DoD Spends $21.9M on Satellite Bandwidth from Peraton, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $21,917,816 ($21.9M)
Contractor: Peraton Government Communications Inc.
Awarding Agency: Department of Defense
Start Date: 2011-03-04
End Date: 2014-06-26
Contract Duration: 1,210 days
Daily Burn Rate: $18.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 36 MHZ COMMERCIAL SATELLITE BANDWIDTH
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.9 million to PERATON GOVERNMENT COMMUNICATIONS INC. for work described as: 36 MHZ COMMERCIAL SATELLITE BANDWIDTH Key points: 1. Significant contract value of $21.9 million for satellite bandwidth. 2. Awarded to Peraton Government Communications Inc., indicating a specific vendor relationship. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under 'Other Computer Related Services' (NAICS 541519).
Value Assessment
Rating: good
The contract value of $21.9 million for 36 MHz of commercial satellite bandwidth appears reasonable given the duration and service type. Benchmarking against similar large-scale satellite bandwidth procurements 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, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract structure suggests a streamlined procurement process.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
Ensures critical communication capabilities for the Department of Defense. Supports military operations and personnel through reliable satellite connectivity. The use of commercial bandwidth highlights reliance on private sector infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of over 3 years.
- Potential for vendor lock-in if not managed.
- Dependence on a single vendor for critical bandwidth.
Positive Signals
- Awarded via full and open competition.
- Firm Fixed Price contract type.
- Clear definition of service (36 MHz Commercial Satellite Bandwidth).
Sector Analysis
The Department of Defense's reliance on commercial satellite bandwidth falls within the broader Information Technology and Telecommunications sector. Spending benchmarks for satellite services can vary widely based on bandwidth, duration, and geographic coverage, but $21.9 million for over three years of dedicated bandwidth is substantial.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The prime contractor, Peraton Government Communications Inc., is a large entity, suggesting this contract may not have directly benefited small businesses.
Oversight & Accountability
The contract was awarded via delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on performance, adherence to terms, and ensuring continued competition for future needs.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Long contract duration.
- Potential for vendor dependency.
- Lack of specific performance metrics in data.
- Limited insight into competitive pricing details.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.9 million to PERATON GOVERNMENT COMMUNICATIONS INC.. 36 MHZ COMMERCIAL SATELLITE BANDWIDTH
Who is the contractor on this award?
The obligated recipient is PERATON GOVERNMENT COMMUNICATIONS INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $21.9 million.
What is the period of performance?
Start: 2011-03-04. End: 2014-06-26.
What was the specific performance period and geographic coverage for this satellite bandwidth, and how did these factors influence the price?
The contract spanned from March 4, 2011, to June 26, 2014, a period of approximately 3 years and 4 months. The 36 MHz bandwidth was for commercial satellite use, likely supporting global or regional DoD operations. Specific geographic coverage details are not provided but are crucial for assessing value, as coverage over high-demand or remote areas commands higher prices.
How did the pricing compare to other bids received during the full and open competition, and what was the government's estimated cost?
While awarded under full and open competition, the specific bid prices from competing vendors are not detailed in the provided data. The contract value of $21.9 million represents the awarded amount. To fully assess value, a comparison with the government's independent government cost estimate (IGCE) and the range of other submitted bids would be necessary.
What are the key performance indicators (KPIs) for this satellite bandwidth service, and how was performance monitored to ensure effectiveness?
Key performance indicators for satellite bandwidth typically include uptime, latency, throughput, and signal quality. The provided data does not specify the KPIs or the monitoring mechanisms used. Effective oversight would involve regular performance reviews, adherence to service level agreements (SLAs), and potentially independent testing to ensure the bandwidth met the DoD's operational requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 2235 MONROE STREET SUITE 500, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,917,816
Exercised Options: $21,917,816
Current Obligation: $21,917,816
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F5497H
IDV Type: FSS
Timeline
Start Date: 2011-03-04
Current End Date: 2014-06-26
Potential End Date: 2014-06-26 00:00:00
Last Modified: 2021-11-25
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