DoD Awards $32.9M Viasat Contract for Engineering Services, Not Competed
Contract Overview
Contract Amount: $32,906,465 ($32.9M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2024-08-21
End Date: 2026-08-20
Contract Duration: 729 days
Daily Burn Rate: $45.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BFT2 FOLLOW ON AWARD
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $32.9 million to VIASAT INC for work described as: BFT2 FOLLOW ON AWARD Key points: 1. Significant award to Viasat Inc. for engineering services. 2. Lack of competition raises questions about price discovery. 3. Potential risk associated with sole-source procurement. 4. Engineering services sector sees continued government investment.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a lack of competition, makes a direct pricing assessment difficult. Benchmarking against similar CPFF contracts for engineering services is challenging without competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The absence of competition for this $32.9 million contract means taxpayers may not be receiving the best possible price for these engineering services.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The Defense Information Systems Agency relies on Viasat for critical engineering services. Future contract awards in this category could be influenced by this sole-source decision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Awarded to an established contractor
- Supports critical defense information systems
Sector Analysis
This award falls within the Engineering Services sector, which is crucial for government operations and defense. Spending in this sector can vary widely based on project complexity and agency needs.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was considered or sought.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and effective use of taxpayer funds. Oversight should focus on the justification for not competing the contract.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source procurement
- Cost-plus contract type
- Potential for overpricing
- Limited transparency
- Lack of small business participation noted
Tags
engineering-services, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.9 million to VIASAT INC. BFT2 FOLLOW ON AWARD
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 $32.9 million.
What is the period of performance?
Start: 2024-08-21. End: 2026-08-20.
What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or the unavailability of other sources. Without specific documentation from the agency, it's difficult to ascertain the precise reason. However, the lack of competition inherently limits the government's ability to explore alternative solutions and potentially secure more favorable pricing.
How does the Cost Plus Fixed Fee (CPFF) structure impact the risk for the government in this sole-source contract?
A CPFF contract shifts some cost risk to the government, as it agrees to cover all allowable costs plus a predetermined fixed fee. In a sole-source scenario, this structure can increase the government's risk of overpayment if costs are not rigorously monitored and controlled, especially since there's no competitive pressure to drive down costs.
What is the potential long-term impact on market competition for similar engineering services if sole-source awards become a trend?
If sole-source awards become a trend for similar engineering services, it could stifle innovation and discourage new entrants from competing for government contracts. This could lead to reduced market dynamism, potentially higher prices in the long run, and a reliance on a limited number of established contractors, diminishing overall government acquisition flexibility.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC108423R0011
Offers Received: 1
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: $153,494,834
Exercised Options: $41,287,211
Current Obligation: $32,906,465
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $39,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-08-21
Current End Date: 2026-08-20
Potential End Date: 2029-08-20 00:00:00
Last Modified: 2025-12-29
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