DoD Awards $477M Viasat Contract for Satellite Telecommunications Amidst Limited Competition
Contract Overview
Contract Amount: $476,988,092 ($477.0M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2018-08-30
End Date: 2026-08-31
Contract Duration: 2,923 days
Daily Burn Rate: $163.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF AWARD FOR AMSS III
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $477.0 million to VIASAT INC for work described as: IGF::OT::IGF AWARD FOR AMSS III Key points: 1. Significant contract value of $477 million awarded to Viasat Inc. 2. Limited competition noted, raising questions about price discovery. 3. Potential risks associated with sole-source or limited competition procurements. 4. Sector focus on Satellite Telecommunications within the Defense sector.
Value Assessment
Rating: questionable
The contract value is substantial, but without clear competitive benchmarks, assessing its pricing effectiveness is difficult. The 'NOT COMPETED' status suggests potential overpricing or lack of market exploration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited approach to competition. This likely impacted price discovery, potentially leading to higher costs for the government compared to a fully competitive scenario.
Taxpayer Impact: The lack of robust competition may result in taxpayers paying more than necessary for these satellite telecommunications services.
Public Impact
Taxpayers may be overpaying due to limited competition. Essential satellite telecommunications services for the Department of Defense are secured. The contract duration extends to August 2026, ensuring long-term service provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award implications
Positive Signals
- Essential defense service provision
- Long-term contract award
Sector Analysis
This contract falls within the Satellite Telecommunications sector, a critical component of modern defense operations. Spending benchmarks in this area can vary widely based on technology and service scope.
Small Business Impact
The data indicates that small businesses were not involved in this specific award, as the contract was awarded to Viasat Inc. Further analysis would be needed to determine if subcontracting opportunities were explored.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the government received fair value and that competition was appropriately waived. Accountability for the procurement decision is crucial.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of competition
- Potential for price inflation
- Limited vendor options
- Lack of transparency in justification
Tags
satellite-telecommunications, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $477.0 million to VIASAT INC. IGF::OT::IGF AWARD FOR AMSS III
Who is the contractor on this award?
The obligated recipient is VIASAT INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $477.0 million.
What is the period of performance?
Start: 2018-08-30. End: 2026-08-31.
What was the justification for not competing this significant satellite telecommunications contract?
The justification for not competing this contract is not provided in the data. Typically, agencies cite reasons such as urgency, lack of available sources, or specific technical requirements that only one vendor can meet. Without this information, it's difficult to assess the validity of the non-competitive award and its impact on value for money.
What are the primary risks associated with awarding a $477 million contract without competition?
The primary risks include potential overpricing, reduced innovation, and a lack of incentive for the contractor to perform at their best. Without competitive pressure, the government may not secure the most cost-effective solution or the latest technological advancements. There's also a risk of vendor lock-in and reduced flexibility in future procurements.
How effective is this contract likely to be in meeting the DoD's satellite telecommunications needs?
The effectiveness hinges on Viasat's capability to deliver the required services as per the contract terms. While the award ensures service continuity, the lack of competition raises concerns about whether the most effective and efficient solution was secured. Performance metrics and ongoing monitoring will be key indicators of effectiveness.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC101318R0010
Offers Received: 1
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: $563,601,578
Exercised Options: $476,493,262
Current Obligation: $476,988,092
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $468,501
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2018-08-30
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2026-01-13
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