DoD awards $21.6M contract for aerospace vehicle equipment to VIASAT INC under full and open competition
Contract Overview
Contract Amount: $21,639,273 ($21.6M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2023-10-23
End Date: 2029-09-30
Contract Duration: 2,169 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: AEROSPACE VEHICLE EQUIPMENT AND GROUND OPERATING EQUIPMENT DEVELOPMENT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92123
Plain-Language Summary
Department of Defense obligated $21.6 million to VIASAT INC for work described as: AEROSPACE VEHICLE EQUIPMENT AND GROUND OPERATING EQUIPMENT DEVELOPMENT Key points: 1. Contract awarded to VIASAT INC for aerospace vehicle equipment. 2. Significant value of $21.6 million over a 5-year period. 3. Procured under full and open competition, suggesting market availability. 4. Sector is Other Communications Equipment Manufacturing, vital for defense operations.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not managed carefully. The awarded amount is $21.6M, but the final cost is subject to performance incentives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors could bid. This method generally promotes competitive pricing and allows the government to select the best value.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it aims to secure the best possible price for the required aerospace vehicle equipment.
Public Impact
Enhances critical aerospace vehicle operational capabilities. Supports the Department of the Air Force's technological advancement. Potential for follow-on contracts based on performance and needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type carries inherent risk of cost escalation.
- Long contract duration (nearly 6 years) increases exposure to market changes and technological obsolescence.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- Clear performance period with defined end date.
Sector Analysis
This contract falls within the Other Communications Equipment Manufacturing sector, which is crucial for modern defense systems. Benchmarks for similar development contracts in this sector vary widely based on complexity and technology.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, VIASAT INC, is a large business, suggesting limited direct opportunities for small businesses in this specific award.
Oversight & Accountability
The contract is managed by the Department of the Air Force, part of the Department of Defense. Oversight will focus on performance against the incentive fee structure and adherence to delivery schedules.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPIF structure.
- Long contract duration may lead to technological obsolescence.
- Dependence on a single large prime contractor.
- Lack of explicit small business participation.
Tags
other-communications-equipment-manufactu, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.6 million to VIASAT INC. AEROSPACE VEHICLE EQUIPMENT AND GROUND OPERATING EQUIPMENT DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is VIASAT INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $21.6 million.
What is the period of performance?
Start: 2023-10-23. End: 2029-09-30.
What is the projected cost efficiency given the CPIF contract type and the specific incentive structure?
The Cost Plus Incentive Fee (CPIF) structure aims to incentivize the contractor to control costs by sharing savings or cost overruns with the government. The efficiency will depend heavily on the pre-defined target cost, the incentive sharing ratio, and the government's ability to effectively monitor performance and costs throughout the contract's lifecycle.
What are the key performance indicators (KPIs) that will be used to determine the incentive fee payout?
Key performance indicators are not explicitly detailed in the provided data. However, for aerospace vehicle equipment development, KPIs typically include technical performance milestones, reliability metrics, delivery schedules, and adherence to specifications. The government will likely track these against pre-agreed targets to adjust the final payment.
How does the $21.6M award compare to similar development contracts for aerospace vehicle equipment in the current market?
Without specific details on the scope and complexity of the 'aerospace vehicle equipment and ground operating equipment development,' a direct cost comparison is challenging. However, $21.6M for a nearly 6-year development effort suggests a moderate-sized project. Market rates for specialized defense equipment development can vary significantly.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $79,868,248
Exercised Options: $64,222,548
Current Obligation: $21,639,273
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $23,079,726
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA830717D0012
IDV Type: IDC
Timeline
Start Date: 2023-10-23
Current End Date: 2029-09-30
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2025-08-19
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