USAGM Spends $30M on Satellite Telecommunications for Space Segment Capacity

Contract Overview

Contract Amount: $30,013,894 ($30.0M)

Contractor: GPC Foreign Contractor Consolidated Reporting

Awarding Agency: U.S. Agency for Global Media

Start Date: 2008-12-18

End Date: 2017-02-28

Contract Duration: 2,994 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SPACE SEGMENT CAPACITY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20237

State: District of Columbia Government Spending

Plain-Language Summary

U.S. Agency for Global Media obligated $30.0 million to GPC FOREIGN CONTRACTOR CONSOLIDATED REPORTING for work described as: SPACE SEGMENT CAPACITY Key points: 1. Significant expenditure of $30M on satellite telecommunications. 2. Contract awarded to GPC Foreign Contractor, raising potential geopolitical considerations. 3. No competition was utilized for this award, indicating a sole-source or limited procurement. 4. The IT sector, specifically telecommunications, is a critical area for government operations.

Value Assessment

Rating: questionable

The contract value of $30M for satellite telecommunications over a 10-year period appears substantial. Without comparable contract data or detailed service breakdowns, assessing value for money is difficult. The lack of competition further complicates a direct pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, suggesting a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for the government compared to a fully competitive environment.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services, as market forces were not leveraged to drive down costs.

Public Impact

Ensures critical communication capabilities for the U.S. Agency for Global Media. Potential reliance on foreign contractors may have implications for data security and national interests. Lack of transparency in the procurement process limits public understanding of the expenditure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Foreign contractor
Long contract duration

Positive Signals

Essential service provision
Firm fixed price contract

Sector Analysis

This contract falls within the Information Technology sector, specifically telecommunications services. Government spending on satellite communications is crucial for secure and widespread connectivity, especially for agencies operating globally. Benchmarks for similar contracts are difficult to ascertain due to the sole-source nature.

Small Business Impact

The data does not indicate any participation or benefit to small businesses in this contract award. The focus appears to be on a large foreign contractor for specialized services.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to understand the justification for bypassing competitive procedures. Accountability for the pricing and performance of this sole-source contract is essential.

Related Government Programs

Satellite Telecommunications
U.S. Agency for Global Media Contracting
U.S. Agency for Global Media Programs

Risk Flags

Lack of competition
Foreign contractor utilization
Potential for inflated pricing
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $30.0 million to GPC FOREIGN CONTRACTOR CONSOLIDATED REPORTING. SPACE SEGMENT CAPACITY

Who is the contractor on this award?

The obligated recipient is GPC FOREIGN CONTRACTOR CONSOLIDATED REPORTING.

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 $30.0 million.

What is the period of performance?

Start: 2008-12-18. End: 2017-02-28.

What was the specific justification for not competing this satellite telecommunications contract?

The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation into the agency's procurement records would be necessary to determine the precise rationale.

What are the specific risks associated with using a foreign contractor for space segment capacity?

Using a foreign contractor for space segment capacity introduces risks related to data security, potential foreign government influence or access, and geopolitical considerations. There may also be challenges in enforcing contract terms or obtaining recourse in case of disputes. Ensuring compliance with U.S. regulations and safeguarding sensitive information are paramount.

How does the firm fixed price contract structure impact the overall value and risk for the government?

A firm fixed price contract shifts most of the risk to the contractor, providing cost certainty for the government. However, if the initial price was not well-negotiated due to a lack of competition, the government may overpay. This structure incentivizes the contractor to control costs but can limit flexibility if requirements change significantly.

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: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DRIVE STE 911, ARLINGTON, VA, 22202

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $30,013,894

Exercised Options: $30,013,894

Current Obligation: $30,013,894

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Timeline