DoD's $76.7M TTNT Spectrum Relocation contract awarded to Viasat Inc. without competition

Contract Overview

Contract Amount: $76,714,086 ($76.7M)

Contractor: Viasat Inc

Awarding Agency: Department of Defense

Start Date: 2016-09-22

End Date: 2020-05-29

Contract Duration: 1,345 days

Daily Burn Rate: $57.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) SPECTRUM RELOCATION DEVELOPMENT DELIVERY ORDER.

Place of Performance

Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $76.7 million to VIASAT INC for work described as: TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) SPECTRUM RELOCATION DEVELOPMENT DELIVERY ORDER. Key points: 1. The contract's value of $76.7 million over its period of performance suggests a significant investment in specialized communication technology. 2. Awarded on a sole-source basis, the lack of competition raises questions about potential price inflation and the absence of market-driven cost efficiencies. 3. The contract's 'Cost Plus Fixed Fee' structure, while allowing for flexibility, can introduce cost overrun risks if not meticulously managed. 4. The duration of the contract (1345 days) indicates a long-term need for the services or technology, implying critical operational reliance. 5. The specific nature of 'TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) SPECTRUM RELOCATION' points to a niche requirement within defense communications. 6. The absence of small business set-asides or subcontracting plans suggests this contract is not designed to foster broader small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. However, the $76.7 million expenditure over approximately 3.7 years for 'TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) SPECTRUM RELOCATION DEVELOPMENT DELIVERY ORDER' warrants scrutiny. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value or if alternative, more cost-effective solutions were overlooked. The Cost Plus Fixed Fee (CPFF) contract type, while common for development, can lead to higher overall costs compared to fixed-price contracts if not tightly controlled.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Viasat Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and may result in higher costs for the government compared to a fully competed contract. The absence of competition means taxpayers do not benefit from the potential cost savings that arise from vendors vying for the contract.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for this specialized technology, as there was no market pressure to drive down costs. This also limits transparency into the pricing structure.

Public Impact

The primary beneficiaries are likely elements within the Department of the Navy and potentially other Department of Defense entities requiring advanced tactical targeting network capabilities. The contract delivers development and delivery order services related to spectrum relocation for TTNT, crucial for maintaining operational effectiveness of communication systems. The geographic impact is primarily within the United States, with potential implications for military bases or operational theaters where TTNT is deployed. Workforce implications may include specialized engineers and technicians at Viasat Inc. and potentially within the Department of Defense for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Cost Plus Fixed Fee contract type carries inherent risks of cost overruns if not managed stringently.
Lack of transparency in the procurement process due to sole-source nature.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Addresses a specific, likely critical, defense need for tactical targeting network technology.
Awarded to a known entity (Viasat Inc.) with presumed expertise in the required domain.
The contract duration suggests a sustained commitment to a necessary capability.

Sector Analysis

This contract falls within the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector (NAICS 334220). This sector is vital for national security, providing the infrastructure and technology for secure and reliable communications. The market for defense-related communications technology is often characterized by high barriers to entry, specialized R&D requirements, and significant government investment. Comparable spending benchmarks are difficult to establish precisely due to the niche nature of TTNT, but overall defense spending on C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems runs into billions annually.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, nor is there information suggesting subcontracting opportunities for small businesses. The sole-source nature of the award further limits the potential for small business involvement, as the primary contract is directly with Viasat Inc. This suggests that the focus was on acquiring a specific capability from an incumbent or specialized provider rather than leveraging the broader small business industrial base.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. The 'Cost Plus Fixed Fee' structure necessitates rigorous financial oversight to monitor expenditures against the fixed fee and ensure the contractor is not incurring excessive costs. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Tactical Data Links
Command and Control Systems
Defense Communications Networks
Spectrum Management Systems
Wireless Communication Equipment

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.7 million to VIASAT INC. TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) SPECTRUM RELOCATION DEVELOPMENT DELIVERY ORDER.

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 $76.7 million.

What is the period of performance?

Start: 2016-09-22. End: 2020-05-29.

What is the specific nature of the 'TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) SPECTRUM RELOCATION' and why was it deemed necessary?

The 'TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) SPECTRUM RELOCATION DEVELOPMENT DELIVERY ORDER' likely pertains to the modernization or adaptation of a critical communication system used for tactical targeting. Spectrum relocation implies that existing radio frequencies used by the TTNT are being moved to new frequencies, possibly due to interference, regulatory changes, or the need to accommodate new technologies or increased bandwidth. TTNT itself is a specialized network designed to facilitate rapid and secure exchange of targeting information among military assets. This relocation is necessary to ensure the continued operational effectiveness, security, and compliance of these vital communication links in a dynamic electromagnetic environment.

What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of development?

The Cost Plus Fixed Fee (CPFF) contract type presents several risks, particularly in development projects. The government agrees to pay the contractor's allowable costs plus a predetermined fixed fee representing profit. The primary risk is that the contractor may have less incentive to control costs compared to a fixed-price contract, as cost overruns are generally reimbursed. While the fixed fee provides some ceiling on profit, the total project cost can escalate significantly if the contractor's costs increase unexpectedly. Effective oversight, detailed cost tracking, and robust negotiation are crucial to mitigate these risks and ensure the government receives value for its investment. For specialized defense technology, the complexity can exacerbate these inherent risks.

How does the sole-source award impact the potential for innovation and alternative solutions?

A sole-source award inherently limits the potential for innovation and the exploration of alternative solutions. By selecting a single contractor without competition, the government foregoes the opportunity to benefit from the diverse approaches, technologies, and cost-saving ideas that multiple bidders might offer. Competitors could potentially propose more innovative technical solutions or more efficient methods for achieving the desired outcome. In this case, awarding the TTNT spectrum relocation contract to Viasat Inc. without exploring other vendors means that potentially superior or more cost-effective alternatives developed by other companies in the defense communications sector were not considered, potentially hindering technological advancement and increasing costs.

What is Viasat Inc.'s track record with similar defense communication contracts?

Viasat Inc. is a well-established company with a significant track record in providing advanced communication systems, including satellite broadband, cybersecurity, and tactical data links for defense and government applications. They have been a frequent recipient of U.S. military contracts, often related to secure communications, networking, and airborne satellite systems. Their experience likely includes developing and delivering complex communication solutions under various contract types. While specific details of past performance on TTNT-related projects would require deeper investigation, Viasat's general profile suggests they possess the technical capabilities and experience necessary for such a specialized contract, though the sole-source nature still warrants scrutiny regarding value and alternatives.

Can the $76.7 million expenditure be benchmarked against other similar defense spectrum management or network modernization projects?

Benchmarking the $76.7 million expenditure for this specific TTNT spectrum relocation is challenging due to the highly specialized and often classified nature of tactical military communications technology. Direct comparisons are difficult without access to detailed project scopes, technical requirements, and contract types of similar projects. However, general defense spending on C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) modernization and spectrum management initiatives runs into billions of dollars annually across various services. The value of this contract appears substantial, reflecting the critical nature and complexity of ensuring secure and effective tactical communication networks, but without competitive data, assessing its relative value against market rates remains speculative.

What are the potential long-term implications of relying on a sole-source provider for critical communication technology?

Relying on a sole-source provider for critical communication technology like TTNT can have significant long-term implications. It can create vendor lock-in, making it difficult and costly to switch providers or integrate new technologies in the future. This dependence can reduce the government's negotiating leverage over time, potentially leading to higher sustainment costs. Furthermore, it may stifle innovation within the broader defense industrial base if key technologies are exclusively developed and controlled by a single entity. While Viasat Inc. may offer deep expertise, the lack of ongoing competition can reduce pressure on them to continually innovate or offer the most cost-effective solutions, potentially impacting long-term modernization efforts and budget predictability.

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

Pricing Type: COST PLUS FIXED FEE (U)

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: $77,241,447

Exercised Options: $77,241,447

Current Obligation: $76,714,086

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $41,414,532

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0003915D0008

IDV Type: IDC

Timeline