DoD Awards $57M for 10GB Lease to Support NSA, Bahrain Operations
Contract Overview
Contract Amount: $57,015,000 ($57.0M)
Contractor: Artel LLC
Awarding Agency: Department of Defense
Start Date: 2019-04-25
End Date: 2026-12-20
Contract Duration: 2,796 days
Daily Burn Rate: $20.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GNAR000008EBM - START 10GB LEASE BETWEEN NSA, BAHRAIN TO CAMP LEMONIER, DJIBO-UTI
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $57.0 million to ARTEL LLC for work described as: GNAR000008EBM - START 10GB LEASE BETWEEN NSA, BAHRAIN TO CAMP LEMONIER, DJIBO-UTI Key points: 1. Contract awarded to ARTEL LLC for telecommunications services. 2. Significant spending on a critical infrastructure lease supporting military operations. 3. Full and open competition was utilized, suggesting potential for competitive pricing. 4. Long-term contract duration (2019-2026) indicates sustained need for services.
Value Assessment
Rating: good
The contract value of $57.015 million over approximately 7 years suggests a per-year cost of roughly $8.14 million. This appears reasonable for a dedicated 10GB lease supporting a significant military installation, though direct comparison is difficult without specific bandwidth and service level details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The use of a delivery order under an existing contract structure suggests a streamlined procurement process.
Taxpayer Impact: Taxpayer funds are being used to secure essential communication infrastructure for military operations, ensuring connectivity and operational effectiveness.
Public Impact
Ensures critical communication links for NSA operations in Bahrain. Supports military readiness and operational capabilities in a key strategic location. Provides reliable data transmission for sensitive government information.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for price increases over the long contract term.
- Dependence on a single vendor for critical infrastructure.
Positive Signals
- Awarded through full and open competition.
- Supports vital national security operations.
- Long-term commitment provides stability.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, specifically supporting critical IT infrastructure for defense. Spending benchmarks for similar high-capacity, long-term leases for military installations can vary widely based on location and specific service level agreements.
Small Business Impact
The data indicates this contract was awarded to ARTEL LLC, and there is no specific indication of small business participation or subcontracting in the provided details. Further analysis would be needed to determine if small businesses were involved.
Oversight & Accountability
The contract was awarded by the Department of Defense's Defense Information Systems Agency (DISA), which is responsible for providing information technology services and infrastructure. Oversight would typically involve contract management and performance monitoring by DISA.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Long-term contract duration may limit flexibility.
- Potential for vendor lock-in.
- Geopolitical risks in the region could impact service delivery.
- Dependence on a single provider for critical communications.
Tags
wired-telecommunications-carriers, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.0 million to ARTEL LLC. GNAR000008EBM - START 10GB LEASE BETWEEN NSA, BAHRAIN TO CAMP LEMONIER, DJIBO-UTI
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 $57.0 million.
What is the period of performance?
Start: 2019-04-25. End: 2026-12-20.
What is the specific pricing structure and how does it compare to market rates for similar 10GB leases in the region?
The provided data does not detail the specific pricing structure beyond the total award amount and contract duration. A comprehensive market analysis would be required to benchmark the per-gigabit-per-month cost against similar commercial or government leases in the Middle East region, considering factors like service level agreements, redundancy, and security requirements.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this lease, and how is performance being monitored?
The provided data does not specify the KPIs or SLAs for this contract. Effective oversight would involve DISA establishing clear performance metrics for uptime, latency, bandwidth availability, and incident response times, with regular reporting and performance reviews to ensure ARTEL LLC meets contractual obligations.
Are there any contingency plans or alternative providers in place should ARTEL LLC experience service disruptions?
The data does not mention contingency plans or alternative providers. Given the critical nature of the service for NSA operations, it would be prudent for DISA to have established backup communication strategies or to have vetted alternative providers capable of stepping in during emergencies to mitigate risks associated with single-vendor reliance.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
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
Solicitation ID: HC102118RA024
Offers Received: 7
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, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,015,000
Exercised Options: $57,015,000
Current Obligation: $57,015,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101316D0001
IDV Type: IDC
Timeline
Start Date: 2019-04-25
Current End Date: 2026-12-20
Potential End Date: 2026-12-20 00:00:00
Last Modified: 2024-03-28
More Contracts from Artel LLC
- 576 MHZ Ku-Band — $173.4M (Department of Defense)
- 432 MHZ KU Satellite Bandwidth — $159.0M (Department of Defense)
- Space Segment — $125.0M (Department of Defense)
- Space Segment- 250 MHZ (KU) — $114.8M (Department of Defense)
- Satellite Service — $80.4M (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)