Viasat Inc. awarded $45.3M for R&D tactical service demonstration, raising value-for-money questions
Contract Overview
Contract Amount: $45,299,381 ($45.3M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2016-08-31
End Date: 2019-06-30
Contract Duration: 1,033 days
Daily Burn Rate: $43.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: IGF::OT::IGF PROTECTED TACTICAL SERVICE FIELD DEMONSTRATION - VIASAT INC
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $45.3 million to VIASAT INC for work described as: IGF::OT::IGF PROTECTED TACTICAL SERVICE FIELD DEMONSTRATION - VIASAT INC Key points: 1. Contract awarded via full and open competition, suggesting a competitive process. 2. Research and Development focus indicates investment in future capabilities. 3. Cost Plus Incentive Fee (CPIF) contract type can incentivize performance but requires careful oversight. 4. Contract duration of over 3 years suggests a significant project scope. 5. The specific nature of 'protected tactical service field demonstration' warrants further clarity on its impact. 6. Benchmarking against similar R&D contracts is crucial for assessing value. 7. The absence of small business set-asides may limit broader economic participation.
Value Assessment
Rating: fair
The contract's value of $45.3 million for a 3-year R&D project requires careful benchmarking against similar field demonstration contracts. The Cost Plus Incentive Fee (CPIF) structure, while designed to encourage efficiency, can lead to cost overruns if not managed rigorously. Without detailed performance metrics and cost breakdowns, it is difficult to definitively assess the value for money. The contract's broad scope in 'protected tactical service field demonstration' also makes direct comparison challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of 5 bidders suggests a reasonably competitive environment for this type of specialized R&D service. However, the specific details of the competition, such as the number of proposals received and the evaluation criteria, are not provided, making it difficult to fully assess the effectiveness of the competition in driving down costs or ensuring the best technical solution.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a wider range of offers and potentially lower prices. The fact that five entities bid suggests that the government received multiple options, which can lead to better price discovery.
Public Impact
The Department of the Air Force is the primary beneficiary, seeking to advance tactical service capabilities. The contract supports research and development in advanced physical and engineering sciences. The geographic impact is likely concentrated around testing and demonstration sites, potentially within California. Workforce implications may include specialized engineers, technicians, and researchers involved in the demonstration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the CPIF contract type if not closely monitored.
- Lack of transparency regarding specific performance metrics and deliverables for the 'field demonstration'.
- Limited visibility into the competitive landscape beyond the number of bidders.
- The 'protected' nature of the service may obscure its true purpose and value.
- No indication of small business participation, potentially missing opportunities for innovation and economic inclusion.
Positive Signals
- Awarded through full and open competition, suggesting a robust bidding process.
- Involves R&D, indicating investment in cutting-edge technology and future defense capabilities.
- The CPIF structure, if managed well, can align contractor incentives with government objectives.
- The contract duration allows for thorough testing and demonstration of the tactical service.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is characterized by innovation and the pursuit of new technologies. The Department of Defense is a significant investor in R&D, aiming to maintain technological superiority. Comparable spending benchmarks would involve analyzing other R&D contracts for similar field demonstrations or technology development projects within the defense sector.
Small Business Impact
The contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Viasat Inc., will likely perform the majority of the work. This approach may limit opportunities for small businesses to participate in this specific contract, although Viasat may engage small businesses independently. Further investigation into Viasat's subcontracting practices would be needed to assess the broader impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The Cost Plus Incentive Fee (CPIF) structure necessitates close monitoring of costs, performance, and achievement of incentive targets. Transparency is dependent on the reporting requirements within the contract and the agency's policies regarding public disclosure of R&D activities. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Contracts
- Tactical Communication Systems
- Advanced Technology Demonstrations
- Viasat Inc. Contracts
- Cost Plus Incentive Fee Contracts
Risk Flags
- Potential for cost overruns with CPIF contract type.
- Lack of specific details on 'protected tactical service'.
- Limited transparency on performance metrics.
- No explicit small business subcontracting requirements.
Tags
research-and-development, department-of-defense, department-of-the-air-force, definitive-contract, cost-plus-incentive-fee, full-and-open-competition, viasat-inc, california, tactical-services, technology-demonstration
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.3 million to VIASAT INC. IGF::OT::IGF PROTECTED TACTICAL SERVICE FIELD DEMONSTRATION - VIASAT INC
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 Air Force).
What is the total obligated amount?
The obligated amount is $45.3 million.
What is the period of performance?
Start: 2016-08-31. End: 2019-06-30.
What specific 'protected tactical service' is being demonstrated, and what are the key performance indicators for success?
The provided data does not specify the exact nature of the 'protected tactical service' being demonstrated. This term is broad and could encompass a range of technologies related to secure communications, battlefield intelligence, or operational support. Key performance indicators (KPIs) are typically detailed within the contract's Statement of Work (SOW) and Performance Work Statement (PWS). These would outline measurable objectives such as signal reliability, data throughput, security compliance, operational range, and system resilience under various conditions. Without access to these documents, a precise assessment of success criteria is not possible. The 'protected' aspect likely refers to security protocols and encryption methods designed to safeguard sensitive information during transmission and operation.
How does the $45.3 million cost compare to similar R&D field demonstration contracts awarded by the DoD?
Benchmarking this $45.3 million contract against similar R&D field demonstration contracts requires access to a broader dataset of defense procurements. However, for a multi-year (over 3 years) demonstration of advanced tactical services, this figure is within a plausible range for significant technological development projects undertaken by the Department of Defense. Factors influencing cost include the complexity of the technology, the scope of testing, the required personnel expertise, and the duration of the demonstration. Contracts for cutting-edge R&D, especially those involving classified or highly specialized 'protected' services, often command substantial funding. A detailed comparison would necessitate identifying contracts with similar NAICS codes (541712), contract types (CPIF), and project objectives within the defense sector.
What are the potential risks associated with a Cost Plus Incentive Fee (CPIF) contract for this type of R&D project?
Cost Plus Incentive Fee (CPIF) contracts, while designed to motivate contractor performance by linking profit to achieving specific targets, carry inherent risks, particularly in R&D. A primary risk is the potential for cost overruns if the incentive targets are poorly defined or if the contractor prioritizes achieving incentives over cost control. In R&D, where outcomes can be uncertain, establishing realistic and measurable targets can be challenging. If targets are too easily met, the government may pay more than necessary. Conversely, if targets are unattainable, the incentive may be lost. Effective oversight is critical to ensure that the contractor's efforts align with the government's objectives and that costs remain reasonable throughout the contract performance period. The complexity of 'protected tactical services' could exacerbate these risks if performance metrics are not precisely articulated.
What is Viasat Inc.'s track record with similar DoD R&D contracts, particularly those involving tactical communications or protected services?
Viasat Inc. has a significant history of contracting with the Department of Defense, particularly in areas related to satellite communications, networking, and secure systems. They are known for providing robust communication solutions for military applications. While the specific 'protected tactical service field demonstration' details are not public, Viasat's expertise in developing and deploying secure, high-bandwidth communication systems aligns with the general description. Their track record includes numerous contracts for tactical data links, airborne networks, and secure ground systems. Analyzing their past performance on similar R&D or system demonstration contracts, including their ability to meet cost, schedule, and performance requirements, would provide further insight into their capability to execute this specific project successfully.
Given the 'full and open competition' and 5 bidders, what does this imply about the market for protected tactical service R&D?
The fact that this contract was awarded under full and open competition with five bidders suggests a moderately competitive market for the type of 'protected tactical service' R&D being procured. It indicates that multiple companies possess the necessary technical capabilities and are willing to compete for Department of Defense contracts in this specialized area. The presence of five bidders implies that the market is not a monopoly or oligopoly, offering the government a reasonable selection of potential partners. However, the level of competition can only be truly assessed by understanding the specific requirements of the solicitation and the technical qualifications of each bidder. A higher number of bidders generally suggests more robust competition, potentially leading to better pricing and innovation.
What is the historical spending pattern for NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) by the Department of the Air Force?
The Department of the Air Force is a substantial investor in Research and Development under NAICS code 541712. Historical spending in this category typically reflects a commitment to advancing aerospace technology, materials science, cybersecurity, and other critical defense-related R&D areas. Annual spending can fluctuate based on strategic priorities, technological advancements, and budget allocations. Generally, the Air Force dedicates significant portions of its R&D budget to projects aimed at maintaining air and space superiority, enhancing intelligence, surveillance, and reconnaissance (ISR) capabilities, and developing next-generation platforms and systems. The $45.3 million awarded to Viasat represents a specific investment within this broader spending pattern, contributing to the overall R&D portfolio aimed at future operational needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $58,920,458
Exercised Options: $46,309,280
Current Obligation: $45,299,381
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $1,233,986
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-08-31
Current End Date: 2019-06-30
Potential End Date: 2019-06-30 00:00:00
Last Modified: 2025-04-21
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