DoD's $3.37M Satellite Telecommunications Contract with ARINC Inc. Faces Limited Competition
Contract Overview
Contract Amount: $3,369,244 ($3.4M)
Contractor: Arinc Incorporated
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2027-01-31
Contract Duration: 1,948 days
Daily Burn Rate: $1.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FUNDING BASE PERIOD
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73169
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $3.4 million to ARINC INCORPORATED for work described as: FUNDING BASE PERIOD Key points: 1. Contract awarded to ARINC INCORPORATED for satellite telecommunications. 2. Limited competition due to contract type and agency. 3. Potential risk associated with sole-source or limited competition. 4. Spending falls within the IT/Defense sector.
Value Assessment
Rating: fair
The contract's total value is $3.37 million over its base period. Without comparable contracts or detailed pricing breakdowns, it's difficult to definitively assess if this represents excellent value. However, the firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited or sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of robust competition may result in the government paying more than necessary, impacting taxpayer funds.
Public Impact
Ensures critical satellite telecommunications services for the Department of Defense. Supports national security and defense operations. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of transparency in pricing
Positive Signals
- Essential service provision
- Firm fixed-price contract
Sector Analysis
This contract falls under the Information Technology and Defense sectors, specifically for satellite telecommunications. Spending in this area is crucial for modern defense operations, but often involves specialized providers and can be subject to limited competition.
Small Business Impact
There is no indication that small businesses were involved in this contract award, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was considered or required.
Oversight & Accountability
The Defense Information Systems Agency (DISA) is responsible for this contract. Oversight should focus on ensuring the necessity of the limited competition and the reasonableness of the price paid.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Limited competition
- Potential for overpayment
- Lack of small business participation
- Dependence on a single provider
Tags
satellite-telecommunications, department-of-defense, ok, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.4 million to ARINC INCORPORATED. FUNDING BASE PERIOD
Who is the contractor on this award?
The obligated recipient is ARINC INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $3.4 million.
What is the period of performance?
Start: 2021-10-01. End: 2027-01-31.
What is the justification for limiting competition on this satellite telecommunications contract?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would require access to the contract's justification for other than full and open competition (JOFOC) to understand the specific reasons, such as unique capabilities, urgent needs, or existing infrastructure dependencies, that precluded a competitive bidding process.
How does the pricing of this contract compare to similar satellite telecommunications services procured by the government?
Benchmarking this contract's pricing against similar satellite telecommunications services is challenging without access to detailed cost breakdowns and a wider array of comparable contracts. The firm fixed-price nature offers some predictability, but the absence of competitive bids makes it difficult to ascertain if the $3.37 million represents a market-driven, cost-effective rate.
What is the potential impact on operational effectiveness if ARINC INCORPORATED's services were disrupted?
Given that this contract supports the Department of Defense through the Defense Information Systems Agency, a disruption in ARINC INCORPORATED's satellite telecommunications services could have significant negative impacts on operational effectiveness. This could range from communication failures to mission-critical system outages, potentially compromising national security operations.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC101321R0013
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 2551 RIVA RD, ANNAPOLIS, MD, 21401
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,101,021
Exercised Options: $3,369,244
Current Obligation: $3,369,244
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101321D0009
IDV Type: IDC
Timeline
Start Date: 2021-10-01
Current End Date: 2027-01-31
Potential End Date: 2031-09-30 00:00:00
Last Modified: 2026-04-02
More Contracts from Arinc Incorporated
- Aeronautical Mobile Communication Services Contract Igf::cl,Ct::igf — $246.7M (Department of Transportation)
- Providing Aeronautical Mobile Communications Services — $182.5M (Department of Transportation)
- Provide Mandatory Oceanic High Frequency (HF) Voice Communication to Flight Operations in FAA Oceanic Airspace — $122.4M (Department of Transportation)
- O&M Funding Base Period — $35.4M (Department of Defense)
- Services to Transmit Airline Data — $3.4M (Department of Homeland Security)
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)