Department of the Army awards $70.9M contract for 39,500 receivers to VIASAT INC
Contract Overview
Contract Amount: $70,875,000 ($70.9M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2011-01-25
End Date: 2013-10-08
Contract Duration: 987 days
Daily Burn Rate: $71.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DO 0005 IS TO PROCURE 39,500 RECIEVERS FOR A TOTAL AMOUNT OF $70,875,000.00
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $70.9 million to VIASAT INC for work described as: DO 0005 IS TO PROCURE 39,500 RECIEVERS FOR A TOTAL AMOUNT OF $70,875,000.00 Key points: 1. Contract value of $70.9 million for nearly 40,000 receivers suggests a per-unit cost of approximately $1,800. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The duration of the contract is approximately 987 days, suggesting a medium-term supply need. 4. The fixed-price contract type aims to control costs for the government. 5. The award to VIASAT INC. represents a significant procurement in the wireless communications equipment sector.
Value Assessment
Rating: good
The per-unit cost of approximately $1,800 for these receivers appears to be within a reasonable range for specialized communication equipment, though a direct comparison to similar government procurements would provide more definitive value assessment. The firm fixed-price structure offers cost certainty to the government. Without specific technical requirements or market benchmarks for these particular receivers, a precise value-for-money judgment is challenging, but the scale of the award suggests a significant operational need.
Cost Per Unit: Approximately $1,800 per unit.
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of two bidders (indicated by 'no': 2) suggests a degree of competition, though the exact number of proposals received and their competitiveness would offer a clearer picture. A competitive process generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: Full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing and terms, potentially reducing the overall expenditure.
Public Impact
The primary beneficiaries are likely military personnel requiring reliable communication receivers for operational purposes. The contract delivers essential wireless communication equipment, crucial for command, control, and situational awareness. The geographic impact is likely global, supporting deployed forces, though specific deployment locations are not detailed. This procurement supports jobs within the wireless communications equipment manufacturing sector, particularly at VIASAT INC. and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if these receivers become a sole standard without ongoing competitive refresh.
- Dependence on a single contractor for a critical component could pose supply chain risks.
- Ensuring long-term interoperability with evolving communication systems requires careful planning.
Positive Signals
- Awarded through full and open competition, indicating a fair and accessible process.
- Firm fixed-price contract type provides cost predictability for the government.
- Procurement of essential communication equipment supports military readiness and operational effectiveness.
Sector Analysis
This contract falls within the broader Information Technology and Defense Electronics sectors, specifically focusing on wireless communication equipment manufacturing. The market for such specialized receivers is driven by defense needs, technological advancements in radio frequency and signal processing, and government mandates for secure and reliable communication. Comparable spending benchmarks would involve analyzing other large-scale procurements of similar communication hardware by military branches or allied nations.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, VIASAT INC., as a large prime contractor, may engage small businesses in its supply chain for components or services, but this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Tactical Communication Systems
- Military Radio Procurement
- Wireless Network Infrastructure
- Defense Communication Satellites
- Electronic Warfare Equipment
Risk Flags
- Potential for sole-source dependency in future procurements if not managed competitively.
- Supply chain vulnerability if contractor faces production or logistical challenges.
- Technological obsolescence risk if receivers are not adaptable to future communication standards.
Tags
defense, department-of-the-army, wireless-communications-equipment, full-and-open-competition, firm-fixed-price, large-contract, viasat-inc, california, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, it-hardware
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.9 million to VIASAT INC. DO 0005 IS TO PROCURE 39,500 RECIEVERS FOR A TOTAL AMOUNT OF $70,875,000.00
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 Army).
What is the total obligated amount?
The obligated amount is $70.9 million.
What is the period of performance?
Start: 2011-01-25. End: 2013-10-08.
What is the specific technical capability and intended use of these 39,500 receivers?
The provided data does not specify the exact technical capabilities or intended use of the 39,500 receivers beyond their classification under NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing). However, given the procurement by the Department of the Army, these receivers are likely intended for tactical military communications, potentially for receiving signals in various operational environments, including secure data transmission, voice communication, or intelligence gathering. Their specific function could range from battlefield communication nodes to support for broader command and control networks. Further details on the system architecture and operational context would be needed for a precise understanding.
How does the per-unit cost of approximately $1,800 compare to similar government procurements or commercial off-the-shelf (COTS) equivalents?
Benchmarking the per-unit cost of approximately $1,800 requires specific technical specifications. If these are highly specialized, ruggedized, or secure military-grade receivers, this price might be competitive. For instance, advanced Software Defined Radios (SDRs) or specialized signal intelligence receivers can cost several thousand dollars. However, if the receivers are more standard components, this price could be high. A comparison with other Army or DoD procurements for similar quantities and functionalities, or with COTS equipment from manufacturers like L3Harris, BAE Systems, or even commercial satellite receiver providers, would be necessary. Without detailed specifications, it's difficult to definitively assess value, but the price point suggests a non-trivial level of technology or specialization.
What is VIASAT INC.'s track record with similar large-scale government communication equipment contracts?
VIASAT INC. has a significant track record as a major defense contractor, particularly in satellite communications, broadband services, and secure networking solutions. They have been awarded numerous large contracts by the Department of Defense and other government agencies for various communication systems, including terminals, modems, and related equipment. Their experience spans decades, and they are known for providing robust and often specialized communication capabilities for military and government applications. This specific contract for receivers aligns with their core competencies in advanced communication technologies, suggesting they possess the necessary expertise and capacity to fulfill the requirement.
What are the potential risks associated with a single awardee, VIASAT INC., for such a large quantity of receivers?
The primary risks associated with a single awardee for a large quantity of receivers include potential supply chain disruptions if VIASAT INC. faces production issues, quality control problems, or unforeseen delivery delays. There's also a risk of price escalation in future procurements if competition is not maintained or if the government becomes heavily reliant on this specific solution. Furthermore, if the technology becomes obsolete, transitioning to a new vendor could be complex and costly if VIASAT INC. holds proprietary technology or extensive integration knowledge. Ensuring robust contract management, performance monitoring, and contingency planning by the Department of the Army is crucial to mitigate these risks.
How does this procurement fit into the broader context of the Army's overall communication modernization efforts?
This procurement of 39,500 receivers likely supports the Army's ongoing efforts to modernize its tactical and strategic communication networks. As the military increasingly relies on networked operations, secure data links, and enhanced situational awareness, the demand for reliable and advanced communication hardware, including receivers, grows. This contract could be part of a larger initiative to upgrade fielded equipment, enhance interoperability across different platforms and echelons, or provide critical components for new communication systems being deployed. Understanding the specific system these receivers integrate with would clarify their role in the broader modernization strategy.
What is the historical spending trend for similar communication equipment by the Department of the Army?
Historical spending by the Department of the Army on communication equipment is substantial and fluctuates based on modernization cycles, operational tempo, and technological advancements. Over the past decade, the Army has consistently invested billions annually in various communication systems, including radios, satellite terminals, network infrastructure, and related components. Procurements like this one for receivers are typical components of larger system upgrades or sustainment efforts. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal trends in spending on specific equipment categories, average contract values, and key suppliers, providing context for the $70.9 million award.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6155 EL CAMINO REAL, CARLSBAD, CA, 49
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,875,000
Exercised Options: $70,875,000
Current Obligation: $70,875,000
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T10DC420
IDV Type: IDC
Timeline
Start Date: 2011-01-25
Current End Date: 2013-10-08
Potential End Date: 2013-10-08 00:00:00
Last Modified: 2014-07-31
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