DG11--Low Earth Orbit (LEO) Satellite Services 2.0 (VA-27-00003905)

The federal government buys satellite telecommunications services primarily through the Telecommunications Division at one major agency, which accounts for over one-third of all spending in this code. The IT Contracting Division and Special Operations Command are also significant buyers. Most awards go to unrestricted competition, though about 3,400 awards have gone to small business set-asides. The median award is $4,000, but this masks wide variation: total spending reaches $20.83 billion across 38,312 awards from 613 vendors over 26 years.

A firm considering this market should know that competition is substantial but not overwhelming. The 613 vendors competing for awards suggests room for new entrants, though the top buyer concentrates its spending heavily. Award sizes vary dramatically, from small task orders under $10,000 to the rare billion-dollar contract. Most awards cluster at the low end, so firms should expect small initial orders unless they target the larger buyers like SOCOM or the Air Force's commercial services office.

Watch for the 1,116 contracts expiring within the next 12 months, worth $1.62 billion in total value. These represent recompete opportunities. The 12 active notices currently posted signal ongoing procurement activity. Small business set-asides account for roughly 3 percent of awards, so firms qualifying for SBA programs have a modest advantage in a market dominated by unrestricted competition.