DoD Awards $7.3M Satellite Telecommunications Contract to SES Space & Defense for 577 Days

Contract Overview

Contract Amount: $7,327,573 ($7.3M)

Contractor: SES Space & Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2025-07-31

Contract Duration: 577 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CSS0107 SERVICES

Plain-Language Summary

Department of Defense obligated $7.3 million to SES SPACE & DEFENSE, INC. for work described as: CSS0107 SERVICES Key points: 1. Contract value of $7.3M for satellite telecommunications services. 2. SES Space & Defense, Inc. is the awardee. 3. The contract falls under the Defense Information Systems Agency (DISA) purview. 4. This is a firm-fixed-price contract, indicating predictable costs.

Value Assessment

Rating: good

The contract value of $7.3M for approximately 1.5 years of service appears reasonable given the specialized nature of satellite telecommunications. Benchmarking against similar DISA contracts for satellite services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. The BPA Call award mechanism implies it was sourced from an existing agreement, potentially streamlining the process.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among qualified vendors.

Public Impact

Ensures critical satellite telecommunications capabilities for the Department of Defense. Supports national security and defense operations through reliable communication. Provides essential services for the Defense Information Systems Agency's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract is within the Information Technology sector, specifically focusing on satellite telecommunications. Spending in this area is crucial for modern defense operations, enabling secure and resilient communication across global theaters.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, SES Space & Defense, Inc., is a large corporation. There is no indication of small business participation in this specific award.

Oversight & Accountability

The contract was awarded by the Defense Information Systems Agency (DISA), which has established oversight mechanisms for its procurements. The use of a BPA Call suggests adherence to pre-negotiated terms and conditions.

Related Government Programs

Risk Flags

Tags

satellite-telecommunications, department-of-defense, bpa-call, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.3 million to SES SPACE & DEFENSE, INC.. CSS0107 SERVICES

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 $7.3 million.

What is the period of performance?

Start: 2024-01-01. End: 2025-07-31.

What is the specific nature of the satellite telecommunications services being procured and how do they align with current DISA strategic objectives?

The specific services are categorized under NAICS code 517410 (Satellite Telecommunications). These likely include bandwidth, data transmission, and potentially related ground support. Alignment with DISA's objectives would involve ensuring these services support secure, resilient, and global communication networks essential for modern warfare and intelligence gathering.

What are the potential risks associated with relying on SES Space & Defense, Inc. for these critical telecommunications services over the contract duration?

Risks include vendor lock-in, potential service disruptions due to technical failures or geopolitical events affecting satellite operations, and the possibility of price escalation in future contract renewals. Ensuring robust Service Level Agreements (SLAs) and contingency plans is crucial to mitigate these risks.

How does the firm-fixed-price structure impact the government's ability to manage costs and ensure value for money in this satellite telecommunications contract?

The firm-fixed-price structure provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. This shifts the risk of cost overruns to the contractor. It ensures value for money by locking in the price, but the initial negotiation and benchmark pricing are critical to ensure the fixed price itself is fair.

Industry Classification

NAICS: InformationSatellite TelecommunicationsSatellite Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT 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: $32,258,308

Exercised Options: $7,327,573

Current Obligation: $7,327,573

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101323A0003

IDV Type: BPA

Timeline

Start Date: 2024-01-01

Current End Date: 2025-07-31

Potential End Date: 2028-12-31 00:00:00

Last Modified: 2025-12-05

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