DoD Awards $221M SATCOM Support Services Contract to IAP World Services, Inc
Contract Overview
Contract Amount: $221,157,260 ($221.2M)
Contractor: IAP World Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-06-26
End Date: 2026-09-30
Contract Duration: 2,653 days
Daily Burn Rate: $83.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AWARD OF SATELLITE COMMUNICATION (SATCOM) SUPPORT SERVICES
Place of Performance
Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $221.2 million to IAP WORLD SERVICES, INC. for work described as: AWARD OF SATELLITE COMMUNICATION (SATCOM) SUPPORT SERVICES Key points: 1. Contract awarded for satellite communication support services. 2. Competition method was full and open. 3. Risk appears moderate given the contract type and duration. 4. Sector is Engineering Services, with a focus on IT/Communications.
Value Assessment
Rating: good
The contract value of $221M over approximately 7 years suggests a significant but potentially reasonable price for specialized SATCOM support. Benchmarking against similar large-scale communication service contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing compared to limited or sole-source procurements.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging multiple bidders to offer competitive prices.
Public Impact
Ensures critical satellite communication capabilities for the Department of Defense. Supports military operations and readiness through reliable communication infrastructure. Potential impact on the commercial SATCOM market through a large government contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of over 7 years could lead to price escalation.
- Reliance on a single contractor for critical communication services.
- Potential for scope creep in complex SATCOM support.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost overruns.
- Long-term award provides stability for critical services.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to advanced communication technologies. Government spending in this area is crucial for national security and technological advancement, with benchmarks varying widely based on service complexity and scale.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor, IAP World Services, Inc., is a large business. There is no information on small business subcontracting participation.
Oversight & Accountability
Standard DoD oversight mechanisms would apply. The long duration and significant value necessitate diligent monitoring to ensure performance, cost control, and adherence to contract terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (over 7 years).
- Potential for vendor lock-in.
- Dependence on critical infrastructure.
- Lack of specific performance metrics in summary data.
Tags
engineering-services, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $221.2 million to IAP WORLD SERVICES, INC.. AWARD OF SATELLITE COMMUNICATION (SATCOM) SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is IAP WORLD SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $221.2 million.
What is the period of performance?
Start: 2019-06-26. End: 2026-09-30.
What is the specific breakdown of services included in the SATCOM support?
The provided data does not detail the specific services covered under the SATCOM support. A thorough review of the contract's Statement of Work (SOW) would be required to understand the scope, which could include installation, maintenance, network management, and operational support for satellite communication systems.
What are the key performance indicators (KPIs) for this contract?
Key performance indicators are not detailed in the provided summary. Typically, for SATCOM support, KPIs would focus on uptime, latency, bandwidth availability, response times for technical issues, and overall system reliability to ensure mission-critical communication needs are met effectively.
How does the pricing compare to industry standards for similar SATCOM services?
A direct comparison to industry standards is difficult without detailed service specifications and market research data. However, the firm fixed-price nature suggests an attempt to control costs. Further analysis would involve benchmarking against commercial equivalent services and other government contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52P1J18R0085
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $228,134,268
Exercised Options: $221,157,260
Current Obligation: $221,157,260
Actual Outlays: $19,075,613
Subaward Activity
Number of Subawards: 287
Total Subaward Amount: $129,795,398
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-06-26
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-09-30
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