HHS awards $62.8K for satellite phones to support 16 Arizona healthcare facilities

Contract Overview

Contract Amount: $62,846 ($62.8K)

Contractor: Globafone Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-08-19

End Date: 2026-08-31

Contract Duration: 1,838 days

Daily Burn Rate: $34/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SATELLITE PHONE SERVICE FOR EMERGENCY PREPAREDNESS FOR 16 EXISTING PHONES AT PAIHS HEALTHCARE FACILITIES.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85016

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $62,846.21 to GLOBAFONE INC for work described as: SATELLITE PHONE SERVICE FOR EMERGENCY PREPAREDNESS FOR 16 EXISTING PHONES AT PAIHS HEALTHCARE FACILITIES. Key points: 1. Value for money appears reasonable given the specialized nature of emergency preparedness communication. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low, with a firm fixed-price contract and a defined delivery period. 4. Performance context involves ensuring critical communication for remote healthcare facilities. 5. Sector positioning is within healthcare IT, specifically for emergency preparedness and telecommunications.

Value Assessment

Rating: good

The contract value of $62,846.21 for satellite phone services over approximately five years appears reasonable for specialized emergency communication equipment supporting 16 phones. Benchmarking against similar government contracts for satellite telecommunications services suggests this price point is within expected ranges, especially considering the need for reliability in remote healthcare settings. The firm fixed-price structure provides cost certainty for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and ensure the government receives the best value for its investment in satellite phone services.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by preventing inflated prices and encouraging vendors to offer their best terms.

Public Impact

Beneficiaries include patients at 16 Indian Health Service (IHS) facilities in Arizona, ensuring continuity of care during emergencies. Services delivered include reliable satellite phone communication, crucial for areas with unreliable terrestrial networks. Geographic impact is concentrated in Arizona, supporting healthcare operations in potentially remote or underserved regions. Workforce implications involve providing essential tools for healthcare staff to maintain communication and coordinate care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type provides cost predictability.
Contract duration aligns with the need for sustained emergency preparedness.
Supports critical healthcare infrastructure in Arizona.

Sector Analysis

This contract falls within the broader telecommunications and IT services sector, specifically addressing the niche market of satellite communications for critical infrastructure. The government's spending in this area is driven by the need for reliable communication solutions in locations where traditional infrastructure is absent or vulnerable. Comparable spending benchmarks for satellite phone services vary widely based on data volume, device type, and service level agreements, but this award appears to be a modest investment for essential services.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As the contract was awarded under full and open competition, it is possible that small businesses participated in the bidding process. However, without further information on subcontracting plans, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

The contract is managed by the Department of Health and Human Services (HHS), Indian Health Service (IHS). Oversight is likely conducted through regular performance reviews and adherence to the contract's terms and conditions. Transparency is facilitated by the public availability of contract awards. The firm fixed-price nature of the contract simplifies financial oversight, and the contract duration is clearly defined.

Related Government Programs

Indian Health Service Telecommunications
Emergency Preparedness Communications
Satellite Telecommunications Services
Healthcare Facility Support

Risk Flags

Potential for signal interference in certain environments.
Latency could impact real-time data transmission.
Dependence on a single vendor for critical communication.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $62,846.21 to GLOBAFONE INC. SATELLITE PHONE SERVICE FOR EMERGENCY PREPAREDNESS FOR 16 EXISTING PHONES AT PAIHS HEALTHCARE FACILITIES.

Who is the contractor on this award?

The obligated recipient is GLOBAFONE INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $62,846.21.

What is the period of performance?

Start: 2021-08-19. End: 2026-08-31.

What is the typical cost per satellite phone line for government agencies?

The cost per satellite phone line for government agencies can vary significantly based on the provider, the type of service plan (e.g., voice-only, data capabilities), the volume of usage, and the contract duration. For basic voice services, monthly line charges might range from $30 to $100, with per-minute usage fees on top of that. However, specialized plans for emergency preparedness or remote operations, which may include dedicated support, higher reliability, or bundled data, can cost substantially more, potentially reaching several hundred dollars per line per month. This contract's total value of $62,846.21 over approximately 5 years for 16 phones averages to about $698 per phone per year, or roughly $58 per phone per month, which appears to be on the lower end for dedicated satellite services, suggesting a focus on basic voice communication or potentially favorable bulk pricing due to the full and open competition.

How does the competition level for this contract compare to similar satellite telecommunications awards?

This contract was awarded under full and open competition with three bidders. This level of competition is generally considered healthy for government procurements, suggesting that the agency actively sought multiple offers and that the market has sufficient players interested in providing these services. Compared to other government satellite telecommunications contracts, three bidders is a respectable number. Some larger or more complex procurements might attract dozens of bidders, while highly specialized or niche requirements might see only one or two. The fact that three vendors submitted proposals indicates that the requirement was well-defined and accessible to the market, likely contributing to a competitive price.

What are the key performance indicators (KPIs) for satellite phone services in emergency preparedness?

Key performance indicators (KPIs) for satellite phone services in emergency preparedness typically focus on reliability, availability, and responsiveness. Essential KPIs include network uptime (e.g., 99.9% availability), call completion rates, latency (delay in signal transmission), and the speed of service restoration in case of outages. For emergency services, the ability to establish a connection quickly and maintain call quality under adverse conditions is paramount. Additionally, the responsiveness of the provider's technical support team to resolve issues is critical. While specific KPIs are not detailed in the award abstract, the contract's firm fixed-price nature and defined period suggest that the provider is expected to meet baseline performance standards to ensure continuous communication for the healthcare facilities.

What is the historical spending pattern for satellite phone services by the Indian Health Service (IHS)?

Analyzing historical spending patterns for satellite phone services by the Indian Health Service (IHS) requires access to detailed procurement data over multiple fiscal years. Without that specific data, it's difficult to provide a precise historical trend. However, it is reasonable to infer that IHS, which operates healthcare facilities across diverse and often remote geographical areas, would have a recurring need for reliable communication solutions like satellite phones, particularly in regions where terrestrial infrastructure is lacking or prone to disruption. Spending in this category would likely fluctuate based on equipment upgrades, changes in service provider contracts, and evolving emergency preparedness requirements. This $62,846.21 award represents a specific investment for a defined period, and understanding its place within a larger historical context would involve comparing it to previous and subsequent awards for similar services.

Are there any specific risks associated with using satellite phone services for healthcare facilities?

Yes, there are several risks associated with using satellite phone services for healthcare facilities. One primary risk is signal interference or blockage due to environmental factors (e.g., dense foliage, severe weather, buildings) or the specific location of the user. Another risk is the potential for higher latency compared to terrestrial networks, which can impact real-time communication like video conferencing or rapid data transfer, though less critical for voice calls. Dependence on a single provider carries supply chain and service continuity risks. Furthermore, the cost of satellite services can be significantly higher than traditional phone lines, posing a budget risk if not managed effectively. Security of communications is also a consideration, although modern satellite systems offer encryption. Finally, ensuring adequate training for staff on using the equipment and understanding its limitations is crucial to mitigate operational risks.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 155 LAFAYETTE RD UNIT 1, NORTH HAMPTON, NH, 03862

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

Financial Breakdown

Contract Ceiling: $62,846

Exercised Options: $62,846

Current Obligation: $62,846

Actual Outlays: $52,228

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0074W

IDV Type: FSS

Timeline