Viasat Inc. awarded $1.6M for Integrated Waveform Phase I by the Department of Defense

Contract Overview

Contract Amount: $16,025,673 ($16.0M)

Contractor: Viasat Inc

Awarding Agency: Department of Defense

Start Date: 2007-04-09

End Date: 2010-08-23

Contract Duration: 1,232 days

Daily Burn Rate: $13.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTEGRATED WAVEFORM PHASE I

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to VIASAT INC for work described as: INTEGRATED WAVEFORM PHASE I Key points: 1. Contract awarded for computer systems design services, indicating a focus on specialized technical solutions. 2. The contract was not competed, raising questions about potential cost efficiencies and market exploration. 3. A firm-fixed-price contract suggests a defined scope and budget, potentially limiting cost overruns. 4. The duration of the contract (over 3 years) implies a significant project requiring sustained effort. 5. Awarded to Viasat Inc., a known entity in the defense and communications sector. 6. The contract falls under the 'Computer Systems Design Services' NAICS code, a common area for IT support.

Value Assessment

Rating: questionable

The contract value of $1.6 million for computer systems design services over approximately three years is difficult to benchmark without more specific details on the deliverables. As a sole-source award, there is no direct comparison to other bids to assess value for money. The firm-fixed-price structure provides some cost certainty, but the absence of competition means the government did not benefit from potential price reductions that could arise from a competitive bidding process. Further analysis would require understanding the specific technical requirements and market rates for similar specialized services.

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 solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they limit the government's ability to explore the full range of market solutions and potentially secure lower prices through competition. The lack of multiple bidders means there was no direct price discovery mechanism.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not leverage competitive pressures to drive down prices. This limits the potential for cost savings that could be realized in a fully competed environment.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency, receiving specialized computer systems design services. The services delivered are related to 'Integrated Waveform Phase I', suggesting development or enhancement of communication systems. The geographic impact is likely within the operational areas of the Department of Defense, though specific locations are not detailed. Workforce implications would involve specialized technical personnel employed by Viasat Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract falls within the Information Technology (IT) and Defense sectors, specifically under Computer Systems Design Services. This market segment is characterized by specialized technical expertise and often involves complex system integration and development. Spending in this area by defense agencies is substantial, driven by the need for advanced communication, cybersecurity, and data processing capabilities. Benchmarking this specific contract's value is challenging without detailed scope, but IT services represent a significant portion of federal procurement.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, Viasat Inc., is expected to perform the work directly or through its own resources, with limited direct benefit to the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency, the Defense Information Systems Agency (DISA), and potentially the Department of Defense's Inspector General. As a sole-source award, scrutiny might be higher to ensure the justification for not competing was sound. Transparency is limited by the lack of competitive proposals, but contract award details are generally available through federal procurement databases.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, disa, viasat-inc, computer-systems-design-services, not-competed, sole-source, firm-fixed-price, it, virginia, research-and-development

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to VIASAT INC. INTEGRATED WAVEFORM PHASE I

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 $16.0 million.

What is the period of performance?

Start: 2007-04-09. End: 2010-08-23.

What specific technical capabilities does Viasat Inc. possess that justified a sole-source award for 'Integrated Waveform Phase I'?

The justification for a sole-source award typically rests on unique capabilities, proprietary technology, or urgent needs that only a specific contractor can meet. For Viasat Inc. and the 'Integrated Waveform Phase I' contract, this likely relates to specialized expertise in waveform design, signal processing, or existing proprietary technology that is critical for the Department of Defense's communication systems. Without access to the specific sole-source justification documentation (e.g., Justification and Approval - J&A), the precise technical reasons remain undisclosed. However, Viasat is known for its satellite communication systems and secure networking solutions, suggesting the 'Integrated Waveform' project could be tied to enhancing these capabilities for military applications, potentially involving advanced encryption or interoperability features that are difficult to replicate.

How does the $1.6 million contract value compare to similar 'Computer Systems Design Services' contracts awarded by the DoD?

Comparing the $1.6 million value of this contract to similar 'Computer Systems Design Services' contracts requires a detailed analysis of contract scope, duration, and specific services rendered. The NAICS code 541512 covers a broad range of services, from IT support and network management to custom software development and system integration. Given this contract's duration of over three years and its sole-source nature, the $1.6 million might represent a moderate investment for specialized R&D or system enhancement. However, without knowing the exact deliverables, it's challenging to establish a precise per-year or per-service benchmark. Larger, competed contracts for similar services can range from millions to hundreds of millions of dollars, often involving more extensive system deployments or ongoing support.

What are the potential risks associated with a sole-source award for a technology development contract like this?

Sole-source awards for technology development contracts carry several inherent risks. Firstly, the absence of competition can lead to inflated pricing, as the government does not benefit from the cost-saving pressures that a competitive bidding process typically generates. Secondly, it limits the government's exposure to alternative technological solutions or innovative approaches that other vendors might offer. This can result in the selection of a suboptimal solution or stifle innovation. Thirdly, there's a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially hindering future flexibility and increasing long-term costs. Finally, without competitive benchmarking, it's harder to objectively assess the contractor's performance and the overall value for money received.

What is the historical spending pattern for 'Integrated Waveform' related contracts within the Department of Defense?

Analyzing historical spending patterns for 'Integrated Waveform' related contracts requires searching federal procurement databases for similar contract actions over time. The term 'Integrated Waveform' suggests a focus on communication technologies, potentially related to radio frequency (RF) or satellite communications. Historical data might reveal if this is a recurring area of investment for the DoD, the typical contract values, the primary contractors involved, and whether these contracts have historically been competed or awarded sole-source. A trend of sole-source awards in this specific technology area could indicate a niche market or proprietary technology, while a pattern of competitive awards would suggest a more open market for such solutions. Understanding this history provides context for the current award's nature and potential future spending.

What is the significance of the 'Phase I' designation in the contract title 'INTEGRATED WAVEFORM PHASE I'?

The 'Phase I' designation typically signifies the initial stage of a research and development (R&D) project, often associated with Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs, although it can also be used in broader R&D contexts. In Phase I, the primary goal is usually to establish the feasibility and scientific/technical merit of a proposed concept or technology. This involves basic research and development, proof-of-concept studies, and feasibility analyses. Contracts awarded for Phase I are generally smaller in scope and value compared to subsequent phases (Phase II, Phase III), which involve more extensive development, prototyping, and eventual commercialization or full-scale implementation. Therefore, 'Phase I' indicates that this $1.6 million award is for foundational research and exploration of the 'Integrated Waveform' concept.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6155 EL CAMINO REAL, CARLSBAD, CA, 49

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,025,673

Exercised Options: $16,025,673

Current Obligation: $16,025,673

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2007-04-09

Current End Date: 2010-08-23

Potential End Date: 2011-08-23 00:00:00

Last Modified: 2014-10-23

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