Commerce Department awards $321K for satellite time transfer capacity, with 3 bidders competing

Contract Overview

Contract Amount: $321,041 ($321.0K)

Contractor: Ritenet Corp.

Awarding Agency: Department of Commerce

Start Date: 2021-04-06

End Date: 2026-11-26

Contract Duration: 2,060 days

Daily Burn Rate: $156/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NON-PREEMPTIBLE KU-BAND TRANSPONDER CAPACITY ON A GEOSTATIONARY COMMUNICATIONS SATELLITE FOR A TWO-WAY SATELLITE TIME AND FREQUENCY TRANSFER (TWSTFT) NETWORK INVOLVES PHASE CODED TIME TRANSFER AND DATA TRANSMISSIONS (1.0 OR POSSIBLY 2.5 MCHIPS/S).

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80305

State: Colorado Government Spending

Plain-Language Summary

Department of Commerce obligated $321,040.5 to RITENET CORP. for work described as: NON-PREEMPTIBLE KU-BAND TRANSPONDER CAPACITY ON A GEOSTATIONARY COMMUNICATIONS SATELLITE FOR A TWO-WAY SATELLITE TIME AND FREQUENCY TRANSFER (TWSTFT) NETWORK INVOLVES PHASE CODED TIME TRANSFER AND DATA TRANSMISSIONS (1.0 OR POSSIBLY 2.5 MCHIPS/S). Key points: 1. The contract's value appears reasonable given the specialized nature of satellite transponder capacity. 2. Competition dynamics suggest a healthy market for this niche service, potentially driving better pricing. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. This award supports critical infrastructure for precise time and frequency transfer. 5. The National Institute of Standards and Technology (NIST) is the primary beneficiary of this service. 6. The contract duration extends over five years, indicating a long-term need.

Value Assessment

Rating: good

The award amount of $321,040.50 for satellite transponder capacity seems within a reasonable range for specialized telecommunications services. Benchmarking against similar government contracts for geostationary satellite capacity is challenging due to the unique technical requirements of the TWSTFT network. However, the firm fixed-price nature of the contract provides cost certainty. The number of bidders (3) suggests that while not a wide-open competition, there was sufficient interest to establish a competitive price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below a certain threshold. The presence of three bidders suggests a competitive environment for this specialized satellite service. The competition level is adequate for price discovery in this niche market, ensuring that the government receives a fair price for the transponder capacity.

Taxpayer Impact: The competitive bidding process for this contract helps ensure that taxpayer funds are used efficiently by securing the capacity at a market-driven price.

Public Impact

The National Institute of Standards and Technology (NIST) benefits directly, utilizing the capacity for its Two-Way Satellite Time and Frequency Transfer (TWSTFT) network. The service enables highly accurate time and frequency transfer, crucial for scientific research, metrology, and potentially critical infrastructure synchronization. The geographic impact is global, as satellite communication transcends terrestrial limitations. The contract supports the telecommunications sector by engaging a provider for satellite services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative providers are not readily available for this specific type of capacity.
Reliance on a single satellite transponder carries inherent risks related to satellite health and orbital slot availability.

Positive Signals

Firm fixed-price contract minimizes the risk of cost overruns for the government.
Multiple bidders indicate a degree of market availability and potential for future competition.
The long-term nature of the contract (over 5 years) suggests a stable and ongoing requirement, allowing for better planning.

Sector Analysis

The contract falls within the Satellite Telecommunications sector, a segment of the broader Information Technology and Communications industry. This sector is characterized by high capital investment, complex technology, and significant regulatory oversight. The market for geostationary satellite transponder capacity is competitive, with several established players. This specific contract addresses a niche requirement for precise time and frequency transfer, which is a specialized application within satellite communications.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of satellite transponder capacity, it is likely that larger, established telecommunications companies are the primary providers, potentially limiting direct opportunities for small businesses unless they are part of a larger supply chain.

Oversight & Accountability

The contract is managed by the National Institute of Standards and Technology (NIST), a bureau within the Department of Commerce. Oversight would typically involve contract performance monitoring, adherence to delivery schedules, and financial accountability. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General oversight would apply if any financial impropriety or fraud were suspected.

Related Government Programs

Satellite Communications Services
Telecommunications Infrastructure
Time and Frequency Standards
National Metrology Institute Support

Risk Flags

Potential for single point of failure with reliance on one satellite transponder.
Geostationary satellite operations are subject to space weather and orbital debris risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $321,040.5 to RITENET CORP.. NON-PREEMPTIBLE KU-BAND TRANSPONDER CAPACITY ON A GEOSTATIONARY COMMUNICATIONS SATELLITE FOR A TWO-WAY SATELLITE TIME AND FREQUENCY TRANSFER (TWSTFT) NETWORK INVOLVES PHASE CODED TIME TRANSFER AND DATA TRANSMISSIONS (1.0 OR POSSIBLY 2.5 MCHIPS/S).

Who is the contractor on this award?

The obligated recipient is RITENET CORP..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $321,040.5.

What is the period of performance?

Start: 2021-04-06. End: 2026-11-26.

What is the specific technical capability being procured with this contract?

This contract procures non-preemptible Ku-band transponder capacity on a geostationary communications satellite. The primary purpose is to support a Two-Way Satellite Time and Frequency Transfer (TWSTFT) network. This network utilizes phase-coded time transfer and data transmissions, operating at speeds of 1.0 or potentially 2.5 megachips per second. This capability is essential for NIST's mission in establishing and disseminating precise time and frequency standards, which have broad applications in scientific research, navigation, and secure communications.

How does the pricing of this contract compare to similar satellite capacity procurements?

Directly comparing the per-unit cost is difficult without specific details on bandwidth, data rates, and service level agreements for other contracts. However, the total award of $321,040.50 over approximately five years suggests a moderate investment for dedicated satellite capacity. The firm fixed-price nature indicates that the price was agreed upon upfront, mitigating risk for the government. The presence of three bidders implies a competitive market, which generally leads to more favorable pricing than a sole-source award. Further analysis would require access to a broader dataset of comparable satellite transponder leases with similar technical specifications.

What are the primary risks associated with this contract and the service provided?

Key risks include the technical reliability and longevity of the geostationary satellite itself, as well as potential disruptions to the signal path (e.g., weather interference, ground station issues). Dependence on a specific orbital slot and transponder could also pose a risk if the satellite experiences premature failure or if the contract needs to be transitioned to a different provider. Cybersecurity risks associated with data transmission over satellite are also a consideration. The firm fixed-price contract mitigates financial risk for the government, but operational and technical risks remain inherent to satellite-based services.

What is the historical spending pattern for similar satellite telecommunications services by NIST or the Department of Commerce?

Analyzing historical spending requires access to detailed procurement data over multiple fiscal years. However, NIST's mission inherently involves metrology and standards, often requiring specialized infrastructure like satellite communication for global reach and precision. It is reasonable to assume that NIST has engaged in similar procurements in the past to maintain its time and frequency dissemination capabilities. The current award of $321,040.50 appears to be a moderate investment, suggesting that spending on such services is likely consistent with the agency's operational needs rather than a sudden surge.

What is the track record of RITENET CORP. in providing satellite telecommunications services to the federal government?

Information on RITENET CORP.'s specific track record with federal contracts is limited in the provided data. A comprehensive assessment would involve reviewing their past performance on similar contracts, including delivery timeliness, quality of service, and adherence to contract terms. Federal procurement databases (like FPDS) would typically contain records of their previous awards, contract values, and potentially past performance evaluations. Without this detailed history, it is difficult to definitively assess their reliability for this specific requirement.

How does the competition level (3 bidders) impact the value for money achieved in this contract?

A competition involving three bidders generally indicates a healthy market for the specific service being procured. This level of competition allows for price discovery and encourages vendors to offer competitive pricing to secure the contract. Compared to a sole-source or limited competition scenario, having three bidders increases the likelihood that the government is receiving a fair market price. While more bidders could potentially drive prices lower, three is often considered a sufficient number to ensure meaningful competition for specialized services like satellite transponder capacity, thus contributing positively to value for money.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1333ND21QNB680027

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1445 RESEARCH BLVD # 505, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $321,041

Exercised Options: $321,041

Current Obligation: $321,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline