DoD awarded $86.8M for transportable high-power satellite terminals, with Datapath Inc. as the primary contractor
Contract Overview
Contract Amount: $86,771,134 ($86.8M)
Contractor: Datapath, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-27
End Date: 2014-01-25
Contract Duration: 120 days
Daily Burn Rate: $723.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SATELLITE TERMINALS TRANSPORTABLE HIGH POWER
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $86.8 million to DATAPATH, INC. for work described as: SATELLITE TERMINALS TRANSPORTABLE HIGH POWER Key points: 1. The contract value of $86.8 million for satellite terminals represents a significant investment in tactical communications. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and technological advancement. 3. Risk indicators may include delivery timelines and the complexity of integrating high-power satellite technology. 4. Performance context involves the Department of Defense's need for robust and mobile communication solutions. 5. This contract positions Datapath, Inc. as a key supplier within the defense communications sector. 6. The fixed-price nature of the contract aims to control costs for the government.
Value Assessment
Rating: good
The awarded amount of $86.8 million for satellite terminals appears reasonable given the specialized nature of high-power, transportable equipment. Benchmarking against similar DoD contracts for tactical communication systems would provide a more precise value-for-money assessment. The firm fixed-price contract structure suggests an effort to manage cost overruns, but the ultimate value depends on the delivered performance and reliability of the terminals.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a moderately competitive environment. While more bidders could potentially drive prices lower, the existing competition likely provided sufficient market pressure to achieve a fair price for the government.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovation, preventing sole-source awards that might be more expensive.
Public Impact
The primary beneficiaries are Department of Defense units requiring reliable, high-power satellite communication capabilities in the field. The services delivered include the provision of transportable high-power satellite terminals, essential for command and control operations. The geographic impact is likely global, supporting military deployments in various operational theaters. Workforce implications may involve specialized technicians for installation, maintenance, and operation of the satellite terminals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for integration challenges with existing military communication networks.
- Ensuring long-term reliability and maintenance support for specialized equipment.
- Dependence on a single contractor for a critical communication capability.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Firm fixed-price contract helps manage cost certainty for the government.
- Datapath, Inc. has a track record in providing communication solutions.
Sector Analysis
The defense communications sector is characterized by high technological sophistication and stringent performance requirements. This contract for transportable high-power satellite terminals fits within the broader market for tactical communication systems, which is vital for modern military operations. Spending in this area is driven by the need for secure, reliable, and mobile connectivity in diverse and often challenging environments. Comparable spending benchmarks would involve other large-scale procurements of satellite ground equipment and communication infrastructure for defense purposes.
Small Business Impact
There is no indication that this contract included specific small business set-asides. The primary contractor, Datapath, Inc., is not typically classified as a small business. Subcontracting opportunities for small businesses may arise if Datapath engages them for specific components or services, but this is not explicitly detailed in the award information. The impact on the small business ecosystem is likely indirect, depending on Datapath's supply chain choices.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded in the contract terms, including delivery schedules and performance specifications. Transparency is facilitated through contract award databases, though detailed operational performance data may be considered sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Tactical Satellite Communications Systems
- Military Satellite Terminals
- Defense Communications Equipment
- Command and Control Systems
- Satellite Ground Systems
Risk Flags
- Potential for integration complexity
- Reliance on contractor for critical infrastructure
- Long-term maintenance and support needs
Tags
defense, department-of-defense, satellite-communications, transportable-terminals, high-power, datapath-inc, full-and-open-competition, firm-fixed-price, defense-contract-management-agency, communications-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $86.8 million to DATAPATH, INC.. SATELLITE TERMINALS TRANSPORTABLE HIGH POWER
Who is the contractor on this award?
The obligated recipient is DATAPATH, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $86.8 million.
What is the period of performance?
Start: 2013-09-27. End: 2014-01-25.
What is Datapath, Inc.'s track record with similar government contracts, particularly for satellite communication systems?
Datapath, Inc. has a history of providing communication solutions to government agencies. While specific details on past satellite terminal contracts of this magnitude are not immediately available in the provided data, their experience in the broader communications equipment manufacturing sector suggests a foundational capability. Further investigation into their contract history, including past performance evaluations and awards for similar systems, would be necessary to fully assess their track record for this specific type of high-power, transportable satellite terminal.
How does the $86.8 million contract value compare to market rates for similar transportable high-power satellite terminals?
Determining precise market rates for specialized equipment like transportable high-power satellite terminals is challenging without access to detailed market analysis or specific product specifications. However, the $86.8 million award for what appears to be a significant quantity or advanced capability suggests a substantial investment. Benchmarking would require comparing the per-unit cost, if calculable, against industry benchmarks for similar military-grade, transportable satellite terminals, considering factors like bandwidth, power output, and ruggedization. The firm fixed-price nature aims to ensure value, but the true market comparison lies in the performance delivered relative to cost.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential technical integration challenges with existing military networks, ensuring the reliability and durability of the transportable terminals in diverse operational environments, and timely delivery within the specified period. Mitigation strategies likely involve rigorous testing and acceptance protocols, clear performance specifications in the contract, and potentially performance bonds. The firm fixed-price structure also incentivizes the contractor to manage costs and risks effectively to avoid losses.
How effective are these satellite terminals likely to be in supporting DoD's operational requirements?
The effectiveness of these terminals hinges on their ability to provide reliable, high-bandwidth, and secure communication links in potentially austere or contested environments. As transportable, high-power units, they are designed to offer flexibility and robust connectivity for command and control, intelligence, surveillance, and reconnaissance (ISR) data transmission, and logistical support. Their success will be measured by their uptime, data throughput, ease of deployment, and resilience against interference or jamming, all critical factors for modern military operations.
What are the historical spending patterns for similar satellite communication equipment within the Department of Defense?
Historical spending on satellite communication equipment by the DoD is substantial and fluctuates based on strategic priorities, technological advancements, and operational tempo. The DoD consistently invests in satellite technology to maintain global command and control, intelligence gathering, and secure communications. This $86.8 million award is part of a larger, ongoing investment in modernizing and expanding its satellite communication capabilities, which has seen billions allocated over various fiscal years for terminals, ground stations, and satellite launches.
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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2205 NORTHMONT PKWY, DULUTH, GA, 30096
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $176,517,648
Exercised Options: $87,431,106
Current Obligation: $86,771,134
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T13D0015
IDV Type: IDC
Timeline
Start Date: 2013-09-27
Current End Date: 2014-01-25
Potential End Date: 2014-01-25 00:00:00
Last Modified: 2025-12-05
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