DoD Awards $136M Viasat Contract for BFT2 Warranties/Licenses, Raising Competition Concerns
Contract Overview
Contract Amount: $136,226,345 ($136.2M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2018-06-29
End Date: 2024-08-21
Contract Duration: 2,245 days
Daily Burn Rate: $60.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BFT2 WARRANTIES/ LICENSES
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $136.2 million to VIASAT INC for work described as: BFT2 WARRANTIES/ LICENSES Key points: 1. Significant contract value of $136.2M for BFT2 warranties and licenses. 2. Sole-source award to Viasat Inc. limits competitive pricing opportunities. 3. Potential risk associated with long-term reliance on a single vendor for critical systems. 4. Contract falls under Engineering Services (NAICS 541330) within the Defense sector.
Value Assessment
Rating: questionable
The contract value of $136.2M for warranties and licenses appears high, especially given the sole-source nature. Without competitive bidding, it's difficult to benchmark pricing against similar offerings or assess if taxpayers are receiving the best value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to VIASAT INC. This lack of competition significantly hinders price discovery and may lead to inflated costs for the government.
Taxpayer Impact: The sole-source award to Viasat Inc. for BFT2 warranties and licenses represents a significant taxpayer expenditure without the benefit of competitive market forces to ensure optimal pricing.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single provider for critical system warranties could pose long-term risks. The Defense Information Systems Agency's procurement strategy warrants scrutiny regarding competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Essential system support
- Established vendor relationship
Sector Analysis
This contract falls under Engineering Services (NAICS 541330) within the Department of Defense. Spending in this sector often involves complex technical solutions and long-term support, where competitive benchmarking can be challenging but is crucial for cost control.
Small Business Impact
The contract data does not indicate any specific provisions or set-asides for small businesses. The sole-source nature of this award likely precluded small business participation.
Oversight & Accountability
The sole-source award raises questions about the oversight processes that led to this procurement method. Further review is needed to ensure adequate justification and explore future competitive opportunities.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for cost overruns due to lack of price discovery.
- Dependency on a single vendor for critical system support.
- Long contract duration (2018-2024) may not reflect current market conditions.
- Lack of transparency regarding justification for sole-source procurement.
Tags
engineering-services, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $136.2 million to VIASAT INC. BFT2 WARRANTIES/ LICENSES
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 $136.2 million.
What is the period of performance?
Start: 2018-06-29. End: 2024-08-21.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for this sole-source award is not detailed in the provided data. Typically, sole-source contracts require extensive justification, such as unique capabilities or lack of market availability. Without this information, it's impossible to assess if alternative competitive strategies were adequately explored or if this was the only viable option.
How does the pricing for these warranties and licenses compare to industry benchmarks for similar systems, given the lack of competition?
Direct comparison to industry benchmarks is challenging due to the sole-source nature of this contract. The absence of competitive bids means there's no market-driven price discovery. The government may be paying a premium. A thorough cost analysis and comparison with similar, competitively procured systems would be necessary to determine fair pricing.
What are the long-term risks associated with a sole-source contract for critical system warranties and licenses, particularly regarding future upgrades and support?
Long-term risks include vendor lock-in, potential price escalations upon contract renewal, and limited flexibility in adopting new technologies or alternative solutions. The government's ability to negotiate favorable terms for future upgrades or support may be diminished, potentially leading to higher lifecycle costs and reduced operational agility.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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: HC102818R0050
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $136,226,345
Exercised Options: $136,226,345
Current Obligation: $136,226,345
Actual Outlays: $61,632,817
Subaward Activity
Number of Subawards: 56
Total Subaward Amount: $12,503,129
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-06-29
Current End Date: 2024-08-21
Potential End Date: 2024-08-21 00:00:00
Last Modified: 2025-06-20
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