DoD's $519M MIDS JTRS Terminal Production Buy Awarded to Data Link Solutions LLC
Contract Overview
Contract Amount: $51,935,844 ($51.9M)
Contractor: Data Link Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2015-09-15
End Date: 2018-08-03
Contract Duration: 1,053 days
Daily Burn Rate: $49.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) TERMINAL PRODUCTION BUY.
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $51.9 million to DATA LINK SOLUTIONS LLC for work described as: MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) TERMINAL PRODUCTION BUY. Key points: 1. Significant investment in tactical radio systems for the Navy. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for cost overruns given the lack of competitive bidding. 4. Focus on IT communications equipment manufacturing.
Value Assessment
Rating: questionable
The contract value of $519 million is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar systems or potential alternatives. Benchmarking against other tactical radio procurements would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and may lead to higher costs for taxpayers as the contractor faces less pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition in this large procurement could result in taxpayers paying a premium for the MIDS JTRS terminals.
Public Impact
Ensures critical communication capabilities for naval forces. Supports advanced tactical data links for enhanced situational awareness. Potential impact on readiness if costs escalate or delivery is delayed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Essential defense system
- Long-term contract duration
Sector Analysis
This procurement falls under the 'Other Communications Equipment Manufacturing' sector, specifically for advanced tactical radio systems. Spending in this area is critical for maintaining military communication superiority, but often involves high R&D and specialized manufacturing costs.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this sole-source contract. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and adherence to contract terms. The Department of the Navy's contracting office is responsible for monitoring performance and costs.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding may lead to higher costs.
- Potential for contractor to leverage sole-source position for pricing.
- Limited transparency in price negotiation.
- Risk of performance issues not being adequately mitigated by competition.
Tags
other-communications-equipment-manufactu, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.9 million to DATA LINK SOLUTIONS LLC. MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) TERMINAL PRODUCTION BUY.
Who is the contractor on this award?
The obligated recipient is DATA LINK SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $51.9 million.
What is the period of performance?
Start: 2015-09-15. End: 2018-08-03.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or a lack of viable alternatives. For this MIDS JTRS terminal production, the government likely cited specific technical requirements or existing system integration needs. However, a thorough review of the justification documentation is crucial to confirm that alternatives were indeed explored and deemed unsuitable, ensuring the government obtained the best value despite the absence of competition.
How does the per-unit cost compare to similar tactical radio systems procured competitively?
Without access to specific per-unit cost data and comparable competitive contracts, a direct comparison is challenging. However, the absence of competition inherently raises concerns about potential price inflation. Benchmarking against other tactical radio systems, even those with slightly different functionalities, procured under competitive conditions would be essential to identify any significant cost deviations and assess the value for taxpayer money.
What measures are in place to ensure effective delivery and performance of these terminals?
Given the firm-fixed-price contract type, the primary incentive for the contractor is to deliver the specified terminals within budget. The Department of the Navy's oversight mechanisms, including contract performance monitoring, acceptance testing, and potential penalties for non-compliance, are crucial. Regular reviews of production schedules and quality control processes will be vital to ensure timely and effective delivery of these critical communication systems.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003914R0021
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 350 COLLINS RD NE, CEDAR RAPIDS, IA, 52498
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,935,844
Exercised Options: $51,935,844
Current Obligation: $51,935,844
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003915D0007
IDV Type: IDC
Timeline
Start Date: 2015-09-15
Current End Date: 2018-08-03
Potential End Date: 2018-08-03 00:00:00
Last Modified: 2018-07-23
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