DoD Awards Viasat Inc. $13.5M for R&D Services, Extending Contract to 2027

Contract Overview

Contract Amount: $13,577,825 ($13.6M)

Contractor: Viasat Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-28

End Date: 2027-09-29

Contract Duration: 1,462 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: VAST TO 04 SAND^2

Place of Performance

Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to VIASAT INC for work described as: VAST TO 04 SAND^2 Key points: 1. Contract awarded to Viasat Inc. for Research and Development services. 2. Full and open competition was utilized for this contract. 3. The contract has a duration of 1462 days. 4. The primary sector is Research and Development. 5. The award value is $13,577,825.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may not always yield the most cost-effective outcome for the government.

Taxpayer Impact: Taxpayer funds are being used for specialized R&D services. The effectiveness of the spending will depend on the successful development and application of the research outcomes.

Public Impact

Supports advanced research and development initiatives within the Department of the Air Force. Potential for technological advancements that could benefit national security. Contract duration extends over several years, indicating a long-term research objective.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize higher costs.
  • Limited visibility into specific R&D deliverables and their ultimate value.
  • Contract duration is lengthy, requiring sustained oversight.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical R&D for the Department of Defense.
  • Clear end date for contract performance.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation but can be highly variable in terms of return on investment.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small business subcontracting opportunities exist.

Oversight & Accountability

Oversight will be critical to ensure Viasat Inc. meets the R&D objectives within the cost and schedule parameters. The Department of Defense's contracting officers will be responsible for monitoring performance and expenditures.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Lengthy contract duration.
  • Lack of specific R&D deliverable details.
  • No indication of small business participation.

Tags

research-and-development-in-the-physical, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to VIASAT INC. VAST TO 04 SAND^2

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 $13.6 million.

What is the period of performance?

Start: 2023-09-28. End: 2027-09-29.

What specific R&D objectives is this contract intended to achieve, and how will their success be measured?

The specific R&D objectives are not detailed in the provided data. Measuring success will likely involve technical milestones, prototype development, and final reports demonstrating the feasibility and application of the research. The contracting officer's representative (COR) will play a key role in monitoring progress against these undefined objectives.

What are the potential risks associated with a Cost Plus Fixed Fee contract for this type of R&D work?

CPFF contracts carry risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. For R&D, where outcomes are uncertain, this can incentivize less cost-conscious behavior. Effective oversight is crucial to manage scope creep and ensure efficient resource utilization to mitigate these risks.

How does this $13.5 million investment align with the Department of the Air Force's broader R&D strategy and priorities?

Without insight into the specific R&D focus, it's challenging to assess alignment. However, R&D spending of this magnitude suggests a strategic investment in a particular technological area deemed important for future Air Force capabilities. Its effectiveness hinges on whether the research contributes to achieving those strategic goals and provides a tangible advantage.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

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: $13,896,311

Exercised Options: $13,577,825

Current Obligation: $13,577,825

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $577,156

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA945321D0029

IDV Type: IDC

Timeline

Start Date: 2023-09-28

Current End Date: 2027-09-29

Potential End Date: 2027-09-29 00:00:00

Last Modified: 2025-12-02

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