Viasat Inc. awarded $36.17M for Multifunctional Information Distribution System (MIDS) JTRS development by the USAF
Contract Overview
Contract Amount: $36,168,745 ($36.2M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2016-02-03
End Date: 2020-03-20
Contract Duration: 1,507 days
Daily Burn Rate: $24.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) UNITED STATES AIR FORCE (USAF) F22 DSYSTEM DESIGN&DEVELOPMENT.
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $36.2 million to VIASAT INC for work described as: MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) UNITED STATES AIR FORCE (USAF) F22 DSYSTEM DESIGN&DEVELOPMENT. Key points: 1. Contract awarded on a non-competitive basis, raising questions about price discovery and potential for cost overruns. 2. The contract focuses on system design and development, indicating a need for specialized expertise. 3. Performance period spans over four years, suggesting a complex and long-term project. 4. The specific product, MIDS JTRS, is critical for tactical communications, highlighting its strategic importance. 5. The awardee, Viasat Inc., is a known entity in defense communications, implying a degree of trust but also potential market concentration.
Value Assessment
Rating: questionable
Given the contract was not competed, a direct value-for-money assessment is challenging. Benchmarking against similar sole-source procurements for advanced communication systems would be necessary to determine if the $36.17 million price is reasonable. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize cost control but also carries risks if the initial cost estimates are inaccurate. Without competitive bids, it's difficult to ascertain if taxpayers received the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Viasat Inc., was solicited. This approach is typically used when a unique capability is required, or when only one source can provide the necessary goods or services. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation from multiple vendors.
Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the most cost-effective solution for taxpayers. This can potentially lead to higher overall spending compared to a competitively bid contract.
Public Impact
The primary beneficiaries are the United States Air Force (USAF) and potentially other branches of the military that utilize the F-22 aircraft and require advanced tactical communication capabilities. The services delivered include system design and development for the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio System (JTRS). The geographic impact is primarily within the operational theaters of the USAF, with potential implications for global military communications. Workforce implications include the employment of engineers, technicians, and program managers at Viasat Inc. and potentially its subcontractors involved in the development and integration of this advanced system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Cost-plus-fixed-fee contract type can lead to cost overruns if not managed tightly.
- Reliance on a single contractor for critical system development may pose supply chain risks.
- Lack of transparency in the procurement process due to sole-source nature.
Positive Signals
- Awardee (Viasat Inc.) has established expertise in defense communications and related technologies.
- The MIDS JTRS system is critical for modern military operations, indicating a strategic investment.
- The contract duration allows for thorough development and testing of a complex system.
Sector Analysis
The defense communications sector is characterized by high barriers to entry due to specialized technology requirements, stringent security protocols, and long product development cycles. Companies like Viasat Inc. operate within this niche, often securing significant government contracts for advanced systems. The MIDS JTRS program represents a substantial investment in ensuring secure and interoperable battlefield communications, a critical component of modern military strategy. Comparable spending in this sector often involves multi-year, multi-billion dollar programs for communication, intelligence, and surveillance systems.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'no' field being 0 suggests no subcontracting goals were specified for small businesses. This sole-source award to a large prime contractor like Viasat Inc. may limit opportunities for small businesses to participate in the development and supply chain for this critical defense system, potentially impacting the small business defense ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. The Department of Defense's Inspector General (IG) may also conduct audits or investigations into the contract's execution, particularly concerning cost management and adherence to specifications. Transparency is limited due to the sole-source nature, but contract modifications and performance reports would be subject to internal DoD review.
Related Government Programs
- Joint Tactical Radio System (JTRS)
- Multifunctional Information Distribution System (MIDS)
- F-22 Raptor Program
- Tactical Data Links
- Defense Communications Systems
Risk Flags
- Sole-source procurement
- Cost-plus-fixed-fee contract type
- Lack of competitive bidding
- Potential for cost overruns
- Critical defense system development
Tags
defense, department-of-defense, air-force, viasat-inc, sole-source, cost-plus-fixed-fee, system-design, development, tactical-communications, california, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, multifunctional-information-distribution-system
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.2 million to VIASAT INC. MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) UNITED STATES AIR FORCE (USAF) F22 DSYSTEM DESIGN&DEVELOPMENT.
Who is the contractor on this award?
The obligated recipient is VIASAT 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 $36.2 million.
What is the period of performance?
Start: 2016-02-03. End: 2020-03-20.
What is Viasat Inc.'s track record with similar sole-source defense communication contracts?
Viasat Inc. has a significant history of securing sole-source and competitively awarded contracts with the Department of Defense for advanced communication systems, including tactical radios, satellite communications, and networking solutions. Their expertise in areas like software-defined radios and secure communications makes them a frequent choice for specialized requirements. While specific details on past sole-source awards for MIDS JTRS development are not publicly detailed, their overall performance history with the DoD suggests a capability to deliver complex systems. However, the lack of competition in sole-source awards necessitates careful review of pricing and performance metrics to ensure value for taxpayer dollars, regardless of the contractor's established reputation.
How does the $36.17 million cost compare to similar MIDS JTRS development efforts or comparable sole-source procurements?
Directly comparing the $36.17 million cost for this specific MIDS JTRS development contract is challenging without access to detailed cost breakdowns and the specific scope of work. Sole-source procurements inherently lack a competitive benchmark. However, the Joint Tactical Radio System (JTRS) program, in general, has been known for its complexity and significant investment over many years. To assess value, one would need to compare this award against historical sole-source contracts for similar system design and development phases within the DoD, looking at factors like contract type (e.g., CPFF), duration, and the specific technological advancements required. Without competitive bids, the government relies heavily on its negotiation and oversight capabilities to ensure the price is fair and reasonable.
What are the primary risks associated with a sole-source award for critical defense system development?
The primary risks associated with a sole-source award for critical defense system development include a lack of price competition, which can lead to inflated costs for taxpayers. There's also a reduced incentive for the contractor to innovate aggressively or optimize efficiency, as there are no competitors to outperform. Furthermore, reliance on a single source can create vulnerabilities in the supply chain and increase dependence on that specific contractor, potentially limiting future flexibility or access to alternative solutions. Finally, the absence of a competitive process can sometimes obscure potential technical risks or performance issues that might have been revealed during a bidding process.
How effective is the MIDS JTRS system in enhancing tactical communications for the USAF, and what is the expected impact of this development contract?
The Multifunctional Information Distribution System (MIDS) Joint Tactical Radio System (JTRS) is designed to provide secure, jam-resistant, and interoperable tactical data and voice communications for various military platforms, including aircraft like the F-22. Its effectiveness lies in enabling real-time situational awareness and command and control among different units and services. This development contract is crucial for advancing the system's capabilities, potentially improving its performance, adding new functionalities, or ensuring its continued relevance against evolving threats. The expected impact is enhanced operational effectiveness, improved battlefield coordination, and a more robust communication network for the USAF.
What are the historical spending patterns for MIDS JTRS or similar tactical communication systems within the Department of Defense?
Historical spending on the MIDS JTRS program and similar advanced tactical communication systems within the Department of Defense has been substantial, often spanning multiple years and involving significant research, development, testing, and procurement phases. Programs like JTRS, intended to modernize tactical radios across different military branches, have faced challenges and budget fluctuations but represent a consistent strategic investment. Spending often occurs through a mix of competitive and sole-source contracts, depending on the program's maturity and specific requirements. The overall trend indicates a sustained commitment to upgrading battlefield communication capabilities, with annual expenditures potentially running into hundreds of millions or even billions of dollars across various related programs.
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
Solicitation ID: N0003914R0021
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6155 EL CAMINO REAL, CARLSBAD, CA, 92009
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,486,236
Exercised Options: $36,486,236
Current Obligation: $36,168,745
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $2,636,718
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003915D0008
IDV Type: IDC
Timeline
Start Date: 2016-02-03
Current End Date: 2020-03-20
Potential End Date: 2020-03-20 00:00:00
Last Modified: 2024-09-11
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