Making Deals
Written by Peter Buxbaum
CGF 2011 Volume: 3 Issue: 1 (March)
Winning a contract with the Coast Guard
calls for excellence in planning,
collaboration and execution.
The U.S. Coast Guard already had a taste of KVH Industries’ satellite communications products before it awarded the company a contract to outfit its fleet of small cutters. In 2008 and 2009, the Coast Guard had acquired several of KVH’s units and tested them on a number of classes of small cutters before proceeding to a full and open competition to replace the satellite communications equipment on as many as 216 vessels. KVH won the $42 million contract in 2010.
While there is not necessarily a cause and effect relationship between the testing and the ultimate contract award, the purchase of the initial KVH equipment served as a proof of concept for the smaller satellite communications antennas which KVH markets. The ultimate solicitation released by the Coast Guard limited competitive entries to specific sizes and weights.
Companies offering telecommunications hardware, software and services are finding a good customer in the Coast Guard. Besides standalone contracts such as the one KVH won, companies like AT&T Government Solutions are benefiting from acquisitions under Government Wide Acquisitions Contracts (GWACs), such as the General Services Administration’s Networx vehicle as well as the multifaceted IT and communications-oriented GSA Schedule 70.
KVH heard that the Coast Guard was considering replacing the commercial satellite communications services it was receiving from Inmarsat with higher bandwidth and lower cost Ku-band frequencies. So the company made a presentation of their new product at Coast Guard headquarters in Washington.
“We briefed them towards the end of 2007,” said Bill Houtz, KVH’s manager of military products. “We explained our new COTS product to the Coast Guard and told them we would be happy to make it available to them to test o their small cutters.”
KVH worked with a company called Mackay Communications to make the equipment available to the Coast Guard through Mackay’s GSA schedule. That was how the Coast Guard acquired the initial KVH equipment for testing.
What impressed the Coast Guard about KVH’s offering was that its satellite communications antenna was much smaller and lighter than other Ku-band equipment, making it more likely that it could be successfully installed on smaller vessels. “Other antennas are over a meter in length and weigh between 200 and 400 pounds,” said Houtz. “We come in at 60 centimeters and 60 pounds. That is about the size of the Inmarsat equipment and can be installed on smaller vessels without interfering with other equipment such as radios and radars. The antenna has to be installed high up on the vessel because anything, like the vessel’s own mast or bulkhead, could block the line of sight.”
Air time for Ku-band is much less expensive than the commercial Inmarsat system, allowing the Coast Guard to get a “very quick payback to swap Inmarsat off and put a system like KVH’s on,” said Houtz. The Coast Guard has ever-increasing requirements for airtime and bandwidth, he added, for applications such as checking biometrics. “The Coast Guard might pick someone up in the Caribbean and check his fingerprint over satellite,” he explained. “They can tell immediately if he is a good or bad guy without having to bring him onto land.”
Full and Open Competition
The Coast Guard’s testing of KVH’s equipment proved successful, leading to a full and open competition for Ku-band equipment to outfit several classes of small cutters. “The solicitation allowed any type of Ku-band technology, but it had to be in a specific size and weight category,” said Houtz. “The Coast Guard had proved the concept could work on smaller cutters and wanted to see what else the marketplace had to offer.”
The solicitation issued by the Coast Guard Telecommunications and Information Systems Command (TISCOM) sought shipboard hardware, interfaces between the contractor’s and the Coast Guard’s networks, a network operation center to monitor system performance and provide technical support, and satellite air time. Hardware and facilities deployment were to take place over a three- to five-year period while the airtime commitment was to be for 10 years.
The vehicle was constructed as an indefinite delivery/indefinite quantity (IDIQ) contract, meaning that specific segments of work would be accomplished through issuing task orders. The total value of the contract, based on outfitting 216 vessels among 16 cutter classes, is approximately $42 million. Since winning the contract award in September 2010, KVH has received task orders to equip four Coast Guard cutters. The installation is accomplished through a separate contractor.
“Once we receive a task order, the equipment is pre-activated and we deliver it to the install contractor,” said Houtz. “If they have any questions, they can call our technical support center in Middletown, Rhode Island, where we have highly-trained technicians available to provide them immediate service. It has become a very well-oiled machine.” The contract competition itself “was remarkably smooth,” said Houtz. “The statement of work was very well laid out. It was easy to transition from proposal to contract award to execution. Now it is just a matter of getting delivery orders, knowing where to ship the equipment and when to turn it on.”
Buying Through GSA Contracts
The Coast Guard also acquires communications equipment and services through broad government contracts managed by the General Services Administration.
The GSA’s Networx vehicle provides an array of voice and data communications services across the spectrum of federal government agencies. The program is divided into two contracts: Universal, which is designed to provide global connectivity, and Enterprise, which will facilitate projects narrower in scope.
Under the umbrella of Networx, the Department of Homeland Security established a contract called OneNet, which is designed to facilitate the consolidation of the myriad of department networks. DHS and the Coast Guard acquire communications equipment and services through GSA’s Information Technology (IT) Schedule 70, which includes 20 categories of commercial IT hardware, software and services available to agencies across the federal government.
“Networx is a GSA vehicle that enables agencies of the federal government to combine their buying power to get the best prices from carriers,” said Joe O’Bryan, sales center vice president at AT&T Government Solutions. “It is considered good government to use Networx rather than going rogue and contracting for services individually. Agencies cannot get the service level agreement that Networx offers and Congress has pushed the use of Networx as a contract vehicle.”
AT&T is one of three Networx Universal vendors and one of two vendors, along with Verizon, that were awarded contracts under the DHS OneNet sub-vehicle. Under those vehicles, AT&T Government Solutions is currently working with the Coast Guard in the area of network management. “We have a lot of experience, processes and tools for monitoring Tier One networks,” said O’Bryan. “The Coast Guard must often adjust its network in response to events that affect its mission. For example, the Coast Guard required more bandwidth in the gulf area when it mobilized in response to the oil spill. The Coast Guard networks are undergoing modernization and we are working with the Coast Guard to bring them industry best practices. We have a good partnership with them.”
Under contracts awarded under GSA Schedule 70, AT&T is working to introduce smart phones to the Coast Guard’s communications inventory and to create applications for them of use to the Coast Guard. “The Coast Guard has expressed interest in Android devices as well as other mobile devices such as iPhones, iPads and other tablet computers,” said O’Bryan. “We have provided these devices to the Coast Guard for testing and evaluation. Once that is done, we work these devices into a solution for the Coast Guard.”
The company is also working with the service in an area known as “mobilization of apps” under GSA’s Schedule 70. In this case, AT&T and the Coast Guard are working together to integrate required applications onto existing Coast Guard communications devices. One such application involves tying a fingerprint reader to a smart phone.
Another related application is called “satellite augmented mobility.” This enables Coast Guard personnel to make a satellite call at the touch of a button on a device that personnel already carry. This development is important to the Coast Guard in two ways, explained O’Bryan. “The Coast Guard often operates in remote locations where other types of connectivity are unavailable” he said. “This also allows them to remove one of the communications devices from their inventory.”
Coast Guard personnel often carry multiple communications devices, such as land mobile radios, satellite telephones, smart phones and local police radios, in order to meet their communications needs. “Satellite augmented mobility takes one device out of the picture,” said O’Bryan. “That is big news. If you are away from cell towers and need to make a call, you have the application right on the phone. The system goes nationwide and 200 miles offshore.” AT&T and the Coast Guard are also working together on encrypted voice communications.
Expanding the Relationship
O’Bryan would like expand AT&T’s relationship with the Coast Guard in a number of areas. He believes that in the apps area, the Coast Guard could profit by the use of AT&T’s Global Smart Messaging, which could be used to send short codes to send communications and alerts throughout the country.
AT&T is also interested in expanding its relationship under OneNet where the company is the prime contractor for high availability services. “The classic example is the data center,” said O’Bryan. “The Coast Guard could put applications that cannot fail, such as fingerprint identification, e-mail and Internet connectivity, into the high availability data center. We would put a high availability ring, instead of just a high speed line, into the data center, which means that it would take two cuts to the line instead of one to bring it down. That increases availability from 97 percent to 99.9-plus percent.”
O’Bryan also sees a role for AT&T in helping the Coast Guard with cyber-security. “We get hacked every day by those trying to get to our clients,” he said. “DHS is also always under attack. We have offerings to supply Managed Trusted Internet Protocol Services, which is required for government agencies by the Office of Management and Budget, through the GSA.” AT&T would also like to enhance contacts with the Coast Guard through the GSA’s Networx vehicle.
Secret of Success
KVH is looking forward to supplying satellite communications equipment and services to the Coast Guard for the next three to five years, and perhaps longer, under its 2010 contract. “We would be excited to hear about any new classes of cutters the Coast Guard may be purchasing,” said Houtz. “We think our solution could fit well with other classes of vessels as well.”
The early demonstration of the KVH product probably didn’t hurt, but Houtz said the key to actually winning the contract was “putting in a good proposal.” “It was a full and open competition,” he added. “We made a huge commitment to the Coast Guard in order to get their commitment in return. We have to be able to deliver in the out years of the contract and we gave them a very good price for the equipment, the 24/7 technical support, and the air time. That is the reason we were selected: we met the Coast Guard’s requirements and we put together a good package for them.” ♦