DoD's $41M MIDS LVT LOT 11 contract awarded to Viasat Inc. for communications equipment
Contract Overview
Contract Amount: $41,041,919 ($41.0M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2010-03-10
End Date: 2012-09-30
Contract Duration: 935 days
Daily Burn Rate: $43.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MIDS LVT LOT 11
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $41.0 million to VIASAT INC for work described as: MIDS LVT LOT 11 Key points: 1. The contract value of $41 million represents a significant investment in specialized communication systems. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and technological advancement. 3. Risk indicators may include the complexity of the technology and the reliance on a single contractor for specific components. 4. Performance context is defined by the delivery order structure, suggesting phased implementation and potential for ongoing evaluation. 5. This contract positions the Department of the Navy within the broader defense communications sector, emphasizing interoperability and secure data transmission.
Value Assessment
Rating: fair
Benchmarking the value of this $41 million contract is challenging without specific performance metrics or comparable contract data. The firm-fixed-price nature suggests cost certainty for the government, but the actual value realized depends on the delivered equipment's effectiveness and longevity. Comparing it to similar procurements for advanced communication systems would provide a clearer picture of whether the pricing reflects market rates for such specialized technology.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a moderate level of competition for this specialized equipment. While not a highly contested bid, full and open competition generally promotes price discovery and encourages contractors to offer competitive terms.
Taxpayer Impact: Full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it aims to secure the best possible price and value through a structured bidding process.
Public Impact
The Department of the Navy is the primary beneficiary, receiving advanced communication equipment. The services delivered include the provision of MIDS LVT LOT 11 systems, crucial for tactical data links. The geographic impact is likely concentrated within naval operations and deployment areas. Workforce implications may involve specialized technical personnel for installation, maintenance, and operation of the new systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the technology becomes proprietary and difficult to integrate with future systems.
- Dependence on Viasat Inc. for critical communication infrastructure could pose supply chain risks.
- Ensuring long-term support and maintenance availability for specialized equipment requires careful contract management.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Firm-fixed-price contract type provides cost predictability for the government.
- The contract is for essential communication equipment, supporting critical defense operations.
Sector Analysis
The defense communications sector is characterized by high technological complexity, stringent security requirements, and significant government investment. Contracts like this, for specialized equipment such as Multifunctional Information Distribution System (MIDS) Low Volume Terminals (LVT), are vital for maintaining battlefield awareness and interoperability among allied forces. The market is often dominated by a few key players capable of meeting these demanding specifications. Spending benchmarks in this area are typically high due to the advanced nature of the technology and the critical mission requirements.
Small Business Impact
This contract does not appear to have a specific small business set-aside. Given the specialized nature of advanced communications equipment, it is common for prime contracts to be awarded to large, established defense contractors. However, opportunities may exist for small businesses to participate as subcontractors, providing components or specialized services to the prime contractor, Viasat Inc.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price delivery order structure, requiring Viasat Inc. to meet specified technical and delivery requirements. Transparency is facilitated through contract award databases, though detailed operational performance data may be considered sensitive.
Related Government Programs
- MIDS LVT Program
- Tactical Data Links
- Defense Communications Systems
- Naval Aviation Electronics
Risk Flags
- Technology obsolescence risk
- Supply chain vulnerability
- Performance adherence risk
Tags
defense, department-of-the-navy, communications-equipment, firm-fixed-price, full-and-open-competition, delivery-order, viasat-inc, mids-lvt, california, specialized-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.0 million to VIASAT INC. MIDS LVT LOT 11
Who is the contractor on this award?
The obligated recipient is VIASAT 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 $41.0 million.
What is the period of performance?
Start: 2010-03-10. End: 2012-09-30.
What is the historical spending trend for MIDS LVT LOT 11 or similar systems by the Department of the Navy?
Analyzing historical spending for MIDS LVT LOT 11 specifically requires access to detailed contract databases beyond the initial award information. However, broader trends in tactical data link procurements by the Department of the Navy indicate consistent investment in maintaining and upgrading communication capabilities. Over the past decade, spending in this category has fluctuated based on modernization priorities, geopolitical events, and the lifecycle of existing systems. The MIDS LVT program itself has seen multiple contract awards over the years, reflecting ongoing needs for these terminals across various naval platforms. Without specific historical data for this exact lot, it's reasonable to infer that spending aligns with the strategic importance of secure, interoperable communication for naval operations, likely representing millions of dollars annually across different contract vehicles and vendors.
How does the awarded price compare to industry benchmarks for similar communication equipment?
Determining precise industry benchmarks for specialized defense communication equipment like the MIDS LVT LOT 11 is challenging due to the proprietary nature of much of this technology and the unique specifications required by military contracts. The $41 million award for this lot suggests a significant investment, but without detailed technical specifications and performance requirements, a direct price-to-performance comparison is difficult. Generally, defense communication systems command premium pricing due to rigorous testing, security certifications, and the need for high reliability in demanding environments. If comparable systems from other vendors or previous generations of MIDS LVT were procured under similar competitive conditions, a benchmark could be established. However, the limited number of bidders (two) in this instance might suggest less aggressive price competition than in a more crowded market.
What are the key performance indicators (KPIs) used to evaluate Viasat Inc.'s performance on this contract?
Key performance indicators (KPIs) for a contract like MIDS LVT LOT 11 typically revolve around technical performance, delivery schedules, and reliability. For communication equipment, critical KPIs would include data throughput rates, signal integrity, latency, mean time between failures (MTBF), and compliance with interoperability standards (e.g., Link 16). Delivery KPIs would focus on adherence to the contract's schedule for producing and delivering the specified number of units. Reliability KPIs would assess the equipment's operational lifespan and susceptibility to malfunctions in various environmental conditions. The firm-fixed-price nature of the contract incentivizes Viasat Inc. to meet these KPIs to avoid penalties and ensure full payment, while the government would monitor these metrics through acceptance testing and operational feedback.
What is the potential impact of this contract on future defense communication technology development?
This contract, awarding MIDS LVT LOT 11 to Viasat Inc., contributes to the ongoing evolution of tactical data link technology. The MIDS LVT is a mature but critical component of modern military communication networks, enabling secure, jam-resistant data exchange. Awards like this ensure the continued availability and potential incremental upgrades of these systems, supporting current operational needs. Furthermore, the performance and reliability demonstrated under this contract could influence future procurement decisions and R&D investments in next-generation communication systems. It signals the enduring requirement for robust, interoperable data links, potentially driving further innovation in areas like cybersecurity, increased bandwidth, and enhanced situational awareness capabilities within the defense sector.
Are there any known risks associated with the technology or the contractor, Viasat Inc., in delivering this contract?
Risks associated with this contract can be categorized into technological and contractor-specific aspects. Technologically, the MIDS LVT system, while proven, operates within an evolving threat landscape where advanced electronic warfare capabilities could challenge its resilience. Ensuring the system remains effective against sophisticated jamming and interception is an ongoing concern. Contractor-specific risks for Viasat Inc. might include potential production delays, quality control issues, or challenges in meeting stringent military specifications. While Viasat Inc. is a recognized player in the aerospace and defense communications market, any large-scale production contract carries inherent execution risks. The government mitigates these risks through contract clauses, oversight, and performance monitoring, but the possibility of unforeseen technical hurdles or supply chain disruptions remains.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0003910R0011
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6155 EL CAMINO REAL, CARLSBAD, CA, 92009
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,041,919
Exercised Options: $41,041,919
Current Obligation: $41,041,919
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003910D0032
IDV Type: IDC
Timeline
Start Date: 2010-03-10
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2024-09-09
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