DoD's $2.7M Satellite Telecommunications Contract with ARINC Inc. Faces Limited Competition
Contract Overview
Contract Amount: $2,693,872 ($2.7M)
Contractor: Arinc Incorporated
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2026-01-31
Contract Duration: 1,583 days
Daily Burn Rate: $1.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FUNDING FOR BASE PERIOD
Place of Performance
Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $2.7 million to ARINC INCORPORATED for work described as: FUNDING FOR BASE PERIOD Key points: 1. Contract awarded to ARINC INCORPORATED for satellite telecommunications. 2. Limited competition due to contract type 'NOT AVAILABLE FOR COMPETITION'. 3. Potential risk associated with single-source awards and pricing. 4. Spending falls within the IT/Defense sector.
Value Assessment
Rating: questionable
Pricing is listed as FIRM FIXED PRICE. However, without a benchmark or comparison to similar contracts, it is difficult to assess if the $2.7M price for the base period is reasonable or represents good value for the satellite telecommunications services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited procurement approach. This lack of competition may hinder price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers are receiving the best possible price for these essential satellite telecommunications services.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The Defense Information Systems Agency relies on ARINC for critical satellite communications. The contract duration extends over several years, impacting long-term budget planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of pricing benchmark
- Potential for overpayment
Positive Signals
- Firm fixed price contract type
- Established vendor
Sector Analysis
This contract falls under the IT/Defense sector, specifically for satellite telecommunications. Spending benchmarks for similar services are highly variable and depend on bandwidth, duration, and geographic coverage, making direct comparison difficult without more detail.
Small Business Impact
There is no indication that small businesses were involved in this procurement. The contract was awarded to ARINC INCORPORATED, and further analysis would be needed to determine if subcontracting opportunities were provided.
Oversight & Accountability
The contract is a delivery order under a larger agreement, suggesting some level of pre-existing oversight. However, the limited competition aspect warrants closer examination by oversight bodies to ensure fair pricing and value.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Limited competition
- Lack of pricing transparency
- Potential for cost overruns
- Vendor lock-in
- Reliance on a single provider
Tags
satellite-telecommunications, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.7 million to ARINC INCORPORATED. FUNDING FOR 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 $2.7 million.
What is the period of performance?
Start: 2021-10-01. End: 2026-01-31.
What is the justification for limiting competition on this satellite telecommunications contract?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A detailed justification would typically be required by procurement regulations, outlining reasons such as urgency, sole-source provider, or specific technical requirements that only one vendor can meet. Without this justification, it's difficult to assess the validity of the limited competition.
How does the $2.7M base period cost compare to industry standards for similar satellite telecommunications services?
A direct comparison is challenging without specific details on the service level agreements, bandwidth, coverage, and duration. However, $2.7M for approximately 15 months of service (base period) for satellite telecommunications could be considered significant. Benchmarking against other government or commercial contracts with similar specifications would be necessary for a thorough assessment.
What are the potential risks to national security or operational effectiveness if ARINC INCORPORATED fails to deliver on this contract?
Given the 'NOT AVAILABLE FOR COMPETITION' status and the critical nature of satellite telecommunications for the Department of Defense, failure to deliver could pose significant risks. This could include disruptions to command and control, intelligence gathering, or logistical operations. The reliance on a single provider amplifies this risk, necessitating robust contingency planning and performance monitoring.
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: $3,678,914
Exercised Options: $3,238,694
Current Obligation: $2,693,872
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: 2026-01-31
Potential End Date: 2031-09-30 00:00:00
Last Modified: 2026-01-07
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