DoD Awards $18.5M Satellite Telecommunications Contract to Cogitan LLC

Contract Overview

Contract Amount: $18,503,055 ($18.5M)

Contractor: Cogitan LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-01

End Date: 2025-05-31

Contract Duration: 364 days

Daily Burn Rate: $50.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BIG SAFARI

Place of Performance

Location: SILVERDALE, KITSAP County, WASHINGTON, 98383

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to COGITAN LLC for work described as: BIG SAFARI Key points: 1. Contract value of $18.5 million for satellite telecommunications. 2. Awarded to Cogitan LLC, a single vendor. 3. Potential risk due to lack of competition. 4. Sector: Information Technology (Telecommunications).

Value Assessment

Rating: questionable

The contract value of $18.5 million for a one-year period appears high for satellite telecommunications services without a competitive bidding process. Benchmarking against similar contracts is difficult without more detailed service descriptions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to the government compared to a competitive process.

Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive solicitation.

Public Impact

Ensures critical satellite telecommunications for the Department of the Air Force. Potential for increased costs due to sole-source award. Limited transparency on the justification for not competing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Ensures critical service delivery
Firm fixed price contract

Sector Analysis

This contract falls within the IT and telecommunications sector, specifically satellite communications. Spending in this area is critical for defense operations, but competitive procurement is generally preferred to ensure value for money.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the justification for bypassing competition was sound and that the price is fair and reasonable.

Related Government Programs

Satellite Telecommunications
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of competition
Potential for price gouging
Limited transparency on justification
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to COGITAN LLC. BIG SAFARI

Who is the contractor on this award?

The obligated recipient is COGITAN LLC.

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 $18.5 million.

What is the period of performance?

Start: 2024-06-01. End: 2025-05-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves situations where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation, it's difficult to ascertain the exact reason for this particular award to Cogitan LLC.

What is the risk associated with a sole-source contract for satellite telecommunications?

The primary risk of a sole-source contract is the potential for inflated pricing due to the absence of competition. The government may not achieve the best possible value. Additionally, it can stifle innovation from other potential providers and may indicate a lack of strategic sourcing or market research by the agency.

How does this contract ensure effective satellite telecommunications for the Air Force?

The contract ensures effectiveness by directly awarding services to Cogitan LLC, presumably based on their ability to meet the Air Force's specific satellite telecommunications requirements. The firm fixed-price structure incentivizes the contractor to deliver services within budget. However, the effectiveness in terms of value for money is questionable without competition.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13597 PAGE RD NW, SILVERDALE, WA, 98383

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

Financial Breakdown

Contract Ceiling: $18,503,055

Exercised Options: $18,503,055

Current Obligation: $18,503,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline