Viasat awarded $2.38M sole-source contract for communications equipment by GSA for SOCOM

Contract Overview

Contract Amount: $2,384,585 ($2.4M)

Contractor: Viasat Inc

Awarding Agency: General Services Administration

Start Date: 2023-11-09

End Date: 2025-11-30

Contract Duration: 752 days

Daily Burn Rate: $3.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JS VIASAT TO275 US SOCOM

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $2.4 million to VIASAT INC for work described as: JS VIASAT TO275 US SOCOM Key points: 1. Contract awarded without competition, raising questions about potential cost savings. 2. The fixed-price contract type offers some cost certainty for the government. 3. The duration of the contract (752 days) suggests a need for sustained support. 4. The equipment category (Other Communications Equipment Manufacturing) is broad and could encompass various technologies. 5. The award is a delivery order, indicating it's part of a larger contract vehicle. 6. The geographic location of the awardee (Florida) may have implications for logistics and support.

Value Assessment

Rating: questionable

Benchmarking the value of this $2.38 million contract is challenging without knowing the specific equipment and its intended use. As a sole-source award, there's no direct comparison to other bids to assess if the pricing is competitive. The fixed-price nature provides some predictability, but the absence of competition means the government may not have secured the best possible price. Further analysis would require understanding the technical specifications and market rates for similar communication systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Viasat Inc. was the only vendor considered. This typically occurs when a specific capability or technology is unique to a single provider, or in urgent situations. The lack of competition means that the government did not explore alternative vendors or potentially more cost-effective solutions. This approach can lead to higher prices compared to a fully competed procurement.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there is less downward pressure on price, potentially resulting in a less favorable financial outcome for the government.

Public Impact

US Special Operations Command (SOCOM) is the primary beneficiary, receiving critical communications equipment. The contract supports the operational readiness and communication capabilities of SOCOM personnel. The geographic impact is primarily linked to the awardee's location in Florida, but the equipment's use is likely global for SOCOM operations. The contract may indirectly support a workforce involved in the manufacturing, deployment, and maintenance of advanced communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition raises concerns about whether the most innovative or cost-effective solution was obtained.
The specific nature of the 'Other Communications Equipment' is not detailed, making it difficult to assess technological obsolescence risks.

Positive Signals

Award to Viasat Inc., a known provider in the satellite communications sector, suggests a potentially reliable supplier.
The firm fixed-price contract type offers budget certainty for the government.
The contract is a delivery order against an existing contract vehicle, implying some level of pre-qualification and oversight.

Sector Analysis

This contract falls within the broader telecommunications and defense electronics sector. The market for specialized communication equipment, particularly for defense applications, is characterized by high barriers to entry due to technological complexity and security requirements. Viasat Inc. is a significant player in satellite communications. Comparable spending benchmarks would depend heavily on the specific type of communication equipment procured, but government spending on defense-related communication systems is substantial, often involving specialized, high-value procurements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large, established company like Viasat Inc. suggests that the procurement focused on specialized capabilities rather than broad market access for smaller enterprises. This award does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

As a delivery order issued by the General Services Administration (GSA) under an existing contract vehicle, oversight is likely managed through GSA's Federal Acquisition Service. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency regarding the justification for the sole-source award and the specific equipment procured would be key to a full assessment. Inspector General oversight would typically apply to the broader contract vehicle and agency spending.

Related Government Programs

Defense Communications Systems
Satellite Communications Equipment
Special Operations Command Procurement
General Services Administration Schedules

Risk Flags

Sole-source justification requires scrutiny.
Potential for non-competitive pricing.
Lack of transparency on specific equipment details.
Dependence on a single vendor for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.4 million to VIASAT INC. JS VIASAT TO275 US SOCOM

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 $2.4 million.

What is the period of performance?

Start: 2023-11-09. End: 2025-11-30.

What is the specific type of communication equipment being procured, and what are its intended operational uses for SOCOM?

The provided data indicates the contract is for 'Other Communications Equipment Manufacturing' (NAICS code 334290). However, the specific type of equipment is not detailed. For US Special Operations Command (SOCOM), such equipment could range from advanced satellite terminals, encrypted communication devices, tactical radios, or specialized networking hardware. The intended uses would likely relate to enabling secure, reliable, and high-bandwidth communication in diverse and often austere operational environments worldwide. Understanding the exact nature of the equipment is crucial for assessing its necessity, technological relevance, and potential for obsolescence.

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

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For Viasat Inc., this could be due to proprietary technology, unique capabilities essential for SOCOM's mission that only Viasat possesses, or a critical need that cannot be met through a competitive process within the required timeframe. The General Services Administration (GSA), as the contracting agency, would have documentation justifying this determination. Without access to that specific justification, it remains an assumption that a valid reason existed.

How does the $2.38 million contract value compare to historical spending on similar Viasat communication equipment by the government?

Comparing this $2.38 million contract value to historical spending requires access to detailed procurement databases and knowledge of the specific equipment category. Viasat Inc. has a history of receiving significant government contracts, particularly for satellite services and equipment. However, without knowing the precise nature of the 'Other Communications Equipment' being procured, a direct comparison is difficult. If this represents a standard terminal or a new, specialized system, the value could be typical or an outlier. Analyzing past awards for similar functionalities or technologies from Viasat or competitors would provide context, but this specific award's value is hard to benchmark in isolation.

What are the potential risks associated with a sole-source award for critical communication equipment?

The primary risk of a sole-source award for critical communication equipment is the potential for inflated costs due to the lack of competitive pressure. Taxpayers may overpay for the equipment and services. Additionally, the government might not be exposed to potentially superior or more cost-effective technologies offered by other vendors. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future flexibility and negotiation power. Ensuring the sole-source justification is robust and that the price is fair and reasonable is paramount to mitigating these risks.

What is the expected performance period and delivery timeline for this contract?

The contract has a duration of 752 days, with a start date of November 9, 2023, and an end date of November 30, 2025. This indicates a period of performance of approximately two years. The award is a 'Delivery Order,' suggesting that the equipment or services will be delivered within this timeframe. The specific delivery schedule for individual items or services would typically be detailed within the order itself or subsequent task orders, but the overall contract window provides the framework for fulfillment.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA24Q0001

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: $2,384,585

Exercised Options: $2,384,585

Current Obligation: $2,384,585

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $179,655

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