Department of Defense awards $49.6M contract to Datapath, Inc. for communications equipment, facing limited competition

Contract Overview

Contract Amount: $49,610,702 ($49.6M)

Contractor: Datapath, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-12-28

End Date: 2011-02-09

Contract Duration: 2,234 days

Daily Burn Rate: $22.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200503!001291!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG202 !A!N! !N! ! !20041228!20050930!015570583!015570583!015570583!N!DATAPATH INC !2450 SATELLITE BLVD !DULUTH !GA!30096!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000024876593!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334290!E! !1! ! ! ! ! !20200930!B! ! !N!A!D!N!J!1!001!N!2A!Z!N!Z! ! !Y!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: DULUTH, GWINNETT County, GEORGIA, 30096

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $49.6 million to DATAPATH, INC. for work described as: 200503!001291!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG202 !A!N! !N! ! !20041228!20050930!015570583!015570583!015570583!N!DATAPATH INC !2450 SATELLITE BLVD !DULUTH !GA!30096!55776!135!13!NORCROSS !GWIN… Key points: 1. Contract value of $49.6M for communications equipment suggests a significant investment in defense infrastructure. 2. The 'NOT COMPETED' status raises concerns about potential overpayment and lack of market-driven pricing. 3. Limited competition increases the risk of vendor lock-in and reduced innovation. 4. The contract duration of over 6 years (2234 days) indicates a long-term need for these services. 5. The specific product code '334290' points to a focus on 'Other Communications Equipment Manufacturing'. 6. The award to a single vendor warrants scrutiny regarding the justification for not pursuing a competitive process.

Value Assessment

Rating: questionable

The contract value of $49.6 million for communications equipment is substantial. Without a competitive bidding process, it is difficult to benchmark the value for money. The lack of transparency in pricing due to the sole-source nature makes it challenging to assess if the government received a fair price compared to market rates or similar contracts. Further analysis would be needed to determine if alternative solutions or vendors could have provided comparable equipment at a lower cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates 'NOT COMPETED', suggesting that only one vendor, Datapath, Inc., was considered. This approach bypasses the standard procurement process designed to foster competition and ensure the best value for the government. The absence of multiple bidders means there was no direct price comparison or incentive for vendors to offer their most competitive terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through competitive bidding. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiaries are likely military units requiring advanced communications equipment. The contract delivers essential 'Other Communications Equipment Manufacturing' services. The geographic impact is primarily tied to the Department of Defense's operational needs, potentially worldwide. Workforce implications may include specialized manufacturing and technical support roles within Datapath, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Sole-source awards can stifle innovation by not encouraging market-wide solutions.
Limited transparency in the procurement process raises accountability concerns.
Long contract duration without competition could result in outdated technology if not managed carefully.

Positive Signals

Ensures a dedicated provider for potentially specialized communication needs.
Streamlined award process may have been deemed necessary for urgent requirements.
Datapath, Inc. is a known entity, potentially possessing specific expertise.

Sector Analysis

The 'Other Communications Equipment Manufacturing' sector is a critical component of the broader electronics and defense industries. This contract falls within the IT and Defense sectors, supplying specialized equipment. The market for such equipment is often characterized by high barriers to entry due to technological complexity and stringent quality requirements. Benchmarking this contract's value is difficult without competitive data, but it represents a significant portion of annual spending within this niche.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting goals for this contract. As a sole-source award, it is less likely to have been structured to specifically benefit small businesses. This contract's size and nature suggest it was awarded to a prime contractor capable of fulfilling the entire requirement, potentially limiting subcontracting opportunities for smaller firms in the ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and audit agencies, such as the Defense Contract Management Agency (DCMA). However, the sole-source nature of the award reduces the inherent transparency typically provided by a competitive bidding process. Accountability measures would rely heavily on contract performance monitoring and reporting by the agency, with potential oversight from the Inspector General if performance issues or improprieties are suspected.

Related Government Programs

Defense Communications Systems
Tactical Communication Equipment
Electronic Warfare Systems
Command and Control Systems

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.6 million to DATAPATH, INC.. 200503!001291!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG202 !A!N! !N! ! !20041228!20050930!015570583!015570583!015570583!N!DATAPATH INC !2450 SATELLITE BLVD !DULUTH !GA!30096!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000024876593!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334290!E! !1! ! ! ! ! !202

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 $49.6 million.

What is the period of performance?

Start: 2004-12-28. End: 2011-02-09.

What specific type of communications equipment was procured under this contract?

The contract, identified by Product Service Code (PSC) '5820' (RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE) and National Dictionary (ND) 'Other Communications Equipment Manufacturing', indicates the procurement of specialized radio and television communication equipment, excluding airborne systems. While the exact specifications are not detailed in the provided data, the nature of the PSC suggests equipment used for transmitting and receiving signals, potentially including radios, transceivers, antennas, and related support hardware. Given the Department of Defense as the agency, this equipment is likely intended for tactical, strategic, or operational communication networks, possibly with advanced features for secure or resilient communication in challenging environments.

What is the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED', classifying it as a sole-source award. Standard government procurement regulations require agencies to justify sole-source awards, typically when only one responsible source can provide the required supplies or services. Common justifications include urgency, unique capabilities, compatibility with existing systems, or a lack of adequate competition. Without further documentation from the Department of Defense, the specific rationale for awarding this $49.6 million contract to Datapath, Inc. without competition remains unclear. This lack of transparency necessitates a review of the justification documentation to ensure it aligns with federal procurement laws and regulations.

How does the contract duration compare to typical procurements for similar equipment?

This contract has a duration of 2234 days, which is approximately 6.1 years. This is a relatively long duration for a single contract, especially for technology-dependent equipment like communications systems. Typical procurements for such items might involve shorter base periods with options for extension, or multiple competitive awards over time to incorporate technological advancements. A long duration on a sole-source contract can increase the risk of the procured equipment becoming obsolete or the pricing becoming uncompetitive over its lifecycle. It suggests either a very stable technology requirement or a long-term strategic partnership with the awarded vendor.

What is Datapath, Inc.'s track record with the federal government, particularly in communications equipment?

Datapath, Inc. has secured federal contracts, including this significant award from the Department of Defense. While the provided data snippet focuses on this single contract, a comprehensive analysis of Datapath's track record would involve examining their contract history across various agencies. This would include reviewing past performance evaluations, any reported contract disputes or terminations, and the types and values of previous awards. Understanding their history with similar communications equipment procurements, their on-time delivery rates, and their ability to meet technical specifications would provide a clearer picture of their reliability and capability as a government contractor.

Are there any comparable contracts for similar communications equipment that could serve as a benchmark?

Benchmarking this $49.6 million contract is challenging due to its sole-source nature. However, comparisons can be made by searching for other Department of Defense (or similar agency) contracts awarded for 'Other Communications Equipment Manufacturing' (PSC 5820) or related categories within a similar timeframe. Analyzing contracts that were competitively procured would provide a more reliable benchmark for pricing and value. If comparable competitively awarded contracts exist, their per-unit costs, total values, and contract durations could highlight potential discrepancies in the pricing of this sole-source award, indicating whether Datapath, Inc.'s pricing was in line with market expectations.

What are the potential risks associated with a sole-source award of this magnitude?

A sole-source award of $49.6 million carries several risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures inherent in a competitive bidding process. Secondly, it can result in a lack of innovation, as the vendor may have less incentive to develop or offer cutting-edge solutions. Thirdly, it creates vendor lock-in, making it difficult and potentially costly to switch to a different supplier in the future. Finally, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or inefficiency if not adequately justified.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 2450 SATELLITE BLVD, DULUTH, GA, 90

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline