EUTELSAT AMERICA CORP. awarded $29.9M for satellite telecommunications, with a significant portion spent in the last year

Contract Overview

Contract Amount: $29,901,647 ($29.9M)

Contractor: Eutelsat America Corp.

Awarding Agency: U.S. Agency for Global Media

Start Date: 2019-01-01

End Date: 2024-06-30

Contract Duration: 2,007 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

U.S. Agency for Global Media obligated $29.9 million to EUTELSAT AMERICA CORP. for work described as: IGF::OT::IGF Key points: 1. Value for money appears reasonable given the long-term nature of satellite services. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration and delivery order structure indicate potential for ongoing service needs. 4. Performance context is tied to the provision of essential telecommunications infrastructure. 5. Sector positioning is within the critical satellite telecommunications market.

Value Assessment

Rating: good

The contract value of $29.9 million over its period of performance is substantial. Benchmarking against similar satellite telecommunications contracts is challenging without more specific service details. However, the firm fixed-price nature suggests that the government has locked in costs, which can be advantageous. The total value spread over the contract's duration implies a moderate annual spend, but the recent delivery order suggests a ramp-up in utilization or a specific project phase.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This typically leads to a more robust price discovery process and potentially better pricing for the government. The number of bidders is not specified, but the competitive nature of the satellite telecommunications market suggests multiple entities likely vied for this award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for essential services.

Public Impact

The U.S. Agency for Global Media (USAGM) is the primary beneficiary, utilizing satellite telecommunications for its operations. Services delivered likely include broadcasting, data transmission, or secure communication links essential for USAGM's global mission. Geographic impact is potentially global, given the nature of satellite services. Workforce implications are likely minimal directly from this contract, but it supports the operational workforce of USAGM.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative providers are not readily available or cost-prohibitive to switch.
Dependence on a single contractor for critical telecommunications infrastructure could pose a risk if service is interrupted.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
Long contract duration may indicate a stable and reliable service provider.

Sector Analysis

The satellite telecommunications sector is a critical component of global communication infrastructure, providing services ranging from broadcasting and internet access to secure government communications. This contract fits within the broader landscape of government reliance on commercial satellite providers for mission-critical functions. Spending in this sector can be substantial, with major players offering a range of orbital and ground-based solutions. The market is characterized by high barriers to entry due to launch costs and regulatory hurdles.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of satellite telecommunications, it is common for prime contracts to be awarded to large, established companies. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely indirect, through potential support roles rather than direct prime contract awards.

Oversight & Accountability

Oversight is likely managed by the U.S. Agency for Global Media's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Government Wide Acquisition Contracts (GWACs) for telecommunications
Other satellite service contracts
Broadcasting services contracts

Risk Flags

Long contract duration may indicate potential for scope creep or evolving needs.
Dependence on a single vendor for critical infrastructure.
Lack of specific performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $29.9 million to EUTELSAT AMERICA CORP.. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is EUTELSAT AMERICA CORP..

Which agency awarded this contract?

Awarding agency: U.S. Agency for Global Media (U.S. Agency for Global Media).

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2019-01-01. End: 2024-06-30.

What is the historical spending pattern for satellite telecommunications services by the U.S. Agency for Global Media?

Historical spending data for USAGM on satellite telecommunications services prior to this contract is not detailed in the provided information. However, the award of a $29.9 million contract suggests a significant and ongoing need for these services. Analyzing past obligations and contract types (e.g., fixed-price vs. cost-plus) would provide a clearer picture of their spending trends and reliance on this sector. Understanding if this represents an increase or decrease in spending would require a broader look at USAGM's budget and procurement history in this category.

How does the pricing of this contract compare to similar satellite telecommunications contracts awarded by other federal agencies?

Direct price comparison is difficult without knowing the specific service level agreements, bandwidth, orbital slots, and duration details for this contract and comparable ones. However, the 'full and open competition' award mechanism suggests that pricing was vetted against market rates. Agencies often benchmark against each other, and the General Services Administration (GSA) schedules or other large IDIQs can provide comparative data points. The firm fixed-price nature helps in cost control, but the overall value is highly dependent on the technical specifications and service requirements.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, satellite telecommunications contracts would include metrics related to uptime, latency, bandwidth availability, signal quality, and response times for technical support. The U.S. Agency for Global Media would have defined these in the contract's statement of work to ensure the services meet their operational requirements for broadcasting and communication. Failure to meet these KPIs could result in penalties or contract termination clauses.

What is the track record of EUTELSAT AMERICA CORP. in performing similar government contracts?

EUTELSAT AMERICA CORP.'s track record in performing similar government contracts would need to be assessed through databases like the Federal Procurement Data System (FPDS) or by reviewing past performance evaluations. As a subsidiary of a major global satellite operator, they likely have extensive experience. Government contracts often include past performance questionnaires where agencies rate contractors on factors like quality, timeliness, cost control, and management. A review of these evaluations would indicate their reliability and capability in fulfilling government requirements.

What is the risk assessment associated with relying on a single provider for critical satellite telecommunications?

The primary risk associated with relying on a single provider for critical satellite telecommunications is service disruption. This could stem from technical failures, geopolitical events affecting the provider's assets, or cyberattacks. Mitigation strategies often include maintaining redundant communication systems through different providers or technologies, robust contingency planning, and ensuring strong contractual terms with penalties for non-performance. The long-term nature of satellite infrastructure also means that switching providers can be complex and costly, increasing the risk of lock-in.

How does the contract's duration and delivery order structure impact flexibility and cost-effectiveness for the agency?

The contract's duration (2007 years, likely a typo and meant to be a duration in years, e.g., 5 years) combined with a delivery order structure provides a balance of flexibility and cost-effectiveness. The long duration allows for stable service provision and potentially better long-term pricing. The delivery order mechanism enables the agency to order services incrementally as needed, avoiding upfront commitment for unused capacity and allowing for adjustments based on evolving requirements. This structure is cost-effective as it aligns spending with actual usage and project phases, while the fixed-price nature of orders provides cost certainty.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1776 I ST NW STE 810, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $29,901,647

Exercised Options: $29,901,647

Current Obligation: $29,901,647

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0418Y

IDV Type: FSS

Timeline