Datapath, Inc. awarded $142.4M for Ka-band satellite communications, serving DoD needs
Contract Overview
Contract Amount: $142,421,354 ($142.4M)
Contractor: Datapath, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-12-23
End Date: 2011-12-31
Contract Duration: 1,103 days
Daily Burn Rate: $129.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DELIVERY ORDER FOR KA BAND
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498, UNITED STATES OF AMERICA
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $142.4 million to DATAPATH, INC. for work described as: DELIVERY ORDER FOR KA BAND Key points: 1. Contract value represents a significant investment in advanced satellite communication capabilities. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Fixed-price contract type aims to control costs and manage contractor risk. 4. Delivery order structure indicates a need for flexible, phased deployment of services. 5. Long performance period suggests a sustained requirement for these communication services. 6. Focus on Ka-band technology points to a need for high-bandwidth, secure communications.
Value Assessment
Rating: good
The contract value of $142.4 million for Ka-band satellite communication services appears reasonable given the duration and the nature of advanced telecommunications equipment. Benchmarking against similar large-scale DoD satellite communication contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to ensure cost predictability for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield favorable pricing and innovative solutions. The number of bidders is not specified, but the open competition is a positive sign for price discovery and market responsiveness.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is likely to drive down costs and ensure the government receives the best possible value for its investment in critical communication infrastructure.
Public Impact
Provides essential satellite communication services to the Department of Defense. Supports military operations and command and control capabilities through advanced technology. Likely impacts personnel involved in defense communications and network operations. Ensures reliable connectivity for strategic and tactical military applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if Ka-band technology becomes highly specialized.
- Reliance on a single delivery order for a large sum could indicate concentrated risk.
- Long performance period may require ongoing monitoring for technological obsolescence.
Positive Signals
- Full and open competition suggests a healthy market and potential for good pricing.
- Firm fixed-price contract type provides cost certainty.
- Award to a single vendor for a delivery order may indicate specialized expertise required.
Sector Analysis
This contract falls within the telecommunications and broadcasting equipment manufacturing sector, specifically focusing on advanced satellite communication technologies like Ka-band. This sector is characterized by high R&D investment, complex supply chains, and significant government procurement due to national security and infrastructure needs. The market size for defense-related satellite communications is substantial, with numerous players vying for lucrative government contracts.
Small Business Impact
The contract does not indicate any specific small business set-aside provisions, nor is there information suggesting subcontracting goals for small businesses. Given the specialized nature of Ka-band satellite communications and the large contract value, it is less likely to be directly awarded to small businesses without specific set-aside requirements. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract databases, though specific performance metrics and detailed oversight reports may not always be publicly available.
Related Government Programs
- DoD Satellite Communications
- Defense Telecommunications Infrastructure
- Advanced Wireless Communications
- National Security Space Programs
Risk Flags
- Potential for technological obsolescence given the long performance period.
- Reliance on a single delivery order for a large sum could concentrate risk.
- Need to ensure robust oversight for a firm fixed-price contract of this value.
Tags
defense, department-of-defense, satellite-communications, ka-band, firm-fixed-price, full-and-open-competition, delivery-order, telecommunications-equipment, wireless-communications, datapath-inc, defense-contract-management-agency, iowa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $142.4 million to DATAPATH, INC.. DELIVERY ORDER FOR KA BAND
Who is the contractor on this award?
The obligated recipient is DATAPATH, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $142.4 million.
What is the period of performance?
Start: 2008-12-23. End: 2011-12-31.
What is the specific nature of the Ka-band satellite communication services being procured?
The data indicates a 'DELIVERY ORDER FOR KA BAND,' suggesting the procurement of equipment or services related to Ka-band satellite communications. Ka-band frequencies offer higher bandwidth and data rates compared to lower frequency bands, making them suitable for applications requiring significant data throughput, such as high-definition video, secure data transmission, and advanced command and control systems. For the Department of Defense (DoD), this likely translates to enhanced battlefield communications, intelligence, surveillance, and reconnaissance (ISR) data relay, and robust connectivity for deployed forces. The specific services could range from the provision of satellite terminals, ground station equipment, satellite capacity leases, to integrated communication solutions.
How does the $142.4 million contract value compare to similar DoD satellite communication procurements?
A direct comparison of the $142.4 million contract value requires access to a comprehensive database of similar DoD procurements, including contract type, duration, scope, and technology. However, for large-scale, multi-year procurements of advanced satellite communication systems or services, this value is within a typical range. The DoD invests billions annually in space and communications. Contracts for satellite constellations, ground segment development, and long-term service agreements often reach hundreds of millions or even billions of dollars. This specific contract, being a delivery order, might represent a portion of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a standalone procurement for a specific capability. Its value suggests a significant, but not unprecedented, investment in this domain.
What are the key risks associated with a firm fixed-price contract of this magnitude and duration?
The primary risk with a firm fixed-price (FFP) contract of this magnitude ($142.4 million) and duration (over 3 years) is that the contractor may face unforeseen cost increases that erode their profit margin, potentially leading to performance issues or disputes. For advanced technology like Ka-band satellite communications, risks include technological obsolescence during the performance period, unexpected increases in component costs, or challenges in meeting stringent performance specifications. If the contractor underestimated costs or encountered significant technical hurdles, they might be incentivized to cut corners on quality or delivery, impacting the DoD's operational readiness. Conversely, the government benefits from cost certainty, but must ensure the initial price reflects a realistic assessment of costs and risks.
What is the significance of the contract being awarded under 'full and open competition'?
Awarding the contract under 'full and open competition' signifies that the Department of Defense solicited proposals from all responsible sources and did not impose any restrictive barriers to entry. This approach is mandated by law for most federal procurements and is intended to maximize competition, thereby driving down prices, fostering innovation, and ensuring the government obtains the best value. It implies that multiple companies were capable of meeting the requirements and were given an equal opportunity to compete. This process generally leads to more transparent pricing and a wider selection of potential solutions compared to sole-source or limited competition awards.
How does this contract contribute to the DoD's overall satellite communication strategy?
This contract likely contributes to the DoD's strategy by providing critical capabilities within the Ka-band spectrum. The DoD relies heavily on satellite communications for global command and control, intelligence dissemination, logistics, and tactical operations. Ka-band offers advantages in terms of bandwidth and smaller antenna sizes, which are crucial for mobile platforms and high-demand data services. This specific award could be part of a broader effort to modernize the DoD's satellite communication architecture, enhance resilience, increase data throughput, or expand coverage in specific operational theaters. It supports the overarching goal of maintaining information superiority and ensuring secure, reliable communication links for military personnel worldwide.
What is the potential impact of this contract on the satellite communications market?
A $142.4 million contract awarded through full and open competition can have a notable impact on the satellite communications market. It signals strong government demand for Ka-band capabilities, potentially encouraging further investment and innovation in this area by other market players. The award to Datapath, Inc. (assuming they are the primary contractor) would represent a significant revenue stream and a boost to their market position, particularly within the defense sector. It also validates the competitiveness of the Ka-band technology and may influence pricing standards for similar future procurements. The competitive nature of the award suggests that other companies in the market are also capable, fostering a dynamic environment.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins, Inc. (UEI: 962960589)
Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 52498
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $267,583,171
Exercised Options: $142,421,354
Current Obligation: $142,421,354
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T06DL215
IDV Type: IDC
Timeline
Start Date: 2008-12-23
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2015-03-13
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