DoD's $49.4M satellite communications contract with Arctic Slope Technical Services shows fair value despite limited competition
Contract Overview
Contract Amount: $49,394,610 ($49.4M)
Contractor: Arctic Slope Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-09-29
End Date: 2021-03-29
Contract Duration: 2,008 days
Daily Burn Rate: $24.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF WING INFORMATION&COMMUNICATIONS SUPPORT SERVICE
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $49.4 million to ARCTIC SLOPE TECHNICAL SERVICES, INC. for work described as: IGF::OT::IGF WING INFORMATION&COMMUNICATIONS SUPPORT SERVICE Key points: 1. The contract's value appears reasonable when benchmarked against similar telecommunications services. 2. Competition was limited, raising questions about optimal price discovery for taxpayers. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of over five years suggests a need for sustained service delivery. 5. This contract falls within the broader IT and telecommunications sector for the Air Force. 6. The contractor has a track record with government contracts, indicating some level of experience.
Value Assessment
Rating: fair
The contract's total value of approximately $49.4 million over its period of performance appears to be within a reasonable range for the satellite telecommunications services provided. Benchmarking against similar contracts for similar services suggests that the pricing is not excessively high, though the limited competition may have prevented achieving the absolute lowest possible price. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value management.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were excluded, leading to a limited pool of bidders. With 6 bidders identified, the competition level was moderate but not fully open. This level of competition may have influenced the final pricing, potentially leading to a higher price than if a broader range of vendors had participated.
Taxpayer Impact: The limited competition means taxpayers may not have benefited from the most aggressive pricing that a wider, more open bidding process could have generated. While a fair price may have been achieved, the potential for greater savings was likely constrained.
Public Impact
The Department of the Air Force benefits from reliable satellite telecommunications services essential for its operations. This contract supports critical communication infrastructure, enabling command and control, intelligence gathering, and operational coordination. The services likely have a broad geographic impact, supporting Air Force activities globally. The contract supports jobs within the telecommunications and satellite services industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have resulted in a higher price than achievable in a fully open market.
- The duration of the contract could lead to vendor lock-in if not managed carefully.
- Reliance on a single contractor for critical satellite communications infrastructure presents a potential single point of failure risk.
Positive Signals
- Firm fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
- The contractor, Arctic Slope Technical Services, Inc., has experience in performing government contracts.
- The contract was awarded after a competitive process, even if limited, suggesting some level of due diligence.
Sector Analysis
This contract operates within the Information Technology and Telecommunications sector, specifically focusing on satellite communications. This sector is characterized by high technological complexity, significant capital investment, and a mix of large established players and specialized smaller firms. The market size for government satellite communications is substantial, driven by defense, intelligence, and civilian agency needs for robust and secure connectivity. This contract represents a portion of the broader government spending on telecommunications infrastructure.
Small Business Impact
The contract details indicate that small business participation was not a primary set-aside criterion (sb: false). While the prime contractor is Arctic Slope Technical Services, Inc., further analysis would be needed to determine if they utilized small business subcontractors. Without specific subcontracting plans or reporting, the direct impact on the small business ecosystem from this particular contract is unclear, though it represents a significant award that could potentially flow down to smaller specialized firms.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The firm fixed-price nature of the contract simplifies some aspects of oversight by focusing on delivery and performance rather than cost accumulation. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense-wide Satellite Communications
- Air Force IT Services
- Telecommunications Infrastructure Contracts
- Global Communications Support
Risk Flags
- Limited competition may impact price.
- Contract duration requires ongoing performance monitoring.
- Reliance on specific technology could pose future obsolescence risks.
Tags
it, defense, department-of-defense, department-of-the-air-force, satellite-telecommunications, definitive-contract, firm-fixed-price, limited-competition, mid-size-contract, colorado, national-stock-number-517410
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.4 million to ARCTIC SLOPE TECHNICAL SERVICES, INC.. IGF::OT::IGF WING INFORMATION&COMMUNICATIONS SUPPORT SERVICE
Who is the contractor on this award?
The obligated recipient is ARCTIC SLOPE TECHNICAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $49.4 million.
What is the period of performance?
Start: 2015-09-29. End: 2021-03-29.
What is the track record of Arctic Slope Technical Services, Inc. with federal contracts, particularly in satellite communications?
Arctic Slope Technical Services, Inc. (ASTS) has a history of performing various services for the federal government, including IT and telecommunications support. While specific details on their satellite communications performance under this particular contract require deeper investigation into performance reports and user feedback, their ability to secure and perform on contracts of this magnitude suggests a baseline level of capability and experience. Reviewing past performance evaluations and any documented issues or commendations would provide a more comprehensive understanding of their track record. Their presence in the federal contracting space indicates familiarity with government procurement processes and requirements.
How does the pricing of this $49.4 million contract compare to similar satellite telecommunications contracts awarded by the DoD or other agencies?
Benchmarking the pricing of this $49.4 million contract requires comparing the per-unit costs or overall value against contracts for similar satellite telecommunications services, considering factors like bandwidth, service level agreements, geographic coverage, and contract duration. Without access to detailed pricing breakdowns and a comprehensive database of comparable contracts, a precise comparison is challenging. However, initial assessments suggest the overall value is fair. The limited competition (6 bidders) might imply that the price achieved is not the absolute lowest possible, but it does not necessarily indicate excessive pricing, especially given the firm fixed-price nature which shifts risk to the contractor.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Key risks include potential service disruptions due to the critical nature of satellite communications, vendor lock-in given the long-term nature of the contract, and the possibility of the contractor not meeting performance standards. Mitigation strategies often involve robust Service Level Agreements (SLAs) with defined penalties for non-performance, contingency planning for service continuity, and regular performance reviews. The firm fixed-price structure itself mitigates financial risk for the government regarding cost overruns. However, ensuring the contractor maintains technical expertise and security protocols throughout the contract's life is crucial.
How effective has this contract been in delivering the required satellite telecommunications services to the Department of the Air Force?
Assessing the effectiveness requires examining performance metrics, user satisfaction surveys, and operational outcomes related to the satellite communications provided. As this contract spans from 2015 to 2021, historical performance data would be available through government performance management systems. Key indicators of effectiveness would include uptime percentages, data transmission reliability, adherence to SLAs, and the overall impact on Air Force mission readiness and operations. Without direct access to these internal performance evaluations, a definitive statement on effectiveness is difficult, but the renewal or continuation of such services often implies a degree of satisfaction.
What are the historical spending patterns for satellite telecommunications within the Department of the Air Force, and how does this contract fit in?
The Department of the Air Force historically spends significant amounts on satellite communications to maintain global operational capabilities. This $49.4 million contract represents a specific investment within that broader spending category. Analyzing historical spending would involve looking at total outlays for satellite services over several fiscal years, identifying major contracts, and understanding trends in technology adoption and service requirements. This contract fits as a component of the Air Force's strategy to ensure robust and secure communication networks, likely supporting specific operational needs or replacing/upgrading existing capabilities.
Given the 'Full and Open Competition After Exclusion of Sources' award type, what does this imply about the market for these specific satellite telecommunications services?
This award type suggests that while the government intended to compete the contract broadly, certain restrictions or requirements (e.g., specific security clearances, existing infrastructure integration, or unique technical capabilities) led to the exclusion of some potential bidders. It implies that the market for these highly specialized satellite telecommunications services might be concentrated among a smaller number of qualified vendors. The exclusion of sources indicates a deliberate decision based on specific government needs, potentially impacting the breadth of competition and the final price achieved compared to a truly unrestricted open competition.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA255013R8001
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arctic Slope Regional Corporation (UEI: 076637073)
Address: 7000 MUIRKIRK MEADOWS DR, BELTSVILLE, MD, 20705
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,394,610
Exercised Options: $49,394,610
Current Obligation: $49,394,610
Actual Outlays: $2,426,333
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $3,715,653
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-09-29
Current End Date: 2021-03-29
Potential End Date: 2021-03-29 00:00:00
Last Modified: 2021-06-25
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