DoD awards $29.5M Hawkeye360 contract for satellite data, raising competition concerns
Contract Overview
Contract Amount: $29,513,607 ($29.5M)
Contractor: Hawkeye 360, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-30
End Date: 2026-09-15
Contract Duration: 1,446 days
Daily Burn Rate: $20.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HAWKEYE360 RF DATA SUBSCRIPTION & SERVICES - BASE YEAR
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.5 million to HAWKEYE 360, INC. for work described as: HAWKEYE360 RF DATA SUBSCRIPTION & SERVICES - BASE YEAR Key points: 1. Significant contract value for satellite telecommunications services. 2. Sole-source award to Hawkeye 360, Inc. limits competitive options. 3. Potential for higher costs due to lack of competition. 4. Focus on satellite data highlights evolving defense intelligence needs.
Value Assessment
Rating: questionable
The contract value of $29.5 million for the base year appears substantial. Without competitive bidding, it's difficult to benchmark against similar satellite data subscriptions or services to determine optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Hawkeye 360, Inc. This limits price discovery and potentially leads to less favorable terms for the government compared to a competitive environment.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these critical satellite data services.
Public Impact
Ensures access to vital satellite-based intelligence for the Department of the Navy. Supports national security objectives through advanced data analytics. Potential for future contract expansions could increase overall taxpayer investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of price benchmarking.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Provides critical satellite data services.
- Supports defense intelligence capabilities.
Sector Analysis
This contract falls within the Satellite Telecommunications sector, a rapidly evolving area crucial for modern defense and intelligence gathering. Spending in this sector is often characterized by high R&D costs and specialized capabilities, making competition challenging but essential.
Small Business Impact
The contract was awarded to Hawkeye 360, Inc., a specific company. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the necessity for a non-competitive award is well-documented and justified.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award.
- Lack of competitive bidding.
- Potential for inflated pricing.
- Limited transparency on pricing justification.
- No clear small business participation.
Tags
satellite-telecommunications, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.5 million to HAWKEYE 360, INC.. HAWKEYE360 RF DATA SUBSCRIPTION & SERVICES - BASE YEAR
Who is the contractor on this award?
The obligated recipient is HAWKEYE 360, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $29.5 million.
What is the period of performance?
Start: 2022-09-30. End: 2026-09-15.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology that only one vendor can provide. To ensure fair pricing, the agency should conduct thorough market research, negotiate aggressively, and potentially seek independent cost analyses. Regular reviews of the contract's performance and pricing are also crucial.
What are the risks associated with relying on a single provider for critical satellite data services, particularly in terms of long-term availability and technological advancement?
Relying on a sole-source provider carries risks of vendor lock-in, potential price increases over time, and slower adoption of new technologies if the vendor lacks competitive pressure to innovate. It also poses a risk to continuity of service if the vendor faces financial or operational difficulties. Diversification or clear performance incentives can mitigate some of these risks.
How does the value of this contract compare to similar satellite data subscription services procured competitively by other government agencies or commercial entities?
Without competitive data, a direct comparison is difficult. However, the $29.5 million base year value is significant. If similar services are available through competitive contracts at lower price points or with better terms, it would indicate potential overpayment or a missed opportunity for better value.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6600122R0065
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 196 VAN BUREN ST STE 450, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,313,607
Exercised Options: $29,513,607
Current Obligation: $29,513,607
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-30
Current End Date: 2026-09-15
Potential End Date: 2026-09-15 00:00:00
Last Modified: 2025-09-10
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