DoD's $30.5M Viasat contract for ground vehicular transceivers awarded via full and open competition
Contract Overview
Contract Amount: $30,515,380 ($30.5M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2019-09-27
End Date: 2020-05-27
Contract Duration: 243 days
Daily Burn Rate: $125.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BFT2 GROUND VEHICULAR TRANSCEIVERS
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $30.5 million to VIASAT INC for work described as: BFT2 GROUND VEHICULAR TRANSCEIVERS Key points: 1. Contract awarded for satellite telecommunications equipment and services. 2. Significant portion of spending allocated to a single delivery order. 3. Contractor Viasat Inc. has a substantial presence in the defense sector. 4. Awarded by the Defense Information Systems Agency (DISA). 5. Fixed-price contract type aims to control costs. 6. Contract duration of 243 days indicates a short-term need.
Value Assessment
Rating: good
The total award amount of $30.5 million for vehicular transceivers appears reasonable given the nature of satellite telecommunications equipment. Benchmarking against similar contracts for specialized communication hardware is challenging without more detailed specifications, but the firm fixed-price structure suggests an effort to manage costs effectively. The value proposition hinges on the reliability and performance of the Viasat BFT2 system in demanding operational environments.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single delivery order suggests a focused procurement. The competitive process likely contributed to price discovery, although the specific number of bidders is not provided. This approach generally benefits the government by fostering a competitive environment.
Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it encourages multiple vendors to offer their best prices and solutions, potentially leading to cost savings and innovation.
Public Impact
Provides critical communication capabilities for ground vehicles within the Department of Defense. Enhances battlefield situational awareness and command and control for deployed forces. Supports military operations by ensuring reliable data and voice transmission. Primarily benefits military personnel operating in theaters requiring robust communication links. Geographic impact is global, supporting deployed units wherever they operate.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if this specific transceiver technology becomes standard.
- Reliance on a single contractor for a critical communication system.
- Limited visibility into the specific performance metrics achieved during the contract period.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Firm fixed-price contract type helps manage cost overruns.
- Contractor Viasat Inc. is a well-established provider of satellite communications.
Sector Analysis
This contract falls within the Satellite Telecommunications sector, a critical component of modern defense and communication infrastructure. The market is characterized by high barriers to entry due to technological complexity and significant R&D investment. Spending in this area is driven by the need for secure, reliable, and global communication capabilities for military and government operations. Comparable spending benchmarks would typically involve other large-scale satellite system procurements or managed network services.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a large prime contractor, Viasat Inc. Further analysis would be needed to determine if small businesses were involved in the supply chain or as subcontractors, which is common even in large prime contracts.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). The firm fixed-price nature provides a degree of cost control. Transparency is facilitated by contract databases like FPDS, but detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Tactical Data Links
- Military Satellite Communications
- Ground Mobile Systems
- Command and Control Systems
Risk Flags
- Potential for technology obsolescence
- Reliance on a single vendor for critical equipment
Tags
defense, department-of-defense, disa, viasat-inc, satellite-telecommunications, ground-vehicular-transceivers, delivery-order, firm-fixed-price, full-and-open-competition, maryland, defense-information-systems-agency, communications-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.5 million to VIASAT INC. BFT2 GROUND VEHICULAR TRANSCEIVERS
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: 2019-09-27. End: 2020-05-27.
What is the track record of Viasat Inc. in fulfilling similar Department of Defense contracts?
Viasat Inc. has a significant track record with the Department of Defense, frequently securing contracts for satellite communications, networking equipment, and related services. They are known for providing robust solutions for tactical communications, including airborne and ground-based systems. Their history includes numerous awards for satellite terminals, modems, and secure communication systems, often supporting global operations and demanding mission requirements. While specific performance metrics for past contracts are not publicly detailed, their continued success in winning competitive bids suggests a generally positive performance history and a strong understanding of DoD needs. However, like any large defense contractor, they may have faced scrutiny or challenges on specific projects, which would require deeper investigation into individual contract performance reports.
How does the per-unit cost of these transceivers compare to market rates or similar government procurements?
Determining a precise per-unit cost for the BFT2 Ground Vehicular Transceivers is difficult without knowing the exact quantity procured under this $30.5 million award and the specific model or configuration of the transceivers. The total award covers equipment and potentially associated services over the contract duration. However, specialized military-grade satellite communication hardware, especially systems designed for vehicular integration and ruggedized environments, typically commands a premium compared to commercial off-the-shelf (COTS) equipment. Government procurements often benefit from bulk purchasing power, but the complexity and security requirements can drive up costs. Without a clear unit quantity or detailed breakdown of services versus hardware, a direct comparison to market rates or other government procurements is speculative. Further analysis would require access to the delivery order details specifying quantities and unit prices.
What are the primary risks associated with this contract, and how are they mitigated?
Primary risks for this contract include potential technical obsolescence of the communication technology over time, given the rapid pace of technological advancement. Another risk is the reliance on a single vendor, Viasat Inc., for critical communication hardware, which could lead to supply chain vulnerabilities or price increases in future procurements. Performance risks, such as the transceivers not meeting operational requirements in diverse and challenging environments, also exist. Mitigation strategies likely include the firm fixed-price contract type, which shifts some cost risk to the contractor. The initial full and open competition aims to secure competitive pricing. For obsolescence, the relatively short contract duration (243 days) might suggest a focus on immediate needs rather than long-term technology integration. The DoD may also have contingency plans or alternative communication solutions in place.
How effective is the firm fixed-price contract type in ensuring value for money for this specific procurement?
The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks are understood. For the procurement of specific hardware like the BFT2 Ground Vehicular Transceivers, an FFP contract provides cost certainty for the government, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to manage their costs efficiently. Given that this is a delivery order for established equipment, the scope is likely well-defined. The effectiveness in achieving value for money is further enhanced by the 'full and open competition' award, which should have driven competitive pricing. However, the ultimate value depends on the actual performance and reliability of the transceivers in meeting the DoD's operational requirements.
What are the historical spending patterns for satellite telecommunications equipment by the Defense Information Systems Agency (DISA)?
DISA has a consistent and substantial history of spending on satellite telecommunications equipment and services, reflecting its critical role in providing global communication networks for the U.S. military. Historical data indicates significant investments in various satellite communication systems, including terminals, modems, bandwidth, and related support services. Spending often fluctuates based on evolving operational needs, technological upgrades, and the deployment of forces. DISA frequently utilizes competitive contracting methods, including full and open competition, to procure these capabilities. The agency's budget allocations for satellite communications are typically in the hundreds of millions, if not billions, of dollars annually, encompassing a wide range of requirements from tactical battlefield communications to strategic enterprise networks. This specific $30.5 million award represents a component of DISA's broader satellite communications portfolio.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $30,515,380
Exercised Options: $30,515,380
Current Obligation: $30,515,380
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F218AA
IDV Type: FSS
Timeline
Start Date: 2019-09-27
Current End Date: 2020-05-27
Potential End Date: 2020-05-27 00:00:00
Last Modified: 2020-02-19
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