Viasat Inc. awarded $50.4M for MIDS JTRS Terminals and Spares, a sole-source contract
Contract Overview
Contract Amount: $50,355,885 ($50.4M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2018-09-25
End Date: 2020-12-31
Contract Duration: 828 days
Daily Burn Rate: $60.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MIDS JTRS TERMINALS AND SPARES
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $50.4 million to VIASAT INC for work described as: MIDS JTRS TERMINALS AND SPARES Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. The contract duration of 828 days suggests a need for sustained support for critical communication systems. 3. Focus on terminals and spares indicates a requirement for operational readiness and maintenance of existing infrastructure. 4. The award to Viasat Inc. suggests a reliance on a specific vendor for specialized communication equipment. 5. Lack of competition limits opportunities for other vendors to offer potentially more cost-effective solutions. 6. The firm-fixed-price contract type aims to transfer risk to the contractor, but the sole-source nature may negate this benefit.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to its sole-source nature and the lack of publicly available comparable contract data. Without competitive bids, it's difficult to ascertain if the $50.4 million awarded represents a fair market price for the MIDS JTRS terminals and spares. The fixed-price structure is intended to control costs, but the absence of competition means the government cannot leverage market forces to ensure optimal value for taxpayer dollars. Further analysis would require access to internal cost data or historical pricing for similar sole-source procurements.
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. The justification for this approach is not detailed in the provided data, but sole-source awards typically occur when a unique capability or proprietary technology is required, or in cases of urgent need where competition is not feasible. The lack of competition means that the government did not benefit from a bidding process, which could have led to lower prices and a wider range of technical solutions.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value for the funds expended.
Public Impact
The primary beneficiaries are likely military personnel requiring secure and reliable communication capabilities through the MIDS JTRS system. The contract delivers essential terminals and spare parts, ensuring the operational readiness and maintenance of critical communication infrastructure. The geographic impact is likely global, supporting deployed forces wherever the MIDS JTRS system is utilized. Workforce implications may include continued employment for Viasat Inc. personnel involved in manufacturing, support, and logistics for these systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
- Lack of transparency in the justification for sole-sourcing makes it difficult to assess necessity.
- Reliance on a single vendor can create long-term dependency and potential supply chain risks.
- Limited public data makes independent value-for-money assessment difficult.
Positive Signals
- Firm-fixed-price contract type helps manage cost certainty for the government.
- Delivery orders suggest a structured approach to fulfilling specific needs within the contract.
- The contract supports critical defense communication systems, contributing to national security.
Sector Analysis
The MIDS JTRS (Multifunctional Information Distribution System Joint Tactical Radio System) falls within the defense communications and electronics manufacturing sector. This sector is characterized by high technological complexity, stringent security requirements, and significant government investment. The market is often dominated by a few large prime contractors and specialized subcontractors. Spending in this area is driven by the need for secure, interoperable, and advanced communication systems for military operations. Comparable spending benchmarks would typically involve other large sole-source or competitively awarded contracts for tactical communication systems and related hardware.
Small Business Impact
The data indicates that small business participation was not a primary consideration for this contract, as the 'ss' (small business set-aside) field is false and 'sb' (small business) is also false. This suggests that the contract was not specifically set aside for small businesses, nor does it appear to have a significant subcontracting plan focused on them based on the provided fields. Consequently, the direct impact on the small business ecosystem for this specific award is likely minimal, with opportunities for small businesses potentially arising indirectly through Viasat Inc.'s supply chain if they choose to engage them.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods and services at an agreed-upon price. Transparency is limited due to the sole-source nature and the lack of detailed public justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.
Related Government Programs
- MIDS LVT (Low Volume Terminal)
- JTRS (Joint Tactical Radio System) program
- Tactical Data Links
- Military Communication Systems
- Defense Electronics Procurement
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
- Vendor dependency
Tags
defense, department-of-the-navy, viasat-inc, sole-source, communications-equipment, terminals, spares, firm-fixed-price, california, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.4 million to VIASAT INC. MIDS JTRS TERMINALS AND SPARES
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 Navy).
What is the total obligated amount?
The obligated amount is $50.4 million.
What is the period of performance?
Start: 2018-09-25. End: 2020-12-31.
What is the specific justification for awarding this contract on a sole-source basis to Viasat Inc.?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as the existence of only one responsible source capable of providing the required supplies or services, or when a public exigency will not permit a delay incident to competition. For MIDS JTRS terminals and spares, this could be due to proprietary technology, unique integration requirements with existing platforms, or a lack of alternative qualified vendors. A full justification would normally be documented and made available through sources like the Federal Business Opportunities (now SAM.gov) website's contract award notices.
How does the $50.4 million contract value compare to historical spending on MIDS JTRS terminals and spares?
Without access to historical spending data specifically for MIDS JTRS terminals and spares, a direct comparison is not possible. However, $50.4 million represents a significant investment. The duration of the contract (828 days) suggests a substantial need for these components over a period of more than two years. To assess historical trends, one would need to analyze past contract awards for similar items, considering factors like quantity, unit price, and inflation over time. The sole-source nature of this award also complicates direct comparisons with competitively procured items, which might offer insights into price variations.
What are the key performance indicators (KPIs) or metrics used to evaluate Viasat Inc.'s performance under this contract?
The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate Viasat Inc.'s performance. However, for contracts involving the supply of hardware like terminals and spares, common performance metrics typically include on-time delivery, quality of goods (e.g., defect rates), adherence to technical specifications, and responsiveness to support requests. For a firm-fixed-price contract, meeting delivery schedules and ensuring the delivered items conform to the contract's technical requirements are paramount. Performance would likely be monitored through contract administration and potentially through formal performance reviews.
What is the potential risk associated with relying on a single vendor for critical communication equipment like MIDS JTRS terminals?
Relying on a single vendor, such as Viasat Inc. in this case, for critical communication equipment presents several risks. Firstly, there's a risk of vendor lock-in, where the government becomes dependent on that specific vendor, potentially leading to escalating prices in future procurements and limited leverage. Secondly, supply chain disruptions affecting the sole vendor could directly impact the availability of essential equipment, jeopardizing operational readiness. Thirdly, a lack of competition can stifle innovation, as the vendor may face less pressure to improve products or services. Finally, the vendor's financial stability or strategic business decisions could pose a risk to long-term support and availability.
Are there any provisions for intellectual property or technology transfer within this sole-source contract?
The provided data does not contain information regarding intellectual property (IP) rights or technology transfer provisions within this contract. Sole-source contracts, especially those involving specialized or proprietary technology, may or may not include such clauses. If the MIDS JTRS terminals utilize Viasat's proprietary technology, the government might have limited rights or access to that IP. Conversely, contracts can sometimes include clauses requiring the contractor to provide technical data or facilitate knowledge transfer to government personnel or designated entities, particularly if future sustainment or upgrades are anticipated. Specific details would be found within the contract's full text.
What is the role of the Department of the Navy in overseeing this contract, and what oversight mechanisms are in place?
The Department of the Navy, specifically the Department of the Navy (DoN) as the awarding agency, is responsible for the overall oversight of this contract. This includes ensuring that Viasat Inc. fulfills its contractual obligations in terms of delivering the MIDS JTRS terminals and spares according to the specified quality, quantity, and delivery schedule. Oversight mechanisms typically involve a Contracting Officer (CO), who is responsible for the contractual relationship, and potentially a Contracting Officer's Representative (COR) or Technical Point of Contact (TPOC) who monitors technical performance and progress. Regular reporting requirements, site visits, and performance reviews are common oversight tools used to ensure compliance and address any issues that may arise.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003914R0021
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: $50,355,885
Exercised Options: $50,355,885
Current Obligation: $50,355,885
Actual Outlays: $6,538,048
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $47,941
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003915D0008
IDV Type: IDC
Timeline
Start Date: 2018-09-25
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2024-09-09
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