Department of Defense awards $24.7M contract to Datapath, Inc. for communications equipment, with a significant duration

Contract Overview

Contract Amount: $24,697,462 ($24.7M)

Contractor: Datapath, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-08-31

End Date: 2011-02-09

Contract Duration: 2,353 days

Daily Burn Rate: $10.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200411!008412!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T04CF429 !A!N! !N! ! !20040831!20050827!015570583!015570583!015570583!N!DATAPATH, INC !350 TECHNOLOGY PARKWAY !NORCROSS !GA!30092!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000012412491!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334290!E! !1! ! ! ! ! !99990909!B! ! !N!A!D!N!J!1!001!N!2A!Z!N!Z! ! !Y!B!N!N! ! !A! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: DULUTH, GWINNETT County, GEORGIA, 30096

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to DATAPATH, INC. for work described as: 200411!008412!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T04CF429 !A!N! !N! ! !20040831!20050827!015570583!015570583!015570583!N!DATAPATH, INC !350 TECHNOLOGY PARKWAY !NORCROSS !GA!30092!55776!135!13!NORCROSS !GWIN… Key points: 1. Contract awarded on a firm fixed-price basis, indicating clear cost expectations. 2. The contract was not competed, raising questions about potential cost savings through competition. 3. A long contract duration of 2353 days suggests a need for sustained support or a large-scale project. 4. The awarded amount of $24.7M is substantial, requiring careful oversight. 5. The procurement falls under 'Other Communications Equipment Manufacturing', a niche but critical sector for defense operations. 6. The contractor, Datapath, Inc., is based in Georgia, potentially impacting local economic contributions.

Value Assessment

Rating: fair

The awarded amount of $24.7 million for communications equipment over a period of approximately 6.5 years (2353 days) requires careful benchmarking. Without specific details on the equipment or services provided, a direct comparison to similar contracts is challenging. However, the lack of competition suggests that the pricing may not have benefited from market pressures that typically drive down costs. Further analysis would be needed to determine if the price is reasonable given the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from a competitive bidding process.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium for goods or services, as the potential for competitive pricing was not leveraged.

Public Impact

The primary beneficiaries are likely elements within the Department of Defense requiring specialized communications equipment. The contract supports the delivery of essential communication capabilities for military operations. The geographic impact is centered around the contractor's location in Norcross, Georgia, and the operational areas of the DoD. Workforce implications include employment opportunities at Datapath, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Long contract duration could indicate potential for scope creep or evolving needs not fully captured in initial pricing.
Sole-source awards can limit opportunities for other capable vendors to secure government contracts.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
The contract is for a specific type of equipment, suggesting a defined need.
The contractor is a US-based company, supporting domestic industry.

Sector Analysis

This contract falls within the 'Electronics and Communication Equipment' sector, specifically 'Radio & TV Comm Equipment, Except Airborne'. This is a critical segment for defense, enabling command, control, and communication. The market for such specialized equipment is often characterized by high barriers to entry due to technological complexity and security requirements. Benchmarking spending in this area requires comparison with other DoD procurements of similar communication systems.

Small Business Impact

The data indicates this contract was not competed and there is no explicit mention of small business set-asides or subcontracting plans. Therefore, the direct impact on small businesses through this specific award appears limited. Without further information on subcontracting requirements or the contractor's past performance with small businesses, it's difficult to assess the broader implications for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet contractual requirements. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed-upon cost. Transparency regarding the sole-source justification and the specific equipment procured would be key to assessing overall oversight effectiveness.

Related Government Programs

Department of Defense Communications Systems
Radio and Telecommunications Equipment Procurement
Defense Electronics Manufacturing
Sole-Source Defense Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Long contract duration may indicate potential for scope creep or evolving requirements.
Lack of detailed justification for sole-source award limits transparency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to DATAPATH, INC.. 200411!008412!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T04CF429 !A!N! !N! ! !20040831!20050827!015570583!015570583!015570583!N!DATAPATH, INC !350 TECHNOLOGY PARKWAY !NORCROSS !GA!30092!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000012412491!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334290!E! !1! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is DATAPATH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2004-08-31. End: 2011-02-09.

What specific type of 'Radio & TV Comm Equipment, Except Airborne' was procured under this contract, and what are its intended operational uses within the Department of Defense?

The provided data identifies the Product Service Code (PSC) as 5820, which corresponds to 'Radio & TV Comm Equipment, Except Airborne'. While the specific model or technical specifications are not detailed, this category generally includes a wide range of communication devices such as radios, transceivers, antennas, and related support equipment. For the Department of Defense, such equipment is critical for maintaining command and control, situational awareness, and interoperability across different units and branches. The exact use would depend on the specific capabilities of the procured items, potentially ranging from tactical battlefield communications to strategic long-range systems.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The data explicitly states the contract type as 'NOT COMPETED', indicating a sole-source award. The specific justification for this sole-source determination is not provided in the dataset. Common reasons for sole-source awards include unique capabilities possessed by only one vendor, urgent and compelling needs where competition is not feasible, or when the cost of competition would outweigh the benefits. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition - J&A), it is impossible to definitively state why competition was bypassed for this $24.7 million contract.

How does the contract duration of 2353 days (approximately 6.5 years) compare to typical contract lengths for similar communications equipment procurements by the DoD?

A contract duration of 2353 days is significantly longer than many standard procurement contracts, which often range from a few months to a few years. Such extended durations are more common for sustainment, support, or large-scale, multi-year development and production programs. For communications equipment, a long duration might indicate a requirement for ongoing maintenance, upgrades, or a phased deployment of a complex system. Without specific details on the nature of the equipment and services, it's difficult to provide a precise benchmark, but this duration suggests a substantial, long-term commitment by the DoD.

What is Datapath, Inc.'s track record with the Department of Defense, particularly concerning contracts of similar value and complexity?

Datapath, Inc. has been awarded this contract valued at $24.7 million. The provided data indicates this is a significant award for the company. To assess their track record, one would need to examine their past performance on other DoD contracts, looking at factors such as on-time delivery, quality of goods/services, adherence to budget, and any past performance issues or awards. A review of the Federal Procurement Data System (FPDS) or other government contracting databases would be necessary to build a comprehensive picture of Datapath, Inc.'s history with the DoD beyond this single contract.

Are there any indications of potential cost overruns or performance issues associated with this contract, given its long duration and sole-source nature?

The provided data reflects the initial award information and does not contain details on contract performance, modifications, or any reported issues. Given that the contract was awarded in 2004 and ended in 2011, and was a sole-source award, there is an inherent risk of less efficient pricing. However, without access to contract modification history, delivery reports, or any Inspector General findings related to this specific contract, it is impossible to determine if cost overruns or performance issues occurred. The firm fixed-price nature generally aims to mitigate cost overrun risks for the government.

How does the spending on 'Other Communications Equipment Manufacturing' by the Department of Defense compare to other sectors or agencies, and what is the strategic importance of this category?

The strategic importance of 'Other Communications Equipment Manufacturing' (PSC 5820) for the Department of Defense cannot be overstated, as reliable communication is fundamental to military operations. Comparing spending across sectors and agencies requires comprehensive data analysis. However, it is generally understood that defense spending is heavily weighted towards platforms (aircraft, ships, vehicles), IT systems, and readiness/personnel. While communications equipment is a critical component, its total dollar value might be less than major weapon systems. The DoD's overall budget is vast, and spending within specific equipment categories like this represents a focused investment in essential capabilities.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Rockwell Collins, Inc. (UEI: 962960589)

Address: 350 TECHNOLOGY PARKWAY, NORCROSS, GA, 04

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline