DoD's $21.6M INMARSAT SWIFT 64 contract awarded to AOS INC for electronic computer manufacturing

Contract Overview

Contract Amount: $21,613,358 ($21.6M)

Contractor: AOS Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-24

End Date: 2010-09-23

Contract Duration: 729 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Defense

Official Description: INMARSAT SWIFT 64 CLOSED USER GROUP

Place of Performance

Location: DALLAS, COLLIN County, TEXAS, 75252

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to AOS INC for work described as: INMARSAT SWIFT 64 CLOSED USER GROUP Key points: 1. Contract value of $21.6M over 2 years suggests a significant investment in specialized communication services. 2. Awarded under full and open competition, indicating a broad market search for the best value. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. Performance period of 729 days (approx. 2 years) aligns with typical defense communication system lifecycles. 5. The contract falls under the Defense Information Systems Agency (DISA), highlighting its role in supporting military networks. 6. The North American Industry Classification System (NAICS) code 334111 points to the manufacturing of electronic computers, though the service provided is likely related to communication systems utilizing such hardware.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the services provided and the specific technology involved. The total value of $21.6 million over two years averages to approximately $10.8 million annually. This figure needs to be compared against the cost of similar secure communication solutions for military operations, considering factors like bandwidth, security protocols, and global reach. The fixed-price nature suggests an attempt to manage costs, but the ultimate value depends on the effectiveness and reliability of the INMARSAT SWIFT 64 system for its intended defense applications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Defense Information Systems Agency (DISA) sought proposals from all responsible sources. The presence of 3 bids indicates a moderate level of competition for this requirement. While three bidders participated, the specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, potentially leading to cost savings and better service delivery.

Public Impact

The primary beneficiaries are likely Department of Defense (DoD) personnel requiring secure, reliable, and global communication capabilities. The services delivered are expected to support critical military operations, command and control, and intelligence sharing. The geographic impact is potentially global, given the nature of satellite communication systems like INMARSAT. Workforce implications may include the need for specialized personnel within DISA and potentially the contractor to manage and maintain these communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value for money.
The specific technological capabilities and limitations of the INMARSAT SWIFT 64 system in the context of current defense needs are not fully transparent.
Potential for vendor lock-in if this system becomes deeply integrated into critical defense infrastructure without clear exit strategies.

Positive Signals

Awarded through full and open competition, suggesting a deliberate effort to find the best solution.
Fixed-price contract type provides cost certainty for the government.
The contract is managed by the Defense Information Systems Agency (DISA), an organization focused on providing robust IT and communication services to the DoD.

Sector Analysis

This contract falls within the broader telecommunications and satellite services sector, specifically focusing on secure communication solutions for government and defense applications. The market for such services is characterized by high barriers to entry due to technological complexity, regulatory requirements, and the need for global infrastructure. Spending in this area is critical for national security, enabling reliable communication in diverse and often challenging environments. Comparable spending benchmarks would involve analyzing other government contracts for satellite communication, secure data transmission, and global network services.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. The nature of advanced satellite communication systems often favors larger, established companies with specialized expertise and infrastructure. Further analysis would be needed to determine if opportunities for small businesses were overlooked or if subcontracting was mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense and the Defense Information Systems Agency (DISA). Accountability measures would be embedded in the contract terms, including performance standards and delivery schedules. Transparency is often limited in defense contracts due to national security considerations, but contract awards and basic details are generally made public through federal procurement databases. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Network (DISN)
Global Broadcast Service (GBS)
Secure Communication Systems
Satellite Communication Services

Risk Flags

Potential for vendor lock-in
Limited transparency on performance metrics
Reliance on specific satellite technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to AOS INC. INMARSAT SWIFT 64 CLOSED USER GROUP

Who is the contractor on this award?

The obligated recipient is AOS 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 $21.6 million.

What is the period of performance?

Start: 2008-09-24. End: 2010-09-23.

What is the specific nature of the 'INMARSAT SWIFT 64 CLOSED USER GROUP' service provided under this contract?

The 'INMARSAT SWIFT 64 CLOSED USER GROUP' likely refers to a secure, dedicated communication service utilizing Inmarsat's Swift 64 satellite broadband technology. This service provides high-speed data and voice connectivity, often used for mobile platforms like ships, aircraft, and remote ground operations. A 'closed user group' implies that communication is restricted to authorized users within a specific network, enhancing security and control. For the Department of Defense, this would translate to a reliable means of command, control, and intelligence dissemination in areas where terrestrial networks are unavailable or compromised. The 'electronic computer manufacturing' NAICS code might be a broad classification, with the actual service being the provision and management of terminals and connectivity for this secure network.

How does the $21.6 million contract value compare to similar secure communication contracts awarded by the DoD?

Comparing the $21.6 million value requires context on the duration and scope of services. This contract spans approximately two years, making the annual spend around $10.8 million. Secure satellite communication services for military applications can vary widely in cost depending on bandwidth requirements, global coverage, terminal types, and service level agreements. Contracts for similar global, high-availability satellite data services for defense purposes can range from tens to hundreds of millions of dollars over several years. Without specific details on the bandwidth, number of terminals, and geographic coverage provided by this INMARSAT contract, a precise comparison is difficult. However, the value appears to be within a reasonable range for specialized, secure, global communication solutions supporting defense operations.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not publicly detailed in the provided data. However, for a secure communication service like INMARSAT SWIFT 64 used by the Department of Defense, typical SLAs would likely focus on: network availability (e.g., 99.9% uptime), data throughput (guaranteed minimum bandwidth), latency (maximum acceptable delay for data transmission), and response times for technical support and issue resolution. Performance would also be measured by the security of the closed user group and the reliability of communication links in various operational environments. The effectiveness of these KPIs would be assessed through regular reporting by the contractor and potentially government monitoring.

What is AOS INC's track record with similar government contracts, particularly in secure communications?

AOS INC (Advanced Operational Systems, Inc. or similar) has a history of providing various services to the U.S. government, often related to IT, communications, and logistics. While specific details on their expertise with Inmarsat Swift 64 or similar high-security satellite communication systems require deeper investigation into their contract history, their involvement in defense contracts suggests they possess the necessary security clearances and operational capabilities. Their track record would ideally demonstrate successful delivery of complex communication solutions, adherence to stringent security protocols, and effective program management. A review of past performance evaluations and any past performance questionnaires (PPQs) associated with their awards would provide a clearer picture of their reliability and competence in this domain.

What are the potential risks associated with relying on a single vendor for this type of specialized communication service?

Relying on a single vendor, even if procured through competition, for specialized communication services like this can introduce several risks. These include potential vendor lock-in, where switching to another provider becomes technically difficult or prohibitively expensive. There's also the risk of price increases upon contract renewal if competition is limited in the future. Operational risks include the vendor's financial stability, potential disruptions to their service (e.g., satellite issues, cyberattacks), and their ability to adapt to evolving technological requirements or geopolitical changes. Furthermore, a sole reliance might limit access to the latest innovations if other vendors offer superior or more cost-effective solutions.

How does this contract fit into the broader strategy of the Defense Information Systems Agency (DISA) for global communications?

This contract likely fits into DISA's broader strategy of providing resilient, secure, and globally accessible communication and information technology services to the Department of Defense. DISA manages a vast network infrastructure, and specialized services like Inmarsat Swift 64 complement its core offerings by providing connectivity in areas where traditional terrestrial or military-owned satellite systems may be insufficient or unavailable. Such contracts ensure that warfighters and other DoD personnel have reliable communication channels for command and control, intelligence sharing, and operational support, regardless of their geographic location. It represents a component of DISA's efforts to maintain a flexible and robust communication architecture capable of meeting diverse mission requirements.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Contractor Details

Parent Company: SES SA

Address: 17817 DAVENPORT RD STE 22, DALLAS, TX, 75252

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $80,800,000

Exercised Options: $21,613,358

Current Obligation: $21,613,358

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DCA20002D5024

IDV Type: IDC

Timeline