USCG Spends $6M on Starlink Internet for Remote Alaska Operations
Contract Overview
Contract Amount: $6,000 ($6.0K)
Contractor: Space Exploration Technologies Corp
Awarding Agency: Department of Homeland Security
Start Date: 2025-04-01
End Date: 2027-03-31
Contract Duration: 729 days
Daily Burn Rate: $8/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: STARLINK COMMERCIAL INTERNET AT USCG SECTOR WESTERN ALASKA
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503
State: Alaska Government Spending
Plain-Language Summary
Department of Homeland Security obligated $6,000 to SPACE EXPLORATION TECHNOLOGIES CORP for work described as: STARLINK COMMERCIAL INTERNET AT USCG SECTOR WESTERN ALASKA Key points: 1. High cost for satellite internet in a remote location. 2. Sole reliance on SpaceX's Starlink may limit future negotiation leverage. 3. Potential for service disruption in extreme weather conditions. 4. Sector: IT/Telecommunications, critical for remote operational support.
Value Assessment
Rating: questionable
The $6 million price tag for 729 days of service appears high, especially considering the per-unit cost is not explicitly detailed. Benchmarking against similar satellite internet contracts for remote government operations is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed under Simplified Acquisition Procedures, suggesting a limited competition approach. The sole source nature of Starlink limits price discovery and negotiation opportunities.
Taxpayer Impact: Taxpayers are funding a critical but potentially overpriced service for remote operations, with limited options for cost savings.
Public Impact
Ensures vital communication for USCG Sector Western Alaska, enhancing operational effectiveness in a challenging environment. Provides internet access where traditional terrestrial options are unavailable or unreliable. Supports critical missions including search and rescue, maritime law enforcement, and environmental monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High cost per unit not clearly defined.
- Lack of competition limits price negotiation.
- Dependence on a single provider for critical infrastructure.
- Potential service disruptions in extreme Alaskan weather.
Positive Signals
- Enables essential operations in a remote, underserved area.
- Leverages advanced satellite technology for connectivity.
- Provides a reliable solution where other options fail.
Sector Analysis
The IT and Telecommunications sector sees significant government spending on satellite services for remote and mobile operations. Benchmarks for similar contracts are scarce due to the specialized nature of satellite internet.
Small Business Impact
This contract does not appear to involve small businesses as prime contractors. The nature of satellite internet provision often favors large, specialized technology companies.
Oversight & Accountability
Oversight will be crucial to ensure service delivery meets expectations and to monitor future contract renewals for potential cost efficiencies. The limited competition aspect warrants close scrutiny.
Related Government Programs
- Satellite Telecommunications
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- High total contract value for satellite internet.
- Sole-source provider limits competitive pricing.
- Potential for service degradation in extreme weather.
- Lack of detailed cost breakdown per unit/site.
- No small business participation noted.
Tags
satellite-telecommunications, department-of-homeland-security, ak, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $6,000 to SPACE EXPLORATION TECHNOLOGIES CORP. STARLINK COMMERCIAL INTERNET AT USCG SECTOR WESTERN ALASKA
Who is the contractor on this award?
The obligated recipient is SPACE EXPLORATION TECHNOLOGIES CORP.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $6,000.
What is the period of performance?
Start: 2025-04-01. End: 2027-03-31.
What is the projected cost per user or site, and how does this compare to alternative connectivity solutions if they were available?
The provided data does not detail the cost per user or site, making direct comparison difficult. However, the total $6 million for 729 days suggests a significant investment. Alternative solutions, if feasible, might offer lower costs but likely come with their own infrastructure or deployment challenges in remote Alaska.
What are the specific risks associated with relying solely on Starlink for critical USCG communications in Alaska's extreme environment?
Risks include potential service disruptions due to severe weather (snow, ice, extreme cold), satellite constellation limitations, and SpaceX's operational priorities. Dependence on a single provider also poses a risk if the company faces technical issues or changes its service terms, impacting the USCG's ability to perform its vital missions.
How effective is Starlink in meeting the operational communication needs of USCG Sector Western Alaska compared to previous or alternative communication methods?
The effectiveness hinges on Starlink's ability to provide consistent, high-bandwidth connectivity essential for modern Coast Guard operations, such as data sharing, real-time situational awareness, and communication with assets. Its deployment suggests it is considered the most effective available solution for this remote area, overcoming limitations of prior methods.
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: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Space Exploration Technologies Corp.
Address: 731 KELP RD, VANDENBERG AFB, CA, 93437
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,000
Exercised Options: $15,000
Current Obligation: $6,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-04-01
Current End Date: 2027-03-31
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2026-04-01
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