DoD Awards $636M for Bandwidth & Facilities Support to RITENET CORP

Contract Overview

Contract Amount: $6,362,081 ($6.4M)

Contractor: Ritenet Corp.

Awarding Agency: Department of Defense

Start Date: 2021-08-15

End Date: 2026-08-14

Contract Duration: 1,825 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BANDWIDTH & FACILITIES SUPPORT

Place of Performance

Location: NAVAL ANACOST ANNEX, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20373

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $6.4 million to RITENET CORP. for work described as: BANDWIDTH & FACILITIES SUPPORT Key points: 1. Contract value of $636.2 million over 5 years. 2. Awarded under full and open competition. 3. Potential for significant taxpayer impact due to contract size. 4. Focuses on satellite telecommunications services.

Value Assessment

Rating: good

The contract value of $636.2 million for 5 years suggests a substantial investment. Benchmarking against similar large-scale telecommunications contracts is necessary to fully assess value, but the duration and scope indicate a significant requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market prices.

Taxpayer Impact: With a total value of $636.2 million, the efficient use of taxpayer funds is crucial. The competitive nature of the award is a positive sign for cost-effectiveness.

Public Impact

Ensures critical satellite telecommunications infrastructure for the Department of Defense. Supports military operations and communication capabilities. Impacts the telecommunications sector through a large federal contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration of 5 years may not align with rapidly evolving technology.
  • Reliance on a single awardee for critical infrastructure.
  • Potential for cost overruns if not closely managed.

Positive Signals

  • Awarded through full and open competition.
  • Firm fixed price contract type provides cost certainty.
  • Long-term contract provides stability for essential services.

Sector Analysis

This contract falls within the IT and Telecommunications sector, specifically satellite communications. Federal spending in this area is substantial, supporting national security and critical infrastructure. Benchmarks for similar large-scale telecommunications contracts are typically in the hundreds of millions to billions of dollars.

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 large contract.

Oversight & Accountability

Oversight will be critical to ensure RITENET CORP. meets performance requirements and stays within budget. The Defense Information Systems Agency (DISA) is responsible for managing this contract and ensuring accountability.

Related Government Programs

  • Satellite Telecommunications
  • Department of Defense Contracting
  • Defense Information Systems Agency Programs

Risk Flags

  • Contract duration may outpace technological advancements.
  • Potential for vendor lock-in with critical infrastructure.
  • Dependence on satellite technology is subject to external factors.
  • Cybersecurity risks inherent in telecommunications.

Tags

satellite-telecommunications, department-of-defense, dc, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.4 million to RITENET CORP.. BANDWIDTH & FACILITIES SUPPORT

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 $6.4 million.

What is the period of performance?

Start: 2021-08-15. End: 2026-08-14.

What is the specific scope of 'Bandwidth & Facilities Support' and how does it align with current DoD communication needs?

The scope likely encompasses the provision of satellite bandwidth, ground station facilities, and associated maintenance and support services. This is crucial for ensuring reliable and secure communication channels for military operations globally. Alignment with current needs would involve assessing the contract's ability to support evolving mission requirements, data transmission volumes, and cybersecurity protocols.

What are the key performance indicators (KPIs) for this contract and how will they be monitored to ensure effectiveness?

Key performance indicators would likely include bandwidth availability, latency, uptime, data transfer rates, and response times for technical support. These would be monitored through regular performance reports submitted by RITENET CORP., site visits, and potentially independent testing by DISA. Failure to meet KPIs could result in penalties or contract termination.

Are there any identified risks associated with RITENET CORP.'s ability to deliver these services over the 5-year contract period?

Potential risks include technological obsolescence of satellite systems, geopolitical instability affecting satellite operations, cybersecurity threats, and the financial stability of the contractor. The government mitigates these through contract clauses, performance monitoring, and potentially requiring contingency plans from the contractor.

Industry Classification

NAICS: InformationSatellite TelecommunicationsSatellite Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,057,872

Exercised Options: $6,362,081

Current Obligation: $6,362,081

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NRD4013

IDV Type: IDC

Timeline

Start Date: 2021-08-15

Current End Date: 2026-08-14

Potential End Date: 2026-08-14 00:00:00

Last Modified: 2026-01-08

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