DoD's $28M Satellite Telecommunications Contract with SES Space & Defense Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $28,004,728 ($28.0M)
Contractor: SES Space & Defense, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-07-26
End Date: 2023-07-25
Contract Duration: 1,460 days
Daily Burn Rate: $19.2K/day
Competition Type: NOT COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CSS0082 SERVICES FOR CENTCOM
Place of Performance
Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152
Plain-Language Summary
Department of Defense obligated $28.0 million to SES SPACE & DEFENSE, INC. for work described as: CSS0082 SERVICES FOR CENTCOM Key points: 1. Significant contract value of $28 million for satellite telecommunications. 2. Sole provider SES Space & Defense, Inc. raises competition concerns. 3. Potential risks associated with limited competition and single-source awards. 4. Spending falls within the IT and Defense sectors.
Value Assessment
Rating: questionable
The contract's value of $28 million for satellite telecommunications is substantial. Without clear benchmarks or competitive pricing data, assessing its value for money is difficult. The lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under SAP and was awarded via a BPA Call, indicating a limited competition approach. This method may not have fully explored the market for the best pricing and service options.
Taxpayer Impact: The lack of robust competition could lead to taxpayers paying more than necessary for these essential satellite telecommunications services.
Public Impact
Ensures critical satellite communication capabilities for CENTCOM operations. Potential for higher costs due to limited competitive bidding. Impacts the Department of Defense's ability to secure cost-effective telecommunications solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of transparency in pricing
- Potential for cost overruns
Positive Signals
- Ensures continuity of essential services
- Utilizes existing contract vehicle (BPA Call)
Sector Analysis
This contract falls under the IT and Defense sectors, specifically for satellite telecommunications. Spending in this area is critical for national security and operational readiness, but often involves high costs and specialized providers.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if small businesses were considered or had the capability to provide these specialized services.
Oversight & Accountability
The award method (BPA Call, not competed under SAP) warrants further oversight to ensure fair pricing and explore competitive alternatives. Accountability for the justification of limited competition is crucial.
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 vendor options
- Reliance on a single provider
Tags
satellite-telecommunications, department-of-defense, sc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.0 million to SES SPACE & DEFENSE, INC.. CSS0082 SERVICES FOR CENTCOM
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 $28.0 million.
What is the period of performance?
Start: 2019-07-26. End: 2023-07-25.
What was the justification for not competing this contract more broadly, given its significant value?
The justification for not competing this contract more broadly likely stems from the use of an existing Blanket Purchase Agreement (BPA) Call. While BPAs can offer efficiency, they may not always guarantee the most competitive pricing or explore the full market landscape. A detailed review of the BPA's scope and the specific justification for this call-off is needed to understand the rationale.
How does the pricing of this contract compare to similar satellite telecommunications services procured through competitive means?
Without access to specific pricing details and benchmarks for comparable satellite telecommunications services procured competitively, a direct comparison is challenging. The 'br' (benchmark rate) value of 19181 is provided, but its context and applicability to the full scope of services rendered are unclear. A thorough analysis would require comparing unit costs and service levels against market rates.
What is the potential risk to mission effectiveness if SES Space & Defense, Inc. is the sole provider for this duration?
The primary risk to mission effectiveness is the lack of redundancy and potential for service disruption if SES Space & Defense, Inc. faces issues. Dependence on a single provider can also limit flexibility in adapting to evolving technological needs or negotiating favorable terms, potentially impacting long-term operational readiness.
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: $28,004,728
Exercised Options: $28,004,728
Current Obligation: $28,004,728
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101318A0002
IDV Type: BPA
Timeline
Start Date: 2019-07-26
Current End Date: 2023-07-25
Potential End Date: 2023-07-25 00:00:00
Last Modified: 2023-10-26
More Contracts from SES Space & Defense, Inc.
- KU Bandwidth — $64.6M (Department of Defense)
- 288 MHZ Ku-Bandwidth — $45.3M (Department of Defense)
- BPA Task Order--Global Broadband Service, Gateway Services and Leased Terrestrial Backhaul and FSR Support — $34.1M (Department of Defense)
- CSS0082 Services Directly Supporting the United States Central Command Southwest Asia — $28.2M (Department of Defense)
- DIA Bandwidth and HNA Support Services Asia — $27.2M (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)