DoD's $30.5M Viasat Contract for Global Network Services Lacked Competition
Contract Overview
Contract Amount: $30,537,451 ($30.5M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2017-03-19
End Date: 2022-09-28
Contract Duration: 2,019 days
Daily Burn Rate: $15.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF GLOBAL NETWORK SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350
Plain-Language Summary
Department of Defense obligated $30.5 million to VIASAT INC for work described as: IGF::OT::IGF GLOBAL NETWORK SERVICES Key points: 1. Significant spending on satellite telecommunications services. 2. Sole reliance on Viasat Inc. raises competition concerns. 3. Contract duration spans over five years. 4. Potential for better pricing through competitive bidding.
Value Assessment
Rating: questionable
The contract's total value of $30.5M over five years for satellite telecommunications is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition likely resulted in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures critical satellite communication capabilities for the Department of Defense. Supports military operations and personnel connectivity. Lack of competition may limit innovation and service options in the long run.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Extended contract duration without re-evaluation
Positive Signals
- Provides essential communication services
- Long-term relationship with a known provider
Sector Analysis
This contract falls within the IT and Defense sectors, specifically for satellite telecommunications. Spending in this area is critical for national security and global operations, but often involves high costs due to specialized technology and infrastructure.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely precluded small business participation.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA) under the Department of Defense. Oversight would typically involve monitoring performance and ensuring service delivery, but the lack of competition limits oversight on pricing.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Limited market research evident
- No small business participation
Tags
satellite-telecommunications, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.5 million to VIASAT INC. IGF::OT::IGF GLOBAL NETWORK SERVICES
Who is the contractor on this award?
The obligated recipient is VIASAT INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $30.5 million.
What is the period of performance?
Start: 2017-03-19. End: 2022-09-28.
What was the justification for awarding this contract on a sole-source basis?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as urgency, unique capabilities, or lack of available alternatives. Further investigation would be needed to determine the specific reasons.
What is the potential cost savings if this contract were competitively bid?
Without a competitive bidding process, it is impossible to quantify exact potential savings. However, historical data on government contracts suggests that competitive bidding can often lead to savings of 10-30% or more compared to sole-source awards, depending on the market and service.
How does this contract's pricing compare to industry benchmarks for similar satellite telecommunication services?
Benchmarking is challenging without knowing the specific service details and Service Level Agreements (SLAs). However, the absence of competition suggests the pricing may not be optimized. A thorough market analysis against comparable commercial offerings would be necessary for a definitive comparison.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC101317R0002
Offers Received: 1
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: $46,935,269
Exercised Options: $30,537,451
Current Obligation: $30,537,451
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,040,788
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2017-03-19
Current End Date: 2022-09-28
Potential End Date: 2022-09-28 00:00:00
Last Modified: 2022-09-16
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