Viasat Awarded $4.8M for Communications Equipment, Lacking Competition

Contract Overview

Contract Amount: $4,809,882 ($4.8M)

Contractor: Viasat Inc

Awarding Agency: General Services Administration

Start Date: 2024-02-01

End Date: 2026-01-31

Contract Duration: 730 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: JS VIASAT TO251 OUSDRE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $4.8 million to VIASAT INC for work described as: JS VIASAT TO251 OUSDRE Key points: 1. Significant contract value of $4.8 million. 2. Sole-source award indicates limited competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on 'Other Communications Equipment Manufacturing' sector.

Value Assessment

Rating: questionable

The contract's value of $4.8 million for communications equipment is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar market offerings.

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 considered. This significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the required communications equipment.

Public Impact

Taxpayers may be overpaying for essential communications equipment. Limited visibility into the specific type of communications equipment procured. Potential impact on innovation if competitive pressures are removed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the 'Other Communications Equipment Manufacturing' sector. Spending in this area can vary widely based on technological advancements and defense needs. Benchmarks are difficult without more specific equipment details.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were excluded or if the scope of work was not suitable for them.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that the justification for not competing was sound.

Related Government Programs

Risk Flags

Tags

other-communications-equipment-manufactu, general-services-administration, dc, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4.8 million to VIASAT INC. JS VIASAT TO251 OUSDRE

Who is the contractor on this award?

The obligated recipient is VIASAT INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2024-02-01. End: 2026-01-31.

What specific communications equipment is being procured under this contract, and why was it deemed necessary to award it on a sole-source basis?

The contract specifies 'Other Communications Equipment Manufacturing' but lacks granular detail on the exact equipment. The sole-source justification is critical here; it typically requires demonstrating that only one vendor can meet the requirement due to unique capabilities, proprietary technology, or urgent need. Without this justification, the award raises concerns about fair opportunity.

What is the potential cost overrun risk associated with this sole-source contract compared to a competitively bid one?

Sole-source contracts inherently carry a higher risk of cost overruns because the government lacks the leverage of competitive pricing. VIASAT INC may not have had the same incentive to offer its best price. The benchmark of $6,589 (br) seems low for a contract of this value, suggesting it might be a unit price or a different metric, but without competitive data, assessing overrun risk is speculative.

How effective is the General Services Administration (GSA) in ensuring value for money when awarding sole-source contracts in the IT and communications sector?

GSA's effectiveness in sole-source awards hinges on rigorous justification review and price negotiation. While GSA aims for efficiency, sole-source awards, by definition, bypass the most robust price discovery mechanism. Oversight is crucial to ensure that exceptions to full and open competition are rare and well-justified, safeguarding taxpayer funds.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingOther Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA23Q0155

Pricing Type: FIRM FIXED PRICE (J)

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: $4,809,882

Exercised Options: $4,809,882

Current Obligation: $4,809,882

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFLA19D0006

IDV Type: IDC

Timeline

Start Date: 2024-02-01

Current End Date: 2026-01-31

Potential End Date: 2026-04-30 00:00:00

Last Modified: 2026-01-26

More Contracts from Viasat Inc

View all Viasat Inc federal contracts →

Other General Services Administration Contracts

View all General Services Administration contracts →

Explore Related Government Spending