DoD's $50M Satellite Service Contract with Artel LLC Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $50,212,992 ($50.2M)
Contractor: Artel LLC
Awarding Agency: Department of Defense
Start Date: 2007-02-14
End Date: 2011-02-13
Contract Duration: 1,460 days
Daily Burn Rate: $34.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SATELLITE SERVICE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $50.2 million to ARTEL LLC for work described as: SATELLITE SERVICE Key points: 1. Contract Value: $50.2 million over 4 years. 2. Competition Type: Full and open competition. 3. Risk Assessment: Low risk due to firm fixed price and established provider. 4. Sector: Information Technology (Satellite Services).
Value Assessment
Rating: good
The contract value of $50.2 million over four years appears reasonable for satellite services, especially given the firm fixed price structure. Benchmarking against similar large-scale satellite communication contracts would provide a more definitive 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. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for essential services.
Public Impact
Ensures critical satellite communication capabilities for the Department of Defense. Supports military operations and national security through reliable service. Provides a stable, long-term service provider for a vital function.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals.
- Dependence on a single vendor for critical infrastructure.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract limits cost overruns.
- Long-term contract provides service stability.
Sector Analysis
This contract falls within the IT sector, specifically focusing on satellite communication services. Spending in this area is critical for defense operations, and benchmarks vary widely based on bandwidth, coverage, and service level agreements.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Future contracts could explore opportunities for small business participation in specialized areas of satellite service provision.
Oversight & Accountability
The award was made by the Defense Information Systems Agency (DISA), a key component of DoD's IT oversight. The firm fixed price contract provides a degree of financial accountability.
Related Government Programs
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on a single provider for critical infrastructure.
- Future cost escalations upon contract renewal.
- Geopolitical risks affecting satellite operations.
Tags
department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.2 million to ARTEL LLC. SATELLITE SERVICE
Who is the contractor on this award?
The obligated recipient is ARTEL LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $50.2 million.
What is the period of performance?
Start: 2007-02-14. End: 2011-02-13.
What is the specific nature of the satellite services provided and their criticality to current defense operations?
The specific satellite services are not detailed, but given the provider (Artel LLC) and the awarding agency (DISA), it likely encompasses secure, high-bandwidth communication for troop support, intelligence, surveillance, and reconnaissance (ISR) missions, and command and control (C2) operations globally. These services are critical for maintaining situational awareness and operational effectiveness in diverse and often remote environments.
How does the $50.2 million cost compare to industry benchmarks for similar satellite service contracts over a four-year period?
Without specific details on bandwidth, orbital coverage, and service level agreements, a precise benchmark is difficult. However, for dedicated, secure military-grade satellite communication, $50.2 million over four years ($12.55 million annually) is within a plausible range, especially considering the firm fixed price nature which often includes a premium for risk transfer. Industry averages can range from hundreds of thousands to millions per month depending on service complexity.
What measures are in place to ensure the ongoing effectiveness and reliability of Artel LLC's satellite services throughout the contract duration?
The firm fixed price contract incentivizes Artel LLC to maintain service quality to avoid penalties or breach of contract. DISA likely has performance metrics and reporting requirements outlined in the contract. Regular technical reviews and service level agreement (SLA) monitoring are standard practices to ensure reliability and address any potential degradation in service effectiveness.
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
Address: 1893 PRESTON WHITE DR, RESTON, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $50,212,992
Exercised Options: $50,212,992
Current Obligation: $50,212,992
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DCA20001D5002
IDV Type: IDC
Timeline
Start Date: 2007-02-14
Current End Date: 2011-02-13
Potential End Date: 2011-02-13 00:00:00
Last Modified: 2010-06-25
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