DoD Awards Viasat $22.7M for COMSEC Equipment, Raising Concerns Over Competition
Contract Overview
Contract Amount: $22,705,471 ($22.7M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2024-10-18
End Date: 2029-08-06
Contract Duration: 1,753 days
Daily Burn Rate: $13.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PRODUCTION AND REPAIR COMMUNICATION SECURITY (COMSEC) EQUIPMENT
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $22.7 million to VIASAT INC for work described as: PRODUCTION AND REPAIR COMMUNICATION SECURITY (COMSEC) EQUIPMENT Key points: 1. Significant award to a single vendor for critical communication security equipment. 2. Lack of competition raises questions about potential overpayment and innovation. 3. Long contract duration (nearly 5 years) could lock in pricing and limit flexibility. 4. Focus on specialized COMSEC equipment suggests a high-security, potentially niche market.
Value Assessment
Rating: questionable
The award value of $22.7 million for COMSEC equipment is difficult to benchmark without specific unit details. However, the lack of competition suggests potential for inflated pricing compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no market pressure to achieve the best possible price.
Taxpayer Impact: The absence of competition for this substantial contract means taxpayers may be paying a premium for the COMSEC equipment.
Public Impact
Taxpayers may be overpaying for essential communication security equipment due to the lack of competitive bidding. The long-term nature of the contract could hinder the adoption of newer, potentially more cost-effective technologies. Dependence on a single supplier for critical security hardware poses a potential supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Sole-Source Award
- Long Contract Duration
- Potential for Overpricing
Positive Signals
- Awarded to a known entity (Viasat Inc.)
- Addresses critical security needs (COMSEC)
Sector Analysis
The award falls under Other Communications Equipment Manufacturing. Spending in this sector can vary widely based on technological advancements and defense requirements. Without competitive benchmarks, it's hard to assess if $22.7M is typical for this type of specialized equipment.
Small Business Impact
The data indicates this contract was not awarded to a small business, and there is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable, and that the equipment meets all specified requirements. Transparency in the justification for not competing is crucial.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Long contract duration may lead to price increases.
- Potential for vendor lock-in.
- Limited transparency on price justification.
- No small business participation evident.
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 $22.7 million to VIASAT INC. PRODUCTION AND REPAIR COMMUNICATION SECURITY (COMSEC) EQUIPMENT
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 $22.7 million.
What is the period of performance?
Start: 2024-10-18. End: 2029-08-06.
What is the justification for awarding this contract sole-source, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without access to the specific justification documentation, it's impossible to confirm the rationale. Price reasonableness is usually assessed through historical pricing, commercial item pricing, or independent government cost estimates, but competition is the most robust method for price discovery.
What are the specific risks associated with relying on Viasat Inc. as the sole provider for COMSEC equipment over a nearly five-year period?
Risks include potential price escalation over the contract term, vendor lock-in limiting future technology adoption, and supply chain vulnerabilities if Viasat faces production issues. There's also a risk that the government's specific needs might evolve, and the sole-source contract may not be adaptable without significant renegotiation or modification.
How does the government ensure the effectiveness and security of the COMSEC equipment provided under this sole-source contract, given the lack of competitive validation?
Effectiveness and security are ensured through rigorous testing, validation, and acceptance procedures outlined in the contract's performance work statement. The Air Force will likely conduct thorough inspections and certifications to verify that the equipment meets all stringent security and operational requirements before final acceptance, regardless of the procurement method.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $22,705,471
Exercised Options: $22,705,471
Current Obligation: $22,705,471
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA830724DB004
IDV Type: IDC
Timeline
Start Date: 2024-10-18
Current End Date: 2029-08-06
Potential End Date: 2029-08-06 00:00:00
Last Modified: 2025-03-17
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