DoD awards $56.4M for 216 MHz Ku-Bandwidth services to ARTEL LLC under full and open competition

Contract Overview

Contract Amount: $56,392,679 ($56.4M)

Contractor: Artel LLC

Awarding Agency: Department of Defense

Start Date: 2011-02-15

End Date: 2014-02-15

Contract Duration: 1,096 days

Daily Burn Rate: $51.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 216 MHZ KU-BANDWIDTH

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $56.4 million to ARTEL LLC for work described as: 216 MHZ KU-BANDWIDTH Key points: 1. ARTEL LLC secured a significant contract for critical bandwidth services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (1096 days) indicates a medium-term commitment for these services. 4. The spending is categorized under Custom Computer Programming Services, potentially indicating integration or support aspects.

Value Assessment

Rating: good

The award amount of $56.4M over approximately three years suggests a substantial investment. Benchmarking against similar bandwidth contracts would be necessary for a precise value assessment, but the competitive award method provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a fair market price for the required bandwidth services.

Public Impact

Ensures critical communication capabilities for the Department of Defense. Supports military operations and data transmission needs. The use of Ku-band suggests specific requirements for satellite communication, potentially for remote or mobile operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics in the provided data.
  • Potential for vendor lock-in if ARTEL LLC is the sole provider of this specific bandwidth configuration.
  • Dependency on satellite infrastructure, which can be subject to external factors.

Positive Signals

  • Awarded under full and open competition.
  • Firm Fixed Price contract type helps control costs.
  • Long-term award indicates a stable need for the service.

Sector Analysis

This contract falls within the telecommunications and IT services sector, specifically focusing on satellite bandwidth. Spending benchmarks for similar government satellite communication contracts would provide further context on the pricing and value.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded under full and open competition. Therefore, small business participation is not explicitly detailed but would likely be through subcontracting if applicable.

Oversight & Accountability

The award was made by the Defense Information Systems Agency (DISA), a key component of the DoD for information technology. Oversight would typically involve contract management by DISA to ensure ARTEL LLC meets performance and delivery requirements.

Related Government Programs

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

Risk Flags

  • Potential for vendor lock-in.
  • Dependency on satellite infrastructure.
  • Lack of detailed performance metrics.
  • Limited visibility into subcontracting arrangements.

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 $56.4 million to ARTEL LLC. 216 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 $56.4 million.

What is the period of performance?

Start: 2011-02-15. End: 2014-02-15.

What is the specific utilization and performance requirement for the 216 MHz Ku-bandwidth, and how does ARTEL LLC's offering meet these needs?

The provided data lacks specifics on the exact utilization and performance requirements for the 216 MHz Ku-bandwidth. Understanding these details is crucial to assess if ARTEL LLC's solution is tailored to the DoD's operational needs and if the awarded price reflects the complexity and criticality of the service. Further analysis would require access to the contract's statement of work.

What are the potential risks associated with relying on a single vendor, ARTEL LLC, for this critical bandwidth service over a three-year period?

Relying on a single vendor, ARTEL LLC, for critical bandwidth services introduces risks such as potential price increases upon contract renewal, service disruptions if the vendor faces operational issues, and limited leverage for negotiating future enhancements. The government should monitor ARTEL LLC's performance closely and explore alternative solutions or contingency plans to mitigate these risks.

How effectively does this contract contribute to the Department of Defense's overall communication strategy and mission readiness?

This contract likely contributes significantly to the DoD's communication strategy by providing essential Ku-band satellite bandwidth, crucial for operations in areas lacking terrestrial infrastructure. Its effectiveness hinges on ARTEL LLC's ability to deliver reliable, high-throughput connectivity that supports real-time data transfer and command and control, thereby enhancing mission readiness.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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: $56,392,679

Exercised Options: $56,392,679

Current Obligation: $56,392,679

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F5151H

IDV Type: FSS

Timeline

Start Date: 2011-02-15

Current End Date: 2014-02-15

Potential End Date: 2014-02-15 00:00:00

Last Modified: 2021-12-07

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