DoD's $47.6M MIDS JTRS TERMINALS contract awarded to DATA LINK SOLUTIONS LLC for communications equipment

Contract Overview

Contract Amount: $47,597,803 ($47.6M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2016-08-30

End Date: 2018-08-31

Contract Duration: 731 days

Daily Burn Rate: $65.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MIDS JTRS TERMINALS

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $47.6 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS TERMINALS Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and lack of competitive pressure. 2. The contract duration of 731 days suggests a need for sustained supply of critical communication equipment. 3. Awarded by the Department of the Navy, indicating a focus on naval communication capabilities. 4. The product service code (PSC) is not specified, making it difficult to benchmark against similar procurements. 5. The fixed-price contract type aims to control costs, but the sole-source nature may limit its effectiveness. 6. The contractor, DATA LINK SOLUTIONS LLC, is the sole provider, highlighting a potential single point of failure or dependency.

Value Assessment

Rating: questionable

Benchmarking the value for this contract is challenging due to the lack of competitive bidding and limited public data on unit costs. The sole-source award to DATA LINK SOLUTIONS LLC suggests a lack of market alternatives or a strategic decision to use a specific supplier. Without comparable contracts or detailed cost breakdowns, it's difficult to definitively assess if the $47.6 million represents fair market value. The fixed-price nature provides some cost certainty, but the absence of competition means taxpayers may not have benefited from the most economical pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one bidder, DATA LINK SOLUTIONS LLC, was considered. This approach bypasses the standard competitive bidding process, which typically involves soliciting offers from multiple vendors. The lack of competition means that the government did not explore alternative suppliers or negotiate prices against a range of market options. This can occur for various reasons, including unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. The government may end up paying more than it would in a fully competed scenario.

Public Impact

Naval personnel will benefit from enhanced communication capabilities through the MIDS JTRS terminals. The contract supports the delivery of critical communication equipment essential for military operations. The geographic impact is likely focused on naval bases and deployed units, both domestically and internationally. The contract supports the workforce within DATA LINK SOLUTIONS LLC and potentially its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Dependency on a single contractor for critical communication equipment.
Potential for cost overruns if market prices fluctuate and no competitive bids are available.

Positive Signals

Fixed-price contract type provides some cost predictability.
Award to a specific contractor suggests they possess unique or essential capabilities for the MIDS JTRS terminals.
The contract addresses a specific need for communication equipment within the Department of Defense.

Sector Analysis

The MIDS JTRS TERMINALS contract falls within the broader defense electronics and communications equipment manufacturing sector. This sector is characterized by high research and development costs, stringent quality requirements, and significant government procurement. The market size for defense communications equipment is substantial, driven by ongoing modernization efforts and operational needs of military forces worldwide. This specific contract likely supports a niche but critical component of the military's communication infrastructure, potentially involving specialized radio systems.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, the direct impact on the small business ecosystem is likely minimal. The focus appears to be on a specialized, potentially large-scale sole-source provider rather than broad market engagement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the terms of the firm fixed-price contract, focusing on delivery schedules and specifications. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competed contracts. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Communication Systems
Tactical Data Links
Joint Tactical Radio System (JTRS)
Defense Communications Equipment

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Contractor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.6 million to DATA LINK SOLUTIONS LLC. MIDS JTRS TERMINALS

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 $47.6 million.

What is the period of performance?

Start: 2016-08-30. End: 2018-08-31.

What is the specific nature of the MIDS JTRS TERMINALS and their importance to naval operations?

MIDS (Multifunctional Information Distribution System) JTRS (Joint Tactical Radio System) terminals are advanced communication devices that enable secure, jam-resistant, high-volume data and voice transmission for military platforms. They are crucial for situational awareness, command and control, and interoperability among different military branches and allied forces. For naval operations, these terminals are vital for maintaining communication links between ships, aircraft, and ground units, especially in complex and contested electromagnetic environments. Their ability to integrate with various radio systems and provide a common operating picture enhances mission effectiveness and safety.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. This could be due to proprietary technology, unique manufacturing capabilities, extensive integration requirements with existing systems, or urgent and compelling circumstances where competition is not feasible. For MIDS JTRS TERMINALS, it's possible that DATA LINK SOLUTIONS LLC holds specific patents, licenses, or has unique expertise in manufacturing or supporting these particular terminals, making them the only viable option for the Department of the Navy at the time of award. Detailed justification documents for sole-source procurements are usually available through official channels, though often redacted for proprietary reasons.

What is the track record of DATA LINK SOLUTIONS LLC in fulfilling defense contracts?

DATA LINK SOLUTIONS LLC has a history of providing communication systems and related services to the Department of Defense. While specific performance metrics for past contracts are not detailed in this summary, their selection for a sole-source award of this magnitude suggests a level of trust and established capability within the DoD. Companies operating in this specialized defense sector often have long-standing relationships with government agencies, built on consistent delivery and technical expertise. Further investigation into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their track record.

How does the $47.6 million contract value compare to similar procurements for communication terminals?

Direct comparison of the $47.6 million value is difficult without knowing the exact quantity of terminals, their specific capabilities, and the contract duration. However, advanced military communication systems like MIDS JTRS terminals are typically high-cost items due to their sophisticated technology, security features, and ruggedization requirements. Sole-source awards, by their nature, lack a competitive benchmark, making it harder to ascertain if the price is optimal. To provide a meaningful comparison, one would need to analyze the average cost per unit for similar JTRS or MIDS terminals procured through competitive means, factoring in differences in features and quantities.

What are the potential risks associated with a sole-source award for critical communication equipment?

The primary risks associated with a sole-source award for critical communication equipment include: 1) Higher costs: Without competition, the contractor may charge a premium, leading to increased expenditure for taxpayers. 2) Lack of innovation: The absence of competitive pressure can reduce the incentive for the sole provider to innovate or improve their offerings. 3) Dependency and supply chain vulnerability: The government becomes reliant on a single supplier, making it vulnerable to disruptions in that supplier's operations, financial stability, or strategic decisions. 4) Limited flexibility: Switching to a different supplier in the future may be difficult and costly due to integration challenges and vendor lock-in.

What is the expected delivery timeline and performance period for this contract?

The contract has a duration of 731 days, which translates to approximately two years. The start date was August 30, 2016, and the end date was August 31, 2018. This timeline indicates that the delivery and performance period for the MIDS JTRS TERMINALS was completed within this two-year window. Such a duration suggests a need for a sustained supply of these terminals, rather than a one-time bulk purchase, likely to support ongoing naval operations, training, or equipment refresh cycles.

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

Offers Received: 1

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: $47,597,803

Exercised Options: $47,597,803

Current Obligation: $47,597,803

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0003915D0007

IDV Type: IDC

Timeline