DoD's $147.9M TTNT Spectrum Relocation Contract Awarded to Data Link Solutions LLC

Contract Overview

Contract Amount: $147,897,779 ($147.9M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2016-09-22

End Date: 2020-05-29

Contract Duration: 1,345 days

Daily Burn Rate: $110.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) SPECTRUM RELOCATION DEVELOPMENT DELIVERY ORDER.

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $147.9 million to DATA LINK SOLUTIONS LLC for work described as: TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) SPECTRUM RELOCATION DEVELOPMENT DELIVERY ORDER. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of over three years suggests a substantial project scope. 3. Cost-plus-fixed-fee structure may incentivize cost overruns. 4. No small business set-aside indicates potential for large prime contractor benefits. 5. Awarded by the Department of the Navy, a major defense procurement entity. 6. The contract falls under 'Other Communications Equipment Manufacturing', a specialized sector.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific technical requirements. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D or uncertain scope projects, carries inherent risks of cost escalation. Without competitive bids, it's difficult to ascertain if the fixed fee represents a fair return for the contractor or if the overall cost aligns with market expectations for similar technology development and delivery.

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 only one vendor possesses the necessary specialized capabilities, technology, or security clearances. The lack of competition means that price discovery through market forces was absent, potentially leading to higher costs for the government compared to a competitive procurement.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The government did not benefit from the cost-saving pressures that typically arise when multiple companies vie for a contract.

Public Impact

The Department of Defense benefits from the development and delivery of critical tactical targeting network technology. This contract supports the modernization of communication systems within the Navy. The project's geographic impact is centered in Iowa, where the contractor is located. Workforce implications include employment opportunities for specialized technical personnel at Data Link Solutions LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee contract type can lead to cost overruns.
Lack of transparency in the sole-source justification process.
Potential for contractor to prioritize profit over cost efficiency.

Positive Signals

Award to a single, potentially specialized vendor may ensure access to critical technology.
Fixed fee component provides some level of cost predictability for the government.
Contract duration suggests a commitment to a long-term capability.

Sector Analysis

The 'Other Communications Equipment Manufacturing' sector encompasses a wide range of specialized electronic and telecommunications equipment. This contract likely falls within a niche segment related to defense communication systems, such as tactical data links. The market for such specialized defense technology is often characterized by high barriers to entry due to R&D costs, intellectual property, and stringent security requirements. Comparable spending benchmarks are difficult to establish without more specific details on the technology, but defense communication systems can represent significant investments.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the prime contractor, Data Link Solutions LLC, will likely perform the majority of the work. The absence of small business participation in this specific award means that opportunities for small businesses to contribute to this particular defense technology development and delivery are limited.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Tactical Data Link Systems
Defense Communications Infrastructure
Network Centric Warfare Technologies
Spectrum Management Systems

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $147.9 million to DATA LINK SOLUTIONS LLC. TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) SPECTRUM RELOCATION DEVELOPMENT DELIVERY ORDER.

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 $147.9 million.

What is the period of performance?

Start: 2016-09-22. End: 2020-05-29.

What specific capabilities does Data Link Solutions LLC possess that led to this sole-source award?

The sole-source justification for this contract would detail the specific technical expertise, proprietary technology, or unique qualifications that Data Link Solutions LLC holds, making it the only viable source for the TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) SPECTRUM RELOCATION DEVELOPMENT DELIVERY ORDER. This could include patented technologies, specialized manufacturing processes, or deep integration with existing DoD systems that competitors cannot replicate. Without access to the full justification documentation, the precise reasons remain undisclosed, but it implies a high degree of specialization and potentially limited market alternatives for this specific requirement.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar R&D projects?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development (R&D) or services where the scope of work is not clearly defined or is expected to evolve. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of actual costs, and cost-reimbursement contracts without a fixed fee. While CPFF provides flexibility for evolving R&D, it shifts cost risk to the government, as the contractor has less incentive to control costs compared to fixed-price arrangements. For projects with well-defined scopes, fixed-price contracts are generally preferred for better cost control.

What are the potential risks associated with a sole-source award for a technology development contract?

Sole-source awards for technology development contracts carry several risks. Primarily, the absence of competition can lead to inflated pricing, as the government does not benefit from market pressures that drive down costs. There's also a risk of reduced innovation and efficiency, as the contractor may face less pressure to optimize performance or explore cost-saving alternatives. Furthermore, it can create vendor lock-in, making it difficult and expensive to switch providers in the future. Transparency is also a concern, as the justification for a sole-source award may not always be fully transparent to the public or even other government agencies, potentially masking inefficiencies or suboptimal decision-making.

What is the historical spending pattern for TACTICAL TARGETING NETWORK TECHNOLOGY (TTNT) or similar systems within the Department of Defense?

Historical spending on Tactical Targeting Network Technology (TTNT) and similar advanced communication systems within the Department of Defense (DoD) is generally substantial and often characterized by multi-year, high-value contracts. These systems are critical for modern warfare, enabling real-time data sharing and situational awareness among various platforms. Spending in this area tends to be consistent, driven by the need for technological superiority and interoperability across different branches of the military. While specific figures for TTNT may vary, the overall investment in tactical data links and network-centric warfare capabilities represents a significant portion of the DoD's procurement budget, often involving complex R&D and sustainment efforts.

How does the 'Other Communications Equipment Manufacturing' classification impact the analysis of this contract?

The 'Other Communications Equipment Manufacturing' classification (NAICS code 334290) indicates that this contract is for the production of communication equipment that doesn't fit into more specific categories like radio and television broadcasting equipment or telephone apparatus manufacturing. This broad classification suggests the technology is specialized, potentially custom-developed for unique military applications, rather than mass-produced commercial off-the-shelf (COTS) equipment. This specialization often implies higher development costs, longer lead times, and a more limited supplier base, which can influence contract type, pricing, and competition dynamics. It underscores the need for careful oversight to ensure value for money in a niche market.

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: $148,056,166

Exercised Options: $148,038,564

Current Obligation: $147,897,779

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