DoD awards $23.4M for satellite bandwidth, with SES Space & Defense Inc. as prime contractor

Contract Overview

Contract Amount: $23,446,096 ($23.4M)

Contractor: SES Space & Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-03-23

End Date: 2026-03-22

Contract Duration: 1,825 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SPACE SEGMENT - KU BANDWIDTH 144 MHZ

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to SES SPACE & DEFENSE, INC. for work described as: SPACE SEGMENT - KU BANDWIDTH 144 MHZ Key points: 1. Contract value represents a significant investment in secure satellite communications. 2. The firm-fixed-price structure aims to control costs for the government. 3. A 5-year duration suggests a need for sustained, reliable service. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating potential for future task orders. 5. The use of a single award for this specific delivery order warrants scrutiny regarding the overall IDIQ competition. 6. Geographic location in Virginia may indicate a key operational hub for these services.

Value Assessment

Rating: good

The total award of $23.4 million over five years for satellite bandwidth appears reasonable given the critical nature of defense communications. Benchmarking against similar satellite bandwidth contracts is challenging without more specific service level agreements and data rates. However, the firm-fixed-price nature suggests an effort to lock in costs. The contract's value is moderate within the broader context of defense information technology spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it is a delivery order under an IDIQ vehicle means the initial competition was for the IDIQ itself, and this specific order was placed based on pre-established terms. The number of bidders for the original IDIQ would provide a clearer picture of the competitive landscape.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service innovation.

Public Impact

Provides essential satellite bandwidth for Department of Defense operations, ensuring secure and reliable communication. Supports military personnel and intelligence gathering through uninterrupted connectivity. Services are likely utilized across various global operational theaters. The contract supports the Defense Information Systems Agency (DISA) in its mission to provide information technology services to the DoD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements evolve beyond the initial delivery order's parameters.
Dependence on a single provider for a critical communication link could pose a risk if service is interrupted.
The specific performance metrics and service level agreements are not detailed, making it hard to assess performance guarantees.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive process for the underlying IDIQ.
Long-term contract duration (5 years) indicates a stable and predictable service provision.

Sector Analysis

The satellite telecommunications sector is crucial for government operations, providing essential connectivity for defense, intelligence, and civilian agencies. This contract fits within the broader market for satellite services, which is characterized by high infrastructure costs and specialized technical expertise. Spending in this sector is driven by the need for global reach, resilience, and secure communication channels, particularly for defense applications. Comparable spending benchmarks would typically involve analyzing other large government contracts for satellite bandwidth and related services.

Small Business Impact

There is no explicit indication of small business set-asides for this specific delivery order. However, the prime contractor, SES Space & Defense, Inc., may engage small businesses as subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency (DISA) and the Department of Defense's contracting and financial management offices. Accountability measures are embedded within the firm-fixed-price contract terms and delivery schedules. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Satellite Communications System (DSCS)
Wideband Global SATCOM (WGS)
Milstar
Global Positioning System (GPS)

Risk Flags

Single award delivery order under an IDIQ.
Potential for service disruption if contractor experiences issues.
Lack of detailed performance metrics in public award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to SES SPACE & DEFENSE, INC.. SPACE SEGMENT - KU BANDWIDTH 144 MHZ

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 $23.4 million.

What is the period of performance?

Start: 2021-03-23. End: 2026-03-22.

What is the historical spending pattern for satellite bandwidth by the Defense Information Systems Agency?

Analyzing historical spending patterns for satellite bandwidth by DISA requires access to detailed procurement data over several fiscal years. Generally, defense agencies like DISA have consistently allocated significant budgets towards satellite communications due to their critical role in global operations. Spending can fluctuate based on technological advancements, the deployment of new satellite constellations, and evolving geopolitical requirements. For instance, the transition from older satellite systems to more advanced ones like WGS has likely influenced spending levels and contract types. Without specific DISA budget documents or detailed contract award histories, it's difficult to provide precise figures, but the trend is one of sustained, substantial investment in secure and reliable satellite bandwidth to support military readiness and global command and control.

How does the per-unit cost of this satellite bandwidth compare to other government contracts or commercial rates?

Determining the precise per-unit cost comparison for this satellite bandwidth contract is challenging without detailed specifications of the service provided (e.g., data rates, latency, geographic coverage, service level agreements). The award data provides a total value of $23.4 million over 1825 days, but not the specific bandwidth allocated or the data throughput. Commercial satellite bandwidth rates vary significantly based on these factors. For government contracts, comparisons are often made against other awarded delivery orders under the same IDIQ or similar contracts for comparable services. If this contract is for a specific type of high-security, dedicated bandwidth, it would likely command a premium over standard commercial offerings. A thorough analysis would require benchmarking against contracts with similar technical requirements and performance standards.

What is the track record of SES Space & Defense, Inc. in fulfilling similar government contracts?

SES Space & Defense, Inc. has a significant track record of providing satellite communications services to various government agencies, including the Department of Defense. They are a well-established player in the satellite industry, operating a large fleet of satellites and offering a range of services. Their experience typically includes providing secure, reliable, and high-capacity bandwidth solutions for military operations, intelligence gathering, and other government applications. Past performance reviews and contract award histories would detail their success in meeting delivery schedules, performance requirements, and cost objectives on similar contracts. Generally, companies with extensive experience in the defense sector, like SES, are expected to have robust processes in place to manage complex government procurements and ensure mission-critical service delivery.

What are the potential risks associated with relying on a single contractor for this critical satellite bandwidth?

Relying on a single contractor, even one with a strong track record like SES Space & Defense, Inc., introduces several potential risks for critical satellite bandwidth. Foremost is the risk of service disruption due to technical failures, satellite issues, or unforeseen events affecting the contractor's operations. This could severely impact military communications and operations. Another risk is the potential for price increases in future contract renewals or modifications, as the government may have limited leverage if alternative providers cannot easily step in. Furthermore, dependence on a single vendor can limit the government's ability to adopt newer, more cost-effective technologies if the contractor's offerings do not align with those advancements. Robust contingency planning, service level agreements with penalties, and regular performance monitoring are crucial to mitigate these risks.

How does this contract contribute to the overall resilience of DoD's communication networks?

This contract contributes to the overall resilience of DoD's communication networks by providing a dedicated source of satellite bandwidth, likely operating on a different infrastructure than terrestrial networks. Satellite communications offer inherent advantages in terms of global reach and survivability, especially in environments where ground-based infrastructure may be damaged or unavailable. By securing bandwidth from a reputable provider like SES Space & Defense, Inc., the DoD ensures a critical layer of redundancy and connectivity. The specific resilience offered depends on the satellite constellation's architecture, redundancy measures employed by the provider, and the contract's service level agreements, which would typically include uptime guarantees and disaster recovery provisions. This ensures that essential command and control functions can be maintained even under adverse conditions.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Global Enterprise Solutions Inc.

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

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

Financial Breakdown

Contract Ceiling: $35,175,644

Exercised Options: $23,446,096

Current Obligation: $23,446,096

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0328V

IDV Type: FSS

Timeline