DoD Awards $24.3M for Satellite Services to Artel LLC Under Full and Open Competition
Contract Overview
Contract Amount: $24,366,936 ($24.4M)
Contractor: Artel LLC
Awarding Agency: Department of Defense
Start Date: 2017-08-16
End Date: 2023-02-15
Contract Duration: 2,009 days
Daily Burn Rate: $12.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROCURE COMMERCIAL SATELLITE SERVICES.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.4 million to ARTEL LLC for work described as: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROCURE COMMERCIAL SATELLITE SERVICES. Key points: 1. Contract awarded to Artel LLC for commercial satellite services. 2. Significant contract value of $24.3 million over its period of performance. 3. Procurement falls under custom computer programming services, indicating a need for specialized IT infrastructure. 4. The contract was awarded using full and open competition, suggesting a competitive bidding process.
Value Assessment
Rating: good
The contract value of $24.3 million for satellite services appears reasonable given the duration and nature of the service. Benchmarking against similar large-scale satellite communication contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically leads to better price discovery and value for the government. This method allows all eligible vendors to bid, fostering a competitive environment.
Taxpayer Impact: Full and open competition generally maximizes taxpayer value by ensuring the government receives the best possible price and service through a robust bidding process.
Public Impact
Ensures continued access to critical commercial satellite services for defense operations. Supports the Department of Defense's communication and data transfer needs. The use of commercial services may offer flexibility and scalability compared to government-owned infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services are highly specialized.
- Reliance on a commercial provider for critical infrastructure.
Positive Signals
- Awarded via full and open competition.
- Long-term contract provides service stability.
- Firms Fixed Price contract type manages cost risk.
Sector Analysis
This contract falls within the IT and telecommunications sector, specifically focusing on satellite services. Spending benchmarks for similar large-scale government satellite communication contracts can vary widely based on bandwidth, coverage, and service level agreements.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA), a component of the Department of Defense, suggesting established oversight mechanisms. The use of a Delivery Order under a larger contract framework implies adherence to procurement regulations.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- NAICS code mismatch with service description.
- Lack of detailed performance metrics in provided data.
- Potential for vendor lock-in.
- Dependence on commercial infrastructure for defense needs.
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 $24.4 million to ARTEL LLC. IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROCURE COMMERCIAL SATELLITE SERVICES.
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 $24.4 million.
What is the period of performance?
Start: 2017-08-16. End: 2023-02-15.
What is the specific nature of the 'commercial satellite services' procured, and how do they align with the 'Custom Computer Programming Services' NAICS code?
The NAICS code 541511 for Custom Computer Programming Services might seem unusual for satellite services. However, it could encompass the integration, customization, and management of satellite communication systems as a service, including software development for network management, data routing, and user interfaces, rather than just raw bandwidth provision.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure service quality and reliability?
The provided data does not detail the specific KPIs or SLAs. However, for critical defense communication services, these would typically include metrics like uptime, latency, bandwidth availability, and response times for technical support. The contract's Firm Fixed Price nature suggests that the government has defined these requirements clearly to manage cost and performance.
How does the pricing structure compare to industry standards for similar commercial satellite service contracts, considering the contract duration and scope?
Without detailed pricing breakdowns (e.g., per Mbps, per terminal, per geographic region), a direct comparison is difficult. However, the total value of $24.3 million over approximately 5.5 years suggests an average annual spend of around $4.4 million. This figure needs to be benchmarked against current market rates for comparable satellite bandwidth and managed services, considering factors like satellite constellation type and service level.
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Artel, LLC
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: $35,442,816
Exercised Options: $24,366,936
Current Obligation: $24,366,936
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F5151H
IDV Type: FSS
Timeline
Start Date: 2017-08-16
Current End Date: 2023-02-15
Potential End Date: 2023-02-15 00:00:00
Last Modified: 2022-09-01
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