Viasat Inc. awarded $42.3M for MIDS JTRS terminals, a sole-source contract with a 2-year duration
Contract Overview
Contract Amount: $42,313,750 ($42.3M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2019-02-20
End Date: 2021-08-31
Contract Duration: 923 days
Daily Burn Rate: $45.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MIDS JTRS TERMINAL
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $42.3 million to VIASAT INC for work described as: MIDS JTRS TERMINAL Key points: 1. The contract value of $42.3M for MIDS JTRS terminals represents a significant investment in secure communications. 2. As a sole-source award, the absence of competition may limit price discovery and potentially increase costs. 3. The contract duration of 923 days suggests a need for sustained supply and support of these critical systems. 4. Performance context is limited without specific delivery milestones or performance metrics detailed in the award. 5. The award falls within the Defense sector, specifically supporting naval communications infrastructure.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to the sole-source nature and lack of publicly available comparable contract data for MIDS JTRS terminals. The total award amount of $42.3M over approximately two years suggests a substantial per-unit cost, but without specific quantities or detailed specifications, a precise value-for-money assessment is difficult. Further analysis would require comparing pricing against similar secure communication systems or historical pricing for this specific terminal if available.
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 is typically used when a unique capability or proprietary technology is required, or in situations where only one source can fulfill the requirement. The lack of competition means that the government did not benefit from a competitive bidding process, which could have led to lower prices or more innovative solutions from multiple vendors.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing offers, there is less assurance that the price reflects the best possible value.
Public Impact
The primary beneficiaries are Department of Defense personnel, likely within the Navy, who will utilize the MIDS JTRS terminals for secure tactical communications. The services delivered include the provision of advanced communication terminals essential for battlefield awareness and command and control. The geographic impact is primarily within operational theaters where naval forces are deployed, ensuring secure data links. Workforce implications may include Viasat's internal manufacturing and engineering teams, as well as potential support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing, potentially leading to higher costs for taxpayers.
- Lack of transparency in the justification for sole-source procurement raises questions about market research and alternatives.
- The specific technical capabilities and long-term sustainment costs are not detailed, posing potential future financial risks.
- Dependence on a single supplier for critical communication hardware can create supply chain vulnerabilities.
Positive Signals
- The MIDS JTRS terminal is a critical component for secure tactical data links, enhancing operational effectiveness.
- Viasat Inc. is an established provider of communication systems, suggesting a degree of reliability and expertise.
- The contract duration indicates a commitment to providing necessary equipment over a defined period.
- The award supports the modernization of military communication systems, a key defense objective.
Sector Analysis
The defense communications sector is characterized by high technological barriers to entry and significant government investment. Contracts like this for MIDS JTRS terminals are crucial for maintaining secure and interoperable communication networks for military branches. The market is dominated by a few large defense contractors, and spending in this area is driven by evolving threats and the need for advanced situational awareness. Comparable spending benchmarks are difficult to establish without detailed specifications, but investments in tactical data links and secure communication hardware are consistently high within the defense budget.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business) flag is also false. This suggests that the prime contract was not specifically targeted towards small businesses. While Viasat Inc. is a large corporation, there may be subcontracting opportunities for small businesses within the supply chain for the MIDS JTRS terminals, though this is not explicitly detailed in the award notice. The impact on the small business ecosystem is likely indirect, depending on Viasat's subcontracting strategy.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are usually embedded within the contract terms, including delivery schedules, quality standards, and payment milestones. Transparency is limited by the sole-source nature of the award; however, contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Tactical Data Links
- Secure Communications Systems
- Military Radios
- Naval Communication Equipment
- Joint Tactical Information Distribution System (JTIDS)
Risk Flags
- Sole-source award may limit price competition.
- Lack of detailed performance metrics in award notice.
- Potential for vendor lock-in due to specialized technology.
Tags
defense, department-of-the-navy, viasat-inc, sole-source, firm-fixed-price, communications-equipment, tactical-data-links, california, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.3 million to VIASAT INC. MIDS JTRS TERMINAL
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 $42.3 million.
What is the period of performance?
Start: 2019-02-20. End: 2021-08-31.
What is the specific technical capability of the MIDS JTRS terminal being procured, and how does it compare to previous versions or alternative technologies?
The MIDS JTRS (Multifunctional Information Distribution System Joint Tactical Radio System) terminal is a critical component for secure, jam-resistant, high-volume tactical data exchange. It enables networked operations by allowing platforms to share real-time situational awareness data. While the award notice does not detail specific technical upgrades, JTRS aims to integrate various waveforms and enhance interoperability across different military branches and allied forces. Compared to older MIDS terminals, JTRS variants typically offer improved processing power, software-defined radio capabilities for greater flexibility, and enhanced security features. Alternative technologies might include other proprietary tactical data links or emerging satellite communication systems, but MIDS JTRS is a standardized military system designed for specific battlefield communication needs.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the lack of viable alternative sources that can meet the government's requirements within the necessary timeframe. For the MIDS JTRS terminal, Viasat Inc. is a primary manufacturer and integrator of this specific system. The government likely determined that Viasat possessed the necessary intellectual property, manufacturing expertise, and existing infrastructure to produce and deliver these terminals efficiently and meet stringent military specifications. While the award notice itself doesn't elaborate, standard sole-source justifications often involve statements that only one responsible source can provide the required supplies or services. A thorough market research process would have been conducted to confirm the absence of other capable sources or to justify why alternatives were not suitable.
How does the $42.3 million contract value compare to historical spending on MIDS JTRS terminals or similar communication systems?
Directly comparing the $42.3 million award to historical spending on MIDS JTRS terminals is challenging without knowing the exact quantity of terminals procured under this specific delivery order and the period it covers. However, MIDS terminals are high-value, specialized equipment. Historical spending on similar tactical data link systems and secure communication hardware within the Department of Defense often runs into hundreds of millions or even billions of dollars annually across all branches. This $42.3 million award represents a significant, but not necessarily outlier, investment for a specific set of terminals. To provide a precise comparison, one would need to analyze annual procurement data for MIDS JTRS terminals over several fiscal years and consider inflation and technological evolution.
What are the potential risks associated with relying on a single supplier (Viasat Inc.) for these critical communication terminals?
Relying on a single supplier like Viasat Inc. for critical communication terminals introduces several potential risks. Firstly, there's a risk of supply chain disruption; if Viasat faces production issues, natural disasters, or financial instability, the delivery of these essential terminals could be jeopardized, impacting military operations. Secondly, the lack of competition inherent in a sole-source award can lead to higher prices over time, as the government has limited leverage to negotiate cost reductions. Thirdly, there's a risk of vendor lock-in, where the government becomes heavily dependent on Viasat's proprietary technology and support, making it difficult and costly to switch to alternative solutions in the future. Finally, without competitive pressure, there might be less incentive for the sole supplier to innovate rapidly or maintain the highest levels of service.
What performance metrics or oversight mechanisms are in place to ensure Viasat Inc. delivers the MIDS JTRS terminals effectively and on time?
While the award notice itself doesn't detail specific performance metrics, government contracts typically include clauses that define delivery schedules, quality standards, and acceptance criteria. For a contract of this nature, performance oversight would likely involve program managers and contracting officers within the Department of the Navy. They would monitor Viasat's progress against the contract's delivery order requirements, conduct inspections, and review technical documentation. Penalties for late delivery or failure to meet quality standards may be stipulated in the contract. Furthermore, the government may conduct periodic reviews of Viasat's manufacturing processes and financial stability to mitigate risks. The contract's firm-fixed-price nature also places the cost risk on Viasat, incentivizing them to manage their production efficiently.
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: $42,313,750
Exercised Options: $42,313,750
Current Obligation: $42,313,750
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: 2019-02-20
Current End Date: 2021-08-31
Potential End Date: 2021-08-31 00:00:00
Last Modified: 2024-09-10
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