GSA's $21.3M Satellite Communication Services contract awarded to SES Space & Defense, Inc. for 10 years

Contract Overview

Contract Amount: $21,322,200 ($21.3M)

Contractor: SES Space & Defense, Inc.

Awarding Agency: General Services Administration

Start Date: 2014-08-16

End Date: 2024-05-15

Contract Duration: 3,560 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF SATELLITE COMMUNICATION SERVICES. SATELLITE COMMUNICATION SERVICES USED TO TRANSMIT DATA FROM MULTIPLE DATA POINTS IN THE UNITED STATES AND THULE, GREENLAND.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $21.3 million to SES SPACE & DEFENSE, INC. for work described as: IGF::OT::IGF SATELLITE COMMUNICATION SERVICES. SATELLITE COMMUNICATION SERVICES USED TO TRANSMIT DATA FROM MULTIPLE DATA POINTS IN THE UNITED STATES AND THULE, GREENLAND. Key points: 1. Contract provides critical satellite communication services across the US and Greenland. 2. Long-term award suggests a stable and ongoing need for these services. 3. Firm Fixed Price contract type offers cost predictability for the government. 4. The contract's duration of 10 years indicates a significant investment in this capability. 5. Awarded under full and open competition, suggesting a competitive bidding process. 6. The North American Industry Classification System (NAICS) code 517410 points to satellite telecommunications services.

Value Assessment

Rating: good

The total award amount of $21.3 million over 10 years averages to approximately $2.13 million per year. This appears reasonable for specialized satellite communication services, especially considering the geographic scope including Thule, Greenland. Benchmarking against similar long-term satellite service contracts would provide a more precise value assessment, but the duration and scope suggest a fair price for the capability provided.

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. The presence of 2 bids suggests a moderate level of competition for this specialized service. While not a large number of bidders, full and open competition generally promotes price discovery and allows the government to select the best value offering.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a process designed to achieve competitive pricing and access to a range of qualified providers.

Public Impact

The contract ensures the reliable transmission of data from multiple points within the United States and to Thule, Greenland. This service is crucial for government operations that rely on secure and continuous data connectivity, potentially including intelligence, defense, or critical infrastructure monitoring. The geographic reach, extending to Greenland, highlights the importance of the service for remote or strategically significant locations. The workforce implications are likely related to the technical expertise required to manage and utilize satellite communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration.
Dependence on a single contractor for critical communication infrastructure.
Geopolitical risks associated with satellite operations and ground stations.

Positive Signals

Long-term contract provides stability and predictability for essential services.
Firm Fixed Price contract limits cost uncertainty for the government.
Awarded through full and open competition, promoting a fair selection process.

Sector Analysis

This contract falls within the telecommunications sector, specifically satellite telecommunications. The market for satellite communication services is characterized by high barriers to entry due to significant infrastructure and regulatory requirements. Spending in this area is often driven by government needs for secure, global, and resilient communication capabilities, particularly in remote or challenging environments. Comparable spending benchmarks would involve analyzing other government contracts for satellite bandwidth, ground station services, and related network management.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of satellite communication services, it is common for such contracts to be awarded to large, established companies with the necessary technical expertise and infrastructure. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA) Federal Acquisition Service, which typically has established oversight mechanisms for procurement. The firm fixed price contract type provides a degree of financial oversight. Transparency is generally maintained through contract award databases. Further oversight would depend on specific GSA reporting requirements and any Inspector General reviews related to satellite communication procurements.

Related Government Programs

Satellite Communication Services
Telecommunications Services
Data Transmission Services
Global Connectivity Contracts

Risk Flags

Long contract duration may lead to technological obsolescence.
Limited competition (2 bidders) could impact optimal pricing.
Geopolitical risks associated with international satellite operations.
Cybersecurity vulnerabilities in satellite communication networks.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $21.3 million to SES SPACE & DEFENSE, INC.. IGF::OT::IGF SATELLITE COMMUNICATION SERVICES. SATELLITE COMMUNICATION SERVICES USED TO TRANSMIT DATA FROM MULTIPLE DATA POINTS IN THE UNITED STATES AND THULE, GREENLAND.

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2014-08-16. End: 2024-05-15.

What is the historical spending pattern for satellite communication services by the General Services Administration?

Analyzing historical spending patterns for satellite communication services by the GSA requires access to detailed procurement data over multiple fiscal years. While this specific contract award is for $21.3 million over 10 years, understanding the GSA's broader investment in this area would involve aggregating data from similar contracts, including those for bandwidth, ground station access, and managed satellite networks. Factors such as technological advancements, evolving geopolitical needs, and changes in government communication strategies can influence spending trends. Without a comprehensive historical dataset, it is difficult to establish a precise pattern, but the long-term nature of this award suggests a sustained commitment to leveraging satellite technology for critical data transmission.

How does the pricing of this contract compare to similar satellite communication service contracts awarded by other federal agencies?

Benchmarking the pricing of this $21.3 million, 10-year contract requires comparing it against similar satellite communication service contracts awarded by other federal agencies. Key comparison points would include the type of satellite service (e.g., dedicated bandwidth, managed services), geographic coverage, data throughput, and service level agreements. Contracts with similar scope and duration, particularly those involving remote locations like Greenland, would offer the most relevant comparison. The firm fixed price structure provides cost certainty. However, without access to a database of comparable contract pricing, a definitive assessment of whether this contract represents excellent, good, or fair value is challenging. Factors like the number of bidders and the specific technical requirements also influence pricing.

What are the primary risks associated with this long-term satellite communication contract?

The primary risks associated with this long-term satellite communication contract include technological obsolescence, as satellite technology evolves rapidly, potentially rendering the contracted services outdated before the contract's end date. Geopolitical instability or changes in international agreements could impact the operation of satellites or ground stations, particularly those in foreign territories like Greenland. Vendor lock-in is another significant risk; the 10-year duration may limit the government's flexibility to adopt newer, potentially more cost-effective technologies or providers. Furthermore, reliance on a single contractor for critical communication infrastructure introduces a single point of failure risk. Cybersecurity threats targeting satellite communication networks also pose a substantial risk.

What is the track record of SES Space & Defense, Inc. in providing similar government satellite communication services?

SES Space & Defense, Inc. has a significant track record in providing satellite communication services to government and defense clients. As a subsidiary of SES S.A., a global satellite operator, they possess extensive experience in managing satellite fleets, providing secure connectivity, and supporting complex missions. Their portfolio often includes services tailored for government requirements, such as secure data transmission, resilient communications, and operations in challenging environments. Evaluating their specific performance on this contract would involve reviewing past performance evaluations, any reported issues or successes on similar government contracts, and their adherence to service level agreements. Generally, companies operating in this space are expected to have robust technical capabilities and security protocols.

How does the competition level (2 bidders) impact the value and pricing for taxpayers on this contract?

A competition level of two bidders suggests a moderately competitive environment for this satellite communication services contract. While more bidders generally lead to lower prices and better value for taxpayers, two bidders still indicate that the government had at least one alternative to the winning offer. This level of competition is often sufficient to drive some price negotiation and ensure that the selected vendor is offering a competitive solution. However, it is less ideal than a scenario with numerous bidders, which could potentially yield even more favorable pricing. The government's ability to negotiate effectively with the two competing firms would be crucial in maximizing taxpayer value in this situation.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ID01140002

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

Financial Breakdown

Contract Ceiling: $24,042,717

Exercised Options: $24,042,717

Current Obligation: $21,322,200

Actual Outlays: $5,720,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline