DoD Awards $94.3M for Communications Equipment to Datapath Inc., Sole-Source Contract
Contract Overview
Contract Amount: $94,297,861 ($94.3M)
Contractor: Datapath, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-06-30
End Date: 2011-02-13
Contract Duration: 2,054 days
Daily Burn Rate: $45.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200510!005167!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG207 !A!N! !N! ! !20050630!20060531!015570583!015570583!015570583!N!DATAPATH INC !2450 SATELLITE BLVD !DULUTH !GA!30096!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000096099047!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!Z!N!Z! ! !Y!B!N!N! ! !Z! !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 $94.3 million to DATAPATH, INC. for work described as: 200510!005167!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG207 !A!N! !N! ! !20050630!20060531!015570583!015570583!015570583!N!DATAPATH INC !2450 SATELLITE BLVD !DULUTH !GA!30096!55776!135!13!NORCROSS !GWIN… Key points: 1. Contract awarded to Datapath Inc. for $94.3 million for miscellaneous communication equipment. 2. The contract was sole-sourced, raising questions about competition and potential price discovery. 3. The duration of the contract is over 2000 days, indicating a long-term need. 4. The sector is IT/Defense, specifically related to electronics and communication equipment manufacturing.
Value Assessment
Rating: questionable
The contract value of $94.3 million for miscellaneous communication equipment is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may lead to a higher cost for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award could result in taxpayers paying a premium for the communication equipment.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration suggests a critical need for this specific equipment. The sole-source nature raises concerns about transparency and potential for inflated costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive pricing
- Long contract duration
Positive Signals
- Addresses a specific communication equipment need
- Awarded to a single, potentially specialized vendor
Sector Analysis
This contract falls within the IT and Defense sectors, specifically in the manufacturing of electronics and communication equipment. The NAICS code 334220 points to Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing. Benchmarks for this sector can vary widely based on technology and specialization.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and that the government is receiving value for its expenditure. The Defense Contract Management Agency (DCMA) is responsible for oversight.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated pricing due to lack of bids.
- Long contract duration increases exposure to cost volatility.
- Lack of transparency regarding justification for sole-sourcing.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ga, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $94.3 million to DATAPATH, INC.. 200510!005167!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG207 !A!N! !N! ! !20050630!20060531!015570583!015570583!015570583!N!DATAPATH INC !2450 SATELLITE BLVD !DULUTH !GA!30096!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000096099047!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 $94.3 million.
What is the period of performance?
Start: 2005-06-30. End: 2011-02-13.
What specific communication equipment is being procured, and why is it only available from Datapath Inc.?
The data specifies 'MISCELLANEOUS COMMUNICATION EQUIPMENT' under NAICS code 334220. The reason for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of other qualified sources. Without further details on the specific nature of the equipment and Datapath's offerings, it's impossible to definitively state why it's a sole-source procurement.
What is the potential cost overrun risk associated with a sole-source contract of this magnitude and duration?
Sole-source contracts inherently carry a higher risk of cost overruns due to the absence of competitive pressure to drive down prices. The long duration (over 2000 days) further amplifies this risk, as unforeseen market fluctuations, material cost increases, or scope creep can lead to significant budget deviations without a competitive baseline for comparison.
How effective is this contract in meeting the DoD's communication needs given the lack of competition?
While the contract likely meets a specific need for the DoD, the effectiveness in terms of value for money is questionable due to the sole-source nature. Competition typically ensures that the government receives the best possible solution at the most competitive price. Without this, it's harder to gauge if alternative, potentially more cost-effective solutions were overlooked.
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
Start Date: 2005-06-30
Current End Date: 2011-02-13
Potential End Date: 2011-02-13 00:00:00
Last Modified: 2010-06-06
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