USAGM spent $29M on satellite services over nearly 5 years, with EUTELSAT America Corp. as the sole awardee

Contract Overview

Contract Amount: $29,008,086 ($29.0M)

Contractor: Eutelsat America Corp.

Awarding Agency: U.S. Agency for Global Media

Start Date: 2014-02-01

End Date: 2018-12-31

Contract Duration: 1,794 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SATELLITE SERVICES IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

U.S. Agency for Global Media obligated $29.0 million to EUTELSAT AMERICA CORP. for work described as: SATELLITE SERVICES IGF::OT::IGF Key points: 1. The contract represents a significant investment in satellite telecommunications for the U.S. Agency for Global Media. 2. Analysis of value for money requires benchmarking against similar satellite service contracts. 3. The full and open competition suggests a potentially competitive bidding process, though only one awardee was selected. 4. Performance context is limited without specific details on service delivery and uptime. 5. The contract falls within the broader telecommunications sector, specifically satellite services. 6. Risk indicators could include vendor lock-in if alternatives were not adequately explored. 7. The firm fixed-price structure provides cost certainty for the agency.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service level agreements and comparable market data for satellite bandwidth during the 2014-2018 period. The total award amount of $29 million over nearly five years suggests a substantial but not necessarily excessive expenditure for dedicated satellite services. Further analysis would require comparing the per-megahertz-per-month cost against industry standards and other government contracts for similar geographic coverage and bandwidth.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. However, only one awardee, EUTELSAT AMERICA CORP., was selected. This could imply that while the competition was open, EUTELSAT was the only bidder that met all the technical and financial requirements, or it was the most competitive offer received. The level of competition, despite being open, might warrant further investigation into the solicitation's specificity and the market landscape at the time.

Taxpayer Impact: A full and open competition, even with a single awardee, generally aims to secure the best value for taxpayers by allowing a broad range of potential providers to compete. If EUTELSAT was the sole responsive bidder, it suggests that the market for these specific satellite services may be concentrated, potentially limiting price negotiation leverage for the government.

Public Impact

The U.S. Agency for Global Media (USAGM) benefits from reliable satellite communication infrastructure to support its broadcasting and information dissemination missions. Services delivered include satellite telecommunications, crucial for reaching global audiences. The geographic impact is likely global, aligning with USAGM's mission to inform and engage international audiences. Workforce implications are minimal directly related to this contract, as it procures a service rather than personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if only one bidder met requirements.
Dependence on a single provider for critical communication infrastructure.
Lack of detailed performance metrics makes assessing service quality difficult.

Positive Signals

Awarded under full and open competition, suggesting an attempt to maximize market participation.
Firm fixed-price contract provides budget certainty.
Long-term contract (nearly 5 years) indicates a stable, ongoing need for services.

Sector Analysis

This contract falls within the telecommunications sector, specifically focusing on satellite services. The market for satellite communications is characterized by high infrastructure costs, specialized technology, and a mix of large established players and emerging companies. Government spending in this area supports national security, broadcasting, and critical infrastructure needs. Comparable spending benchmarks would involve analyzing other federal contracts for satellite bandwidth and transponder leases, considering factors like orbital location, frequency, and data throughput.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of satellite services, it is common for such contracts to be awarded to large, established telecommunications companies. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially exist if the prime contractor utilizes smaller firms for specific components or support services.

Oversight & Accountability

Oversight of this contract would typically be managed by the contracting officers and program managers within the U.S. Agency for Global Media. Accountability measures are inherent in the contract terms, including service level agreements (if specified) and the firm fixed-price structure. Transparency is generally facilitated through contract award databases, though detailed operational performance data may not be publicly available.

Related Government Programs

Satellite Communications Services
Broadcasting and Media Services
Information Dissemination Programs

Risk Flags

Single Awardee Despite Open Competition
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $29.0 million to EUTELSAT AMERICA CORP.. SATELLITE SERVICES IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is EUTELSAT AMERICA CORP..

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 $29.0 million.

What is the period of performance?

Start: 2014-02-01. End: 2018-12-31.

What was the specific nature of the satellite services provided under this contract?

The contract, identified by NAICS code 517410 (Satellite Telecommunications), was for satellite services. While the specific details of the services are not fully elaborated in the provided data, this typically encompasses the provision of satellite bandwidth, transponder leases, and potentially related ground support or teleport services. These services are crucial for entities like the U.S. Agency for Global Media (USAGM) to transmit broadcast signals and data globally, reaching audiences in areas where terrestrial infrastructure may be limited or unavailable. The duration of the contract (nearly five years) suggests a sustained need for these critical communication capabilities.

How does the $29 million expenditure compare to similar satellite service contracts awarded by the government during the 2014-2018 period?

Comparing the $29 million expenditure requires detailed analysis of similar contracts, considering factors like bandwidth, duration, geographic coverage, and service level agreements. Without access to a comprehensive database of comparable contracts and their specific terms, a precise benchmark is difficult. However, for a nearly five-year contract providing global satellite telecommunications, $29 million represents an average annual spend of approximately $5.8 million. This figure needs to be evaluated against the market rates for satellite bandwidth and transponder leases during that period, which can fluctuate based on technology, demand, and provider competition. Government contracts for satellite services can vary widely, from smaller, regional bandwidth leases to large, multi-year global coverage agreements.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, satellite service contracts include metrics such as uptime guarantees (e.g., 99.9% availability), latency, data transfer rates, and signal quality. For the U.S. Agency for Global Media (USAGM), reliable and consistent service delivery would be paramount to ensure uninterrupted broadcasting and communication. The absence of specific KPI/SLA information in the summary data makes it challenging to quantitatively assess the performance and value derived from the contract beyond the financial outlay.

Were there any identified risks or challenges associated with EUTELSAT AMERICA CORP. as a contractor for this service?

The provided data does not highlight any specific risks or challenges associated with EUTELSAT AMERICA CORP. as the contractor. However, general risks associated with long-term satellite service contracts include potential vendor lock-in, reliance on a single provider for critical infrastructure, and the possibility of technological obsolescence if the service provider does not keep pace with advancements. Given that the contract was awarded under full and open competition, it suggests that EUTELSAT met the required qualifications. Further assessment would require reviewing past performance records and any potential issues that may have arisen during the contract's execution.

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

The provided data focuses on a single contract awarded in 2014. To understand the historical spending pattern for satellite services by the U.S. Agency for Global Media (USAGM), a broader analysis of their procurement history would be necessary. This would involve examining contracts awarded before and after this period, identifying trends in spending volume, the number and types of providers utilized, and the evolution of service requirements. Understanding these patterns can reveal whether USAGM's reliance on satellite services has increased or decreased, and how their procurement strategies have adapted over time.

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

Address: 1776 I ST NW STE 810, WASHINGTON, DC, 20006

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,008,086

Exercised Options: $29,008,086

Current Obligation: $29,008,086

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0418Y

IDV Type: FSS

Timeline