DoD Awards $102M for Airborne Radio & TV Equipment, Lacking Competition
Contract Overview
Contract Amount: $102,364,182 ($102.4M)
Contractor: Data Link Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2002-12-23
End Date: 2017-12-31
Contract Duration: 5,487 days
Daily Burn Rate: $18.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200303!004610!1700!D0221 !SPACE AND NAVAL WARFARE SYSTEMS !N0003903C0008 !A!N! !N! !20021223!20050401!018619986!018619986!217304393!N!BAE SYSTEMS/ROCKWELL COLLINS !350 COLLINSROAD NE !CEDAR RAPIDS !IA!52498!77870!031!34!WAYNE !PASSAIC !NEW JERSEY!+000010410812!N!N!000000000000!5821!RADIO AND TV COMM EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !334290!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1A!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $102.4 million to DATA LINK SOLUTIONS LLC for work described as: 200303!004610!1700!D0221 !SPACE AND NAVAL WARFARE SYSTEMS !N0003903C0008 !A!N! !N! !20021223!20050401!018619986!018619986!217304393!N!BAE SYSTEMS/ROCKWELL COLLINS !350 COLLINSROAD NE !CEDAR RAPIDS !IA!52498!77870!031!34!WAYNE !PASSA… Key points: 1. Significant contract value of over $102 million awarded. 2. Sole-source award raises concerns about price discovery and competition. 3. Contract duration is exceptionally long at over 15 years. 4. Sector is 'Other Communications Equipment Manufacturing', a niche area.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. Benchmarking against similar airborne communication equipment contracts would be necessary.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition on a contract of this magnitude likely results in a higher cost to taxpayers than a competitively awarded contract.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock in potentially inflated prices for over a decade. Limited transparency into the justification for a sole-source award. Potential for reduced innovation if only one vendor is engaged.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of clear justification for sole-source
Positive Signals
- Specific equipment type identified
- Contract awarded to a known entity (BAE Systems/Rockwell Collins)
Sector Analysis
This contract falls under 'Other Communications Equipment Manufacturing', a sector that can involve specialized and high-value components for defense applications. Benchmarks are difficult without more specific product details, but large sole-source awards in specialized manufacturing warrant scrutiny.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this contract. The award was made to BAE Systems/Rockwell Collins, which are large corporations.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the government is receiving fair value. The long duration further emphasizes the need for ongoing monitoring and potential re-evaluation.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Extended contract duration (over 15 years)
- Potential for inflated pricing
- Limited transparency on sole-source justification
- No clear small business participation noted
Tags
other-communications-equipment-manufactu, department-of-defense, ia, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $102.4 million to DATA LINK SOLUTIONS LLC. 200303!004610!1700!D0221 !SPACE AND NAVAL WARFARE SYSTEMS !N0003903C0008 !A!N! !N! !20021223!20050401!018619986!018619986!217304393!N!BAE SYSTEMS/ROCKWELL COLLINS !350 COLLINSROAD NE !CEDAR RAPIDS !IA!52498!77870!031!34!WAYNE !PASSAIC !NEW JERSEY!+000010410812!N!N!000000000000!5821!RADIO AND TV COMM EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !334290!E! !3! ! ! ! ! !99990909!B
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 $102.4 million.
What is the period of performance?
Start: 2002-12-23. End: 2017-12-31.
What was the specific justification for awarding this contract on a sole-source basis, and was it thoroughly documented and reviewed?
The provided data indicates the contract was 'NOT COMPETED'. A comprehensive justification for a sole-source award is crucial for accountability. This typically involves demonstrating that only one responsible source can provide the required supplies or services, or that a compelling urgency exists. Without this documentation, it's impossible to assess the validity of the sole-source decision and its impact on price.
How does the per-unit cost of this airborne radio and TV equipment compare to similar systems procured through competitive means?
Without access to detailed cost breakdowns and comparative pricing data for similar airborne communication equipment, it is impossible to benchmark the per-unit cost. The sole-source nature of this award makes such comparisons even more critical to ensure fair pricing and prevent potential overpayment by the government.
What mechanisms are in place to ensure cost control and value for money over the extended 15-year duration of this contract?
Given the contract's 15-year lifespan and sole-source award, robust cost control mechanisms are essential. This could include regular price reviews, performance-based incentives, and clear contract clauses allowing for adjustments if market conditions or technological advancements render the pricing unfavorable. The absence of competition necessitates proactive oversight to mitigate risks of escalating costs.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 350 COLLINSROAD NE, CEDAR RAPIDS, IA, 52498
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $100,973,047
Current Obligation: $102,364,182
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2002-12-23
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 00:00:00
Last Modified: 2019-09-26
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