GSA Awards Viasat $25M for Satellite Communication Services, Sole-Source Contract

Contract Overview

Contract Amount: $25,029,675 ($25.0M)

Contractor: Viasat Inc

Awarding Agency: General Services Administration

Start Date: 2020-01-09

End Date: 2024-12-31

Contract Duration: 1,818 days

Daily Burn Rate: $13.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWARD FOR SATELLITE COMMUNICATION SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $25.0 million to VIASAT INC for work described as: AWARD FOR SATELLITE COMMUNICATION SERVICES. Key points: 1. Significant contract value of $25 million for satellite communication services. 2. Sole-source award to Viasat Inc. raises questions about competition. 3. Long contract duration (2020-2024) suggests ongoing need. 4. No small business participation noted in this award.

Value Assessment

Rating: questionable

The $25 million award for satellite communication services lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bids, assessing if the price is optimal is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition in this sole-source award may result in taxpayers paying a premium for satellite communication services.

Public Impact

Ensures continued satellite communication capabilities for federal agencies. Potential for higher costs due to lack of competitive bidding. Limited transparency on the justification for sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This award falls under telecommunications equipment and services. Federal spending in this sector is substantial, driven by the need for secure and reliable communication infrastructure across various agencies.

Small Business Impact

This specific award to Viasat Inc. did not include small business participation. Agencies should explore opportunities to involve small businesses in future telecommunications procurements.

Oversight & Accountability

The sole-source justification for this significant contract warrants review to ensure it aligns with federal procurement regulations and promotes fair competition.

Related Government Programs

Risk Flags

Tags

other-communications-equipment-manufactu, general-services-administration, dc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25.0 million to VIASAT INC. AWARD FOR SATELLITE COMMUNICATION SERVICES.

Who is the contractor on this award?

The obligated recipient is VIASAT INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $25.0 million.

What is the period of performance?

Start: 2020-01-09. End: 2024-12-31.

What was the specific justification for awarding this contract on a sole-source basis to Viasat Inc.?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further documentation, the specific rationale for this Viasat contract remains unclear, necessitating a review of the agency's justification to ensure compliance with procurement regulations and to understand why competitive options were not pursued.

How does the pricing of this sole-source contract compare to similar competitive contracts for satellite communication services?

Direct comparison is challenging due to the sole-source nature of this award. Typically, sole-source contracts may be priced higher than competitively awarded ones because they bypass the price discovery mechanism inherent in open bidding. An analysis of historical GSA schedules or other agency contracts for comparable satellite services, if available, would be needed to assess potential price discrepancies.

What is the long-term impact of relying on sole-source contracts for critical services like satellite communications?

Long-term reliance on sole-source contracts can stifle innovation, reduce competition, and potentially lead to inflated costs for taxpayers. It also creates vendor lock-in and can limit the government's flexibility in adopting new technologies or seeking more cost-effective solutions. Agencies should regularly reassess the need for sole-source awards and actively seek competitive opportunities.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingOther Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $25,029,675

Exercised Options: $25,029,675

Current Obligation: $25,029,675

Actual Outlays: $1,247,192

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFLA19D0006

IDV Type: IDC

Timeline

Start Date: 2020-01-09

Current End Date: 2024-12-31

Potential End Date: 2024-12-31 00:00:00

Last Modified: 2025-10-29

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