DoD Awards $45.3M for Satellite Telecommunications to SES Space & Defense, Inc
Contract Overview
Contract Amount: $45,264,960 ($45.3M)
Contractor: SES Space & Defense, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-02-01
End Date: 2020-03-05
Contract Duration: 1,859 days
Daily Burn Rate: $24.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF 288 MHZ KU-BANDWIDTH
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $45.3 million to SES SPACE & DEFENSE, INC. for work described as: IGF::OT::IGF 288 MHZ KU-BANDWIDTH Key points: 1. Significant contract value of $45.3 million for satellite telecommunications. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risk associated with long-term satellite service contracts. 4. Spending falls within the IT and Defense sectors.
Value Assessment
Rating: good
The contract value of $45.3 million for satellite telecommunications appears reasonable given the duration and nature of the service. Benchmarking against similar long-term satellite service 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 that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required satellite telecommunications services.
Public Impact
Ensures critical communication capabilities for the Department of Defense. Supports military operations and national security through reliable satellite links. Potential for technological advancements in satellite communication services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term reliance on a single vendor for critical infrastructure.
- Potential for cost overruns if contract terms are not managed effectively.
- Geopolitical risks impacting satellite service availability.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type provides cost certainty.
- Supports essential defense communication needs.
Sector Analysis
This contract falls within the Information Technology and Defense sectors, specifically for satellite telecommunications. Spending benchmarks for similar long-term satellite service contracts can vary widely based on bandwidth, coverage, and service level agreements.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency, a component of the Department of Defense, suggesting established oversight mechanisms. However, the duration of the contract warrants continuous monitoring for performance and cost efficiency.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Long-term contract duration.
- Reliance on satellite technology, which can be subject to interference or disruption.
- Potential for vendor lock-in.
- Complexity of managing satellite service contracts.
Tags
satellite-telecommunications, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.3 million to SES SPACE & DEFENSE, INC.. IGF::OT::IGF 288 MHZ KU-BANDWIDTH
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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $45.3 million.
What is the period of performance?
Start: 2015-02-01. End: 2020-03-05.
What is the specific nature of the satellite telecommunications services provided and how do they align with current defense communication needs?
The contract is for satellite telecommunications, likely providing critical data, voice, and video transmission capabilities for Department of Defense operations. This could include secure communication links for deployed forces, command and control systems, and intelligence gathering. The alignment with current needs would depend on the specific bandwidth, coverage, and service level agreements negotiated, ensuring they meet evolving operational requirements and technological standards.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to ensure the effectiveness and reliability of the satellite telecommunications?
Key performance indicators and service level agreements are crucial for ensuring the effectiveness and reliability of satellite telecommunications. These typically include metrics such as uptime/availability, latency, bandwidth consistency, data throughput, and response times for technical support. The contract should clearly define these KPIs and SLAs, along with remedies or penalties for non-performance, to ensure the Department of Defense receives the contracted level of service and maintains operational readiness.
How does the firm fixed price structure mitigate risks associated with fluctuating market prices for satellite bandwidth and related services over the contract's duration?
A firm fixed price (FFP) contract shifts the risk of price fluctuations to the contractor, SES Space & Defense, Inc. This means the government is locked into the agreed-upon price regardless of market changes in satellite bandwidth or operational costs. While this provides budget certainty for the DoD, it requires the contractor to accurately forecast costs and manage risks effectively. If market prices increase significantly, the contractor may experience reduced profit margins, potentially impacting service quality or future bidding.
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
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: SES SA (UEI: 400971339)
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: $45,264,960
Exercised Options: $45,264,960
Current Obligation: $45,264,960
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0328V
IDV Type: FSS
Timeline
Start Date: 2015-02-01
Current End Date: 2020-03-05
Potential End Date: 2020-03-05 00:00:00
Last Modified: 2019-09-26
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