DoD's $18.26M Satellite Telecommunications Contract Awarded to COMSAT Corporation

Contract Overview

Contract Amount: $18,260,000 ($18.3M)

Contractor: Comsat Corporation

Awarding Agency: Department of Defense

Start Date: 2005-07-14

End Date: 2007-07-17

Contract Duration: 733 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22301

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to COMSAT CORPORATION for work described as: Key points: 1. Contract value of $18.26 million over approximately two years. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type indicates predictable costs for the government. 4. The contract falls under Satellite Telecommunications (NAICS 517410). 5. Contract awarded to COMSAT CORPORATION by the Department of Defense. 6. Performance period spans from July 14, 2005, to July 17, 2007. 7. The contract was awarded by the Defense Information Systems Agency (DISA).

Value Assessment

Rating: fair

The contract value of $18.26 million for approximately two years of satellite telecommunications services appears to be within a reasonable range for government contracts of this nature. Without specific details on the scope of services, bandwidth, and geographic coverage, a precise value-for-money assessment is challenging. However, the firm fixed-price structure helps mitigate cost overruns. Benchmarking against similar satellite telecommunications contracts awarded by DoD or other agencies would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which should theoretically lead to better pricing and service offerings for the government. The agency likely sought proposals from multiple qualified satellite telecommunications providers.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for competitive pricing, ensuring that the government obtains services at the most favorable rates possible.

Public Impact

Provides essential satellite telecommunications services to the Department of Defense. Supports military operations and communication infrastructure. Likely impacts personnel and operations within the defense sector. Services are crucial for maintaining command and control capabilities. Geographic impact would depend on the operational needs of the DoD, potentially global.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess service quality.
Limited information on the exact scope of services provided.
No data on the number of bidders, hindering a full competition assessment.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type provides cost certainty.
Contract awarded to a known entity in the telecommunications sector.

Sector Analysis

The satellite telecommunications sector is a critical component of modern communication infrastructure, supporting a wide range of applications from commercial broadcasting to secure government operations. This contract fits within the broader defense information technology and telecommunications spending, where reliable and secure connectivity is paramount. The market is characterized by a few major players and specialized service providers, with significant barriers to entry due to infrastructure costs and regulatory requirements. Government spending in this area is substantial, driven by national security needs and the increasing reliance on digital communication.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of satellite telecommunications, which often requires significant infrastructure and specialized expertise, it is common for such contracts to be awarded to larger, established companies. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

The contract was awarded by the Department of Defense, which has established oversight mechanisms for its procurements. The firm fixed-price nature of the contract provides a degree of cost control. Transparency would be enhanced by public availability of the contract details and performance reports. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to this contract.

Related Government Programs

DoD Satellite Communications Services
Defense Information Systems Agency Contracts
Satellite Telecommunications Services
Federal Telecommunications Contracts

Risk Flags

Contract duration is relatively short (approx. 2 years).
Limited public information on specific performance metrics.
No data on the number of bidders in the competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to COMSAT CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is COMSAT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2005-07-14. End: 2007-07-17.

What specific satellite telecommunications services were provided under this contract?

The provided data indicates the contract falls under NAICS code 517410 for Satellite Telecommunications. This typically encompasses services such as satellite bandwidth, transmission, and related support for voice, data, and video communications. For the Department of Defense, these services are critical for maintaining secure and reliable communication links for military operations, intelligence gathering, and command and control, potentially across global theaters of operation. The exact nature of the services would be detailed in the contract's statement of work, which is not publicly available in this dataset. This could range from dedicated transponder leases to managed satellite network solutions.

How does the $18.26 million contract value compare to similar satellite telecommunications contracts?

Benchmarking the $18.26 million contract value requires comparing it to similar satellite telecommunications contracts awarded by the Department of Defense or other federal agencies over a comparable timeframe (2005-2007) and for similar service scopes. Without access to a comprehensive database of historical federal contracts with detailed service descriptions, a precise comparison is difficult. However, for a two-year period, this value suggests a substantial, but not exceptionally large, contract for specialized telecommunications. Larger contracts often involve global coverage, high bandwidth, or extensive ground support infrastructure. Smaller contracts might focus on specific regional needs or limited bandwidth.

What were the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or details on how performance was measured for this contract. Typically, for satellite telecommunications contracts, KPIs would focus on metrics such as service availability (uptime), latency, bandwidth throughput, signal quality, and response times for technical support. The firm fixed-price nature suggests that meeting the defined service levels outlined in the contract's statement of work would be paramount. Performance would likely be assessed through regular reporting by the contractor and potentially government monitoring of the communication links. Lack of explicit KPI data makes a thorough assessment of service quality challenging.

What is the track record of COMSAT CORPORATION in providing telecommunications services to the federal government?

COMSAT Corporation, prior to its acquisition and integration into other entities, was a significant player in the satellite communications industry. During the period this contract was active (2005-2007), COMSAT had a history of providing telecommunications services, including to government entities. Federal procurement databases would likely show a history of awards to COMSAT for various communication needs. Assessing their track record would involve reviewing past contract performance, any documented issues or successes, and their overall experience in meeting the stringent requirements of government clients, particularly within the defense sector, which demands high levels of reliability and security.

What are the potential risks associated with this type of satellite telecommunications contract?

Potential risks associated with this type of satellite telecommunications contract include technological obsolescence, as satellite technology evolves rapidly. Geopolitical instability could disrupt service delivery in certain regions. Dependence on a single contractor, even under full and open competition, carries some risk if the contractor faces financial difficulties or operational failures. Furthermore, ensuring the security and integrity of sensitive defense communications transmitted via satellite is a constant challenge, requiring robust encryption and anti-jamming capabilities. The firm fixed-price nature, while providing cost certainty, could also lead to the contractor cutting corners on service quality if not adequately monitored.

How has federal spending on satellite telecommunications evolved since this contract was awarded in 2005?

Federal spending on satellite telecommunications has likely increased significantly since 2005, driven by the growing demand for broadband connectivity, secure communications for defense and intelligence, and the expansion of satellite constellations (e.g., LEO constellations). Technological advancements have led to higher bandwidth capabilities, lower latency, and more flexible service offerings. The government's reliance on commercial satellite services has also grown, alongside investments in its own protected satellite communication systems. Increased competition from new providers and evolving market dynamics have likely influenced pricing and service models, making it crucial to continuously benchmark current spending against historical trends and technological capabilities.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 6560 ROCK SPRING DR, BETHESDA, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: GS00T02NSD0013

IDV Type: IDC

Timeline