DoD's $52.9M satellite bandwidth contract awarded to Viasat Inc. shows fair value despite limited competition
Contract Overview
Contract Amount: $52,930,493 ($52.9M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2012-05-30
End Date: 2013-08-31
Contract Duration: 458 days
Daily Burn Rate: $115.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BLUE FORCE TRACKING SATELLITE BANDWIDTH
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $52.9 million to VIASAT INC for work described as: BLUE FORCE TRACKING SATELLITE BANDWIDTH Key points: 1. Contract awarded to Viasat Inc. for satellite bandwidth services. 2. The contract was competed using full and open competition. 3. The contract duration was 458 days. 4. The contract was awarded as a delivery order. 5. The contract was awarded to a single vendor. 6. The contract was awarded under the firm fixed price type.
Value Assessment
Rating: fair
The contract's value of $52.9 million for satellite bandwidth over approximately 15 months appears reasonable when benchmarked against similar government contracts for specialized communication services. While specific per-unit cost data is not readily available for direct comparison, the firm fixed-price structure suggests a degree of cost certainty for the government. The absence of detailed performance metrics makes a definitive value assessment challenging, but the price point does not immediately indicate overpayment given the critical nature of the service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. However, the data shows only two bids were received, suggesting that while the process was open, the actual market participation was limited. This level of competition may not have driven the most aggressive pricing, but it still provided a basis for comparison and selection.
Taxpayer Impact: The full and open competition, despite limited bids, ensures that taxpayers benefit from a structured procurement process that aims for competitive pricing, even if the number of participants was constrained.
Public Impact
Provides critical satellite bandwidth for Department of the Army operations. Enhances communication capabilities for military personnel. Supports national security objectives through reliable data transmission. Impacts the defense sector by ensuring operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of bidders received despite full and open competition.
- Specific performance metrics and value-for-money analysis are not detailed in the provided data.
Positive Signals
- Awarded under firm fixed-price terms, providing cost predictability.
- Procured through full and open competition, adhering to standard government procurement practices.
Sector Analysis
The defense sector relies heavily on robust satellite communication for intelligence, surveillance, reconnaissance, and command and control. This contract for satellite bandwidth falls within the broader telecommunications and broadcasting equipment manufacturing industry (NAICS 334220). Spending in this area is critical for maintaining operational superiority and global reach. Comparable spending benchmarks would typically involve analyzing other large-scale satellite service contracts awarded by various government agencies, which often run into tens or hundreds of millions of dollars.
Small Business Impact
The provided data does not indicate any small business set-aside provisions for this contract. As a large-scale telecommunications service, it is unlikely that small businesses would be primary awardees unless through subcontracting. Further analysis would be needed to determine if Viasat Inc. has plans for small business subcontracting, which could provide opportunities for smaller firms within the defense supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reviews and Inspector General involvement would depend on specific program requirements and any identified issues.
Related Government Programs
- Military Satellite Communications
- Defense Communications Services
- Satellite Bandwidth Procurement
- Tactical Communications Systems
Risk Flags
- Limited competition despite full and open process
- Potential for service disruption
- Dependence on single vendor
Tags
defense, department-of-the-army, satellite-bandwidth, viasat-inc, full-and-open-competition, firm-fixed-price, delivery-order, telecommunications, california, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.9 million to VIASAT INC. BLUE FORCE TRACKING SATELLITE BANDWIDTH
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 $52.9 million.
What is the period of performance?
Start: 2012-05-30. End: 2013-08-31.
What is Viasat Inc.'s track record with similar government satellite bandwidth contracts?
Viasat Inc. has a significant history of providing satellite services to the U.S. government, including the Department of Defense. They are a major player in the satellite communications market, known for offering high-capacity satellite bandwidth solutions. Their track record includes numerous contracts for military applications, often involving secure communications, broadband internet, and data transmission for various operational needs. While this specific contract was for a defined period, Viasat's broader engagement with government agencies suggests a capacity to meet demanding requirements. However, a detailed review of past performance on similar contracts, including any past performance issues or commendations, would provide a more complete picture of their reliability and effectiveness in fulfilling government obligations.
How does the pricing of this contract compare to other government satellite bandwidth procurements?
Benchmarking the pricing of this $52.9 million contract for satellite bandwidth requires access to detailed cost breakdowns and comparisons with similar service-level agreements. The provided data indicates a firm fixed-price award, which offers cost certainty. Without specific per-unit cost data (e.g., cost per gigabyte or per megabit per second) and comparable contract terms (e.g., bandwidth capacity, service level agreements, geographic coverage, duration), a precise comparison is difficult. However, given the specialized nature of military-grade satellite bandwidth and the duration of the contract (approximately 15 months), the total value appears within a plausible range for such critical infrastructure. Government contract databases and industry reports on satellite service costs would be necessary for a more robust value-for-money assessment.
What are the primary risks associated with this satellite bandwidth contract?
Key risks for this satellite bandwidth contract include potential service disruptions due to satellite malfunctions, atmospheric interference, or geopolitical events affecting satellite operations. There's also a risk of technological obsolescence if newer, more efficient bandwidth solutions emerge rapidly. Dependence on a single provider, even if competitively selected, can pose a risk if that provider faces financial instability or strategic shifts. Furthermore, ensuring the security and integrity of the transmitted data is paramount, with risks associated with cyber threats or unauthorized access. The limited number of bidders, despite full and open competition, might also indicate a concentrated market, potentially limiting future competitive options and price negotiation leverage for the government.
How effective is this contract in meeting the Department of the Army's communication needs?
The effectiveness of this contract in meeting the Department of the Army's communication needs is primarily determined by the reliability, speed, and security of the satellite bandwidth provided by Viasat Inc. As a delivery order under a larger contract, it likely addresses specific, identified requirements for operational communication. The firm fixed-price nature suggests a clear scope of work and expected deliverables. However, without specific performance metrics, uptime guarantees, or user feedback data, a definitive assessment of effectiveness is challenging. The fact that it was awarded suggests a perceived need and a belief that the selected vendor could meet it. Continued monitoring of service delivery and alignment with operational requirements would be necessary to fully gauge its effectiveness.
What are the historical spending patterns for satellite bandwidth by the Department of the Army?
Historical spending patterns for satellite bandwidth by the Department of the Army are substantial and have evolved significantly with technological advancements. The Army, like other branches of the military, relies heavily on satellite communications for global operations, intelligence gathering, and command and control. Spending in this area typically involves contracts for dedicated bandwidth, satellite terminal equipment, and associated services. Over the years, there has been a trend towards higher capacity, more secure, and more flexible bandwidth solutions, often involving commercial satellite providers as well as government-owned assets. Annual spending can fluctuate based on operational tempo, new technology deployments, and the expiration or renewal of existing contracts. Analyzing past contract awards, including their values, durations, and providers, would reveal trends in capacity needs, technology adoption, and overall investment in satellite communication infrastructure.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
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, 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: $52,930,493
Exercised Options: $52,930,493
Current Obligation: $52,930,493
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T10DC420
IDV Type: IDC
Timeline
Start Date: 2012-05-30
Current End Date: 2013-08-31
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2018-10-17
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