Viasat Inc. awarded $26M firm-fixed-price delivery order for communications equipment by GSA
Contract Overview
Contract Amount: $25,980,765 ($26.0M)
Contractor: Viasat Inc
Awarding Agency: General Services Administration
Start Date: 2022-09-27
End Date: 2025-09-26
Contract Duration: 1,095 days
Daily Burn Rate: $23.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: JS VIASAT TO194 AFMC AFLCMCHBDC
Place of Performance
Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731
Plain-Language Summary
General Services Administration obligated $26.0 million to VIASAT INC for work described as: JS VIASAT TO194 AFMC AFLCMCHBDC Key points: 1. Contract awarded on a sole-source basis, raising questions about potential overpayment and lack of competitive pressure. 2. The contract duration of 1095 days suggests a long-term need for the specified communications equipment. 3. Fixed-price contract type shifts risk to the contractor, but the absence of competition limits price discovery. 4. The award falls under the MAS schedule, typically used for a wide range of commercial items. 5. Analysis of the specific equipment and its market value is crucial to assess value for money. 6. No small business set-aside was applied, indicating potential missed opportunities for smaller contractors.
Value Assessment
Rating: fair
The contract value of approximately $26 million over three years for communications equipment requires careful benchmarking. Without competitive bids, it's difficult to ascertain if this price reflects fair market value. Comparing the per-unit cost of this equipment to similar GSA MAS contracts or open market prices would be essential. The firm-fixed-price structure is generally favorable for the government in managing cost certainty, but the sole-source nature limits the ability to leverage competition for better pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source delivery order under the GSA MAS program. This indicates that the agency identified Viasat Inc. as the only capable source for the required communications equipment, or that the procurement was structured in a way that precluded broader competition. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces, potentially leading to a less optimal price for the government.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings typically achieved through competitive bidding processes. This can result in higher overall spending for government procurements.
Public Impact
The U.S. Air Force is the likely end-user, benefiting from advanced communications equipment. The contract supports the delivery of specialized communications equipment, crucial for operational readiness. The geographic impact is not specified but likely supports federal operations nationwide or globally. The contract may have implications for the workforce involved in the manufacturing and deployment of this equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing.
- Sole-source award raises concerns about the necessity and justification for not seeking competitive proposals.
- The specific technical requirements need to be scrutinized to ensure they are not overly restrictive.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Awarded under the GSA MAS schedule, which streamlines procurement for commercial items.
- Contract duration of three years indicates a stable, long-term requirement.
Sector Analysis
This contract falls within the 'Other Communications Equipment Manufacturing' sector, a segment of the broader telecommunications industry. The market for specialized government communications equipment is often characterized by high barriers to entry due to technical specifications and security requirements. Comparable spending benchmarks would involve analyzing other sole-source or limited-competition awards for similar advanced communication systems within defense and federal agencies.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the procurement was either for highly specialized equipment where large prime contractors are the primary providers, or that opportunities for small business participation were not actively pursued in this specific award.
Oversight & Accountability
As a delivery order under a GSA MAS contract, oversight is primarily managed by the contracting officer at GSA. The firm-fixed-price nature provides some level of financial oversight by limiting cost overruns. Transparency is generally maintained through contract databases like FPDS, but the justification for the sole-source award would be a key area for detailed review.
Related Government Programs
- GSA Federal Supply Schedule Contracts
- Defense Communications Systems
- Other Communications Equipment Manufacturing
Risk Flags
- Sole-source award
- Potential lack of price competition
- Limited transparency on justification
Tags
gsa, mas-schedule, sole-source, firm-fixed-price, communications-equipment, viasat-inc, delivery-order, federal-acquisition-regulation, defense, air-force, commercial-item
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $26.0 million to VIASAT INC. JS VIASAT TO194 AFMC AFLCMCHBDC
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 $26.0 million.
What is the period of performance?
Start: 2022-09-27. End: 2025-09-26.
What is the specific type of communications equipment being procured, and what are its key technical specifications?
The provided data indicates the contract is for 'Other Communications Equipment Manufacturing' (NAICS 334290). While the exact equipment is not detailed, it is likely specialized hardware related to satellite communications, given the contractor Viasat Inc. is a known provider in this space. Key technical specifications would typically include bandwidth capabilities, encryption standards, ruggedization for environmental conditions, interoperability requirements with existing systems, and specific performance metrics related to signal integrity and latency. A thorough review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to ascertain these details and assess their necessity and justification.
What is the justification for awarding this contract on a sole-source basis?
Sole-source awards are typically justified under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can provide the supplies or services, or when there is a compelling urgency. For this contract, the justification would likely stem from Viasat's unique technological capabilities, proprietary systems, or existing integration with the government's infrastructure that makes them the only viable option. The agency (likely the Air Force, as GSA is the contracting vehicle) would have had to document why competition was not feasible or advantageous. Without access to that justification document, it remains a point of concern regarding potential missed savings from competition.
How does the $26 million contract value compare to similar procurements for communications equipment?
Benchmarking the $26 million contract value requires comparing it to similar procurements of advanced communications equipment, particularly those involving satellite or specialized network hardware. If this is a sole-source award, direct price comparisons are challenging. However, one could look at the average price per unit for similar equipment procured competitively, or analyze the total contract value for similar systems over comparable durations. Given Viasat's market position, the price might be within a reasonable range for highly specialized, high-performance systems, but the lack of competition prevents a definitive assessment of value for money. Further analysis would involve examining the quantity of units and their specific capabilities.
What are the potential risks associated with this sole-source contract?
The primary risk associated with this sole-source contract is the potential for paying a non-competitive price, leading to reduced value for taxpayer money. Without the pressure of competition, the contractor may have less incentive to offer the lowest possible price or to innovate aggressively. There's also a risk that the government's requirements might be unnecessarily tailored to Viasat's offerings, limiting future flexibility or locking the government into a specific vendor's ecosystem. Furthermore, the lack of transparency inherent in sole-source justifications can sometimes mask underlying issues with planning or market research.
What is Viasat Inc.'s track record with government contracts, particularly with the GSA and the likely end-user agency?
Viasat Inc. has a significant history of securing government contracts, particularly within the defense and intelligence communities, often related to satellite communications and networking solutions. Their track record includes numerous awards from agencies like the Department of Defense (including the Air Force), NASA, and others, often for high-value, complex systems. While specific performance metrics for past contracts are not detailed here, their continued success in winning substantial government awards suggests a generally positive performance history and established relationships. However, a deeper dive into contract performance ratings, past performance evaluations, and any documented issues on previous awards would provide a more comprehensive view.
What is the historical spending pattern for 'Other Communications Equipment Manufacturing' under GSA MAS contracts?
Historical spending patterns for 'Other Communications Equipment Manufacturing' under GSA MAS contracts can be analyzed through data from the Federal Procurement Data System (FPDS). This would involve filtering for NAICS code 334290 and contracts awarded under the GSA MAS program. Such analysis would reveal the total annual spending in this category, the number of contracts awarded, the average contract value, and the primary contractors receiving awards. It would also highlight trends over time, such as increasing or decreasing demand for specific types of communications equipment. Understanding this historical context helps in evaluating whether the $26 million award to Viasat is an outlier or part of a consistent spending trend.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 47QFLA22Q0219
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: $25,980,765
Exercised Options: $25,980,765
Current Obligation: $25,980,765
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,505,629
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: 2022-09-27
Current End Date: 2025-09-26
Potential End Date: 2025-09-26 00:00:00
Last Modified: 2025-11-06
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