector, specifically satellite telecommunications. Benchmarks for similar large-scale satellite equipment procurements are highly variable, depending on technology, quantity, and service life.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The large contract value and nature of the equipment suggest it may have been primarily awarded to larger, specialized firms.

Oversight & Accountability

The contract was awarded by the Defense Information Systems Agency (DISA), a key component for managing DoD's IT infrastructure. Oversight would involve monitoring performance, delivery, and adherence to contract terms throughout the 8-year period.

Related Government Programs

Satellite Telecommunications
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Long contract duration potentially leading to cost inefficiencies or obsolescence.
Lack of detailed unit cost data for granular value analysis.
Potential for price increases over an extended contract period.
Dependence on a single primary contractor for a significant duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $215.4 million to L3 TECHNOLOGIES, INC.. INMARSAT BGAN EQUIPMENT

Who is the contractor on this award?

The obligated recipient is L3 TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $215.4 million.

What is the period of performance?

Start: 2006-09-27. End: 2014-12-05.

What was the average annual spending on Inmarsat BGAN equipment during this period?

The total award was $215,361,532.81 over approximately 2991 days (around 8.2 years). Dividing the total cost by the duration in years (approx. 8.2) yields an average annual spending of roughly $26.26 million. This figure represents an average and actual spending likely varied year-to-year based on demand and delivery schedules.

What were the specific 'exclusions of sources' in this full and open competition, and did they limit competition?

The term 'Full and Open Competition After Exclusion of Sources' implies that while the competition was open, certain sources were excluded based on specific criteria, likely related to technical capabilities, security clearances, or existing partnerships necessary for Inmarsat BGAN technology. The extent to which this limited overall competition and impacted price discovery would depend on the number and nature of the excluded entities.

How does the $215M expenditure compare to other satellite communication procurements by the DoD for similar capabilities?

Direct comparison is challenging without detailed specifications of the BGAN equipment and service levels. However, $215M over 8 years for a global satellite communication system is a substantial investment, reflecting the critical nature of such capabilities for military operations. It would need to be benchmarked against other similar procurements considering factors like bandwidth, data rates, terminal types, and geographic coverage.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 7640 OMNITECH PL, VICTOR, NY, 14564

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $215,361,533

Exercised Options: $215,361,533

Current Obligation: $215,361,533

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DCA20002D5027

IDV Type: IDC

Timeline