DoD Spends $64.8M on JTIDS Field Kits via Sole-Source Contract
Contract Overview
Contract Amount: $64,833,549 ($64.8M)
Contractor: Data Link Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2010-09-09
End Date: 2024-08-30
Contract Duration: 5,104 days
Daily Burn Rate: $12.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: JTIDS FIELD CHANGE KITS
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $64.8 million to DATA LINK SOLUTIONS LLC for work described as: JTIDS FIELD CHANGE KITS Key points: 1. Significant spending on specialized communication equipment. 2. Sole-source award raises questions about price discovery. 3. Long contract duration suggests ongoing need. 4. Potential for higher costs due to lack of competition.
Value Assessment
Rating: questionable
The contract's cost-plus incentive fee structure with a sole-source award makes direct pricing comparisons difficult. Without competitive bids, it's challenging to ascertain if the $64.8M represents a fair market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition on this $64.8M contract may result in taxpayers paying a premium for JTIDS field kits.
Public Impact
Ensures operational readiness for critical communication systems. Lack of competition could impact the modernization timeline if costs escalate. Dependence on a single vendor for essential equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Essential equipment for defense operations
Sector Analysis
This contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area is critical for maintaining advanced communication capabilities within the Department of Defense.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses on this contract. The prime contractor is Data Link Solutions LLC.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, suggesting oversight is in place. However, the sole-source nature warrants close monitoring of costs and performance.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to cost overruns.
- Long contract duration increases long-term cost exposure.
- Lack of transparency in pricing due to no-bid nature.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ia, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $64.8 million to DATA LINK SOLUTIONS LLC. JTIDS FIELD CHANGE KITS
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 $64.8 million.
What is the period of performance?
Start: 2010-09-09. End: 2024-08-30.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The agency should provide documentation supporting this. To ensure fair pricing, the Defense Contract Management Agency should conduct rigorous cost analysis and potentially engage independent cost estimators to validate the contractor's proposed costs.
What are the risks associated with a long-term, sole-source, cost-plus contract for critical communication equipment?
Risks include potential cost overruns due to the incentive fee structure and lack of competitive pressure, vendor lock-in, and reduced innovation. The government might pay more than necessary over the contract's lifespan. There's also a risk if the sole-source vendor faces financial instability or operational issues.
How does the cost-plus incentive fee structure impact the overall value and effectiveness of this contract?
This structure aims to incentivize the contractor to control costs while meeting performance targets. However, without a competitive baseline, it's difficult to assess if the incentives are truly driving value. The effectiveness hinges on clear performance metrics and robust government oversight to prevent unnecessary expenditures.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003909R0065
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $69,670,251
Exercised Options: $69,555,160
Current Obligation: $64,833,549
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-09-09
Current End Date: 2024-08-30
Potential End Date: 2024-08-30 00:00:00
Last Modified: 2024-09-18
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