DoD's $1.67B Satellite Telecommunications Contract Awarded to SES SPACE & DEFENSE, INC
Contract Overview
Contract Amount: $16,766,912 ($16.8M)
Contractor: SES Space & Defense, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-07-15
End Date: 2026-05-31
Contract Duration: 1,416 days
Daily Burn Rate: $11.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SESA000004EBM
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.8 million to SES SPACE & DEFENSE, INC. for work described as: SESA000004EBM Key points: 1. The contract is a significant award for satellite telecommunications services. 2. SES SPACE & DEFENSE, INC. is a major player in the satellite communications market. 3. Potential risks include reliance on a single provider for critical services and long-term contract duration. 4. The sector is vital for modern defense operations, enabling global communication and intelligence gathering.
Value Assessment
Rating: good
The contract value of $1.67 billion over approximately 4 years suggests a substantial investment. Benchmarking against similar large-scale satellite telecommunications contracts would be necessary for a precise pricing assessment, but the firm-fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to drive price discovery and ensure fair market value for the services provided.
Taxpayer Impact: The firm-fixed-price contract aims to control costs, but the overall value of $1.67 billion represents a significant taxpayer expenditure for essential defense communication capabilities.
Public Impact
Ensures critical communication infrastructure for Department of Defense operations worldwide. Supports intelligence, surveillance, and reconnaissance missions through reliable satellite links. Facilitates command and control capabilities across various military branches. Contributes to the resilience of national security communication networks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration may limit flexibility for future technological advancements.
- Potential single point of failure if service is disrupted.
- Dependence on a single contractor for a critical national security function.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm-fixed-price contract provides cost predictability.
- Essential service for national defense and global operations.
Sector Analysis
Satellite telecommunications are a critical component of the defense sector, enabling secure and reliable communication for global operations. Spending in this area is substantial due to the high cost of satellite technology and infrastructure.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting large prime contractors are likely involved in fulfilling the service requirements.
Oversight & Accountability
The contract's duration and value necessitate robust oversight from the Defense Information Systems Agency to ensure performance, adherence to terms, and taxpayer value.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Contract duration of over 3 years.
- Sole awardee for a critical service.
- High contract value.
- Potential for service disruption impacting national security.
Tags
satellite-telecommunications, department-of-defense, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to SES SPACE & DEFENSE, INC.. SESA000004EBM
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 $16.8 million.
What is the period of performance?
Start: 2022-07-15. End: 2026-05-31.
What specific satellite services are included in this contract, and how do they align with current and future DoD communication needs?
The contract covers satellite telecommunications, likely encompassing bandwidth, ground station access, and potentially specialized services. Its alignment with DoD needs would depend on the specific technical requirements outlined in the solicitation and the evolving landscape of military communication, including secure data transmission and global reach.
What are the key performance indicators (KPIs) for this contract, and how will SES SPACE & DEFENSE, INC.'s performance be measured to ensure effectiveness?
Key performance indicators would typically include service availability, latency, data throughput, and security compliance. Performance measurement would involve regular reporting, independent testing, and potential penalties for non-compliance, ensuring the contractor meets the stringent operational demands of the Department of Defense.
What is the potential impact of geopolitical events or technological obsolescence on the long-term viability and cost-effectiveness of this satellite telecommunications contract?
Geopolitical events could disrupt satellite operations or necessitate shifts in communication strategies, potentially impacting service delivery and cost. Technological obsolescence is a risk given the rapid pace of innovation; the contract's structure and flexibility will be crucial to mitigate this, potentially through phased upgrades or service adjustments.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $20,869,400
Exercised Options: $16,766,912
Current Obligation: $16,766,912
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101322A0003
IDV Type: BPA
Timeline
Start Date: 2022-07-15
Current End Date: 2026-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2025-07-03
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