DoD awards $62.8M for 250 MHz KU-Bandwidth Satellite Telecommunications to ARTEL LLC

Contract Overview

Contract Amount: $62,800,860 ($62.8M)

Contractor: Artel LLC

Awarding Agency: Department of Defense

Start Date: 2020-02-06

End Date: 2025-02-15

Contract Duration: 1,836 days

Daily Burn Rate: $34.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 250 MHZ KU-BANDWIDTH

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $62.8 million to ARTEL LLC for work described as: 250 MHZ KU-BANDWIDTH Key points: 1. Contract awarded to ARTEL LLC for satellite telecommunications services. 2. Significant spending on bandwidth indicates critical communication needs. 3. Potential for cost savings through competitive bidding on future requirements. 4. Sector focus on Defense Information Systems Agency highlights national security implications.

Value Assessment

Rating: good

The contract's value of $62.8M over 5 years for satellite bandwidth appears reasonable given the specialized nature of the service. 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 a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.

Public Impact

Ensures critical communication capabilities for Department of Defense operations. Supports national security by providing reliable satellite bandwidth. ARTEL LLC's role in delivering these services is vital for agency functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if ARTEL LLC is the sole provider for this specific bandwidth.
Reliance on satellite technology can be subject to atmospheric conditions and orbital congestion.
Long-term contract duration may not fully capture rapid technological advancements in telecommunications.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
Long contract duration allows for stable service provision and planning.

Sector Analysis

This contract falls within the telecommunications sector, specifically supporting defense-related satellite communications. Spending benchmarks for similar large-scale government satellite contracts are typically in the tens to hundreds of millions of dollars.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Defense Information Systems Agency (DISA) is responsible for this contract. Oversight would involve monitoring service delivery, performance metrics, and adherence to contract terms to ensure accountability.

Related Government Programs

Satellite Telecommunications
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Potential for price escalation in future contract modifications.
Dependence on a single vendor for a critical resource.
Long-term contract may not fully leverage evolving technologies.
Vulnerability to satellite service disruptions (e.g., space weather, orbital congestion).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.8 million to ARTEL LLC. 250 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 $62.8 million.

What is the period of performance?

Start: 2020-02-06. End: 2025-02-15.

What is the projected cost per MHz-year for this contract, and how does it compare to industry benchmarks?

Calculating the exact cost per MHz-year requires more granular data on bandwidth allocation and usage. However, a preliminary estimate based on the total value and bandwidth suggests a significant investment. Comparing this to industry benchmarks for similar KU-band services, especially those used in government or military contexts, is crucial for assessing value for money. Variations in service level agreements, geographic coverage, and uptime guarantees can significantly influence these benchmarks.

What are the specific risks associated with relying on a single vendor for this critical bandwidth, even with full and open competition?

Even with initial full and open competition, relying on ARTEL LLC for this specific 250 MHz KU-band could pose risks. These include potential price increases in future modifications, reduced incentive for innovation if competition is not sustained, and vulnerability if ARTEL faces financial or operational difficulties. The government should actively monitor market conditions and explore options for future competitive procurements to mitigate these risks.

How effectively does this contract support the DISA's mission, and are there alternative technologies that could offer better value or resilience?

This contract directly supports DISA's mission by providing essential satellite telecommunications bandwidth, likely for secure and reliable data transmission for defense operations. Its effectiveness hinges on meeting performance requirements and uptime guarantees. Exploring alternative or complementary technologies, such as fiber optics, 5G, or even different satellite frequency bands (e.g., Ka-band), could offer insights into potential cost savings, increased bandwidth, or enhanced resilience against specific threats or environmental factors.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

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

Parent Company: Artel, LLC

Address: 13665 DULLES TECHNOLOGY DR, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $94,208,290

Exercised Options: $62,800,860

Current Obligation: $62,800,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F557GA

IDV Type: FSS

Timeline