GSA Awards $23.9M for Satellite Bandwidth and HNA Support to SES Space & Defense

Contract Overview

Contract Amount: $23,893,788 ($23.9M)

Contractor: SES Space & Defense, Inc.

Awarding Agency: General Services Administration

Start Date: 2017-09-28

End Date: 2022-06-30

Contract Duration: 1,736 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF DIVIN P SATELLITE BANDWIDTH AND HNA SUPPORT

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80920

State: Colorado Government Spending

Plain-Language Summary

General Services Administration obligated $23.9 million to SES SPACE & DEFENSE, INC. for work described as: IGF::OT::IGF DIVIN P SATELLITE BANDWIDTH AND HNA SUPPORT Key points: 1. Contract value of $23.9 million over nearly five years. 2. Awarded to SES Space & Defense, Inc. under full and open competition. 3. Focuses on satellite telecommunications services. 4. Potential for significant taxpayer impact due to the scale of the contract.

Value Assessment

Rating: good

The contract value of $23.9 million appears reasonable for satellite bandwidth and HNA support over a five-year period. Benchmarking against similar large-scale telecommunications contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition aims to ensure the best value for taxpayers by soliciting bids from all qualified vendors.

Public Impact

Ensures critical satellite communication capabilities for federal agencies. Supports national security and operational needs through reliable bandwidth. Facilitates data transfer and connectivity for various government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Dependence on a single vendor for critical satellite services.
Geopolitical risks associated with satellite service providers.

Positive Signals

Awarded under full and open competition.
Long-term contract provides stable service delivery.
Supports essential government operations.

Sector Analysis

This contract falls within the IT and telecommunications sector, specifically satellite services. Spending in this area is crucial for government operations, including defense and civilian agency needs. Benchmarks for similar satellite bandwidth contracts vary widely based on bandwidth, duration, and service level agreements.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor, SES Space & Defense, Inc., is a large entity, suggesting limited direct opportunities for small businesses in this prime contract, though they may participate as subcontractors.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders under larger indefinite-delivery, indefinite-quantity (IDIQ) contracts would apply, focusing on performance and adherence to terms.

Related Government Programs

Satellite Telecommunications
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Dependence on a single vendor for critical infrastructure.
Potential for service interruption due to external factors (space weather, debris).
Geopolitical risks impacting satellite operations.
Long-term commitment may not adapt to rapidly evolving technology.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.9 million to SES SPACE & DEFENSE, INC.. IGF::OT::IGF DIVIN P SATELLITE BANDWIDTH AND HNA SUPPORT

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 $23.9 million.

What is the period of performance?

Start: 2017-09-28. End: 2022-06-30.

What is the specific impact of this satellite bandwidth on the agencies utilizing it?

This satellite bandwidth and HNA support likely enables critical functions such as secure data transmission, command and control operations, and communication in remote or austere environments where terrestrial infrastructure is unavailable or unreliable. It underpins various federal missions, from national security to disaster response, ensuring continuity of operations.

What are the primary risks associated with relying on SES Space & Defense for satellite telecommunications?

Key risks include potential service disruptions due to satellite malfunctions, space debris, or solar interference. Geopolitical factors affecting the provider's operational environment or regulatory compliance could also pose a risk. Furthermore, over-reliance on a single provider might limit future negotiation leverage for cost savings or service enhancements.

How does the firm fixed price contract structure ensure cost-effectiveness for the government?

A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor, SES Space & Defense, Inc. This structure incentivizes the contractor to manage costs efficiently to maximize profit. For the government, it provides budget certainty, as the price is fixed regardless of the contractor's actual costs incurred.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID09170036

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: SES Government Solutions Inc.

Address: 11790 SUNRISE VALLEY DR STE 300, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $23,893,788

Exercised Options: $23,893,788

Current Obligation: $23,893,788

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0328V

IDV Type: FSS

Timeline