Viasat Inc. awarded $69.9M for MIDS JTRS Terminal Procurement by the Department of the Navy
Contract Overview
Contract Amount: $69,897,106 ($69.9M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2016-09-30
End Date: 2019-06-28
Contract Duration: 1,001 days
Daily Burn Rate: $69.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MIDS JTRS TERMINAL PROCUREMENT
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $69.9 million to VIASAT INC for work described as: MIDS JTRS TERMINAL PROCUREMENT Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price efficiencies. 2. The fixed-price contract type suggests a defined scope, but the lack of competition limits benchmarking. 3. Performance duration of approximately 3 years (1001 days) provides a reasonable timeframe for delivery. 4. The procurement falls within the wireless communications equipment manufacturing sector. 5. No small business set-aside was indicated, suggesting larger prime contractors are expected. 6. The award value of $69.9M is significant for this specific terminal procurement.
Value Assessment
Rating: questionable
Benchmarking value for this sole-source award is challenging due to the absence of competitive bids. The firm-fixed-price structure provides cost certainty for the government, but without comparison points, it's difficult to assess if the pricing reflects market rates or represents a fair value. Further analysis would require access to internal cost data or comparable sole-source procurements for similar advanced communication terminals.
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. The justification for sole-sourcing is not provided in the data, but it typically implies unique capabilities or urgent needs. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government compared to a competed procurement.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, the government could not leverage market forces to secure the most cost-effective solution.
Public Impact
The Department of the Navy is the primary beneficiary, receiving advanced communication terminals. This procurement supports military communication capabilities, enhancing operational effectiveness. The contract is geographically focused on California, where the contractor is located. The award supports jobs within Viasat Inc. and its supply chain in the wireless communications sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential cost savings.
- Lack of transparency regarding the justification for sole-sourcing.
- Potential for higher costs due to absence of competitive bidding.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Clear delivery period of approximately 3 years.
- Procurement addresses a specific need for advanced communication terminals.
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing industry. This sector is characterized by rapid technological advancements and high R&D investment. The MIDS JTRS terminal likely represents specialized equipment for secure military communications, a niche within the broader wireless sector. Comparable spending benchmarks are difficult to establish without more specific details on the terminal's capabilities and intended use.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was either awarded to a large business prime contractor or that small business participation was not a primary consideration in the award strategy. Subcontracting opportunities for small businesses may exist but are not detailed in this award information.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified goods. Transparency is limited by the sole-source nature of the award and the lack of publicly available justification. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- MIDS (Multifunctional Information Distribution System)
- JTRS (Joint Tactical Radio System)
- Department of Defense Communications Equipment
- Navy Tactical Data Links
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
Tags
defense, department-of-defense, department-of-the-navy, viasat-inc, communications-equipment, wireless-communications, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, sole-source, firm-fixed-price, delivery-order, california, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.9 million to VIASAT INC. MIDS JTRS 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 $69.9 million.
What is the period of performance?
Start: 2016-09-30. End: 2019-06-28.
What is the specific capability and intended use of the MIDS JTRS Terminal being procured?
The MIDS JTRS Terminal is a component of the Joint Tactical Radio System (JTRS) and Multifunctional Information Distribution System (MIDS). These systems are designed to provide secure, jam-resistant, high-volume voice and data communications for military platforms. The JTRS program aimed to create a family of software-defined radios to enable interoperability across different branches of the military. The MIDS component specifically focuses on providing tactical data link capabilities, enabling platforms to share situational awareness information in real-time. The intended use of these terminals is critical for command and control, intelligence sharing, and operational coordination in tactical environments.
Why was this contract awarded on a sole-source basis to Viasat Inc.?
The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. While the specific justification is not detailed, sole-source awards are typically granted when only one responsible source can provide the required supplies or services. This could be due to unique technical capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or if the existing system requires compatibility with a single vendor's solution. For Viasat Inc., it might relate to their specific expertise in advanced satellite communication technologies or existing integration within Navy systems that makes them the only viable option without significant cost or schedule impacts.
How does the $69.9 million award value compare to similar procurements for advanced communication terminals?
Direct comparison of the $69.9 million award value for the MIDS JTRS Terminal Procurement is challenging without knowing the exact quantity of terminals, their specific configurations, and the duration of the delivery period beyond the stated 1001 days. However, advanced military communication systems, especially those involving secure, software-defined radios and tactical data links, are typically high-cost items due to complex technology, stringent performance requirements, and extensive testing. Sole-source awards, by their nature, lack a competitive benchmark, making it difficult to ascertain if this value is optimal. Further analysis would require comparing it to other sole-source awards for similar systems or, ideally, to prices achieved in competitive procurements for comparable, albeit not identical, equipment.
What are the potential risks associated with a sole-source award for critical communication equipment?
Sole-source awards for critical communication equipment like the MIDS JTRS Terminal present several risks. Primarily, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures inherent in a bidding process. There's also a risk of reduced innovation, as the sole provider may have less incentive to improve their product or offer more cost-effective solutions. Furthermore, reliance on a single supplier can create supply chain vulnerabilities and limit flexibility if the contractor faces production issues or decides to discontinue the product line. Finally, without competitive validation, there's an increased risk that the government may not be receiving the best possible value or the most technologically advanced solution available on the market.
What is Viasat Inc.'s track record with the Department of Defense, particularly in communication systems?
Viasat Inc. is a well-established global communications company with a significant history of providing products and services to the Department of Defense (DoD) and other government agencies. They specialize in high-speed satellite broadband services, secure networking systems, and advanced defense electronics. Viasat has been involved in numerous DoD programs, supplying satellite terminals, communication systems for aircraft and ground vehicles, and secure network solutions. Their track record includes delivering robust and reliable communication capabilities for tactical and strategic military operations. While this specific award is sole-source, Viasat's broader engagement with the DoD suggests they possess the technical expertise and production capacity required for such procurements.
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: 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: $69,897,106
Exercised Options: $69,897,106
Current Obligation: $69,897,106
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $37,200
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: 2016-09-30
Current End Date: 2019-06-28
Potential End Date: 2019-06-28 00:00:00
Last Modified: 2024-09-09
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