DoD awards $16.7M for satellite bandwidth, supporting airborne operations with SES Space & Defense

Contract Overview

Contract Amount: $16,746,123 ($16.7M)

Contractor: SES Space & Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2026-01-31

Contract Duration: 730 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: KU-BAND SATELLITE BANDWIDTH TO SUPPORT GROUND-TO-AIR AND AIRCRAFT-TO-GROUND TRANSMISSIONS IN SUPPORT OF AIRBORNE OPERATIONS.

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22554

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to SES SPACE & DEFENSE, INC. for work described as: KU-BAND SATELLITE BANDWIDTH TO SUPPORT GROUND-TO-AIR AND AIRCRAFT-TO-GROUND TRANSMISSIONS IN SUPPORT OF AIRBORNE OPERATIONS. Key points: 1. Contract value of $16.7M for satellite telecommunications services. 2. Procurement method was full and open competition, indicating broad market access. 3. The contract duration is 730 days, spanning two years. 4. Services support critical airborne operations, highlighting strategic importance. 5. The award was made by the Department of the Air Force. 6. The contractor, SES Space & Defense, Inc., is a key player in the satellite communications sector.

Value Assessment

Rating: good

The contract value of $16.7M for two years of KU-band satellite bandwidth appears reasonable given the specialized nature of airborne communications. Benchmarking against similar government contracts for satellite services suggests that pricing is competitive, especially considering the need for reliable, high-throughput connectivity for military operations. The firm-fixed-price structure helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of two bids suggests a moderate level of competition for this specialized service. While not a large number of bidders, the open nature of the competition likely contributed to price discovery and ensured the government received a fair offer.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.

Public Impact

Provides essential communication links for airborne military platforms. Enhances situational awareness and operational effectiveness for aircrews. Supports global airborne operations, potentially impacting various geographic regions. Ensures continuity of critical command and control functions during missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative providers are not readily available for similar specialized services.
Reliance on a single awardee for critical communication infrastructure could pose a risk if service disruptions occur.

Positive Signals

Award to an established provider with a track record in defense satellite communications.
Firm-fixed-price contract provides cost predictability.
Competition, even with two bidders, suggests a degree of market validation.

Sector Analysis

The satellite telecommunications sector is a critical component of modern defense infrastructure, enabling secure and reliable data transmission for a wide range of operations. This contract fits within the broader market for government satellite services, which is characterized by high barriers to entry due to technological complexity and regulatory requirements. Spending in this area is driven by the increasing demand for bandwidth to support advanced ISR (Intelligence, Surveillance, and Reconnaissance) and C2 (Command and Control) capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of satellite telecommunications and the requirement for established infrastructure and expertise, it is common for such contracts to be awarded to larger, specialized firms. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

The Department of the Air Force is responsible for oversight of this contract. As a firm-fixed-price contract, the primary accountability measure is adherence to the specified service delivery terms and performance standards. Transparency is facilitated through contract award databases. Further oversight may be provided by the Department of Defense's Inspector General for issues related to fraud, waste, or abuse.

Related Government Programs

DoD Satellite Communications Services
Airborne Intelligence, Surveillance, and Reconnaissance (ISR) Support
Military Satellite Communications Systems
Tactical Data Links

Risk Flags

Potential for single-source dependency if competition is limited in future procurements.
Cybersecurity risks inherent in networked communication systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to SES SPACE & DEFENSE, INC.. KU-BAND SATELLITE BANDWIDTH TO SUPPORT GROUND-TO-AIR AND AIRCRAFT-TO-GROUND TRANSMISSIONS IN SUPPORT OF AIRBORNE OPERATIONS.

Who is the contractor on this award?

The obligated recipient is SES SPACE & DEFENSE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2024-02-01. End: 2026-01-31.

What is the track record of SES Space & Defense, Inc. in providing similar satellite bandwidth services to the U.S. military?

SES Space & Defense, Inc. has a significant history of providing satellite communications solutions to government and defense agencies. They are known for their global network of satellites and ground infrastructure, offering a range of services including secure data transmission, broadband connectivity, and specialized solutions for mobile platforms. Their experience includes supporting various military operations, ensuring reliable communication in challenging environments. The company has been a recipient of numerous contracts for similar services, indicating a sustained relationship and established capability in meeting the demanding requirements of defense clients. This specific contract builds upon that existing relationship and leverages their proven expertise in delivering critical bandwidth for airborne operations.

How does the awarded price of $16.7 million for 730 days of satellite bandwidth compare to market rates for similar services?

The awarded price of $16.7 million for two years of KU-band satellite bandwidth translates to approximately $23,000 per day or roughly $7.6 million per year. Benchmarking this against market rates for commercial satellite bandwidth, especially for dedicated government or military-grade services, suggests this pricing is within a competitive range. Factors influencing this include the specific coverage area required, the guaranteed throughput (bandwidth), latency requirements, and the level of security and reliability demanded by the Department of the Air Force. Given the specialized nature of supporting airborne operations, which often requires robust, resilient, and secure connectivity, the price appears to reflect the value and complexity of the service provided. Full and open competition, even with two bidders, helps ensure that the price is not excessively high compared to what the market can bear.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential service disruptions due to satellite or ground segment issues, cybersecurity threats, and the possibility of cost increases if the scope of services expands beyond the initial agreement (though less likely with firm-fixed-price). A key risk is also the reliance on a single vendor for critical communication infrastructure. Mitigation strategies likely involve robust performance monitoring by the Air Force, adherence to strict security protocols by SES Space & Defense, and contingency planning for service continuity. The firm-fixed-price nature of the contract itself mitigates cost overrun risks for the government. Furthermore, the contract's duration is relatively short (two years), allowing for re-evaluation of the market and potential re-competition at its conclusion.

How effective is the current satellite bandwidth provision in supporting the stated airborne operations?

The effectiveness of the current satellite bandwidth provision is directly tied to the successful execution of this contract by SES Space & Defense, Inc. The contract's objective is to 'support ground-to-air and aircraft-to-ground transmissions in support of airborne operations,' implying that the current or previous provisions may have been insufficient or are being upgraded to meet evolving operational needs. The award of this contract suggests a recognized need for this specific bandwidth capacity and quality. Performance metrics within the contract, such as uptime, latency, and data transfer rates, will be crucial indicators of effectiveness. Successful delivery will directly enhance situational awareness, command and control, and overall mission success for the supported airborne platforms.

What are the historical spending patterns for satellite telecommunications by the Department of the Air Force?

The Department of the Air Force, like other branches of the military, has a consistent and significant history of spending on satellite telecommunications. This spending is driven by the indispensable role of satellites in modern warfare for communication, navigation, intelligence gathering, and surveillance. Historical spending patterns show a trend towards increased demand for higher bandwidth, lower latency, and more secure communication channels to support advanced platforms and data-intensive operations. The Air Force procures a variety of satellite services, including dedicated bandwidth, managed networks, and specialized solutions for tactical and strategic applications. This $16.7 million award is part of a larger, ongoing investment in maintaining and enhancing the U.S. military's satellite communication capabilities, reflecting a strategic priority.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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

Financial Breakdown

Contract Ceiling: $46,891,636

Exercised Options: $18,402,361

Current Obligation: $16,746,123

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0328V

IDV Type: FSS

Timeline