Department of Defense awards $28.2M contract for miscellaneous communication equipment to Datapath, Inc

Contract Overview

Contract Amount: $28,215,829 ($28.2M)

Contractor: Datapath, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-02-23

End Date: 2011-02-11

Contract Duration: 2,179 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200505!002633!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG203 !A!N! !N! ! !20050223!20050531!015570583!015570583!015570583!N!DATAPATH INC !2450 SATELLITE BLVD !DULUTH !GA!30096!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000028657329!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334220!E! !3! ! ! ! ! !20200930!B! ! !N!A!D!N!J!1!001!N!2A!A!N!Z! ! !N!B!N!N! ! !B! !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 $28.2 million to DATAPATH, INC. for work described as: 200505!002633!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG203 !A!N! !N! ! !20050223!20050531!015570583!015570583!015570583!N!DATAPATH INC !2450 SATELLITE BLVD !DULUTH !GA!30096!55776!135!13!NORCROSS !GWIN… Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns. 2. The contract duration of nearly 6 years suggests a long-term need for these communication systems. 3. The awarded amount of $28.2 million represents a significant investment in specialized communication equipment. 4. The North American Industry Classification System (NAICS) code 334220 indicates a focus on manufacturing communication equipment. 5. The contract was awarded by the Defense Contract Management Agency, highlighting its role in supporting military operations. 6. The firm fixed-price contract type suggests that the contractor bears the risk of cost overruns.

Value Assessment

Rating: questionable

The contract value of $28.2 million for communication equipment over approximately six years needs further benchmarking against similar sole-source procurements. Without competitive bidding, it is difficult to ascertain if the price reflects fair market value. The lack of competition could lead to less favorable pricing for the government compared to a fully competed scenario. Further analysis of the specific equipment and its technological relevance would be necessary to provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Datapath, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances, such as when only one vendor possesses the required technology or capability, they limit the government's ability to leverage competition to drive down prices and ensure the best value.

Taxpayer Impact: Sole-source awards can potentially result in higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This limits the government's negotiating power and may lead to less efficient use of public funds.

Public Impact

The primary beneficiaries of this contract are likely military units requiring specialized communication equipment for operational readiness. The contract delivers miscellaneous communication equipment, crucial for maintaining command and control in various operational environments. The geographic impact is national, supporting Department of Defense operations across different theaters. Workforce implications may include specialized manufacturing roles within Datapath, Inc. and potentially supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and may lead to higher costs.
Long contract duration could outpace technological advancements, leading to obsolescence.
Lack of transparency in the sole-source justification process.
Potential for contractor lock-in due to specialized nature of equipment.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Award to a single, potentially specialized, vendor may indicate unique capabilities.
Contract supports critical defense communication needs.

Sector Analysis

The contract falls within the broader electronics and communication equipment manufacturing sector. This sector is characterized by rapid technological advancements and significant government procurement, particularly for defense applications. The NAICS code 334220 specifically relates to the manufacturing of radio and television broadcasting and wireless communications equipment. Benchmarking this contract's value would ideally involve comparing it to other sole-source or competitively awarded contracts for similar specialized communication systems within the defense sector.

Small Business Impact

There is no indication that this contract included small business set-asides. As a sole-source award to a specific company, it is unlikely to have direct subcontracting opportunities for small businesses unless Datapath, Inc. voluntarily includes them in its supply chain. The impact on the small business ecosystem is minimal in this instance, as the procurement did not leverage small business contracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the specified goods within the agreed-upon price. Transparency is limited due to the sole-source nature of the award, with less public visibility into the justification and negotiation process.

Related Government Programs

Department of Defense Communications Systems
Military Electronics Procurement
Wireless Communication Equipment Manufacturing
Defense Contract Management Agency Contracts

Risk Flags

Sole-source award may indicate a lack of competition.
Long contract duration increases risk of obsolescence.
Limited public information on the specific equipment procured.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to DATAPATH, INC.. 200505!002633!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG203 !A!N! !N! ! !20050223!20050531!015570583!015570583!015570583!N!DATAPATH INC !2450 SATELLITE BLVD !DULUTH !GA!30096!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000028657329!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334220!E! !3! ! ! ! ! !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 $28.2 million.

What is the period of performance?

Start: 2005-02-23. End: 2011-02-11.

What specific types of communication equipment were procured under this contract?

The contract data indicates the procurement of 'MISCELLANEOUS COMMUNICATION EQUIPMENT' under NAICS code 334220. While the specific technical specifications are not detailed in the provided data, this classification suggests a range of equipment related to wireless communications, broadcasting, and potentially specialized military communication systems. This could include radios, transceivers, antennas, signal processing units, or other related hardware necessary for maintaining secure and reliable communication channels for defense operations. Further investigation into contract line item numbers (CLINs) or associated documentation would be required to identify the precise nature of the equipment.

Why was this contract awarded on a sole-source basis?

The provided data states the contract was 'NOT COMPETED,' indicating a sole-source award. Sole-source procurements are typically justified when only one responsible source is available or capable of meeting the government's requirements. This could be due to unique proprietary technology, specialized expertise, or critical interoperability needs with existing systems. Without further documentation from the awarding agency (Department of Defense via DCMA), the specific rationale for deeming Datapath, Inc. as the sole source remains unclear. Common justifications include urgent needs, lack of adequate competition, or the existence of a sole-source proprietary product essential for mission success.

How does the contract duration of nearly 6 years (2179 days) impact the value proposition?

A contract duration of nearly six years for communication equipment presents both potential benefits and risks. On the positive side, it suggests a stable, long-term requirement and allows for potential economies of scale in production and delivery. It also provides continuity for the end-users. However, a long duration also increases the risk of technological obsolescence, especially in the fast-paced field of communications. The government might end up with outdated equipment if the technology evolves rapidly. Furthermore, market prices for components and manufacturing could fluctuate significantly over such a period, potentially impacting the initial price's long-term fairness, even under a firm fixed-price agreement, if unforeseen cost escalations were not adequately accounted for.

What is the significance of the NAICS code 334220 for this contract?

The North American Industry Classification System (NAICS) code 334220, 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing,' is significant as it precisely categorizes the industry in which Datapath, Inc. operates for this contract. This code indicates that the procured items are manufactured goods within the telecommunications and broadcasting equipment sector. For analysts, this classification helps in identifying comparable companies, understanding market dynamics, and benchmarking pricing against similar procurements within this specific manufacturing sub-sector. It signals that the contract is for physical hardware rather than services or software development.

What is the track record of Datapath, Inc. with federal contracts?

The provided data indicates that Datapath, Inc. is the contractor for this specific $28.2 million Department of Defense contract. To assess their track record, one would need to examine historical federal procurement data for Datapath, Inc. This would involve looking at the number of previous contracts awarded, their values, the agencies involved, contract types (e.g., competitive vs. sole-source), performance history (if available), and any past performance issues or awards. Without access to a broader contract history, it's difficult to definitively characterize Datapath, Inc.'s overall track record with the federal government based solely on this single award.

Are there any comparable contracts that could be used for benchmarking?

Benchmarking this $28.2 million sole-source contract for miscellaneous communication equipment is challenging without more specific details on the equipment itself. Ideally, comparisons would be made with other Department of Defense contracts for similar specialized communication systems, particularly those awarded competitively. Analyzing contracts with the same NAICS code (334220) from different agencies or even different sole-source awards for comparable technology could provide some context. However, the unique nature of defense-specific communication gear often limits direct comparability, making it difficult to find perfect matches. The duration and firm fixed-price nature also influence comparison points.

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

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