Viasat Inc. awarded $11.76M contract for KGV-11M Development Model by the Department of the Navy
Contract Overview
Contract Amount: $11,764,865 ($11.8M)
Contractor: Viasat Inc
Awarding Agency: Department of Defense
Start Date: 2018-07-03
End Date: 2027-03-28
Contract Duration: 3,190 days
Daily Burn Rate: $3.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: KGV-11M DEVELOPMENT MODEL
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $11.8 million to VIASAT INC for work described as: KGV-11M DEVELOPMENT MODEL Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries inherent risk. 3. The contract duration is substantial at 3190 days, indicating a long-term project. 4. The award was made by the Department of the Navy, a major defense procurement agency. 5. The North American Industry Classification System (NAICS) code 334220 points to manufacturing of radio and television broadcasting and wireless communications equipment. 6. The contract has a base period and potential for extensions, typical for development models. 7. The contractor, Viasat Inc., is a known entity in the defense and communications sector.
Value Assessment
Rating: fair
The contract value of $11.76 million for a development model is moderate. Without specific benchmarks for the KGV-11M model or comparable development contracts, a precise value-for-money assessment is challenging. The CPIF contract type means the final cost could deviate from the initial estimate based on performance and cost targets. Further analysis would require understanding the specific technical requirements and the contractor's historical performance on similar projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a degree of competition, but the specific number of bidders does not inherently guarantee the best price. The government's ability to secure competitive pricing depends on the market's responsiveness and the clarity of the solicitation requirements.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions. However, the ultimate cost savings are realized if the competition effectively drives down bids.
Public Impact
The primary beneficiaries are likely the Department of Defense, specifically the Department of the Navy, through the development of advanced communication equipment. The contract supports the development of the KGV-11M model, which is expected to enhance wireless communications capabilities. The geographic impact is primarily within the United States, with potential implications for naval operations globally. The contract supports specialized roles in engineering, manufacturing, and project management within the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee (CPIF) contracts can lead to costs exceeding initial estimates if performance targets are not met or if costs escalate.
- The long contract duration (3190 days) increases the risk of scope creep or changes in technological requirements over time.
- Limited information on the specific technical capabilities of the KGV-11M model makes it difficult to assess the true value and necessity of the development.
- The absence of small business participation noted (sb: false) may limit opportunities for smaller innovative firms in the supply chain.
Positive Signals
- Awarded through full and open competition, which typically promotes competitive pricing and wider access to potential contractors.
- The contractor, Viasat Inc., has a significant presence and experience in the defense and aerospace communications sector.
- The contract is managed by the Department of the Navy, an experienced agency in complex defense procurements.
- The contract is for a development model, suggesting investment in future technological capabilities.
Sector Analysis
The contract falls within the Information Technology and Defense sectors, specifically focusing on wireless communications equipment manufacturing. The market for defense-related communications technology is highly specialized and competitive, with significant investment in research and development. Comparable spending benchmarks would involve looking at other development contracts for advanced communication systems within the Department of Defense and other allied nations.
Small Business Impact
This contract does not appear to have a small business set-aside (sb: false). While Viasat Inc. may engage small businesses as subcontractors, the primary award was not directed towards small businesses. This means opportunities for direct prime contracting with small businesses were likely limited for this specific award, potentially impacting the broader small business ecosystem in this specialized technology area.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are built into the CPIF structure, linking contractor performance and cost control to financial incentives. Transparency is facilitated through contract award databases, though detailed project specifics may be sensitive. The Inspector General for the Department of Defense would have jurisdiction for audits and investigations.
Related Government Programs
- Defense Communications Systems
- Wireless Communication Technology Development
- Naval Aviation Support Systems
- Satellite Communications Equipment
- Advanced Manufacturing Contracts
Risk Flags
- Cost Plus Incentive Fee (CPIF) contract type carries inherent risk of cost overruns.
- Long contract duration increases potential for scope changes and obsolescence.
- Lack of detailed technical specifications limits full value assessment.
- No explicit small business participation noted.
Tags
defense, department-of-the-navy, viasat-inc, wireless-communications-equipment-manufacturing, definitive-contract, cost-plus-incentive-fee, full-and-open-competition, development-model, california, it-sector, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to VIASAT INC. KGV-11M DEVELOPMENT MODEL
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 Navy).
What is the total obligated amount?
The obligated amount is $11.8 million.
What is the period of performance?
Start: 2018-07-03. End: 2027-03-28.
What is the specific function and expected capability enhancement of the KGV-11M Development Model?
The provided data does not detail the specific function or expected capability enhancement of the KGV-11M Development Model. The NAICS code 334220 suggests it relates to radio and television broadcasting and wireless communications equipment manufacturing. Without further documentation or technical specifications, it is presumed to be a component or system designed to advance the Navy's wireless communication capabilities, potentially for tactical, operational, or strategic use. Understanding its role within a larger system or program would be crucial for assessing its impact and value.
How does Viasat Inc.'s past performance on similar Cost Plus Incentive Fee (CPIF) contracts compare to industry averages?
Assessing Viasat Inc.'s past performance on similar CPIF contracts requires access to detailed performance metrics, cost variance reports, and customer satisfaction data, which are not provided in the summary data. Generally, CPIF contracts carry inherent risks of cost overruns if incentives are not structured effectively or if unforeseen technical challenges arise. Viasat Inc. is a large, established defense contractor with extensive experience, suggesting they likely have a track record with various contract types. A thorough review would involve analyzing their historical data on schedule adherence, cost performance against targets, and quality of deliverables on comparable development projects.
What are the key performance indicators (KPIs) and incentive structures within this Cost Plus Incentive Fee (CPIF) contract?
The specific Key Performance Indicators (KPIs) and incentive structures for this KGV-11M Development Model contract are not detailed in the provided summary. In a CPIF contract, the government and contractor agree on target costs, target profits, and incentive formulas. The final profit is adjusted based on how the final costs compare to the target cost and whether performance objectives (related to technical performance, schedule, or other metrics) are met. For this contract, the KPIs would likely relate to the successful development and testing of the KGV-11M model, meeting specific technical specifications, and potentially adhering to certain milestones. The incentive structure would define how deviations from target costs and performance achievements impact the contractor's final profit.
What is the projected total lifecycle cost, including sustainment and potential upgrades, for systems utilizing the KGV-11M Development Model?
The provided data focuses solely on the initial development contract award value ($11.76 million) and duration (3190 days). It does not include any information regarding the projected total lifecycle costs, sustainment, or future upgrade requirements for systems that will incorporate the KGV-11M Development Model. Development contracts typically cover the initial creation and testing phase. Subsequent phases, such as production, deployment, maintenance, and eventual decommissioning, would involve separate funding and contracts. Estimating lifecycle costs would require a comprehensive program analysis beyond the scope of this award data.
How does the $11.76 million award compare to historical spending on similar wireless communication development projects within the Department of the Navy?
Comparing the $11.76 million award for the KGV-11M Development Model to historical spending requires access to a database of past Navy contracts for similar wireless communication development projects. Without such a benchmark, it's difficult to definitively state whether this amount is high, low, or average. Factors influencing this value would include the complexity of the technology, the maturity of the development phase, the number of bidders, and the specific technical requirements. The NAICS code 334220 covers a broad range of equipment, so direct comparisons would ideally focus on contracts for advanced, specialized wireless communication systems rather than general broadcasting equipment.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003917R0019
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $21,484,122
Exercised Options: $12,536,170
Current Obligation: $11,764,865
Actual Outlays: $222,592
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-07-03
Current End Date: 2027-03-28
Potential End Date: 2027-03-28 00:00:00
Last Modified: 2025-10-31
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