Labor Dept. Spends $34.8M on Satellite Services Over 10 Years, Full Competition
Contract Overview
Contract Amount: $34,793,023 ($34.8M)
Contractor: Satellite Services Inc
Awarding Agency: Department of Labor
Start Date: 1999-09-15
End Date: 2010-06-30
Contract Duration: 3,941 days
Daily Burn Rate: $8.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Place of Performance
Location: MEDINA, ORLEANS County, NEW YORK, 14103
State: New York Government Spending
Plain-Language Summary
Department of Labor obligated $34.8 million to SATELLITE SERVICES INC for work described as: Key points: 1. Significant 10-year contract duration suggests long-term need for satellite services. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The contract was awarded as a Definitive Contract, a common vehicle for established needs. 4. No small business participation was noted, which could be an area for review.
Value Assessment
Rating: fair
The contract value of $34.8 million over nearly 11 years averages around $3.16 million annually. Without specific benchmarks for satellite services for government agencies, it's difficult to definitively assess if this pricing is excellent or concerning. Further analysis of comparable contracts would be needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method is generally expected to drive competitive pricing and ensure the government receives fair value for its procurements.
Taxpayer Impact: The use of full and open competition aims to maximize taxpayer value by fostering a competitive environment among potential service providers.
Public Impact
Government reliance on satellite services for essential functions like employment and training data transmission. Long-term contracts can provide stability but may also lead to missed opportunities for cost savings if market prices decrease. The absence of small business involvement might limit opportunities for smaller, potentially innovative companies in the satellite services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration without clear performance metrics for cost-effectiveness.
Positive Signals
- Full and open competition utilized.
- Definitive contract award indicates a clear, established need.
Sector Analysis
The Department of Labor's use of satellite services falls under the broader Information Technology and Communications sector. Spending benchmarks for government satellite services can vary widely based on bandwidth, coverage, and service level agreements. This contract's annual average of approximately $3.16 million is a significant investment.
Small Business Impact
This contract does not indicate any specific provisions or awards to small businesses. Given the significant contract value and duration, exploring opportunities for small business participation in future procurements could enhance diversity and potentially introduce new solutions.
Oversight & Accountability
The contract was awarded in 1999 and expired in 2010, suggesting it has undergone review and renewal processes. However, the data provided does not detail specific oversight mechanisms or performance reviews conducted during its lifecycle.
Related Government Programs
- Department of Labor Contracting
- Employment and Training Administration Programs
Risk Flags
- Lack of small business participation.
- Potential for uncompetitive pricing over a long contract term if market conditions changed significantly.
- Limited insight into performance metrics and oversight during the contract period.
- Cost Plus Fixed Fee structure requires diligent monitoring to ensure value.
Tags
department-of-labor, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $34.8 million to SATELLITE SERVICES INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SATELLITE SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Labor (Employment and Training Administration).
What is the total obligated amount?
The obligated amount is $34.8 million.
What is the period of performance?
Start: 1999-09-15. End: 2010-06-30.
What was the specific nature of the satellite services procured, and how did they support the Employment and Training Administration's mission?
The provided data does not specify the exact satellite services. However, for the Employment and Training Administration, these could range from data transmission for remote job centers, disaster recovery communications, or specialized data analysis requiring broad geographic coverage. Understanding the precise application is key to evaluating the necessity and value of the expenditure.
Were there any performance issues or cost overruns associated with this contract given its long duration and cost-plus fixed fee structure?
The data does not explicitly detail performance issues or cost overruns. A Cost Plus Fixed Fee (CPFF) contract can incentivize cost control, but its effectiveness depends on robust oversight. The long duration (nearly 11 years) necessitates continuous monitoring to ensure the fixed fee remains appropriate and that costs align with contracted services.
How did the pricing of this contract compare to market rates for similar satellite services at the time of award and throughout its term?
Benchmarking this contract's pricing against market rates would require access to historical pricing data for comparable satellite services. Full and open competition suggests an attempt to achieve market rates, but without specific comparative data, it's challenging to confirm if the $34.8 million expenditure represented optimal value over the contract's lifespan.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 309 S FRONT ST, MARQUETTE, MI, 49855
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $88,155,881
Exercised Options: $78,549,005
Current Obligation: $34,793,023
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 1999-09-15
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2021-04-30
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