Viasat Awarded $4.8M for Communications Equipment, Lacking Competition
Contract Overview
Contract Amount: $4,809,882 ($4.8M)
Contractor: Viasat Inc
Awarding Agency: General Services Administration
Start Date: 2024-02-01
End Date: 2026-01-31
Contract Duration: 730 days
Daily Burn Rate: $6.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: JS VIASAT TO251 OUSDRE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
General Services Administration obligated $4.8 million to VIASAT INC for work described as: JS VIASAT TO251 OUSDRE Key points: 1. Significant contract value of $4.8 million. 2. Sole-source award indicates limited competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: questionable
The contract's value of $4.8 million for communications equipment is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar market offerings.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, VIASAT INC, was considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the required communications equipment.
Public Impact
Taxpayers may be overpaying for essential communications equipment. Limited visibility into the specific type of communications equipment procured. Potential impact on innovation if competitive pressures are removed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Specific vendor identified
- Clear contract duration
Sector Analysis
This contract falls under the 'Other Communications Equipment Manufacturing' sector. Spending in this area can vary widely based on technological advancements and defense needs. Benchmarks are difficult without more specific equipment details.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were excluded or if the scope of work was not suitable for them.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that the justification for not competing was sound.
Related Government Programs
- Other Communications Equipment Manufacturing
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Lack of competitive justification
- Potential for price gouging
- Limited transparency on equipment specifics
- No small business participation evident
Tags
other-communications-equipment-manufactu, general-services-administration, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $4.8 million to VIASAT INC. JS VIASAT TO251 OUSDRE
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 $4.8 million.
What is the period of performance?
Start: 2024-02-01. End: 2026-01-31.
What specific communications equipment is being procured under this contract, and why was it deemed necessary to award it on a sole-source basis?
The contract specifies 'Other Communications Equipment Manufacturing' but lacks granular detail on the exact equipment. The sole-source justification is critical here; it typically requires demonstrating that only one vendor can meet the requirement due to unique capabilities, proprietary technology, or urgent need. Without this justification, the award raises concerns about fair opportunity.
What is the potential cost overrun risk associated with this sole-source contract compared to a competitively bid one?
Sole-source contracts inherently carry a higher risk of cost overruns because the government lacks the leverage of competitive pricing. VIASAT INC may not have had the same incentive to offer its best price. The benchmark of $6,589 (br) seems low for a contract of this value, suggesting it might be a unit price or a different metric, but without competitive data, assessing overrun risk is speculative.
How effective is the General Services Administration (GSA) in ensuring value for money when awarding sole-source contracts in the IT and communications sector?
GSA's effectiveness in sole-source awards hinges on rigorous justification review and price negotiation. While GSA aims for efficiency, sole-source awards, by definition, bypass the most robust price discovery mechanism. Oversight is crucial to ensure that exceptions to full and open competition are rare and well-justified, safeguarding taxpayer funds.
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: 47QFLA23Q0155
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: $4,809,882
Exercised Options: $4,809,882
Current Obligation: $4,809,882
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: 2024-02-01
Current End Date: 2026-01-31
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-26
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