DoD awards $46.7M for KU Bandwidth to ARTEL LLC under Full and Open Competition
Contract Overview
Contract Amount: $46,727,346 ($46.7M)
Contractor: Artel LLC
Awarding Agency: Department of Defense
Start Date: 2011-02-11
End Date: 2016-02-15
Contract Duration: 1,830 days
Daily Burn Rate: $25.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 108 MHZ KU BANDWIDTH
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $46.7 million to ARTEL LLC for work described as: 108 MHZ KU BANDWIDTH Key points: 1. Significant contract value of $46.7M over 5 years. 2. ARTEL LLC is the sole awardee, raising questions about competition. 3. Risk of price escalation due to fixed-price contract over a long duration. 4. Spending falls within IT services sector, specifically custom computer programming.
Value Assessment
Rating: fair
The contract's fixed-price nature over five years may not reflect current market rates, potentially leading to overpayment if costs decrease. Benchmarking against similar bandwidth contracts is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the single award to ARTEL LLC warrants further investigation into the bidding landscape and price discovery.
Taxpayer Impact: Taxpayers may be impacted if the fixed price does not align with market fluctuations or if alternative, more cost-effective solutions were overlooked during the bidding process.
Public Impact
Ensures critical communication capabilities for the Department of Defense. Supports military operations through reliable bandwidth provision. Potential for cost savings if ARTEL LLC achieves efficiencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration with fixed pricing.
- Single awardee despite full and open competition.
- Lack of detailed cost breakdown.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense infrastructure.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending benchmarks for similar bandwidth services can vary widely based on technology, duration, and specific requirements.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses had an opportunity to participate.
Oversight & Accountability
The contract was awarded as a delivery order under a larger contract vehicle. Oversight would focus on performance monitoring and adherence to the fixed-price terms throughout the contract's duration.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for overpayment due to fixed-price over long duration.
- Limited visibility into competitive bidding outcomes.
- Lack of small business participation noted.
- Technology obsolescence risk.
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.7 million to ARTEL LLC. 108 MHZ KU BANDWIDTH
Who is the contractor on this award?
The obligated recipient is ARTEL LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $46.7 million.
What is the period of performance?
Start: 2011-02-11. End: 2016-02-15.
What was the competitive landscape during the bidding process, and why was only one award made?
While the contract states 'full and open competition,' the single award to ARTEL LLC raises questions. It's possible that only one bid met all technical requirements, or that the solicitation structure inadvertently limited competition. Further review of the solicitation documents and bid evaluations is necessary to understand the rationale behind the single award and ensure fair market value was obtained.
What is the risk associated with the long-term fixed-price contract in a rapidly evolving technology market?
A five-year fixed-price contract for bandwidth services carries the risk of becoming outdated or overpriced if technology advances rapidly or market prices decrease. The government is locked into the initial price, potentially missing out on cost savings from newer, more efficient technologies or increased competition. Mitigation might involve performance-based metrics or clauses allowing for review and adjustment.
How effectively does this contract ensure the delivery of essential KU Bandwidth services for defense operations?
Assuming ARTEL LLC delivers as per the contract terms, this award effectively ensures the provision of critical KU Bandwidth services. The fixed-price structure provides cost certainty for the agency, and the long duration suggests a need for stable, long-term support. However, effectiveness also hinges on the quality of service and whether the chosen bandwidth meets evolving operational demands.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 13665 DULLES TECHNOLOGY DR STE 300, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,727,346
Exercised Options: $46,727,346
Current Obligation: $46,727,346
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F5151H
IDV Type: FSS
Timeline
Start Date: 2011-02-11
Current End Date: 2016-02-15
Potential End Date: 2016-02-15 00:00:00
Last Modified: 2021-12-07
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