Transportation Dept awards $103K for satellite internet, highlighting niche telecommunications needs

Contract Overview

Contract Amount: $103,365 ($103.4K)

Contractor: Ustronics.com Inc

Awarding Agency: Department of Transportation

Start Date: 2026-03-01

End Date: 2027-03-24

Contract Duration: 388 days

Daily Burn Rate: $266/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STARLINK LOCAL PRIORITY 500GB SATELLITE INTERNET SERVICE AND STARLINK MINI EQUIPMENT PACKAGES WITH ANCILLARY SUPPLIES

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20176

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $103,365 to USTRONICS.COM INC for work described as: STARLINK LOCAL PRIORITY 500GB SATELLITE INTERNET SERVICE AND STARLINK MINI EQUIPMENT PACKAGES WITH ANCILLARY SUPPLIES Key points: 1. Value for money appears reasonable given the specialized nature of satellite internet services. 2. Competition dynamics are unclear due to the 'COMPETED UNDER SAP' designation, suggesting a streamlined process. 3. Risk indicators are low, with a firm-fixed-price contract and a defined period of performance. 4. Performance context points to a need for reliable connectivity in potentially remote or underserved areas. 5. Sector positioning is within telecommunications, specifically satellite services, a growing but specialized market.

Value Assessment

Rating: good

The contract value of $103,365 for satellite internet services and equipment is modest. Benchmarking against similar government contracts for satellite communications is challenging due to the highly specialized nature of the service and equipment. However, the firm-fixed-price structure suggests that the government has locked in costs, providing a degree of cost certainty. The inclusion of both service and equipment in a single award indicates a bundled solution that may offer convenience and potentially better integration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically involves a less formal competition process than full and open competition. While this suggests some level of competition, the exact number of bidders or the specific solicitation method is not detailed. SAP is generally used for purchases below certain thresholds, aiming for efficiency. The limited competition may mean fewer price discovery opportunities compared to larger, more open solicitations.

Taxpayer Impact: For taxpayers, simplified acquisition procedures can lead to faster delivery of needed goods and services. However, the potential for less robust price competition might mean slightly higher costs than could be achieved through a broader bidding process.

Public Impact

The Federal Highway Administration (FHWA) is the primary beneficiary, likely using the service for operational needs. Services delivered include satellite internet connectivity and Starlink Mini equipment, suggesting a need for remote or mobile communication solutions. Geographic impact is likely focused on areas where traditional terrestrial internet is unavailable or unreliable, supporting FHWA operations. Workforce implications are minimal, primarily affecting the personnel who will utilize the satellite internet service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative satellite providers are not readily available or compatible.
Dependence on satellite technology introduces risks related to signal interference, weather, and orbital debris.
The 'COMPETED UNDER SAP' designation raises questions about the extent of market research and competition achieved.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Defined period of performance limits the duration of the commitment.
Award to a known provider (Starlink) suggests a potentially reliable and established service.

Sector Analysis

The satellite telecommunications market is a specialized segment within the broader communications industry. It is characterized by high infrastructure costs, technological innovation, and a growing demand for connectivity in remote and underserved areas. Government spending in this sector often supports critical infrastructure, emergency response, and operations in locations lacking traditional network access. Comparable spending benchmarks are difficult to establish due to the niche nature of satellite services and varying package configurations.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). There is no explicit information regarding subcontracting plans for small businesses. The award is to USTRONICS.COM INC, and without further details on their size or subcontracting practices, the direct impact on the small business ecosystem is unclear. However, the relatively small contract value might not typically involve extensive subcontracting requirements.

Oversight & Accountability

Oversight for this contract would fall under the Federal Highway Administration within the Department of Transportation. As a purchase order awarded under Simplified Acquisition Procedures, it is subject to standard procurement regulations and internal agency oversight. Transparency is provided through contract databases like FPDS. Specific Inspector General jurisdiction would depend on the nature of any potential issues or investigations arising from the contract's performance.

Related Government Programs

Satellite Communications Services
Telecommunications Equipment
Remote Connectivity Solutions
Department of Transportation IT Services

Risk Flags

Limited competition due to SAP
Potential performance variability of satellite internet
Lack of detailed performance history for contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $103,365 to USTRONICS.COM INC. STARLINK LOCAL PRIORITY 500GB SATELLITE INTERNET SERVICE AND STARLINK MINI EQUIPMENT PACKAGES WITH ANCILLARY SUPPLIES

Who is the contractor on this award?

The obligated recipient is USTRONICS.COM INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $103,365.

What is the period of performance?

Start: 2026-03-01. End: 2027-03-24.

What is the typical cost range for similar satellite internet packages provided to government agencies?

Determining a precise cost range for similar government satellite internet packages is complex due to significant variations in service levels, data caps, equipment types, and contract durations. However, government contracts for satellite broadband can range from a few thousand dollars for basic connectivity to hundreds of thousands or even millions for large-scale deployments supporting multiple users or critical operations. Factors influencing cost include bandwidth requirements, latency expectations, geographic coverage needs, and the specific satellite constellation used (e.g., LEO like Starlink, MEO, or GEO). The $103,365 award for Starlink services and equipment appears to be for a specific, likely localized or limited-duration need, given the total value and the inclusion of hardware. Without knowing the exact data throughput, service duration, and number of terminals, a direct comparison is difficult, but it falls within a plausible range for specialized government telecommunications needs.

What are the specific performance requirements and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance requirements or Service Level Agreements (SLAs) for this Starlink internet service contract. Typically, government contracts for satellite internet would outline expected download/upload speeds, latency targets, uptime guarantees, and data throughput limits. For Starlink, performance can vary based on factors like network congestion, satellite availability, and ground station proximity. SLAs are crucial for ensuring the service meets the operational needs of the Federal Highway Administration, especially if it's intended for critical functions. The absence of this information in the summary data suggests that further inquiry into the contract's statement of work would be necessary to fully assess performance expectations and accountability.

How does the 'COMPETED UNDER SAP' process impact potential cost savings for taxpayers compared to full and open competition?

Competing under Simplified Acquisition Procedures (SAP) generally involves less extensive documentation and outreach than full and open competition, aiming for efficiency and speed for purchases below certain dollar thresholds (currently $250,000 for most agencies). While SAP can lead to quicker contract awards and potentially lower administrative costs, it may also result in less robust price competition. With fewer potential bidders or a less formal solicitation process, the government might not achieve the lowest possible price compared to a scenario where numerous vendors compete vigorously. Therefore, while SAP offers efficiency, it could potentially lead to slightly higher costs for taxpayers compared to a fully competed contract where market forces drive prices down more aggressively.

What is the track record of USTRONICS.COM INC in fulfilling government contracts, particularly for telecommunications services?

Information regarding the specific track record of USTRONICS.COM INC in fulfilling government contracts, especially for telecommunications services, is not detailed in the provided data. A comprehensive assessment would require examining past performance evaluations, contract history, and any reported issues or successes on platforms like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). Without this historical data, it is difficult to gauge their reliability, quality of service, and adherence to contract terms for similar procurements. This lack of readily available performance history represents a gap in understanding the contractor's suitability for this specific award.

What are the potential risks associated with relying on satellite internet for federal operations, and how are they mitigated in this contract?

Relying on satellite internet presents several risks, including susceptibility to atmospheric conditions (weather), potential for signal interference, dependence on satellite availability and orbital mechanics, and security vulnerabilities inherent in wireless communications. For this contract, the firm-fixed-price structure helps mitigate financial risk by capping costs. The defined performance period limits the duration of reliance. However, the contract data does not specify technical mitigation strategies for signal reliability or security beyond what Starlink's standard service offers. Agencies often supplement satellite solutions with terrestrial backups where feasible or select providers with robust redundancy and security protocols to address these inherent risks.

How does this contract align with the Department of Transportation's broader goals for connectivity and infrastructure modernization?

This contract aligns with the Department of Transportation's (DOT) potential need for reliable connectivity in areas where traditional infrastructure is lacking or during the deployment of new transportation technologies. The Federal Highway Administration (FHWA), as the awarding agency, might utilize this service for remote monitoring, data collection, or operational support in locations without standard broadband access. In the broader context of infrastructure modernization, ensuring robust communication networks, even through satellite means, is crucial for smart transportation initiatives, real-time data sharing, and efficient management of the nation's roadways. This award suggests a pragmatic approach to addressing immediate connectivity gaps.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 69056726Q000002

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19140 ROCKY CREST TER, LEESBURG, VA, 20176

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $459,765

Exercised Options: $103,365

Current Obligation: $103,365

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline