Viasat Awarded up to $568 Million IDIQ Contract from General Services Administration to Support C5ISR Capabilities for U.S. Defense Forces

Rhea-AI Summary

Viasat (NASDAQ: VSAT) has secured a five-year, sole-source IDIQ contract through the U.S. General Services Administration with a $568 million ceiling. This follow-on award extends a previous 2019 IDIQ contract to support the migration of C5ISR capabilities from Special Operations Forces to General Purpose Forces.

The contract enables Viasat to deliver various technologies and services, including tactical gateways, advanced networking, airborne SATCOM terminals, ground terminals, modems, satellite services, and cybersecurity capabilities. The company's capabilities have expanded following its Inmarsat acquisition in 2023, offering enhanced communication solutions to support DoD's evolving operations.

Positive

• Secured $568 million IDIQ contract with GSA
• Sole-source contract award indicates strong competitive position
• Contract extends previous successful relationship with DoD
• Expanded capabilities through Inmarsat acquisition enhance service offerings

Negative

• Contract ceiling represents maximum potential value, not guaranteed revenue

Insights

Government Contracts Analyst

The $568 million IDIQ contract represents a significant win for Viasat, strengthening its position in the defense communications sector. This sole-source follow-on contract demonstrates the DOD's continued confidence in Viasat's capabilities, particularly following the strategic Inmarsat acquisition. The contract's five-year duration provides stable revenue visibility and enhances Viasat's competitive moat in military communications.

The contract's scope spans critical C5ISR capabilities and allows for rapid technology adoption, positioning Viasat to capture additional revenue through new product integration. The flexible structure enables cross-service utilization, potentially expanding the actual contract value beyond the ceiling amount. The timing is particularly advantageous, coinciding with increased defense modernization initiatives and the growing importance of secure military communications.

Defense Technology Analyst

This contract solidifies Viasat's strategic positioning in advanced military communications, leveraging their expanded capabilities post-Inmarsat acquisition. The focus on migrating Special Operations technologies to General Purpose Forces represents a significant scaling opportunity. The comprehensive scope covering tactical networking, SATCOM and cybersecurity aligns perfectly with the DOD's push toward integrated, resilient communications systems.

The sole-source nature of this contract is particularly noteworthy, indicating Viasat's unique technological advantages and established infrastructure that competitors cannot easily replicate. The emphasis on rapid capability integration suggests potential for additional task orders beyond the base contract value, especially in emerging areas like cybersecurity and advanced networking solutions.

Viasat will support U.S. Department of Defense (DoD) technology modernization with tactical networking, ground system, satellite communication and cybersecurity solutions

CARLSBAD, Calif., Dec. 10, 2024 /PRNewswire/ -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, announced today it has received a five-year, sole-source Indefinite Delivery/Indefinite Quantity (IDIQ) contract through the U.S. General Services Administration (GSA) with a $568 million ceiling. This contract is a follow-on award through GSA that extends a previous IDIQ award issued in 2019. Under the award, Viasat will support the rapid migration of command, control, communications, computers, combat systems, intelligence, surveillance and reconnaissance (C5ISR) capabilities and best practices from Special Operations Forces (SOF) to General Purpose Forces (GPF).

Through this contract, Viasat will continue to deliver a diverse portfolio of technologies and services to help advance and enable the communications, security, intelligence and operations that are essential for both SOF and GPF warfighters. Viasat Communication Services and Defense and Advanced Technologies portfolios offer proven and innovative government solutions, including tactical gateways and advanced networking, airborne SATCOM terminals and Hubs, ground terminals and modems, beyond-line-of-sight satellite services, and cybersecurity and encryption capabilities. Viasat's technology and services capabilities have expanded following its acquisition of Inmarsat in 2023, offering an extensive range of flexible, resilient communication solutions and services to support DoD's evolving operations and mission requirements.

This contract structure allows the DoD to address key priorities for enhanced mobility, resilient networking, cybersecurity and broadband SATCOM services. It also allows for the accelerated acquisition and adoption of new products, systems and services the DoD requires, and enables military users across services to access and benefit from these emerging technologies. Viasat will continue to support the identification and integration of new capabilities and technologies that can address the DoD's enterprise C5ISR mission requirements.

"Viasat is proud to be a trusted partner for the entire Joint Force, providing the DoD with a wide range of capabilities and services including advanced tactical networking, ground system and mobile satellite communications (SATCOM) solutions, information assurance and cybersecurity products, and satellite services," said Susan Miller, President of Viasat Government. "We look forward to continuing our close partnership with the DoD to solve complex problems and support military forces across domains with flexible, resilient and secure capabilities that enable enhanced operations and improved situational awareness across the battlespace."

About Viasat
Viasat is a global communications company that believes everyone and everything in the world can be connected. With offices in 24 countries around the world, our mission shapes how consumers, businesses, governments and militaries around the world communicate and connect. Viasat is developing the ultimate global communications network to power high-quality, reliable, secure, affordable, fast connections to positively impact people's lives anywhere they are—on the ground, in the air or at sea, while building a sustainable future in space. In May 2023, Viasat completed its acquisition of Inmarsat, combining the teams, technologies and resources of the two companies to create a new global communications partner. Learn more at www.viasat.com, the Viasat News Room or follow us on Facebook, Instagram, LinkedIn, X or YouTube. 

Copyright © 2024 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat Signal are registered in the U.S and in other countries to Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.

Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934.  Forward-looking statements include, among others, statements about the IDIQ, including the total amount of orders received by Viasat under the contract; Viasat's delivery of a portfolio of technologies, products and services; and the anticipated benefits to the DoD, SOF and GPF. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: Viasat's ability to successfully develop, introduce and sell new technologies, products and services; audits by the U.S. government; delays in approving U.S. government budgets and cuts in government defense expenditures; Viasat's reliance on U.S. government contracts, and on a small number of contracts which account for a significant percentage of our revenues; and introduction of new technologies and other factors affecting the defense industry generally. In addition, please refer to the risk factors contained in Viasat's SEC filings available at www.sec.gov, including Viasat's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Viasat undertakes no obligation to update or revise any forward-looking statements for any reason.

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SOURCE Viasat, Inc.

FAQ

What is the value of Viasat's (VSAT) new GSA contract?

Viasat's new GSA contract has a ceiling value of $568 million over a five-year period.

What services will Viasat (VSAT) provide under the new DoD contract?

Viasat will provide C5ISR capabilities, including tactical networking, ground systems, satellite communications, and cybersecurity solutions for U.S. Defense Forces.

When did Viasat (VSAT) acquire Inmarsat?

Viasat acquired Inmarsat in 2023, expanding its communication solutions and services capabilities.