Viasat Inc. awarded $58.4M contract for MIDS JTRS terminals by the Department of the Navy
Contract Overview
Contract Amount: $58,422,130 ($58.4M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2020-05-19
End Date: 2022-10-31
Contract Duration: 895 days
Daily Burn Rate: $65.3K/day
Competition Type: FULL AND OPEN COMPETITION
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 $58.4 million to VIASAT INC for work described as: MIDS JTRS TERMINAL Key points: 1. Contract value represents a significant investment in advanced communication equipment. 2. Competition dynamics for specialized defense electronics can influence pricing and innovation. 3. Performance risk is moderate given the established nature of the technology and contractor. 4. This award falls within the broader context of military modernization efforts. 5. The contract positions Viasat as a key supplier in the defense communications sector.
Value Assessment
Rating: good
The contract value of $58.4 million for MIDS JTRS terminals appears reasonable when considering the specialized nature of the equipment and the firm-fixed-price contract type. Benchmarking against similar sole-source or limited-competition awards for advanced military communication systems suggests this pricing is within an expected range. However, a more precise value-for-money assessment would require detailed cost breakdowns and comparisons to alternative solutions or previous procurement cycles.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this competitive approach generally fosters better price discovery and encourages contractors to offer competitive terms. The open competition suggests that the government sought the best value from a range of qualified suppliers.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and ensures the government receives the most cost-effective solution available in the market.
Public Impact
The Department of the Navy is the primary beneficiary, receiving critical communication hardware. The contract delivers MIDS JTRS terminals, essential for secure and interoperable battlefield communications. The contract is associated with California (SN: CALIFORNIA), suggesting potential manufacturing or support activities in the state. The award supports jobs in the defense manufacturing and technology sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise during production.
- Dependence on a single contractor for a critical component could pose supply chain risks.
- Ensuring long-term interoperability with evolving military communication standards.
Positive Signals
- Firm-fixed-price contract type limits the government's exposure to cost increases.
- Full and open competition suggests a competitive market for this type of equipment.
- Viasat Inc. is an established provider of defense communication solutions.
Sector Analysis
The defense electronics manufacturing sector is characterized by high technological barriers to entry and significant R&D investment. Contracts for specialized equipment like MIDS JTRS terminals are crucial for maintaining military readiness and technological superiority. The market is often dominated by a few key players capable of meeting stringent military specifications. Spending in this sub-sector is driven by defense budgets and modernization priorities, with comparable contracts often involving complex systems integration and advanced networking capabilities.
Small Business Impact
There is no indication of a small business set-aside for this contract, nor is there information on subcontracting plans. Given the specialized nature of the MIDS JTRS terminals, it is likely that the prime contractor, Viasat Inc., possesses the core capabilities. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for specific components or services.
Oversight & Accountability
The contract is subject to standard federal procurement oversight mechanisms. The Department of the Navy's contracting officers are responsible for monitoring performance and ensuring compliance. Transparency is generally maintained through contract award databases. The Inspector General for the Department of Defense may have jurisdiction for audits and investigations if any irregularities are suspected.
Related Government Programs
- Tactical Data Links
- Military Communication Systems
- Joint Tactical Radio System (JTRS)
- Defense Communications Equipment
Risk Flags
- Potential for schedule delays impacting operational readiness.
- Technological obsolescence risk in rapidly evolving defense landscape.
- Supply chain dependencies for specialized components.
Tags
defense, department-of-the-navy, communications-equipment, mids-jtrs-terminal, viasat-inc, firm-fixed-price, full-and-open-competition, california, other-communications-equipment-manufacturing, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.4 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 $58.4 million.
What is the period of performance?
Start: 2020-05-19. End: 2022-10-31.
What is the historical spending trend for MIDS JTRS terminals by the Department of Defense?
Analyzing historical spending on MIDS JTRS terminals requires accessing detailed procurement data over several fiscal years. Typically, such spending would fluctuate based on military readiness requirements, modernization programs, and the lifecycle of the equipment. Early procurement phases might show higher spending as initial fielding occurs, followed by sustained spending for sustainment, upgrades, and replacement of aging units. Without specific historical data for this terminal type, it's difficult to provide precise figures, but it's reasonable to assume consistent investment in secure, interoperable communication systems is a priority for the DoD, reflecting ongoing operational needs and technological advancements in battlefield communication.
How does the awarded price compare to previous procurements of similar MIDS JTRS terminals?
A direct comparison of the $58.4 million award to previous procurements of similar MIDS JTRS terminals would require access to historical contract data, including award dates, quantities, and unit prices. Factors such as inflation, technological upgrades, and changes in competition levels can significantly influence pricing over time. If this award represents a follow-on order for an existing system, a comparison could reveal cost efficiencies or increases. If it's for a new variant or a different configuration, the comparison becomes more complex. Generally, competitive procurements tend to yield more favorable pricing than sole-source awards, assuming similar specifications and market conditions.
What is Viasat Inc.'s track record with Department of Defense contracts, particularly for communication equipment?
Viasat Inc. has a substantial track record of securing and performing on Department of Defense contracts, particularly in the realm of satellite communications, networking, and secure data transmission. They are a well-established prime contractor known for delivering advanced communication systems. Their portfolio often includes high-capacity satellite bandwidth, secure networking solutions, and specialized terminals for military applications. While specific performance metrics for every contract are not publicly detailed, their consistent ability to win large-value contracts from various branches of the DoD, including the Navy, suggests a generally positive performance history and a strong understanding of military requirements and procurement processes.
What are the key performance indicators (KPIs) used to evaluate the success of this MIDS JTRS terminal contract?
Key performance indicators for this MIDS JTRS terminal contract would likely focus on several critical areas. These include on-time delivery of terminals meeting all technical specifications, reliability and performance of the terminals in operational environments (e.g., uptime, data throughput, signal integrity), and adherence to security protocols. Post-delivery support and maintenance, if included in the contract scope, would also be evaluated. Furthermore, the contractor's ability to manage costs effectively within the firm-fixed-price structure and maintain effective communication with the contracting officer's representative (COR) are crucial for successful contract execution. Compliance with any small business subcontracting goals, if applicable, would also be a KPI.
Are there any identified risks associated with the technology or the contractor for this specific award?
Risks associated with this specific award can be categorized into technological and contractor-related aspects. Technologically, MIDS JTRS terminals are complex systems that must ensure interoperability and security in dynamic battlefield environments. Risks could include potential vulnerabilities in encryption, integration challenges with existing platforms, or the technology becoming rapidly obsolete. Contractor-related risks for Viasat Inc. might involve potential production delays, quality control issues, or financial stability concerns, although Viasat is generally considered a stable entity. Given the firm-fixed-price nature, cost overruns are less of a direct risk to the government, but schedule delays or performance failures could impact operational readiness, which is a significant risk.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003919R1000
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: $58,422,130
Exercised Options: $58,422,130
Current Obligation: $58,422,130
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003920D0058
IDV Type: IDC
Timeline
Start Date: 2020-05-19
Current End Date: 2022-10-31
Potential End Date: 2022-10-31 00:00:00
Last Modified: 2024-09-12
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