Air Force's $98.8M F-22 Multifunctional Information Distribution System contract awarded to Data Link Solutions LLC

Contract Overview

Contract Amount: $98,846,957 ($98.8M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2016-02-04

End Date: 2021-04-30

Contract Duration: 1,912 days

Daily Burn Rate: $51.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) UNITED STATES AIR FORCE (USAF) F22 SYSTEM DESIGN AND DEVELOPMENT (SD&D).

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $98.8 million to DATA LINK SOLUTIONS LLC for work described as: MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) UNITED STATES AIR FORCE (USAF) F22 SYSTEM DESIGN AND DEVELOPMENT (SD&D). Key points: 1. Contract awarded for F-22 system design and development, focusing on the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio System (JTRS). 2. The contract was not competed, raising questions about potential price discovery and value for money. 3. A significant duration of 1912 days suggests a long-term commitment to system development and integration. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not closely managed. 5. The awardee, Data Link Solutions LLC, is a key player in this specialized defense communication sector. 6. The contract's value of $98.8M indicates a substantial investment in advanced tactical communication capabilities for the F-22.

Value Assessment

Rating: questionable

Benchmarking the value of this specific contract is challenging due to its unique nature and the lack of competitive bidding. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex development, carries inherent risks of cost escalation. Without competitive proposals, it's difficult to definitively assess if the fixed fee adequately compensated the contractor for the effort or if the government secured the best possible price. The total award amount of $98.8 million over approximately five years suggests a significant investment, but the absence of a competitive baseline makes a precise value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process. This can limit the government's ability to negotiate the most favorable terms and pricing.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to compete for and win government contracts.

Public Impact

The primary beneficiaries are the United States Air Force (USAF) and its F-22 Raptor fighter jet fleet, which will receive enhanced communication and data-sharing capabilities. The contract delivers critical system design and development services for the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio System (JTRS). This enhancement aims to improve situational awareness and interoperability for F-22 pilots in complex combat environments. The successful integration of this system supports the operational readiness and effectiveness of a key strategic air asset.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Cost Plus Fixed Fee (CPFF) contract type carries risk of cost overruns.
Lack of transparency in pricing due to non-competitive nature.
Potential for contractor to leverage unique position for favorable terms.

Positive Signals

Award to a specialized contractor likely ensures access to critical expertise.
Focus on advanced communication systems for a high-value asset like the F-22.
Long contract duration suggests a commitment to a critical capability.

Sector Analysis

This contract falls within the defense electronics and communications sector, specifically focusing on advanced tactical data links and radio systems for fighter aircraft. The market for such specialized defense technology is characterized by high barriers to entry, significant R&D investment, and a limited number of qualified suppliers. The F-22's MIDS JTRS system represents a cutting-edge application within this sector, aiming to provide secure, jam-resistant, and high-bandwidth communication capabilities essential for modern air combat operations. Comparable spending in this niche often involves substantial sums due to the complexity and criticality of the technology.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Data Link Solutions LLC, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Data Link Solutions LLC voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management structures, likely involving the Naval Air Systems Command (NAVAIR) as the servicing agency. Given the sole-source nature and CPFF type, rigorous oversight of costs, performance, and adherence to the Statement of Work would be crucial. Transparency might be limited due to the non-competitive award, but internal DoD oversight mechanisms and potentially Inspector General reviews would be in place to ensure accountability and prevent fraud or abuse.

Related Government Programs

Joint Tactical Radio System (JTRS)
Multifunctional Information Distribution System (MIDS)
F-22 Raptor Program
Tactical Data Links
Advanced Communication Systems

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Potential for cost overruns
Lack of competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $98.8 million to DATA LINK SOLUTIONS LLC. MULTIFUNCTIONAL INFORMATION DISTRIBUTION SYSTEM (MIDS) JOINT TACTICAL RADIO SYSTEM (JTRS) UNITED STATES AIR FORCE (USAF) F22 SYSTEM DESIGN AND DEVELOPMENT (SD&D).

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 $98.8 million.

What is the period of performance?

Start: 2016-02-04. End: 2021-04-30.

What is the track record of Data Link Solutions LLC in delivering similar complex communication systems for military aircraft?

Data Link Solutions LLC (DLS) is a joint venture between Collins Aerospace (formerly Rockwell Collins) and BAE Systems, both major defense contractors with extensive experience in avionics and communication systems. DLS itself is a significant provider of MIDS terminals and related technologies. They have a history of supplying these systems to various U.S. military platforms, including the F-35, F-15, F-16, and other NATO aircraft. Their experience with MIDS and tactical data links is well-established, making them a logical, albeit sole-source, provider for the F-22's requirements in this domain. The company's track record suggests technical capability, but the lack of competition for this specific F-22 award means performance metrics and value comparisons are less publicly scrutinized.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for system development in the defense sector?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development or complex system integration efforts where the scope of work is not fully defined at the outset, or where innovation is a key requirement. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it also places a significant burden on the government to meticulously monitor and audit costs to prevent overruns. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for evolving requirements but less cost certainty for the government. Incentive Fee contracts, another alternative, can align contractor and government interests more closely by adjusting the fee based on performance against specific targets.

What are the primary risks associated with a sole-source award for advanced defense systems like the F-22 MIDS JTRS?

The primary risks associated with a sole-source award for advanced defense systems are related to cost and innovation. Without competition, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher costs for the government and taxpayers. The absence of multiple bidders also reduces the incentive for the contractor to innovate aggressively, as they are guaranteed the contract regardless of competitors' advancements. Furthermore, a sole-source award can create vendor lock-in, making it difficult and expensive to switch providers or adopt alternative technologies in the future. This lack of market pressure can also impact the speed of development and the overall value proposition.

Can the performance of the F-22's MIDS JTRS system be benchmarked against similar systems on other aircraft?

Benchmarking the performance of the F-22's MIDS JTRS system against similar systems on other aircraft is complex. While other platforms like the F-35, F-15, and F-16 also utilize MIDS terminals, the specific integration, software, and operational context within the F-22's architecture can differ significantly. The F-22's unique electronic warfare suite and its role as a premier air superiority fighter may necessitate tailored functionalities or performance characteristics for its MIDS JTRS implementation. Direct comparisons would require access to detailed performance data, operational effectiveness reports, and specific system configurations for each aircraft, which are often classified or proprietary. However, the general goal across these platforms is to enhance situational awareness, secure communication, and data sharing, with advancements typically focusing on increased bandwidth, improved anti-jamming capabilities, and broader network interoperability.

What is the historical spending trend for the F-22 program's communication systems, and how does this $98.8M award fit within that context?

The F-22 program has historically involved substantial investments in its advanced avionics and communication systems, reflecting the aircraft's cutting-edge design and mission requirements. While specific historical spending figures for the MIDS JTRS component alone are not readily available in the public domain, the overall F-22 program costs have been significant, running into billions of dollars. This $98.8 million award for system design and development over approximately five years represents a notable, but not unprecedented, expenditure for a critical subsystem upgrade or integration effort within a major weapons system program. It aligns with the ongoing need to maintain and enhance the technological superiority of the F-22 fleet through upgrades to its communication and data-sharing capabilities, ensuring its relevance against evolving threats.

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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

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: $98,851,656

Exercised Options: $98,851,656

Current Obligation: $98,846,957

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0003915D0007

IDV Type: IDC

Timeline