DoD Awards $22.9M for COMSEC Equipment to Viasat Inc., No Competition
Contract Overview
Contract Amount: $22,901,727 ($22.9M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2025-12-30
End Date: 2029-08-06
Contract Duration: 1,315 days
Daily Burn Rate: $17.4K/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 $22.9 million to VIASAT INC for work described as: PRODUCTION AND REPAIR COMMUNICATION SECURITY (COMSEC) EQUIPMENT Key points: 1. Viasat Inc. secures a significant contract for critical communication security equipment. 2. The award highlights the Department of Defense's reliance on specialized providers for secure communications. 3. Lack of competition raises questions about potential overpricing and limited market engagement. 4. The IT and Defense sectors are heavily reliant on such secure communication systems.
Value Assessment
Rating: questionable
The contract value of $22.9 million for COMSEC equipment is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for specialized communication security hardware.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The absence of competition for this $22.9 million contract means taxpayers may be paying a premium for the COMSEC equipment.
Public Impact
Ensures continued operational security for Air Force communications. Potential for higher costs due to lack of competitive bidding. Reliance on a single vendor for critical security equipment. Impacts the broader market for secure communication technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Ensures critical communication security
- Long-term contract provides stability
Sector Analysis
The Department of Defense heavily invests in secure communication systems, with the IT and Defense sectors being primary beneficiaries. Benchmarks for similar COMSEC equipment contracts are often proprietary or difficult to ascertain due to the specialized nature of the technology.
Small Business Impact
The contract was awarded to Viasat Inc., a large corporation, and there is no indication that small businesses were involved as subcontractors or partners in this specific award. This contract does not appear to support small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable, and that future procurements explore competitive options where feasible.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for overpricing.
- Limited transparency in pricing.
- Reliance on a single vendor for critical technology.
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 $22.9 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 $22.9 million.
What is the period of performance?
Start: 2025-12-30. End: 2029-08-06.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirement. Without specific documentation, it's presumed the Air Force determined Viasat Inc. was the only viable source for this specific COMSEC equipment, possibly due to existing infrastructure integration or specialized security certifications.
How does the pricing compare to industry benchmarks for similar COMSEC equipment?
Direct comparison is challenging due to the specialized nature of COMSEC equipment and Viasat's proprietary solutions. However, the absence of competition inherently limits the ability to establish a competitive benchmark. A thorough price analysis by the contracting officer would be necessary to validate the reasonableness of the $22.9 million award against internal cost data or historical pricing, if available.
What is the long-term strategy for ensuring cost-effectiveness and innovation in COMSEC procurement?
The long-term strategy should involve periodic market research to identify potential new entrants or alternative technologies. While sole-source awards may be necessary for specific needs, the DoD should aim to foster competition where possible through modular designs, open standards, and by encouraging new vendors to develop compliant solutions to ensure future cost-effectiveness and drive innovation.
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: $22,901,727
Exercised Options: $22,901,727
Current Obligation: $22,901,727
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA830724DB004
IDV Type: IDC
Timeline
Start Date: 2025-12-30
Current End Date: 2029-08-06
Potential End Date: 2029-08-06 00:00:00
Last Modified: 2026-01-05
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