DoD awards $18.8M for 184 MHz KU-BAND services to ARTEL LLC under full and open competition

Contract Overview

Contract Amount: $18,838,568 ($18.8M)

Contractor: Artel LLC

Awarding Agency: Department of Defense

Start Date: 2011-02-14

End Date: 2013-02-15

Contract Duration: 732 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 184 MHZ KU-BAND

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to ARTEL LLC for work described as: 184 MHZ KU-BAND Key points: 1. ARTEL LLC secured a significant contract for KU-BAND services, indicating strong performance or competitive advantage. 2. The contract value of $18.8M for a 2-year period suggests a substantial need for these specialized communication services. 3. Full and open competition was utilized, implying a robust price discovery process and potential for value for taxpayers. 4. The sector is Defense Information Systems Agency (DISA), a critical area for national security communications.

Value Assessment

Rating: good

The contract value of $18.8M over two years, averaging $9.4M annually, appears reasonable for specialized satellite communication services. Benchmarking against similar large-scale telecommunications contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders participated. This method typically drives competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield favorable pricing, maximizing the value of taxpayer funds spent on essential defense communication infrastructure.

Public Impact

Ensures critical communication capabilities for the Department of Defense. Supports ongoing military operations and national security initiatives. ARTEL LLC's role highlights the importance of private sector partnerships in defense. The use of KU-BAND indicates a need for reliable, high-frequency satellite communication.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation in future contract renewals.
Dependence on a single vendor for critical communication bandwidth.

Positive Signals

Awarded through full and open competition.
Clear contract duration and defined services.
Firms fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the IT and Telecommunications sector, specifically supporting defense communications. Spending benchmarks for similar large-scale satellite bandwidth and network services can vary widely based on capacity, duration, and specific technological requirements.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The award was a delivery order under a larger contract, suggesting existing oversight mechanisms. The use of full and open competition implies a structured procurement process designed to ensure accountability.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Potential for vendor lock-in.
Dependence on specific spectrum allocation.
Criticality of service to national security.
Long-term cost implications beyond initial award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to ARTEL LLC. 184 MHZ KU-BAND

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 $18.8 million.

What is the period of performance?

Start: 2011-02-14. End: 2013-02-15.

What is the specific nature of the '184 MHZ KU-BAND' service and its criticality to DISA's mission?

The '184 MHZ KU-BAND' likely refers to a specific allocation of radio frequency spectrum used for satellite communications. KU-band is known for its high bandwidth and suitability for data transmission, often used for military command and control, intelligence, surveillance, and reconnaissance (ISR) data, and secure voice communications. Its criticality to DISA's mission is paramount, as it underpins the reliable and secure flow of information essential for defense operations globally.

How does the $18.8M contract value compare to industry benchmarks for similar KU-band services over a two-year period?

Benchmarking this $18.8M contract requires detailed comparison with similar KU-band service contracts, considering factors like bandwidth, geographic coverage, service level agreements (SLAs), and contract duration. While $9.4M annually might seem substantial, the specialized nature of military-grade satellite communication, often requiring dedicated capacity and robust security, can command premium pricing. Without specific comparable data, a definitive assessment of value is difficult, but the competitive award suggests it was deemed fair.

What are the potential risks associated with ARTEL LLC's sole award for this critical communication bandwidth?

The primary risk is vendor lock-in and potential supply chain vulnerabilities if ARTEL LLC faces operational issues or financial instability. Dependence on a single provider for critical bandwidth could disrupt essential defense communications. Furthermore, the lack of ongoing competition for this specific service might reduce pressure on ARTEL LLC to innovate or maintain the most competitive pricing in the long term, although the initial award was competitive.

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 # 2, 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: $29,297,674

Exercised Options: $18,838,568

Current Obligation: $18,838,568

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F5151H

IDV Type: FSS

Timeline