DoD's Navy awards $47.3M for MIDS JTRS Lot 4A, with Viasat Inc. as sole provider
Contract Overview
Contract Amount: $47,275,194 ($47.3M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2016-03-30
End Date: 2017-11-30
Contract Duration: 610 days
Daily Burn Rate: $77.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) LOT 4A PRODUCTION TERMINAL PROCUREMENT.
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $47.3 million to VIASAT INC for work described as: MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) LOT 4A PRODUCTION TERMINAL PROCUREMENT. Key points: 1. Significant investment in tactical radio systems for military communications. 2. Viasat Inc. is the sole source provider, raising competition concerns. 3. Procurement method and lack of competition may impact price discovery. 4. Focus on IT hardware for defense applications.
Value Assessment
Rating: questionable
The contract value of $47.3M for a single delivery order is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was sole-sourced, meaning no other vendors were considered. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the lack of competitive pressure.
Public Impact
Ensures critical communication capabilities for naval forces. Supports advanced tactical data links for enhanced situational awareness. Potential for higher costs due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential defense capability
- Supports advanced technology
Sector Analysis
This procurement falls within the Information Technology sector, specifically focusing on advanced wireless communication equipment for defense. Spending benchmarks for similar tactical radio systems can vary widely based on features and quantities, but sole-source awards often deviate from competitive norms.
Small Business Impact
The data provided does not indicate any specific set-aside for small businesses. As a sole-source award to a large corporation like Viasat Inc., it is unlikely that small businesses were significantly involved in this particular contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the justification for not competing the award was robust and that the pricing is reasonable despite the lack of competition.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for higher costs to taxpayers.
- Limited transparency in price negotiation.
- Dependency on a single supplier.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.3 million to VIASAT INC. MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) LOT 4A PRODUCTION TERMINAL PROCUREMENT.
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 $47.3 million.
What is the period of performance?
Start: 2016-03-30. End: 2017-11-30.
What is the justification for the sole-source award of the MIDS JTRS Lot 4A terminal procurement?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the need for compatibility with existing systems where only one vendor can meet the requirement. For this specific contract, the justification would need to be formally documented by the Department of the Navy, detailing why competitive procurement was not feasible or advantageous.
How does the lack of competition impact the risk of cost overruns or inefficient spending?
The absence of competition significantly increases the risk of cost overruns and inefficient spending. Without competing bids, the government lacks a benchmark to ensure fair pricing. The sole-source provider may have less incentive to control costs, potentially leading to higher prices than if multiple vendors were vying for the contract.
What is the long-term strategic value of this sole-source procurement for the Department of Defense?
The long-term strategic value hinges on the criticality of the MIDS JTRS system to naval operations and the unique capabilities Viasat Inc. provides. If this system is essential for interoperability and mission success, and Viasat is the only viable provider, the sole-source award might be strategically necessary despite the cost implications. However, it also highlights a potential dependency.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003914R0021
Offers Received: 1
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: $47,275,194
Exercised Options: $47,275,194
Current Obligation: $47,275,194
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $29,036
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003915D0008
IDV Type: IDC
Timeline
Start Date: 2016-03-30
Current End Date: 2017-11-30
Potential End Date: 2017-11-30 00:00:00
Last Modified: 2024-09-09
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