Interior Department awards $2.5M contract for satellite telecommunications to Higher Ground LLC

Contract Overview

Contract Amount: $2,502,432 ($2.5M)

Contractor: Higher Ground LLC

Awarding Agency: Department of the Interior

Start Date: 2024-05-22

End Date: 2027-07-30

Contract Duration: 1,164 days

Daily Burn Rate: $2.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USSOCOM KEELHAUL SBIR PHASE III

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94303

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $2.5 million to HIGHER GROUND LLC for work described as: USSOCOM KEELHAUL SBIR PHASE III Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm-fixed-price structure provides cost certainty for the government. 3. Contract duration of nearly 3.2 years suggests a need for sustained services. 4. The specific nature of satellite telecommunications can involve complex infrastructure and high upfront costs. 5. Performance is expected in California, indicating a specific geographic focus. 6. No small business set-aside was applied, potentially impacting small business participation.

Value Assessment

Rating: questionable

The contract value of $2.5 million for satellite telecommunications over approximately 3.2 years is difficult to benchmark without more specific service details. Given the sole-source nature, it's challenging to assess if this represents a competitive price. However, the firm-fixed-price type suggests cost predictability. Without comparable sole-source awards or market data for similar satellite services, a definitive value-for-money assessment is limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source definitive contract. This indicates that the agency identified a specific contractor, Higher Ground LLC, as the only viable source for the required satellite telecommunications services. The lack of competition means that the government did not benefit from a bidding process that could drive down prices or encourage innovative solutions from multiple vendors.

Taxpayer Impact: The sole-source award means taxpayers may not have received the best possible price for these services, as there was no competitive pressure to lower bids. This approach bypasses the standard procurement processes designed to ensure fair and open competition, potentially leading to higher costs.

Public Impact

The Department of the Interior will receive satellite telecommunications services. The services are expected to be delivered in California. The contract supports the operational needs of the Department of the Interior. The specific impact on the workforce is not detailed but implies a need for connectivity supporting departmental functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially value for taxpayer dollars.
Lack of transparency in the justification for sole-source award.
Limited insight into the specific performance metrics and expected outcomes.
No indication of small business subcontracting opportunities.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract duration suggests a stable, ongoing need for the services.
Award to a single entity may streamline service delivery if that entity is uniquely qualified.

Sector Analysis

Satellite telecommunications is a critical sector supporting various government functions, including remote operations, data transmission, and communication resilience. The market is characterized by significant infrastructure investment, technological advancements, and a mix of large established providers and specialized niche players. This contract likely fits within the broader IT and communications infrastructure spending of the Department of the Interior, ensuring operational continuity for its missions, particularly in areas where terrestrial infrastructure may be limited or unavailable.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication that Higher Ground LLC is a small business. The absence of specific subcontracting requirements in the provided data means there is no explicit mechanism to ensure small business participation. This could limit opportunities for small businesses to contribute to the delivery of these satellite telecommunications services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified services. Transparency is limited due to the sole-source nature of the award, with the justification for this approach being key to understanding the oversight rationale. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of the Interior IT Services
Federal Satellite Communications Contracts
Sole Source IT Procurements
Definitive Contracts

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of detailed service scope makes performance and value assessment difficult.
No clear indication of small business participation or subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.5 million to HIGHER GROUND LLC. USSOCOM KEELHAUL SBIR PHASE III

Who is the contractor on this award?

The obligated recipient is HIGHER GROUND LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2024-05-22. End: 2027-07-30.

What specific satellite telecommunications services are being procured under this contract?

The provided data indicates the contract is for 'Satellite Telecommunications' (NAICS 517410). However, the specific services are not detailed. This could range from providing broadband internet access via satellite to specialized data relay, secure communication links, or mobile satellite services. Understanding the precise nature of the services is crucial for assessing the contract's necessity, value, and performance expectations. Without this detail, it's difficult to determine if the $2.5 million award is appropriate for the scope of work.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is critical for understanding why competition was bypassed. Common reasons include unique capabilities of the contractor, urgent and compelling needs where only one source can reasonably fulfill the requirement, or specific government property or data rights that limit competition. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to verify if the sole-source award was appropriate and in the government's best interest, raising concerns about potential lack of best value for taxpayers.

How does the $2.5 million contract value compare to similar satellite telecommunications contracts awarded by the government?

Benchmarking this $2.5 million contract requires comparing it to similar satellite telecommunications contracts, considering factors like duration, service scope, bandwidth, geographic coverage, and security requirements. Given this is a sole-source award, direct price comparisons are difficult. However, if similar services were procured competitively, the pricing could be evaluated. For instance, if other agencies procure comparable satellite bandwidth for similar durations at significantly lower costs, it would indicate potential overpricing or inefficient service scope in this contract. Further analysis would involve examining contract databases for comparable awards.

What are the key performance indicators (KPIs) and expected outcomes for this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or expected outcomes for this satellite telecommunications contract. Effective contract management relies on clearly defined performance standards, such as uptime guarantees, data throughput rates, latency limits, and service availability. Without these metrics, it is challenging to objectively measure the contractor's performance and ensure the Department of the Interior is receiving the full value of the $2.5 million investment. Establishing and monitoring KPIs is essential for accountability and successful service delivery.

What is the track record of Higher Ground LLC in delivering similar satellite telecommunications services to the government?

Information regarding Higher Ground LLC's track record with government contracts, particularly in satellite telecommunications, is not provided in the summary data. A thorough analysis would involve reviewing past performance evaluations, contract history, and any reported issues or successes. A strong performance history would lend confidence to the agency's decision, while a poor history would raise significant concerns about the risk associated with this sole-source award. Understanding their experience is vital for assessing the reliability of service delivery.

What is the historical spending pattern for satellite telecommunications within the Department of the Interior?

The provided data focuses on a single contract and does not offer insight into the Department of the Interior's historical spending on satellite telecommunications. Analyzing past spending trends would reveal whether this $2.5 million award represents an increase, decrease, or stable level of investment in these services. It would also help identify patterns in contract types (e.g., sole-source vs. competitive), durations, and key vendors. Understanding this context is important for evaluating the strategic allocation of resources and identifying potential areas for cost savings or efficiency improvements.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2595 E BAYSHORE RD STE 200, PALO ALTO, CA, 94303

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,993,608

Exercised Options: $2,502,432

Current Obligation: $2,502,432

Actual Outlays: $2,212,056

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline