DoD's $17M Satellite Telecommunications Contract Awarded to Cogitan LLC Under Sole Source Basis

Contract Overview

Contract Amount: $16,964,783 ($17.0M)

Contractor: Cogitan LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-01

End Date: 2026-05-31

Contract Duration: 364 days

Daily Burn Rate: $46.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BIG SAFARI

Place of Performance

Location: ROCKWALL, ROCKWALL County, TEXAS, 75032

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to COGITAN LLC for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and limited market engagement. 2. The contract's duration of 364 days suggests a need for ongoing satellite telecommunication services. 3. Fixed-price contract type aims to control costs, but the lack of competition may negate this benefit. 4. The award to Cogitan LLC, with no prior contract data available, makes performance benchmarking difficult. 5. The specific service code (517410) indicates a focus on satellite telecommunications infrastructure. 6. Awarded by the Department of the Air Force, highlighting a critical need within defense communications.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to assess if the $16,964,783.28 price represents fair market value. The lack of historical data for Cogitan LLC further complicates benchmarking. Comparing this to similar satellite telecommunication contracts would be necessary to determine if the pricing is reasonable. The fixed-price nature offers some cost control, but the absence of competition limits the government's ability to negotiate the best possible terms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Cogitan LLC, was solicited. This significantly limits the level of competition. Without a competitive process, there is no direct comparison of bids to determine the most cost-effective option. The rationale for a sole-source award, such as unique capabilities or lack of alternatives, would need to be thoroughly justified.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding.

Public Impact

The Department of the Air Force will benefit from enhanced satellite telecommunication capabilities. This contract ensures the delivery of critical satellite communication services essential for military operations. The services provided are likely to support national security objectives and global communication networks. The contract's impact on the workforce is not immediately clear but may involve specialized technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award raises concerns about transparency and fairness in procurement.
Absence of historical performance data for Cogitan LLC presents a risk.
Potential for vendor lock-in due to the sole-source nature of the award.

Positive Signals

Fixed-price contract type can help manage costs if the price is fair.
Awarding to a single vendor may streamline communication and service delivery for this specific need.
The contract duration suggests a stable, ongoing requirement for these services.

Sector Analysis

The satellite telecommunications sector is a critical component of modern infrastructure, supporting everything from consumer services to defense operations. This contract falls within the broader telecommunications industry, which is characterized by high capital investment and rapid technological advancement. The market size for satellite services is substantial and growing, driven by increasing demand for broadband, IoT, and secure communication channels. This specific award likely supports niche defense-related satellite communication needs, which often require specialized capabilities and security clearances.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the solicitation process. Further analysis would be needed to determine if Cogitan LLC has any small business subcontracting plans in place.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures will be tied to the terms and conditions of the fixed-price definitive contract. Transparency is limited due to the sole-source award, with details on the justification for this approach not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Communications Services
Satellite Broadband Services
Telecommunications Infrastructure
National Security Communications

Risk Flags

Sole-source award lacks competitive justification.
No historical performance data available for the contractor.
Potential for inflated pricing due to lack of competition.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 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 $17.0 million.

What is the period of performance?

Start: 2025-06-01. End: 2026-05-31.

What is the specific justification for awarding this contract on a sole-source basis to Cogitan LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of providing the required service, or in cases of urgent and compelling need. For this contract, the Department of the Air Force would need to document why other qualified vendors could not be considered. This could be due to proprietary technology, unique existing infrastructure integration, or a highly specialized requirement that only Cogitan LLC can fulfill. Without this documentation, it is difficult to assess the validity of the sole-source determination and its impact on potential cost savings.

How does the $16.96 million contract value compare to similar satellite telecommunication contracts awarded by the Department of Defense?

Benchmarking this $16.96 million contract against similar Department of Defense (DoD) satellite telecommunication contracts is challenging without more specific details on the services provided and the contract duration. However, the DoD procures a wide range of satellite services, from bandwidth leasing to full system development and operation, with costs varying significantly. Contracts for dedicated satellite constellations or complex ground station support can run into hundreds of millions or even billions of dollars over their lifecycle. Smaller contracts, like this one, might represent specific regional support, specialized data relay, or short-term bandwidth needs. A direct comparison would require identifying contracts with similar service scope (e.g., managed services, bandwidth provision, specific frequency bands) and similar contract types (e.g., fixed-price) awarded over a comparable timeframe.

What are the potential risks associated with awarding a significant contract to a vendor with no readily available historical contract data?

Awarding a $16.96 million contract to Cogitan LLC, a vendor with no apparent historical contract data in the public domain, presents several risks. Firstly, it hinders the government's ability to perform due diligence on the contractor's past performance, reliability, and ability to meet contractual obligations. Without past performance reviews or data, assessing Cogitan LLC's track record in delivering similar services on time and within budget is impossible. This lack of history increases the risk of project delays, cost overruns, and service disruptions. Furthermore, it makes it difficult to establish a baseline for performance metrics and to hold the contractor accountable effectively. The government may be entering into a significant agreement with an unknown entity, potentially exposing itself to unforeseen challenges.

What is the expected impact of this contract on the broader satellite telecommunications market and competition?

The sole-source award of this $16.96 million contract to Cogitan LLC is likely to have a limited impact on the broader satellite telecommunications market due to its specific nature and lack of competition. For the wider market, this single award does not significantly alter competitive dynamics. However, it does represent a missed opportunity for other established or emerging satellite service providers to compete for this Department of Defense business. This could potentially stifle innovation or discourage new entrants if such sole-source awards become a pattern for specific service needs. For Cogitan LLC, this contract could be a significant revenue stream and a stepping stone for future government contracts, potentially increasing its market presence within the defense sector.

How does the firm fixed-price contract type mitigate risks for the government in this sole-source scenario?

The firm fixed-price (FFP) contract type is intended to shift the risk of cost overruns from the government to the contractor. In a sole-source scenario like this one, where competition is absent, the FFP structure is particularly important. It establishes a ceiling price for the services, meaning Cogitan LLC is responsible for any costs incurred above the agreed-upon price. This provides the government with a degree of cost certainty. However, the effectiveness of the FFP contract in mitigating risk is heavily dependent on the initial price negotiation. If the price was not adequately benchmarked or negotiated due to the lack of competitive offers, the government could still end up paying a premium, even with an FFP structure. Therefore, while FFP offers protection against cost escalation, the absence of competition remains a primary concern for value for money.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $16,964,783

Exercised Options: $16,964,783

Current Obligation: $16,964,783

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline