DoD's $28M Satellite Telecommunications Contract with SES Space & Defense Faces Scrutiny for Lack of Competition

Contract Overview

Contract Amount: $28,155,247 ($28.2M)

Contractor: SES Space & Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-07-15

End Date: 2023-07-14

Contract Duration: 1,460 days

Daily Burn Rate: $19.3K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CSS0082 SERVICES DIRECTLY SUPPORTING THE UNITED STATES CENTRAL COMMAND SOUTHWEST ASIA

Plain-Language Summary

Department of Defense obligated $28.2 million to SES SPACE & DEFENSE, INC. for work described as: CSS0082 SERVICES DIRECTLY SUPPORTING THE UNITED STATES CENTRAL COMMAND SOUTHWEST ASIA Key points: 1. Contract awarded to SES Space & Defense, Inc. for satellite telecommunications. 2. Significant spending of $28.16 million over 4 years. 3. Awarded under a Blanket Purchase Agreement (BPA) Call, not fully competed. 4. Lack of competition raises concerns about potential overpricing and value for taxpayer money.

Value Assessment

Rating: questionable

The contract's value of $28.16 million over four years for satellite telecommunications needs careful assessment. Without competitive bidding, it's difficult to ascertain if this price represents fair market value compared to similar services procured through competitive means.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded via a BPA Call, indicating it was not fully and openly competed. This limited competition method may have restricted price discovery and potentially led to a higher price than could have been achieved through a more open solicitation process.

Taxpayer Impact: The lack of robust competition for a $28 million contract raises concerns about taxpayer dollars being used efficiently. Without competitive pressure, there's a risk of paying more than necessary for essential telecommunications services.

Public Impact

Ensures critical communication links for US Central Command in Southwest Asia. Potential for higher costs due to limited competition impacts overall defense budget allocation. Lack of transparency in the procurement process may erode public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for overpricing
Lack of transparency

Positive Signals

Supports critical military operations
Long-term contract provides stability

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically focusing on satellite telecommunications. Spending in this area is crucial for military operations, but competitive procurement is vital to ensure cost-effectiveness.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation, if any.

Oversight & Accountability

The award through a BPA Call suggests some level of pre-existing agreement, but the lack of full competition warrants closer oversight to ensure the government is receiving the best value. Accountability for the procurement decision is essential.

Related Government Programs

Satellite Telecommunications
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Lack of full and open competition
Potential for inflated pricing
Limited transparency in procurement
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to SES SPACE & DEFENSE, INC.. CSS0082 SERVICES DIRECTLY SUPPORTING THE UNITED STATES CENTRAL COMMAND SOUTHWEST ASIA

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 $28.2 million.

What is the period of performance?

Start: 2019-07-15. End: 2023-07-14.

What specific justifications were provided for not competing this contract more broadly, given its significant value?

The provided data indicates the contract was awarded via a BPA Call and marked 'NOT COMPETED UNDER SAP'. Specific justifications for this decision are not detailed. Typically, such decisions might stem from urgency, unique capabilities, or existing contract vehicles. However, without further documentation, it's difficult to assess the validity of these reasons and their impact on achieving optimal value for the government.

How does the per-unit cost of this satellite telecommunications service compare to industry benchmarks for similar services procured competitively?

A direct per-unit cost benchmark is not available from the provided data. To assess this, one would need to identify specific service metrics (e.g., bandwidth, data volume, uptime) and compare them against publicly available pricing for similar satellite telecommunications contracts awarded through full and open competition. The absence of this comparison makes it challenging to definitively state if the $28.16 million represents a fair price.

What are the potential risks to mission effectiveness if alternative, more competitively priced satellite telecommunications providers were available?

The primary risk to mission effectiveness would be financial. If SES Space & Defense's services are priced significantly higher than competitive alternatives, those additional funds could be reallocated to other critical mission needs or procurement of additional essential services. While the current provider ensures service delivery, the opportunity cost of potentially overpaying could indirectly impact overall mission support capabilities.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $28,155,247

Exercised Options: $28,155,247

Current Obligation: $28,155,247

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101318A0002

IDV Type: BPA

Timeline