DoD Awards $43.4M for MIDS JTRS Terminals to Viasat Inc
Contract Overview
Contract Amount: $43,377,299 ($43.4M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2019-07-19
End Date: 2022-01-31
Contract Duration: 927 days
Daily Burn Rate: $46.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MIDS JTRS TERMINAL
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $43.4 million to VIASAT INC for work described as: MIDS JTRS TERMINAL Key points: 1. Viasat Inc. secured a significant contract for MIDS JTRS terminals. 2. The contract was not competed, raising questions about price discovery. 3. Potential risks include lack of competitive pressure on pricing and innovation. 4. The sector is dominated by specialized defense communications equipment.
Value Assessment
Rating: questionable
The award amount of $43.4M for MIDS JTRS terminals lacks sufficient comparative data for a definitive value assessment. Without competition, it's difficult to benchmark against similar contracts or market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This approach bypasses the typical price discovery mechanisms inherent in competitive bidding, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these terminals compared to what might have been achieved through a competitive process.
Public Impact
Military communication capabilities are enhanced with these terminals. Taxpayers may be overpaying due to the absence of competitive bidding. Dependence on a single supplier could pose supply chain risks. The Department of the Navy benefits from this specialized equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Sole-source award
Positive Signals
- Essential defense equipment
- Awarded to established contractor
Sector Analysis
This contract falls within the defense electronics sector, specifically focusing on advanced communication equipment. Spending in this niche area is often characterized by high R&D costs and specialized manufacturing requirements, with limited competition.
Small Business Impact
The contract was awarded to Viasat Inc., a large corporation, and there is no indication of small business participation in this specific award. The nature of specialized defense electronics often favors larger, established prime contractors.
Oversight & Accountability
The Department of Defense is responsible for oversight. The lack of competition suggests that standard oversight mechanisms for ensuring fair pricing may have been bypassed or deemed unnecessary.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price gouging
- Limited innovation incentive
- Supply chain dependency
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.4 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 $43.4 million.
What is the period of performance?
Start: 2019-07-19. End: 2022-01-31.
What is the justification for the sole-source award of the MIDS JTRS terminals to Viasat Inc.?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed the Department of Defense determined Viasat possessed the sole capability to meet the MIDS JTRS terminal requirements at the time of the award.
What are the potential long-term risks associated with relying on a sole-source provider for critical communication equipment?
Long-term risks include price escalation due to lack of competition, potential for reduced innovation as the supplier faces no market pressure, and supply chain vulnerabilities if the sole provider experiences production issues or goes out of business. This dependence can also limit future technological upgrades if the provider's roadmap diverges from evolving military needs.
How does the lack of competition impact the overall value for taxpayer money in this contract?
The lack of competition significantly hinders the ability to ensure optimal value for taxpayer money. Competitive bidding drives down prices and encourages efficiency. A sole-source award removes these pressures, making it more likely that the government pays a higher price than if multiple vendors had competed, potentially leading to inefficient use of public funds.
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: $43,377,299
Exercised Options: $43,377,299
Current Obligation: $43,377,299
Actual Outlays: $2,717,386
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $3,463
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: 2019-07-19
Current End Date: 2022-01-31
Potential End Date: 2022-01-31 00:00:00
Last Modified: 2024-09-10
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