Viasat awarded $8.7M contract for satellite telecommunications by the Department of Defense
Contract Overview
Contract Amount: $8,738,896 ($8.7M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2026-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $4.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: VIASAT GLOBAL NETWORK KU (BASIC)-55TH ELECTRONIC COMBAT GROUP (55 ECG)
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85707
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $8.7 million to VIASAT INC for work described as: VIASAT GLOBAL NETWORK KU (BASIC)-55TH ELECTRONIC COMBAT GROUP (55 ECG) Key points: 1. Contract awarded to Viasat Inc. for satellite telecommunications services. 2. The contract has a firm fixed price structure. 3. Duration of the contract is 5 years. 4. The contract is for the 55th Electronic Combat Group. 5. The contract was not competed. 6. The contract is located in Arizona.
Value Assessment
Rating: questionable
Benchmarking the value for this specific contract is challenging due to the lack of competitive bidding. The firm fixed price structure provides some cost certainty, but without comparison to other offers, it's difficult to assess if the $8.7 million represents optimal value for the satellite telecommunications services provided. Further analysis would require understanding the specific service levels and comparing them to industry standards or other government contracts for similar capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach can be justified for specialized services or when a single vendor possesses unique capabilities. However, it limits price discovery and may result in higher costs for the government compared to a competitive procurement.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution available in the market.
Public Impact
The 55th Electronic Combat Group will benefit from enhanced satellite telecommunications capabilities. This contract supports critical communication infrastructure for defense operations. The services delivered are essential for maintaining operational readiness. The contract's impact is primarily on the Department of Defense's communication network.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and reduced value for taxpayer money.
- Sole-source awards can limit innovation by not exploring alternative solutions from other vendors.
- Transparency in the justification for a sole-source award is crucial for public trust.
Positive Signals
- The firm fixed price contract provides cost certainty for the government.
- The contract duration of five years allows for stable service provision.
- Viasat Inc. is an established provider of satellite communications, suggesting potential for reliable service delivery.
Sector Analysis
This contract falls within the satellite telecommunications sector, a critical component of modern communication infrastructure, particularly for defense applications. The market for satellite services is characterized by high upfront investment and specialized technical expertise. Government spending in this area often supports secure and resilient communication networks, with contracts ranging from small tactical deployments to large-scale global coverage solutions. Benchmarking requires comparing specific bandwidth, latency, and coverage requirements against similar government or commercial agreements.
Small Business Impact
There is no indication that this contract includes small business set-asides or subcontracting requirements. As a sole-source award to a large corporation, it is unlikely to directly benefit small businesses through prime contracting opportunities. Further investigation into Viasat's subcontracting plans would be needed to assess any indirect impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. Accountability measures are inherent in the firm fixed price structure, which obligates Viasat to deliver specified services within the agreed budget. Transparency regarding the justification for the sole-source award and performance metrics would be key areas for oversight.
Related Government Programs
- Defense Information Systems Agency (DISA) contracts
- Satellite Communications Services
- Department of Defense IT spending
- Electronic Warfare Support
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Tags
defense, department-of-defense, viasat-inc, satellite-telecommunications, definitive-contract, firm-fixed-price, sole-source, arizona, 55th-electronic-combat-group, information-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.7 million to VIASAT INC. VIASAT GLOBAL NETWORK KU (BASIC)-55TH ELECTRONIC COMBAT GROUP (55 ECG)
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 $8.7 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-09-29.
What is Viasat Inc.'s track record with the Department of Defense for similar satellite telecommunications contracts?
Viasat Inc. has a history of providing satellite communication services to various government agencies, including the Department of Defense. Their experience often involves providing broadband internet, secure voice, and data services via their own satellite constellations. Analyzing past performance on similar contracts would involve reviewing contract awards, performance evaluations, and any reported issues or successes. This context is crucial for understanding their capability and reliability in fulfilling the requirements of the 55th Electronic Combat Group. Without specific data on past performance for this exact type of service or unit, a general assessment suggests Viasat is a capable provider in the defense satellite communications space.
How does the $8.7 million contract value compare to similar satellite telecommunications contracts awarded by the DoD?
Direct comparison of the $8.7 million contract value is difficult without knowing the precise scope of services, bandwidth, coverage, and duration of comparable contracts. Satellite telecommunications costs can vary significantly based on these factors. However, for a five-year firm fixed-price contract, this amount suggests a moderate-sized award. To provide a robust comparison, one would need to identify other DoD contracts for satellite bandwidth, ground station access, or integrated communication solutions with similar technical specifications and contract lengths. The absence of competition for this award makes a direct value-for-money assessment challenging without further market research or internal benchmarking data from the agency.
What are the primary risks associated with this sole-source satellite telecommunications contract?
The primary risk associated with this sole-source contract is the potential for inflated costs due to the lack of competitive pressure. Without multiple bids, the government may not be securing the most cost-effective solution available. Another risk is vendor lock-in, where the agency becomes dependent on Viasat's specific technology or network, making future transitions potentially complex and expensive. Performance risk also exists, although Viasat is an established provider; any degradation in service quality or failure to meet operational requirements could have significant impacts on the 55th Electronic Combat Group's mission. Finally, there's a reputational risk if the sole-source justification is perceived as weak or if costs are later found to be excessive.
What is the expected program effectiveness or outcome for the 55th Electronic Combat Group with these services?
The expected program effectiveness hinges on the reliability, speed, and security of the satellite telecommunications services provided by Viasat. For the 55th Electronic Combat Group, these services are likely critical for command and control, intelligence, surveillance, and reconnaissance (ISR) data dissemination, and operational communications in environments where terrestrial networks may be unavailable or compromised. Effective implementation should enhance the group's ability to conduct missions, share information rapidly, and maintain situational awareness. The success will be measured by the uptime of the service, data throughput achieved, and the seamless integration of these communications into the group's operational workflows, ultimately contributing to mission success and readiness.
How has federal spending on satellite telecommunications evolved, and where does this contract fit?
Federal spending on satellite telecommunications has been a consistent and significant area for defense and civilian agencies, driven by the need for global reach, resilient communications, and support for operations in remote or austere environments. Spending has evolved with technological advancements, moving from traditional geostationary (GEO) satellites to more flexible medium Earth orbit (MEO) and low Earth orbit (LEO) constellations offering higher bandwidth and lower latency. This $8.7 million contract for Viasat's KU band services fits within the broader DoD spending on satellite communications, likely supporting specific operational needs of the 55th Electronic Combat Group. It represents a portion of the overall government investment in ensuring robust communication capabilities, which can range from hundreds of millions to billions annually across all agencies.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC101321R0014
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: $24,924,018
Exercised Options: $8,738,896
Current Obligation: $8,738,896
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-30
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2025-12-10
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