DOT Awards $90.25M for Starlink Equipment & Subscription to Granite Telecommunications

Contract Overview

Contract Amount: $90,250 ($90.3K)

Contractor: Granite Telecommunications, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-07-25

End Date: 2026-10-09

Contract Duration: 441 days

Daily Burn Rate: $205/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STARLINK EQUIPMENT AND SUBSCRIPTION

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80228

State: Colorado Government Spending

Plain-Language Summary

Department of Transportation obligated $90,250 to GRANITE TELECOMMUNICATIONS, LLC for work described as: STARLINK EQUIPMENT AND SUBSCRIPTION Key points: 1. Contract awarded for satellite internet services, indicating a need for remote connectivity. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The firm fixed price contract type aims to control costs for the government. 4. This award falls under 'All Other Telecommunications' NAICS code.

Value Assessment

Rating: fair

The contract value of $90.25M for satellite equipment and subscriptions over approximately 1.5 years appears substantial. Benchmarking against similar large-scale satellite service procurements would be necessary to assess if this pricing is competitive, especially considering the rapid evolution and potential cost reductions in satellite technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters a competitive environment and can lead to better pricing. The specific impact on price discovery is positive, as multiple bidders likely submitted proposals, driving down costs.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for satellite communication services, potentially avoiding overpayment for essential infrastructure.

Public Impact

Ensures connectivity in areas potentially lacking traditional broadband infrastructure. Supports critical transportation network operations and data transmission. Provides a modern communication solution for federal agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for rapid technological obsolescence in satellite technology.
Dependency on a single vendor for equipment and subscription services.
Long-term operational costs and maintenance not fully detailed.

Positive Signals

Utilizes a competitive procurement process.
Employs a firm fixed price contract to manage budget.
Addresses connectivity needs in potentially underserved areas.

Sector Analysis

The telecommunications sector, particularly satellite internet, is experiencing rapid innovation and growth. This contract aligns with government efforts to leverage advanced technologies for broader reach and improved services, though benchmarks for such specific satellite deployments are still emerging.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The prime contractor, Granite Telecommunications, LLC, is not identified as a small business in this context, suggesting the award was made to a larger entity.

Oversight & Accountability

The award is a delivery order against an existing contract, implying prior oversight and justification. Further oversight would focus on performance monitoring, adherence to service level agreements, and managing the lifecycle of the technology deployed.

Related Government Programs

All Other Telecommunications
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Potential for vendor lock-in.
Rapid technological obsolescence.
Dependence on satellite infrastructure for critical operations.
Unclear long-term cost implications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $90,250 to GRANITE TELECOMMUNICATIONS, LLC. STARLINK EQUIPMENT AND SUBSCRIPTION

Who is the contractor on this award?

The obligated recipient is GRANITE TELECOMMUNICATIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $90,250.

What is the period of performance?

Start: 2025-07-25. End: 2026-10-09.

What is the projected per-unit cost for Starlink equipment and monthly subscription fees, and how does this compare to industry benchmarks?

The provided data does not detail per-unit costs for equipment or subscription fees. A comprehensive analysis would require access to the detailed contract line items. Benchmarking against publicly available Starlink pricing for similar enterprise or government packages, adjusted for bulk discounts and service level agreements, would be crucial to assess value for money.

What are the specific performance metrics and service level agreements (SLAs) tied to this contract, and how will adherence be monitored?

The contract details do not specify the performance metrics or SLAs. Effective oversight requires clearly defined metrics for uptime, latency, bandwidth, and support response times. The Federal Highway Administration must implement a robust monitoring system to track contractor performance against these SLAs and ensure the reliability and effectiveness of the Starlink service.

What is the long-term strategy for integrating and managing satellite communication services, considering potential technological advancements and alternative solutions?

This contract appears to address an immediate need for connectivity. A long-term strategy should evaluate the evolving satellite technology landscape, including potential cost reductions and performance improvements from competitors. It should also consider integration with existing terrestrial networks and assess the total cost of ownership beyond the current contract period.

Industry Classification

NAICS: Information › Other Telecommunications › All Other Telecommunications

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 HERITAGE DR, QUINCY, MA, 02171

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

Financial Breakdown

Contract Ceiling: $90,250

Exercised Options: $90,250

Current Obligation: $90,250

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F208BA

IDV Type: FSS

Timeline