Department of Defense awards $41.9M contract for communication equipment to Datapath, Inc., a sole-source procurement

Contract Overview

Contract Amount: $41,910,418 ($41.9M)

Contractor: Datapath, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-28

End Date: 2011-02-13

Contract Duration: 1,964 days

Daily Burn Rate: $21.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200512!008303!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG210 !A!N! !N! ! !20050928!20060927!015570583!015570583!015570583!N!DATAPATH INC !2450 SATELLITE BLVD !DULUTH !GA!30096!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000042383613!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! ! !N!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 $41.9 million to DATAPATH, INC. for work described as: 200512!008303!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG210 !A!N! !N! ! !20050928!20060927!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 and limited market exploration. 2. The contract duration of 1964 days (over 5 years) suggests a long-term need for the specified communication equipment. 3. The award value of $41.9M is significant, warranting scrutiny for value for money given the lack of competition. 4. The procurement falls under miscellaneous communication equipment, a broad category that may include specialized or standard items. 5. The contractor, Datapath, Inc., is based in Georgia, indicating potential regional economic impact. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation.

Value Assessment

Rating: questionable

The contract value of $41.9 million for communication equipment, awarded on a sole-source basis, makes a direct value-for-money assessment challenging without competitive benchmarks. The duration of over five years suggests a substantial need, but the lack of competition prevents a clear comparison to market rates or other potential suppliers. Further analysis would be needed to determine if the pricing reflects fair market value in the absence of a competitive bidding process. The awarded amount is substantial and warrants careful review to ensure taxpayer funds are used efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Datapath, Inc., was solicited. The reasons for this sole-source determination are not provided in the data, but it implies that either no other vendors were capable of meeting the requirement, or the agency chose not to solicit other potential sources. The lack of competition means there was no price discovery through a bidding process, which can often lead to higher prices compared to fully competed contracts.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for government contracts and can potentially result in higher costs for taxpayers due to the absence of competitive pressure on pricing.

Public Impact

The primary beneficiary of this contract is Datapath, Inc., a company specializing in communication equipment. The contract delivers miscellaneous communication equipment, essential for the Department of Defense's operational capabilities. The geographic impact is centered in Georgia, where Datapath, Inc. is located, potentially creating or sustaining jobs in the region. The contract supports the defense sector's need for reliable communication systems, crucial for national security operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Long contract duration (over 5 years) may indicate a lack of flexibility or long-term commitment without re-evaluation.
Absence of small business participation noted, potentially missing opportunities to support smaller enterprises.

Positive Signals

Contract awarded to a single, presumably capable, vendor for specific communication equipment.
The contract addresses a clear need within the Department of Defense for communication technology.
The fixed-price nature of the contract (implied by 'FIRM FIXED PRICE') can provide cost certainty for the government.

Sector Analysis

This contract falls within the broader 'Electronics and Communication Equipment' manufacturing sector, specifically related to Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing (NAICS 334220). This sector is characterized by rapid technological advancements and significant government procurement, particularly from defense agencies. The market size for such equipment is substantial, driven by both commercial and military demands. This specific contract likely represents a niche requirement for specialized communication hardware within the Department of Defense's extensive technology portfolio.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was either too large, too specialized, or the agency did not prioritize small business participation for this specific procurement. Consequently, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The absence of a small business focus means that opportunities for smaller enterprises to contribute to this particular defense need were not actively pursued through this contract's structure.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations, managed by the Defense Contract Management Agency (DCMA). As a sole-source award, it may receive heightened scrutiny to ensure the justification for not competing is sound and that the pricing is fair. Transparency is generally maintained through contract databases, though specific performance details and oversight reports might be less publicly accessible for sole-source procurements. Inspector General involvement would be triggered by any allegations of fraud, waste, or abuse.

Related Government Programs

Department of Defense Communication Systems
Wireless Communication Equipment Procurement
Defense Electronics Manufacturing
Sole-Source Defense Contracts
Miscellaneous Communication Equipment

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpricing due to lack of competition.
Long contract duration may reduce flexibility.
Limited transparency on specific equipment details and use cases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.9 million to DATAPATH, INC.. 200512!008303!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CG210 !A!N! !N! ! !20050928!20060927!015570583!015570583!015570583!N!DATAPATH INC !2450 SATELLITE BLVD !DULUTH !GA!30096!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000042383613!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 $41.9 million.

What is the period of performance?

Start: 2005-09-28. End: 2011-02-13.

What is the specific type of communication equipment being procured under this contract, and what are its intended uses within the Department of Defense?

The contract data identifies the product service code as '334220' and the industry as 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing'. While the specific item is categorized broadly as 'MISCELLANEOUS COMMUNICATION EQUIPMENT', the contract's sole-source nature and award to Datapath, Inc. suggest it might be for specialized or proprietary technology. The intended uses are likely related to tactical communications, command and control systems, or secure data transmission for military operations. Without further details, the exact function remains unspecified, but it is critical for supporting the DoD's operational requirements.

What was the justification for awarding this contract on a sole-source basis instead of conducting a competitive procurement?

The provided data indicates the contract was 'NOT COMPETED' and is classified as 'sole-source'. Government agencies typically sole-source contracts when only one responsible source can provide the required supplies or services, or when there is a compelling urgency, or for reasons of industrial mobilization or national security. Specific justifications, such as unique technical capabilities of Datapath, Inc., proprietary technology, or a critical and time-sensitive need that could not be met through competition, would need to be documented by the Department of Defense. Without this documentation, the rationale remains unclear, making it difficult to assess the necessity of the sole-source approach.

How does the awarded amount of $41.9 million compare to similar communication equipment contracts awarded by the Department of Defense or other federal agencies?

Comparing the $41.9 million award requires context regarding the specific type and quantity of communication equipment. As a sole-source award for miscellaneous communication equipment over a period of approximately five years (from 2005 to 2011), it represents a significant investment. Benchmarking against competitive contracts for similar, albeit potentially less specialized, equipment would be necessary. However, sole-source awards inherently lack direct competitive pricing data. The value should be assessed against the unique capabilities provided by Datapath, Inc. and the criticality of the equipment to the DoD's mission, rather than direct price comparisons with potentially different, competed items.

What is Datapath, Inc.'s track record with the federal government, particularly in fulfilling defense contracts?

Datapath, Inc. has a history of receiving federal contracts, as evidenced by this award. The data shows this specific contract (W15P7T05CG210) was awarded to Datapath, Inc. for $41.9 million. Further investigation into federal procurement databases would reveal the full extent of their contract history, including other agencies served, types of goods or services provided, contract values, and performance ratings. A positive performance history on previous contracts would lend some confidence to their ability to fulfill this current requirement, although the sole-source nature still warrants scrutiny of the value proposition.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

The primary risk associated with a sole-source contract of this magnitude ($41.9M) and duration (over 5 years) is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not be achieving the best possible value for its money. Other risks include vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future options or innovation. There's also a risk that the contractor may not prioritize performance or cost control as rigorously as they would in a competitive environment. Ensuring robust oversight and clear performance metrics becomes crucial to mitigate these risks.

How does this contract align with the Department of Defense's overall spending on communication equipment and technology?

This $41.9 million contract represents a portion of the Department of Defense's substantial annual budget for communication equipment and technology. The DoD invests heavily in maintaining and upgrading its communication infrastructure to ensure global operational readiness. While this specific award is significant, it must be viewed within the context of the DoD's overall procurement landscape, which includes numerous contracts for various communication systems, cybersecurity solutions, and related services. The sole-source nature of this award might indicate a specific, perhaps niche, technological requirement that aligns with strategic defense priorities.

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