USAGM Spends $23.2M on Non-Preemptive Satellite Transponder Capacity from Asia Satellite

Contract Overview

Contract Amount: $23,213,625 ($23.2M)

Contractor: Asia Satellite Telecommunications Company Limited

Awarding Agency: U.S. Agency for Global Media

Start Date: 2011-09-12

End Date: 2019-03-11

Contract Duration: 2,737 days

Daily Burn Rate: $8.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SATELLITE SERVICES - NON-PREEMPTIVE ,36 MHZ TRANSPONDER CAPACITY ON ASIASAT - 3S

Plain-Language Summary

U.S. Agency for Global Media obligated $23.2 million to ASIA SATELLITE TELECOMMUNICATIONS COMPANY LIMITED for work described as: SATELLITE SERVICES - NON-PREEMPTIVE ,36 MHZ TRANSPONDER CAPACITY ON ASIASAT - 3S Key points: 1. Contract awarded for satellite transponder capacity, a critical communication service. 2. Sole source award to Asia Satellite Telecommunications Company Limited raises competition concerns. 3. Long contract duration (2011-2019) may indicate potential for price escalation. 4. The service falls under the broader IT and Telecommunications sector.

Value Assessment

Rating: questionable

The contract value of $23.2M over approximately 7.5 years averages to about $3.1M annually. Without specific benchmarks for 36 MHz transponder capacity on ASIASAT-3S, it's difficult to definitively assess pricing, but the lack of competition suggests potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and potentially leads to higher costs for the government compared to a competitive procurement.

Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may have paid more than necessary for essential satellite services.

Public Impact

Ensures critical communication capabilities for the U.S. Agency for Global Media. Potential for reduced service quality or innovation due to lack of competitive pressure. Taxpayer funds are allocated to a single provider without market validation of price.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of clear justification for sole-source

Positive Signals

Essential service provision
Firm fixed price contract type

Sector Analysis

Satellite telecommunications are a vital component of modern IT infrastructure, enabling global communication and data transfer. Spending in this sector can vary widely based on bandwidth, satellite type, and orbital position. This contract for transponder capacity is a specific niche within the broader telecommunications market.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made directly to a large telecommunications provider.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the pricing was fair and reasonable and that the government received adequate value. A review of the justification for not competing the contract would be beneficial.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for overpayment
Limited transparency on justification
Long contract duration may reduce flexibility

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $23.2 million to ASIA SATELLITE TELECOMMUNICATIONS COMPANY LIMITED. SATELLITE SERVICES - NON-PREEMPTIVE ,36 MHZ TRANSPONDER CAPACITY ON ASIASAT - 3S

Who is the contractor on this award?

The obligated recipient is ASIA SATELLITE TELECOMMUNICATIONS COMPANY 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 $23.2 million.

What is the period of performance?

Start: 2011-09-12. End: 2019-03-11.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this documentation, it's impossible to assess the validity of the sole-source determination and its impact on pricing.

How does the annual cost of this transponder capacity compare to market rates for similar services during the contract period?

Benchmarking the annual cost of $3.1M for 36 MHz of transponder capacity on ASIASAT-3S against market rates from 2011-2019 is challenging without access to historical satellite service pricing data. However, the absence of competition suggests a risk that the government may have paid a premium compared to what could have been achieved through a competitive process.

What was the impact of the long contract duration on the overall value and flexibility for the U.S. Agency for Global Media?

The long duration (2011-2019) provided stability in satellite service provision for the U.S. Agency for Global Media. However, it also locked the agency into a potentially suboptimal price and limited its ability to take advantage of newer technologies or more competitive offerings that may have emerged during that period.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: BBG50-R-11-0010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 33 HYSAN AVE, CAUSEWAY BAY

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

Financial Breakdown

Contract Ceiling: $23,213,625

Exercised Options: $23,213,625

Current Obligation: $23,213,625

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Timeline