DoD's $1.97M Satellite Telecommunications Contract with ARINC Inc. Faces Limited Competition
Contract Overview
Contract Amount: $1,986,869 ($2.0M)
Contractor: Arinc Incorporated
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2027-01-31
Contract Duration: 1,948 days
Daily Burn Rate: $1.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FUNDING BASE PERIOD
Place of Performance
Location: BURBANK, LOS ANGELES County, CALIFORNIA, 91522
Plain-Language Summary
Department of Defense obligated $2.0 million to ARINC INCORPORATED for work described as: FUNDING BASE PERIOD Key points: 1. Contract awarded to ARINC INCORPORATED for satellite telecommunications. 2. Limited competition due to contract type and award method. 3. Potential risk associated with sole-source or limited competition awards. 4. Spending falls within the IT/Defense sector, requiring specialized services.
Value Assessment
Rating: questionable
The contract's value of $1.97M for a base period is difficult to assess without comparable contract data. The 'NOT AVAILABLE FOR COMPETITION' status for the contract type suggests potential pricing inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded via a delivery order under a limited competition framework. This approach may not have fully explored the market, potentially leading to suboptimal price discovery.
Taxpayer Impact: Taxpayer funds may not have been utilized in the most cost-effective manner due to the limited competitive environment.
Public Impact
Ensures critical satellite telecommunications services for the Department of Defense. Potential for higher costs due to limited competition. Impacts national security infrastructure reliant on reliable communication.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of pricing transparency
- Potential for cost overruns
Positive Signals
- Ensures essential service delivery
- Supports defense operations
Sector Analysis
This contract falls under the IT/Defense sector, specifically satellite telecommunications. Spending benchmarks for similar services can vary widely based on technology, duration, and specific requirements.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was considered or feasible.
Oversight & Accountability
Oversight is crucial for contracts with limited competition to ensure fair pricing and performance. The Defense Information Systems Agency (DISA) is responsible for managing this contract, and their oversight processes are key.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of transparency in the procurement process.
- Potential for vendor lock-in.
- Reliance on a single provider for critical services.
Tags
satellite-telecommunications, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.0 million to ARINC INCORPORATED. FUNDING BASE PERIOD
Who is the contractor on this award?
The obligated recipient is ARINC INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $2.0 million.
What is the period of performance?
Start: 2021-10-01. End: 2027-01-31.
What specific factors led to the 'NOT AVAILABLE FOR COMPETITION' status, and were alternatives explored?
The 'NOT AVAILABLE FOR COMPETITION' status typically arises from specific government procurement regulations, such as the existence of a unique capability, urgent need, or a sole-source justification. Without further details on the specific circumstances surrounding this delivery order, it's difficult to ascertain the exact reasons. However, the contracting agency should have documented the justification for limiting competition to ensure it aligned with federal acquisition regulations and best practices.
How does the pricing of this contract compare to industry benchmarks for similar satellite telecommunications services?
Direct comparison to industry benchmarks is challenging without detailed service specifications and performance metrics. However, given the limited competition, there's a risk that the pricing may be higher than what could be achieved in a fully competitive environment. A thorough cost analysis by the agency, comparing proposed costs against independent government cost estimates and market research, would be necessary to validate the pricing's reasonableness.
What is the long-term strategy for ensuring competitive sourcing of satellite telecommunications services for the DoD?
The long-term strategy should involve regular market research and proactive planning to foster competition for satellite telecommunications. This could include breaking down large requirements into smaller, more accessible contracts, encouraging new entrants into the market, and utilizing contract vehicles that promote competition. Agencies should also periodically review existing sole-source or limited-source contracts to identify opportunities for increased competition as circumstances evolve.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC101321R0013
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 2551 RIVA RD, ANNAPOLIS, MD, 21401
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,214,203
Exercised Options: $2,673,388
Current Obligation: $1,986,869
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101321D0009
IDV Type: IDC
Timeline
Start Date: 2021-10-01
Current End Date: 2027-01-31
Potential End Date: 2031-09-30 00:00:00
Last Modified: 2026-01-08
More Contracts from Arinc Incorporated
- Aeronautical Mobile Communication Services Contract Igf::cl,Ct::igf — $246.7M (Department of Transportation)
- Providing Aeronautical Mobile Communications Services — $182.5M (Department of Transportation)
- Provide Mandatory Oceanic High Frequency (HF) Voice Communication to Flight Operations in FAA Oceanic Airspace — $122.4M (Department of Transportation)
- O&M Funding Base Period — $35.4M (Department of Defense)
- Funding Base Period — $3.4M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)