DoD awards $32M for 144 MHz KU-Band Bandwidth to ARTEL LLC under Full and Open Competition
Contract Overview
Contract Amount: $32,029,089 ($32.0M)
Contractor: Artel LLC
Awarding Agency: Department of Defense
Start Date: 2011-02-12
End Date: 2014-02-15
Contract Duration: 1,099 days
Daily Burn Rate: $29.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 144 MHZ KU-BAND BANDWIDTH
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $32.0 million to ARTEL LLC for work described as: 144 MHZ KU-BAND BANDWIDTH Key points: 1. Significant award for critical communication bandwidth. 2. ARTEL LLC is a key provider in this niche. 3. Potential for cost savings through competitive bidding. 4. Sector focus on Defense Information Systems Agency operations.
Value Assessment
Rating: good
The contract value of $32,029,088.88 for 1099 days of service appears reasonable given the specialized nature of KU-band bandwidth. Benchmarking against similar high-frequency bandwidth contracts is difficult without more specific technical requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.
Taxpayer Impact: The competitive nature of the award is expected to yield fair market value, maximizing taxpayer return on investment for this essential service.
Public Impact
Ensures critical communication capabilities for the Department of Defense. Supports military operations and data transfer needs. Highlights the importance of specialized bandwidth for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if ARTEL is the sole provider of this specific bandwidth configuration.
- Dependence on a single vendor for a critical service.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the telecommunications and IT services sector, specifically supporting defense communications infrastructure. Spending benchmarks for dedicated KU-band bandwidth can vary widely based on capacity, duration, and service level agreements.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The award was a delivery order under a larger contract, suggesting existing oversight mechanisms. The duration and value warrant continued monitoring of performance and cost-effectiveness.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Critical infrastructure reliance
- Potential vendor dependency
- Specialized service procurement
- Long-term contract duration
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 $32.0 million to ARTEL LLC. 144 MHZ KU-BAND 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 $32.0 million.
What is the period of performance?
Start: 2011-02-12. End: 2014-02-15.
What is the specific technical capability and capacity of the 144 MHz KU-band bandwidth being procured, and how does it compare to market alternatives?
The specific technical capability and capacity of the 144 MHz KU-band bandwidth are not detailed in the provided data. Understanding the exact throughput, latency, and reliability metrics is crucial for comparison against market alternatives. Without this, it's difficult to definitively assess if the chosen bandwidth offers optimal performance for its cost.
What are the potential risks associated with relying on ARTEL LLC for this critical bandwidth, particularly concerning service continuity and future scalability?
Potential risks include service disruptions if ARTEL experiences technical issues or financial instability, impacting DoD operations. Future scalability might also be a concern if ARTEL's infrastructure cannot easily accommodate increased demand or technological advancements. The firm fixed price nature, while good for cost certainty, could limit flexibility in adapting to evolving needs.
How effectively does this contract support the DISA's mission, and are there opportunities for cost optimization in future procurements of similar bandwidth services?
This contract directly supports the DISA's mission by providing essential communication bandwidth. Its effectiveness hinges on reliable service delivery and meeting operational demands. Future cost optimization could be explored through longer-term contracts with volume discounts, exploring alternative frequency bands if technically feasible, or fostering greater competition among specialized bandwidth providers.
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: 1893 PRESTON WHITE DR, RESTON, VA, 20191
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,015,297
Exercised Options: $32,029,089
Current Obligation: $32,029,089
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F5151H
IDV Type: FSS
Timeline
Start Date: 2011-02-12
Current End Date: 2014-02-15
Potential End Date: 2014-02-15 00:00:00
Last Modified: 2021-12-07
More Contracts from Artel LLC
- 576 MHZ Ku-Band — $173.4M (Department of Defense)
- 432 MHZ KU Satellite Bandwidth — $159.0M (Department of Defense)
- Space Segment — $125.0M (Department of Defense)
- Space Segment- 250 MHZ (KU) — $114.8M (Department of Defense)
- Satellite Service — $80.4M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)