NOAA awards $77.6M contract for satellite TV services to SATCOM DIRECT GOVERNMENT, LLC

Contract Overview

Contract Amount: $77,655 ($77.7K)

Contractor: Satcom Direct Government, LLC

Awarding Agency: Department of Commerce

Start Date: 2026-04-15

End Date: 2027-04-14

Contract Duration: 364 days

Daily Burn Rate: $213/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DIRECTV SERVICE NOAA FLEET

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23510

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $77,654.64 to SATCOM DIRECT GOVERNMENT, LLC for work described as: DIRECTV SERVICE NOAA FLEET Key points: 1. Contract awarded for television broadcasting services, indicating a need for reliable media distribution. 2. The contract duration of 364 days suggests a short-term or pilot program for these services. 3. Awarded as a Purchase Order, which typically signifies smaller, more routine procurements. 4. The firm-fixed-price contract type aims to provide cost certainty for the government. 5. The contracting agency is the Department of Commerce, specifically NOAA, highlighting its operational needs. 6. The service is categorized under Television Broadcasting Stations, aligning with media and communication infrastructure.

Value Assessment

Rating: fair

The contract value of $77.6 million for a one-year period for television broadcasting services appears high for standard satellite TV provision. Benchmarking against similar government contracts for satellite communication or broadcasting services is necessary to determine if this represents a fair market price. Without specific details on the scope of services (e.g., number of locations, bandwidth, content provision), a precise value-for-money assessment is challenging. However, the cost per day is approximately $213,000, which warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating that it was likely a full and open competition among eligible vendors. While the specific number of bids received is not provided, SAP is designed to promote competition for procurements below certain dollar thresholds. This method generally allows for a broader range of potential offerors compared to sole-source or limited competition scenarios.

Taxpayer Impact: Utilizing simplified acquisition procedures for this procurement likely resulted in competitive pricing, benefiting taxpayers by ensuring the government received value for its expenditure on these essential broadcasting services.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) will benefit from reliable television broadcasting services. These services are crucial for disseminating information, potentially for operational awareness, public outreach, or internal communications. The geographic impact is likely nationwide, covering NOAA facilities or operations that require broadcast capabilities. Workforce implications may include support staff for installation, maintenance, and content management related to the satellite TV services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a one-year term raises questions about cost-effectiveness and potential for overspending.
Lack of detailed service scope makes it difficult to benchmark value and ensure optimal resource utilization.
Reliance on a single vendor for a significant duration could pose risks if performance issues arise.
The use of Purchase Orders for a large sum might indicate a less rigorous vetting process than traditional contracts.

Positive Signals

The contract was competed, suggesting an effort to secure competitive pricing.
Firm-fixed-price structure provides budget certainty for the government.
Awarded to a specialized provider (SATCOM DIRECT GOVERNMENT, LLC) implies access to relevant expertise.
The service supports NOAA's mission-critical operations, ensuring vital information dissemination.

Sector Analysis

The satellite communications (SATCOM) market is a significant sector within the broader telecommunications industry, characterized by substantial infrastructure investment and specialized service providers. Government agencies like NOAA rely on SATCOM for a variety of critical functions, including data transmission, remote sensing, and broadcasting. The market includes providers offering a range of services from basic connectivity to complex managed solutions. This contract fits within the segment of government SATCOM services focused on broadcasting and information dissemination, a niche requiring specific technical capabilities and regulatory compliance.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract is not available in the provided data. As the contract was competed under Simplified Acquisition Procedures (SAP), it is possible that small businesses were encouraged to participate. However, without specific details on the set-aside status or subcontracting goals, the direct impact on the small business ecosystem remains unclear. Further investigation into the competition details would be needed to assess the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce's contracting officers and the National Oceanic and Atmospheric Administration's program managers. As a Purchase Order, the oversight might be less intensive than for larger, more complex contract vehicles. Transparency is facilitated by the contract award notice, but detailed performance metrics and ongoing monitoring mechanisms are not specified. The Inspector General for the Department of Commerce would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

NOAA Satellite Operations
Government Telecommunications Services
Federal Broadcasting Contracts
Department of Commerce IT Procurement

Risk Flags

High contract value for a one-year term
Lack of detailed service scope in award summary
Potential for vendor lock-in
Reliance on satellite technology risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $77,654.64 to SATCOM DIRECT GOVERNMENT, LLC. DIRECTV SERVICE NOAA FLEET

Who is the contractor on this award?

The obligated recipient is SATCOM DIRECT GOVERNMENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $77,654.64.

What is the period of performance?

Start: 2026-04-15. End: 2027-04-14.

What specific services are included under this $77.6 million contract for television broadcasting?

The provided data indicates the contract is for 'Television Broadcasting Stations' services, awarded to SATCOM DIRECT GOVERNMENT, LLC. However, the specific details of the services are not elaborated. This could encompass a range of activities such as satellite uplink/downlink, content distribution, channel management, equipment provision, installation, and maintenance for various NOAA facilities or operational needs. Given the substantial value, it likely involves more than just basic satellite TV subscription, potentially including dedicated bandwidth, specialized content delivery, or integration with NOAA's existing communication infrastructure. A deeper dive into the contract's Statement of Work (SOW) would clarify the exact deliverables and technical specifications.

How does the $77.6 million value compare to similar government contracts for satellite TV or broadcasting services?

Benchmarking this $77.6 million contract requires comparing it against similar procurements for satellite broadcasting services within the federal government. Contracts for satellite bandwidth, content delivery networks, or specialized broadcasting solutions can vary widely in price depending on duration, scope, and technical requirements. For a one-year contract, this value is significant and suggests a comprehensive service package. For instance, contracts for broader satellite communication services might range from a few million to tens of millions annually, while highly specialized or large-scale broadcasting solutions could exceed this figure. Without specific comparable contracts detailing identical services and quantities, it's difficult to definitively state if this represents a premium or standard market rate. However, the cost per day ($213,000) warrants careful examination against industry norms for similar government-focused SATCOM solutions.

What are the key risks associated with this contract for NOAA?

Key risks associated with this contract include potential cost overruns if the scope is not tightly managed, vendor performance issues impacting critical NOAA operations, and technological obsolescence if the chosen satellite technology becomes outdated. Given the firm-fixed-price nature, NOAA bears less direct financial risk from cost increases, but performance failures could still disrupt essential services. There's also a risk related to vendor lock-in, especially if the services are highly integrated into NOAA's systems. Ensuring robust oversight, clear performance metrics, and contingency plans for service disruptions are crucial mitigation strategies. The relatively short duration (364 days) might mitigate long-term risks but necessitates a potentially complex re-procurement process if services are to continue.

What is the track record of SATCOM DIRECT GOVERNMENT, LLC in providing similar services to the government?

SATCOM DIRECT GOVERNMENT, LLC is a provider of satellite communication solutions. While specific details on their past performance on contracts of this magnitude are not provided in the summary data, their specialization suggests they possess the technical capabilities required for such a service. Government contracting databases and past performance reviews would typically offer insights into their reliability, quality of service, and adherence to contract terms on previous awards. Agencies often consider past performance as a significant factor in source selection. For this specific contract, the award implies that SATCOM DIRECT GOVERNMENT, LLC met the government's requirements and demonstrated adequate capability during the procurement process.

What are the historical spending patterns for television broadcasting services within the Department of Commerce or NOAA?

Analyzing historical spending patterns for television broadcasting services within the Department of Commerce or NOAA is essential for context. This $77.6 million award represents a significant investment. Understanding whether NOAA has previously contracted for similar services, the amounts involved, and the vendors used can reveal trends in their reliance on satellite broadcasting. If historical spending has been lower, this contract might indicate an expansion of services or a shift in strategy. Conversely, if it aligns with previous large expenditures, it suggests a consistent need. Without access to historical procurement data for this specific service category, it's challenging to establish a precise trend, but such analysis would be crucial for long-term budget planning and identifying potential efficiencies.

Industry Classification

NAICS: Information › Radio and Television Broadcasting Stations › Television Broadcasting Stations

Product/Service Code: MUSICAL INST/PHONOGRAPH/HOME RADIO

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1305M226Q0072

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1050 SATCOM LN, MELBOURNE, FL, 32940

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $618,913

Exercised Options: $77,655

Current Obligation: $77,655

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline