DHS awards $7M contract for satellite services to Nightwing Technologies, bypassing competition

Contract Overview

Contract Amount: $7,016,808 ($7.0M)

Contractor: Nightwing Technologies, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-29

End Date: 2026-03-28

Contract Duration: 2,006 days

Daily Burn Rate: $3.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GOTHAM SATELLITE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.0 million to NIGHTWING TECHNOLOGIES, LLC for work described as: GOTHAM SATELLITE SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration extends over five years, indicating a long-term need for these services. 3. The awarded amount of $7.02 million suggests a significant investment in satellite communications. 4. The specific product code (334290) points to a niche manufacturing area, potentially limiting the bidder pool. 5. The contract's fixed-price nature provides cost certainty for the government but may limit flexibility. 6. The absence of small business set-aside suggests the primary contractor is not a small business or the requirement did not lend itself to such a provision.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the satellite services provided and their market rates. The sole-source award limits the ability to compare pricing against competitive bids. However, the fixed-price contract type offers some cost predictability. Further analysis would require understanding the technical specifications and comparing them to similar government or commercial procurements for comparable satellite communication equipment and services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Nightwing Technologies, LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves soliciting offers from multiple potential suppliers. Without a competitive solicitation, it is difficult to ascertain the full range of available pricing and technical solutions. The justification for a sole-source award would need to be robust to ensure the government is receiving fair value.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competition among multiple bidders.

Public Impact

The U.S. Customs and Border Protection (CBP) will benefit from enhanced satellite communication capabilities. The services provided are crucial for border security and surveillance operations. The contract's impact is primarily national, supporting federal law enforcement and national security objectives. The contract supports specialized manufacturing and technical expertise within the satellite services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award raises concerns about transparency and potential for inflated costs.
Contract duration of over five years requires careful monitoring of performance and evolving needs.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Contract awarded to a specific entity suggests a potentially specialized capability.
Long-term contract indicates a sustained and critical need for the services.

Sector Analysis

The satellite services sector is a critical component of the broader telecommunications and defense industries. This contract falls under 'Other Communications Equipment Manufacturing,' indicating a focus on specialized hardware or integrated systems rather than pure service provision. The market for satellite communications is characterized by high barriers to entry due to technological complexity and capital investment. Government spending in this area supports national security, surveillance, and critical infrastructure communication needs.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Nightwing Technologies, LLC, is likely a larger entity, or the nature of the requirement did not lend itself to a small business set-aside. The absence of small business participation in this specific award means potential opportunities for smaller firms in this sector are not being directly leveraged through this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. The Inspector General's office may conduct audits or investigations if concerns regarding waste, fraud, or abuse arise. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the procurement process more challenging. Accountability will be measured through performance metrics outlined in the contract and regular reporting by the contractor.

Related Government Programs

Department of Defense Satellite Communications
National Reconnaissance Office Programs
Federal Aviation Administration Air Traffic Control Communications
NOAA Satellite Operations

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-competitive pricing.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.0 million to NIGHTWING TECHNOLOGIES, LLC. GOTHAM SATELLITE SERVICES

Who is the contractor on this award?

The obligated recipient is NIGHTWING TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2020-09-29. End: 2026-03-28.

What specific satellite services or equipment is this contract for, and what is the justification for a sole-source award?

The contract is categorized under NAICS code 334290, 'Other Communications Equipment Manufacturing,' suggesting it pertains to the manufacturing or provision of specialized communications equipment related to satellite technology. The specific justification for the sole-source award is not detailed in the provided data. Typically, sole-source justifications are based on factors such as unique capabilities, urgent and compelling needs where no other source can fulfill the requirement, or specific government-unique requirements. Without access to the contract's justification documentation, it's impossible to confirm the precise reasons Nightwing Technologies, LLC was the only solicited vendor. This lack of transparency is a common concern with sole-source procurements.

How does the $7.02 million contract value compare to similar satellite communication equipment procurements by the government?

Comparing the $7.02 million contract value requires context regarding the specific type and quantity of satellite equipment or services procured. Given the 'Other Communications Equipment Manufacturing' NAICS code, this could range from specialized ground station components to integrated satellite terminals. Without detailed specifications, a direct comparison is difficult. However, major satellite system procurements can run into hundreds of millions or billions of dollars. For niche equipment or services, $7 million over approximately five years (based on the award and end dates) represents a moderate investment. Benchmarking would ideally involve comparing the per-unit cost or service rate against other government contracts for similar items or against commercial price lists, which is not feasible with the current data.

What is the track record of Nightwing Technologies, LLC in performing federal contracts, particularly with DHS or CBP?

Information regarding the specific track record of Nightwing Technologies, LLC in performing federal contracts, especially with the Department of Homeland Security (DHS) or U.S. Customs and Border Protection (CBP), is not provided in the data. A thorough assessment would require reviewing the contractor's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes, timely delivery records, and overall quality of work on previous government engagements. Without this information, it is difficult to gauge their reliability and capability to successfully execute this $7.02 million contract over its five-year duration.

What are the potential risks associated with awarding a contract of this size and duration on a sole-source basis?

The primary risks associated with awarding a contract of this size ($7.02 million) and duration (over five years) on a sole-source basis include potential overpayment due to lack of competitive pricing, reduced innovation from a single provider, and a lack of market research to ensure the best value is obtained. There's also a risk that the government becomes overly reliant on a single vendor, potentially leading to lock-in and difficulties in switching providers if performance issues arise or better solutions become available. Furthermore, sole-source awards can sometimes face public scrutiny regarding fairness and adherence to procurement regulations, potentially impacting contractor relationships and future bidding opportunities.

How does this contract fit into the broader spending patterns for satellite communications or related equipment within DHS?

This contract represents a specific procurement within the broader category of communications equipment and services utilized by the Department of Homeland Security (DHS). DHS relies heavily on robust communication systems for its various components, including Customs and Border Protection, for surveillance, data transmission, and operational coordination. Spending on satellite communications is often driven by the need for reliable connectivity in remote areas, secure data transfer, and mobile command capabilities. Analyzing this $7.02 million award in isolation provides limited insight into overall DHS spending trends in this sector. A comprehensive analysis would require examining historical spending data for similar contracts, the total budget allocated to communications infrastructure, and the strategic priorities driving these investments.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B06C20Q00000351

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nightwing Technologies LLC

Address: 13900 LINCOLN PARK DR STE 400, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $7,016,808

Exercised Options: $7,016,808

Current Obligation: $7,016,808

Actual Outlays: $3,832,084

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline