Satellite industry executive warns of coming shortage

[The Straight Story]

Satellite industry executive warns of coming shortage

By Kimberly Palmer
[e-mail]

The head of a major satellite operator said Thursday that the government could save money on satellite contracts if it could commit funding for longer periods of time.

"If you want to get the best price, you need to go long," said David Helfgott, president and chief executive of AMERICOM Government Services, at a luncheon organized by the Washington Space Business Roundtable, a group of space industry executives.

While acknowledging that the congressional appropriations process posed obstacles for long-term commitments to contractors, Helfgott said the rules should be changed for the government to get the best prices. He echoed comments made earlier this month by a federal acquisition official who expressed frustration with the acquisition funding process.

A one-year contract with 10 years of options is still considered to be short-term, because the contract is not guaranteed to be renewed, Helfgott said. Industry representatives often want longer contracts, but agency officials and watchdog groups warn that this would reduce competition, and they urge caution in protecting taxpayers' money.


http://www.govexec.com/dailyfed/0605/062405k1.htm