DoD Awards $15.3M for CONUS, Alaska, Hawaii Space Segment Support to SES Space & Defense

Contract Overview

Contract Amount: $15,258,900 ($15.3M)

Contractor: SES Space & Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-10-15

End Date: 2026-10-14

Contract Duration: 1,460 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONUS, ALASKA, HAWAII SPACE SEGMENT SUPPORT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to SES SPACE & DEFENSE, INC. for work described as: CONUS, ALASKA, HAWAII SPACE SEGMENT SUPPORT Key points: 1. Contract awarded to SES Space & Defense, Inc. for satellite telecommunications. 2. Significant contract value of $15.3 million over 4 years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the Defense Information Systems Agency's purview within the DoD. 5. This award supports critical space segment infrastructure across CONUS, Alaska, and Hawaii.

Value Assessment

Rating: good

The contract value of $15.3M over 4 years averages to approximately $3.8M annually. Benchmarking against similar satellite telecommunications contracts requires detailed analysis of scope and service levels, but this appears within a reasonable range for specialized defense support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are being used for essential defense communication infrastructure, with the competitive award process aiming to ensure efficient use of these funds.

Public Impact

Ensures continued operational capability for critical defense communication networks. Supports military readiness and global operations through reliable satellite services. Provides essential connectivity for personnel and assets across geographically dispersed locations. Contributes to the overall security and strategic posture of the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Dependence on a single vendor for critical infrastructure.
Geopolitical risks associated with satellite operations.

Positive Signals

Awarded through full and open competition.
Supports critical national defense infrastructure.
Long-term contract provides stability for services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on satellite telecommunications for defense purposes. Spending in this area is crucial for maintaining secure and resilient communication networks for military operations.

Small Business Impact

The data indicates the awardee is SES Space & Defense, Inc., a large corporation. There is no explicit mention of small business participation in this specific award, suggesting opportunities for subcontracting may exist but are not detailed here.

Oversight & Accountability

The Department of Defense, through the Defense Information Systems Agency, is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders under larger indefinite-delivery/indefinite-quantity contracts would apply, focusing on performance and adherence to terms.

Related Government Programs

Satellite Telecommunications
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Contract awarded to a single entity.
Potential for vendor lock-in.
Dependence on satellite technology.
Geopolitical risks affecting satellite operations.
Lack of explicit small business participation details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to SES SPACE & DEFENSE, INC.. CONUS, ALASKA, HAWAII SPACE SEGMENT SUPPORT

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 $15.3 million.

What is the period of performance?

Start: 2022-10-15. End: 2026-10-14.

What specific satellite services are included in this contract, and how do they compare to commercial offerings?

The contract specifies 'Satellite Telecommunications' for space segment support across CONUS, Alaska, and Hawaii. Detailed service specifications are not provided in this summary. A comparison to commercial offerings would require examining the Service Level Agreements (SLAs) and technical requirements to assess if specialized military-grade capabilities justify any potential cost differences compared to standard commercial satellite internet or communication packages.

What are the primary risks associated with relying on SES Space & Defense for this critical infrastructure?

Primary risks include potential service disruptions due to technical failures, cyberattacks, or geopolitical events impacting satellite operations. Dependence on a single provider for essential communication infrastructure also poses a risk of vendor lock-in and potential price increases in future contract modifications or renewals. Ensuring robust contingency plans and performance monitoring is crucial.

How effective is the 'full and open competition' method in ensuring value for taxpayer money in specialized defense telecommunications contracts?

Full and open competition is generally effective in driving down prices and encouraging innovation by allowing a wide range of qualified vendors to compete. For specialized defense telecommunications, its effectiveness depends on the market's competitiveness and the clarity of technical requirements. If the market is limited or requirements are overly specific, competition might be less robust, but it remains the preferred method for maximizing value and transparency.

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

Offers Received: 1

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: $28,478,364

Exercised Options: $17,174,100

Current Obligation: $15,258,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0328V

IDV Type: FSS

Timeline