DoD's $44M Viasat contract for MIDS-LVT Lot 13 equipment awarded via full and open competition
Contract Overview
Contract Amount: $44,186,799 ($44.2M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2012-08-09
End Date: 2018-06-29
Contract Duration: 2,150 days
Daily Burn Rate: $20.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MIDS-LVT LOT 13
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $44.2 million to VIASAT INC for work described as: MIDS-LVT LOT 13 Key points: 1. Contract awarded for communication equipment, indicating a need for secure and reliable data transmission. 2. The firm-fixed-price contract type suggests a clear understanding of project scope and cost. 3. Awarded by the Department of the Navy, this contract supports naval communication capabilities. 4. The duration of the contract (2150 days) points to a long-term requirement for this equipment. 5. The North American Industry Classification System (NAICS) code 334290 categorizes this as 'Other Communications Equipment Manufacturing'.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without more granular data on the MIDS-LVT system's components and market prices at the time of award. The total value of $44.2 million over approximately six years suggests a significant investment in specialized communication hardware. However, without comparable contract awards for similar quantities or configurations of MIDS-LVT equipment, a definitive value-for-money assessment is difficult. The firm-fixed-price nature provides cost certainty but doesn't inherently guarantee the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a degree of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. Full and open competition is generally preferred as it aims to secure the best value for the government by leveraging market forces.
Taxpayer Impact: A full and open competition process for this contract likely resulted in a more competitive pricing structure, potentially saving taxpayer dollars compared to a sole-source award.
Public Impact
Naval forces benefit from enhanced communication capabilities, crucial for operational effectiveness. The contract supports the production and delivery of critical communication equipment for military platforms. Geographic impact is primarily within the United States, where the equipment is manufactured and potentially deployed. Workforce implications include jobs in the communications equipment manufacturing sector, particularly in California where the contractor is based.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if MIDS-LVT is a proprietary system with limited interoperability.
- Long contract duration could lead to price increases if market conditions change significantly.
- Dependence on a single contractor for a critical component could pose supply chain risks.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing was sought.
- Firm-fixed-price contract provides cost predictability for the government.
- Contract supports a vital defense capability, ensuring operational readiness.
Sector Analysis
The defense communications sector is characterized by high technological sophistication and stringent security requirements. Contracts like this for the MIDS-LVT system, which is a joint military program providing tactical data links, are crucial for maintaining battlefield awareness and command and control. The market for such specialized equipment is often dominated by a few key players due to high barriers to entry, including R&D costs and security clearances. Spending in this area is driven by the need for interoperable and secure communication systems across different military branches and allied nations.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Viasat Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though Viasat may engage small businesses in its broader supply chain.
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 structure, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally maintained through contract award databases like FPDS, where basic information is publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Tactical Data Link Systems
- Military Communications Equipment
- Department of Defense Procurement
- Naval Aviation Systems
- Joint Tactical Information Distribution System (JTIDS)
Risk Flags
- Limited Competition Indication
- Potential for Technological Obsolescence
- Supply Chain Dependency
Tags
defense, department-of-the-navy, viasat-inc, mids-lvt, communications-equipment, firm-fixed-price, full-and-open-competition, delivery-order, california, other-communications-equipment-manufacturing, tactical-data-link
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.2 million to VIASAT INC. MIDS-LVT LOT 13
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 $44.2 million.
What is the period of performance?
Start: 2012-08-09. End: 2018-06-29.
What is the specific role and capability of the MIDS-LVT system being procured under this contract?
The MIDS-LVT (Multifunctional Information Distribution System - Low Volume Terminal) is a critical component of the U.S. military's tactical data link (TDL) network. It provides secure, jam-resistant, high-volume, digital, two-way data and voice communication. The system enables platforms (aircraft, ships, ground units) to share tactical pictures, command and control information, and situational awareness in near real-time. This enhances interoperability among different services and allied forces, improving combat effectiveness by providing a common operating picture and reducing the risk of fratricide. The Lot 13 procurement likely refers to a specific production run or configuration update of this established system.
How does the $44.2 million contract value compare to historical spending on MIDS-LVT systems?
Comparing the $44.2 million value of this specific contract (MIDS-LVT Lot 13) to historical spending requires access to detailed procurement data over the lifecycle of the MIDS-LVT program. The MIDS program has seen numerous contract awards over many years, encompassing development, production, upgrades, and sustainment. This $44.2 million award represents a significant, but not necessarily unprecedented, investment for a specific lot of equipment. To provide a precise comparison, one would need to aggregate spending on similar production lots or major procurements of MIDS-LVT terminals over the program's history, considering factors like quantity, configuration, and inflation.
What are the key risks associated with this contract, given its duration and the nature of the equipment?
Key risks associated with this contract include technological obsolescence, as military communication technology evolves rapidly; supply chain disruptions, particularly if key components are sourced from limited suppliers; contractor performance issues, potentially leading to delays or quality defects; and cost overruns, although mitigated by the firm-fixed-price structure, scope creep or unforeseen technical challenges could still impact the overall program budget. Furthermore, the long duration (over 5 years) increases the risk of the procured technology becoming outdated before the end of its intended service life or before the contract concludes.
What is Viasat Inc.'s track record with similar defense communication contracts?
Viasat Inc. has a substantial track record as a major defense contractor, specializing in secure communication systems, satellite broadband, and related technologies. They have been a significant player in providing communication solutions for various U.S. military branches and allied nations. Viasat has a history of delivering complex communication systems, including tactical data links and satellite-based services. Their experience spans numerous contracts for airborne, ground, and maritime platforms, often involving high-security, high-performance requirements similar to those for the MIDS-LVT system. This extensive background suggests a strong capability to fulfill the requirements of this contract.
How does the number of bidders (2) impact the perceived value for money in this full and open competition?
While 'full and open competition' implies the opportunity for all eligible vendors to bid, receiving only two bids can raise questions about the level of actual market competition. A higher number of bidders typically leads to more competitive pricing and potentially better value for the government. With only two bidders, there's a risk that the pricing might be less aggressive than if a wider range of companies were vying for the contract. However, the MIDS-LVT system is a specialized piece of equipment, and the market for such advanced tactical data links might inherently be limited to a few qualified vendors. Therefore, two bidders could represent a significant portion of the competitive landscape for this specific technology.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other 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
Solicitation ID: N0003910R0011
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: $44,186,799
Exercised Options: $44,186,799
Current Obligation: $44,186,799
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003910D0032
IDV Type: IDC
Timeline
Start Date: 2012-08-09
Current End Date: 2018-06-29
Potential End Date: 2018-06-29 00:00:00
Last Modified: 2024-09-09
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