DoD's $34.3M Viasat contract for ground vehicular transceivers shows fair value with a 15% lower per-unit cost than benchmark
Contract Overview
Contract Amount: $34,345,740 ($34.3M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2022-02-16
End Date: 2023-07-16
Contract Duration: 515 days
Daily Burn Rate: $66.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BFT2 GROUND VEHICULAR TRANSCEIVERS
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $34.3 million to VIASAT INC for work described as: BFT2 GROUND VEHICULAR TRANSCEIVERS Key points: 1. The contract's value for money appears fair, with a per-unit cost that is 15% below the established benchmark. 2. Full and open competition was utilized, suggesting a robust market and potential for competitive pricing. 3. The contract has a moderate duration of 515 days, indicating a need for sustained service delivery. 4. Performance is contextually sound, aligning with the Defense Information Systems Agency's mission to provide secure communication. 5. This contract falls within the satellite telecommunications sector, a critical area for military operations. 6. The firm fixed-price contract type mitigates cost overrun risks for the government.
Value Assessment
Rating: fair
The awarded amount of $34.3 million for BFT2 Ground Vehicular Transceivers appears to represent fair value. The per-unit cost of $66,691 is approximately 15% lower than the benchmark of $78,459. This suggests that the competitive bidding process likely resulted in favorable pricing for the Department of Defense. The duration of the contract also aligns with the expected lifecycle for such equipment.
Cost Per Unit: $66,691
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which should lead to better price discovery and potentially lower costs for the government. The agency's choice of this procurement method suggests confidence in the market's ability to meet the requirement.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best possible value for its investment.
Public Impact
The primary beneficiaries are U.S. Army personnel who will utilize the BFT2 ground vehicular transceivers for enhanced battlefield communication. The contract delivers critical satellite telecommunications equipment essential for maintaining command and control in mobile combat environments. The geographic impact is primarily within operational theaters where ground forces are deployed, supporting global military readiness. This contract supports the defense industrial base, potentially impacting jobs in manufacturing, engineering, and logistics related to satellite communication systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if BFT2 system becomes proprietary and difficult to integrate with future technologies.
- Reliance on a single contractor for critical communication hardware could pose supply chain risks.
- Ensuring long-term sustainment and maintenance support beyond the initial contract period requires careful planning.
Positive Signals
- Firm fixed-price contract structure limits the government's exposure to cost overruns.
- Full and open competition suggests a healthy market and competitive pricing.
- The contract addresses a critical need for secure and reliable ground vehicular communication systems.
Sector Analysis
This contract operates within the satellite telecommunications sector, a vital component of modern defense infrastructure. The market for military communication systems is characterized by high technological barriers to entry and significant government investment. Comparable spending in this sector often involves large-scale procurements for satellite ground systems, tactical radios, and network infrastructure, with contract values frequently in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Viasat Inc., may engage small businesses as subcontractors for components or specialized services, though this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract likely falls under the purview of the Defense Contract Management Agency (DCMA) and the relevant program executive office within the Department of Defense. Accountability measures are embedded in the firm fixed-price contract type, which holds the contractor responsible for delivering specified goods within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal.
Related Government Programs
- Blue Force Tracking (BFT)
- Tactical Data Links
- Satellite Communication Systems
- Warfighter Information Network-Tactical (WIN-T)
- Command and Control Systems
Risk Flags
- Potential for supply chain disruption
- Reliance on specific satellite network infrastructure
- Technological obsolescence risk
Tags
defense, department-of-defense, viasat-inc, satellite-telecommunications, ground-vehicular-transceivers, full-and-open-competition, firm-fixed-price, maryland, bpa-call, defense-information-systems-agency, communication-systems, >$10M
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.3 million to VIASAT INC. BFT2 GROUND VEHICULAR TRANSCEIVERS
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 $34.3 million.
What is the period of performance?
Start: 2022-02-16. End: 2023-07-16.
What is Viasat Inc.'s track record with similar Department of Defense contracts, particularly in satellite telecommunications?
Viasat Inc. has a significant history of contracting with the Department of Defense, primarily in the realm of satellite communications and networking solutions. They are known for providing robust, high-capacity satellite bandwidth and secure communication systems for military platforms, including ground vehicles, aircraft, and ships. Past contracts have often involved providing satellite terminals, network services, and cybersecurity solutions. Their performance has generally been viewed as reliable, though like many large defense contractors, they have faced scrutiny on specific contract deliverables and pricing in the past. This particular contract for BFT2 transceivers aligns with their core competencies in providing tactical communication capabilities to the warfighter.
How does the $66,691 per-unit cost compare to other recent procurements of similar vehicular communication systems?
The per-unit cost of $66,691 for the BFT2 Ground Vehicular Transceivers is approximately 15% below the benchmark of $78,459, suggesting favorable pricing in this instance. Benchmarking against other similar systems is complex due to variations in technical specifications, capabilities, and contract terms. However, for tactical vehicular communication systems that integrate satellite connectivity and advanced data/voice transmission, this price point appears competitive, especially considering the firm fixed-price nature of the contract. Without access to detailed specifications of the benchmarked systems, a precise comparison is difficult, but the reported discount from the benchmark is a positive indicator of value.
What are the primary risks associated with this firm fixed-price contract for satellite telecommunications equipment?
The primary risks associated with this firm fixed-price contract, while generally favorable for the government, include potential limitations on scope flexibility and contractor innovation. If unforeseen technical challenges arise during production or integration that were not accounted for in the initial fixed price, the contractor might be disincentivized from addressing them without additional funding requests, potentially leading to disputes or performance compromises. Furthermore, the fixed price might not fully capture the cost of cutting-edge technological advancements that emerge during the contract period, potentially leading the government to acquire equipment that is not state-of-the-art by the end of its delivery. Ensuring detailed technical specifications and performance requirements are robustly defined upfront is crucial to mitigate these risks.
How effective is the BFT2 system likely to be in enhancing battlefield situational awareness and command and control?
The BFT2 system is designed to significantly enhance battlefield situational awareness and command and control by providing real-time location tracking and communication capabilities for ground vehicles. By enabling commanders to see the positions of friendly forces on a digital map, it drastically improves coordination and reduces the risk of fratricide. The system's ability to transmit and receive data securely and reliably supports the flow of critical intelligence and orders, ensuring that units operate with synchronized information. Its effectiveness is contingent on factors like satellite coverage, network bandwidth, and integration with other command systems, but fundamentally, it represents a crucial upgrade over legacy systems, enabling more agile and informed military operations.
What has been the historical spending trend for satellite telecommunications equipment within the Department of Defense over the last five years?
Historical spending on satellite telecommunications equipment within the Department of Defense has generally been substantial and trending upwards over the last five years. This increase is driven by the growing demand for secure, high-bandwidth communication capabilities to support global operations, intelligence gathering, and network-centric warfare. Major investments have been directed towards satellite constellations, ground segment infrastructure, user terminals, and associated services. While specific figures fluctuate annually based on program priorities and budget allocations, the overall trend reflects a sustained commitment to maintaining and modernizing the DoD's satellite communication capabilities to meet evolving mission requirements.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $34,345,740
Exercised Options: $34,345,740
Current Obligation: $34,345,740
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $7,193,649
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102820A0007
IDV Type: BPA
Timeline
Start Date: 2022-02-16
Current End Date: 2023-07-16
Potential End Date: 2023-07-16 00:00:00
Last Modified: 2024-09-11
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