DoD Awards $18.8M for Ku-Band Satellite Telecom to RITENET CORP, Competition Limited by Delivery Order
Contract Overview
Contract Amount: $18,845,300 ($18.8M)
Contractor: Ritenet Corp.
Awarding Agency: Department of Defense
Start Date: 2020-09-25
End Date: 2026-03-31
Contract Duration: 2,013 days
Daily Burn Rate: $9.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SPACE SEGMENT KU-BAND
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $18.8 million to RITENET CORP. for work described as: SPACE SEGMENT KU-BAND Key points: 1. Significant contract value for satellite telecommunications services. 2. RITENET CORP is the sole awardee under this delivery order. 3. Potential risk associated with limited competition for specialized services. 4. Spending falls within the IT and Defense sectors.
Value Assessment
Rating: fair
The contract value of $18.8M for satellite telecommunications is substantial. Benchmarking against similar contracts is difficult without more specific service details, but the fixed-price nature suggests an attempt at cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This award was made as a delivery order under a larger contract, implying competition may have occurred previously. However, the specific award mechanism limits current price discovery and competition.
Taxpayer Impact: Taxpayer funds are being used for essential defense communication infrastructure. The limited competition raises questions about whether the best possible price was achieved for this specific order.
Public Impact
Ensures critical satellite communication capabilities for the Department of Defense. Supports national security operations through reliable data transmission. Impacts the satellite telecommunications market by awarding a significant contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for this specific delivery order.
- Potential for price escalation if follow-on orders are not competitively bid.
- Reliance on a single vendor for critical satellite services.
Positive Signals
- Contract provides essential services for defense operations.
- Fixed-price contract type can help control costs.
- Long-term award period ensures service continuity.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically for satellite telecommunications. Spending in this area is crucial for military operations, and benchmarks vary widely based on bandwidth, duration, and service level agreements.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific delivery order or the parent contract. Further investigation would be needed to assess small business participation.
Oversight & Accountability
Oversight would focus on ensuring RITENET CORP meets all performance requirements and that future delivery orders are competitively solicited where feasible to ensure value for taxpayer money.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Limited competition for this specific delivery order.
- Potential for vendor lock-in if not managed carefully.
- Dependence on a single provider for critical communication infrastructure.
- Lack of transparency regarding the original contract's competitive history.
Tags
satellite-telecommunications, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.8 million to RITENET CORP.. SPACE SEGMENT KU-BAND
Who is the contractor on this award?
The obligated recipient is RITENET CORP..
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: 2020-09-25. End: 2026-03-31.
What was the original contract vehicle for this delivery order, and what was the competitive landscape at that stage?
The provided data indicates this is a delivery order, suggesting it was placed against a pre-existing contract. Understanding the original solicitation and award process for that contract is crucial to assessing the initial competition. If the original contract was also limited or sole-source, the overall value and fairness of the procurement are further diminished.
How does the per-unit cost of this Ku-band service compare to industry benchmarks for similar satellite telecommunications contracts?
Without specific details on bandwidth, data rates, service level agreements, and geographic coverage, a precise per-unit cost benchmark is challenging. However, comparing the total award value ($18.8M) against the contract duration (approx. 5.5 years) and known market rates for similar Ku-band services would reveal if RITENET CORP's pricing is competitive or potentially inflated due to limited competition.
What are the specific performance metrics and service level agreements (SLAs) associated with this contract, and how are they being monitored?
Effective oversight requires clearly defined performance metrics and SLAs to ensure the Department of Defense receives the contracted satellite telecommunications services reliably and at the agreed-upon quality. Monitoring these metrics and holding RITENET CORP accountable for performance is essential to justify the $18.8M expenditure and ensure mission effectiveness.
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
Address: 1445 RESEARCH BLVD # 505, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,295,080
Exercised Options: $18,845,300
Current Obligation: $18,845,300
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0048Y
IDV Type: FSS
Timeline
Start Date: 2020-09-25
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-08-28
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