DoD Awards $217M for Airborne Radio and TV Communication Equipment to BAE Systems/Rockwell Collins

Contract Overview

Contract Amount: $202,767,994 ($202.8M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2004-12-23

End Date: 2010-12-31

Contract Duration: 2,199 days

Daily Burn Rate: $92.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200503!051058!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0003900D2100 !A!N! !N!0033 ! !20041223!20070930!018619986!018619986!217304393!N!BAE SYSTEMS/ROCKWELL COLLINS D!350 COLLINS RD NE !CEDAR RAPIDS !IA!52498!77870!031!34!WAYNE !PASSAIC !NEW JERSEY!+000011000000!N!N!000000000000!5821!RADIO AND TV COMM EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !554 !MIDS-LVT !334290!E! !5!B!S! ! ! !20200930!B! ! !A! !D!N!V!1!001!N!1A!Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1739!N00039!0001! !

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $202.8 million to DATA LINK SOLUTIONS LLC for work described as: 200503!051058!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0003900D2100 !A!N! !N!0033 ! !20041223!20070930!018619986!018619986!217304393!N!BAE SYSTEMS/ROCKWELL COLLINS D!350 COLLINS RD NE !CEDAR RAPIDS !IA!52498!77870!031!34!WAYNE !PASS… Key points: 1. Significant contract value of $217.3 million awarded. 2. Competition was limited, with BAE Systems/Rockwell Collins as the sole awardee. 3. Risk associated with sole-source awards and potential for inflated pricing. 4. Sector is Defense, specifically focusing on electronics and communication equipment.

Value Assessment

Rating: questionable

The contract value of $217.3 million appears substantial for airborne communication equipment. Without detailed cost breakdowns or benchmarks for similar systems, it's difficult to definitively assess pricing fairness. However, the 'COST PLUS INCENTIVE FEE' pricing structure can sometimes lead to higher costs if not tightly managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and may result in the government paying a premium compared to a fully competed contract. The specific justification for the sole-source award is not provided.

Taxpayer Impact: Sole-source awards can lead to higher taxpayer costs due to the absence of competitive pressure to reduce prices. The full extent of this impact is unknown without further analysis of the pricing.

Public Impact

Impacts military readiness and communication capabilities. Potential for increased defense spending without competitive justification. Affects the market for airborne communication equipment manufacturers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition details

Positive Signals

Essential defense equipment
Long-term contract duration

Sector Analysis

This contract falls within the Defense sector, specifically for 'RADIO AND TV COMM EQUIPMENT, AIRBORNE'. Spending in this area is critical for military operations. Benchmarks for similar specialized airborne communication systems are often proprietary or difficult to obtain, making direct comparison challenging.

Small Business Impact

The awardee, BAE Systems/Rockwell Collins, is a large defense contractor. There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific award, suggesting limited direct impact on the small business sector for this contract.

Oversight & Accountability

The contract was managed by the Department of Defense, specifically the SPACE AND NAVAL WARFARE SYSTEMS command. Oversight would typically involve monitoring performance, costs, and adherence to contract terms, especially given the cost-plus incentive fee structure.

Related Government Programs

Other Communications Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competitive bidding raises concerns about price fairness.
Cost-plus contract type can lead to cost overruns.
Limited transparency on sole-source justification.
Potential for contractor to prioritize profit over cost efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $202.8 million to DATA LINK SOLUTIONS LLC. 200503!051058!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0003900D2100 !A!N! !N!0033 ! !20041223!20070930!018619986!018619986!217304393!N!BAE SYSTEMS/ROCKWELL COLLINS D!350 COLLINS RD NE !CEDAR RAPIDS !IA!52498!77870!031!34!WAYNE !PASSAIC !NEW JERSEY!+000011000000!N!N!000000000000!5821!RADIO AND TV COMM EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !554 !MIDS-LVT !334290!E! !5!B!S! ! ! !202

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $202.8 million.

What is the period of performance?

Start: 2004-12-23. End: 2010-12-31.

What was the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The provided data does not detail the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. To ensure fair and reasonable pricing, the government would usually conduct a price analysis based on historical data, other government contracts, or commercial pricing, even without competition.

How does the 'COST PLUS INCENTIVE FEE' structure impact the final cost and the contractor's incentive to control expenses?

A Cost Plus Incentive Fee (CPIF) contract allows the contractor to incur costs and receive a fee that is subject to adjustment based on the contractor's performance in relation to established targets. This structure aims to incentivize the contractor to control costs by sharing in any savings or cost overruns, but it can also lead to higher final costs if targets are not met or if the incentive structure is not well-defined.

What is the expected operational lifespan and effectiveness of the 'RADIO AND TV COMM EQUIPMENT, AIRBORNE' being procured under this contract?

The provided data indicates the contract period runs from December 2004 to December 2010, suggesting the equipment procured is intended for use within this timeframe and potentially beyond, depending on its obsolescence and maintenance. The effectiveness would be tied to its performance in military communication systems, which is not detailed here but is presumed to meet operational requirements.

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

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 350 COLLINSROAD NE, CEDAR RAPIDS, IA, 52498

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0003900D2100

IDV Type: IDC

Timeline