DoD Awards $250M Satellite Communications Contract to Datapath, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $250,349,309 ($250.3M)
Contractor: Datapath, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-06-03
End Date: 2021-01-25
Contract Duration: 1,697 days
Daily Burn Rate: $147.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF TASK ORDER AWARD SATELLITE COMMUNICATIONS SUPPORT SERVICES.
Place of Performance
Location: DULUTH, GWINNETT County, GEORGIA, 30096
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $250.3 million to DATAPATH, INC. for work described as: IGF::OT::IGF TASK ORDER AWARD SATELLITE COMMUNICATIONS SUPPORT SERVICES. Key points: 1. Significant contract value of $250.3 million for satellite communications support. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Contract duration of nearly 5 years (1697 days) indicates a substantial, long-term need. 4. The 'Other Communications Equipment Manufacturing' NAICS code suggests a focus on specialized hardware or services. 5. Cost Plus Fixed Fee contract type requires careful monitoring of costs to ensure value.
Value Assessment
Rating: good
The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can be appropriate for R&D or uncertain scope projects. However, it necessitates robust oversight to prevent cost overruns and ensure the fixed fee remains reasonable relative to the effort.
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 were likely considered. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: Full and open competition is designed to achieve fair market prices and maximize taxpayer value by leveraging a competitive environment.
Public Impact
Ensures critical satellite communication capabilities for the Department of the Army. Supports advanced communication infrastructure potentially used in various operational environments. The contract's duration suggests ongoing reliance on these services for national security or operational needs. Potential for technological advancements in satellite communications driven by contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type requires diligent cost tracking and oversight.
- Potential for scope creep in complex communication projects.
- Reliance on a single vendor for critical support services.
Positive Signals
- Awarded through full and open competition.
- Long-term contract indicates sustained need and potential for stable service.
- Supports critical defense communication infrastructure.
Sector Analysis
The 'Other Communications Equipment Manufacturing' sector (NAICS 334290) encompasses a range of specialized communication technologies. Spending in this area is often driven by defense, intelligence, and critical infrastructure needs, with contract values varying significantly based on technological complexity and scale.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates strong government oversight to manage costs effectively and ensure the contractor meets performance expectations. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for vendor lock-in.
- Reliance on specialized communication technology.
Tags
other-communications-equipment-manufactu, department-of-defense, ga, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $250.3 million to DATAPATH, INC.. IGF::OT::IGF TASK ORDER AWARD SATELLITE COMMUNICATIONS SUPPORT SERVICES.
Who is the contractor on this award?
The obligated recipient is DATAPATH, 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 $250.3 million.
What is the period of performance?
Start: 2016-06-03. End: 2021-01-25.
What specific satellite communication services are being provided under this contract, and how do they align with current DoD operational requirements?
The contract details are limited, but the NAICS code suggests it covers manufacturing or support for communication equipment. Specific services likely include satellite terminal operation, maintenance, network management, or potentially the development of new communication solutions. Alignment with DoD requirements would depend on the Army's current strategic communication needs, which often involve secure, global reach for command and control, intelligence dissemination, and operational support.
Given the CPFF structure, what mechanisms are in place to control costs and prevent contractor inefficiencies or unnecessary expenditures?
Effective cost control under a CPFF contract relies on stringent government oversight, including detailed cost accounting standards, regular audits of contractor expenditures, and clear performance metrics. The government should establish baseline cost estimates, monitor spending against these estimates, and ensure the fixed fee is justified by the scope and risk. Any deviations or potential cost overruns must be proactively managed through contract modifications and performance reviews.
How does the $250 million award compare to typical spending for similar satellite communication support services within the Department of Defense?
A $250 million award over nearly five years for satellite communications support is substantial, reflecting the critical nature and complexity of such services for a major military branch like the Army. Benchmarking requires comparing it against contracts for similar scope, duration, and technological sophistication. Factors like the specific satellite constellations supported, bandwidth requirements, and geographic coverage would influence its relative cost-effectiveness compared to other DoD communication contracts.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
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: $331,722,357
Exercised Options: $303,416,048
Current Obligation: $250,349,309
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: 2016-06-03
Current End Date: 2021-01-25
Potential End Date: 2021-01-25 00:00:00
Last Modified: 2025-04-24
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