DoD awards $66.5M for MIDS JTRS terminals and spares to Data Link Solutions LLC

Contract Overview

Contract Amount: $66,456,044 ($66.5M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-25

End Date: 2020-09-30

Contract Duration: 736 days

Daily Burn Rate: $90.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MIDS JTRS TERMINALS AND SPARES

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $66.5 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS TERMINALS AND SPARES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant spending on communication equipment, indicating critical operational needs. 3. Contract duration of approximately two years suggests a focused, short-term requirement. 4. No small business set-aside was applied, potentially impacting small business participation. 5. The award falls under Other Communications Equipment Manufacturing, a specialized sector.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to assess if the $66.5 million awarded represents fair market value. The lack of comparison to similar contracts or market rates for MIDS JTRS terminals and spares makes a definitive value assessment challenging. The sole-source nature raises concerns about potential overpricing compared to what might be achieved through competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Data Link Solutions LLC, was solicited. This approach bypasses the standard competitive procurement process, which typically involves multiple bidders vying for the contract. The limited competition means there was no opportunity for price discovery through market forces, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government did not benefit from the potential cost savings that a competitive environment often generates.

Public Impact

The Department of the Navy benefits from the acquisition of critical communication terminals and spare parts. These terminals are essential for maintaining secure and reliable data links for military operations. The contract supports the operational readiness of naval forces, particularly those utilizing Joint Tactical Radio Systems (JTRS). The procurement likely impacts the workforce within Data Link Solutions LLC and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Lack of competition raises concerns about fair pricing.
No small business set-aside may limit opportunities for smaller firms.

Positive Signals

Addresses critical communication needs for the Department of Defense.
Ensures availability of essential spares for operational continuity.

Sector Analysis

The contract falls within the Other Communications Equipment Manufacturing sector, which is a specialized area of the broader defense industrial base. This sector is characterized by high technological requirements and often involves proprietary technologies. Spending in this area is critical for maintaining advanced military communication capabilities. Benchmarking this specific award is difficult without more granular data on MIDS JTRS terminal pricing, but it represents a significant investment in a niche but vital segment of defense procurement.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature further limits the potential for small business involvement, as they would typically compete for set-aside portions or be subcontracted by a prime contractor in a competitive award. This award does not appear to actively foster the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is limited due to the sole-source nature, with fewer public details available compared to competitively awarded contracts.

Related Government Programs

MIDS JTRS Program
Tactical Data Links
Defense Communications Systems
Naval Aviation Electronics

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.5 million to DATA LINK SOLUTIONS LLC. MIDS JTRS TERMINALS AND SPARES

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 $66.5 million.

What is the period of performance?

Start: 2018-09-25. End: 2020-09-30.

What is the track record of Data Link Solutions LLC in fulfilling similar defense contracts?

Data Link Solutions LLC (DLS) has a history of providing communication systems and components to the U.S. military. As a joint venture between BAE Systems and Collins Aerospace, DLS leverages the expertise of its parent companies. While specific details on past performance for MIDS JTRS terminals are not provided in this data snippet, DLS has been a significant supplier for various tactical data link systems and related equipment. Their experience suggests a capability to meet the technical requirements of such contracts. However, a comprehensive assessment would require reviewing past performance evaluations and contract completion records for similar sole-source or competitive awards.

How does the $66.5 million award compare to historical spending on MIDS JTRS terminals and spares?

Analyzing historical spending patterns for MIDS JTRS terminals and spares is crucial for context. Without access to a comprehensive database of past contract awards for this specific equipment, a direct comparison is challenging. However, $66.5 million over a two-year period (September 2018 to September 2020) represents a substantial investment. If similar quantities of terminals and spares were procured in prior periods, this award could be seen as consistent. Conversely, if this amount is significantly higher or lower than previous procurements for comparable needs, it would warrant further investigation into the reasons, such as changes in quantity, technology upgrades, or market price fluctuations. The sole-source nature of this award makes direct historical price comparisons less reliable for assessing value.

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

The primary risks associated with a sole-source award for critical communication equipment like MIDS JTRS terminals and spares include potential overpricing, reduced innovation, and a lack of vendor accountability driven by market competition. Without competing bids, the government may pay a premium for the equipment and services. Furthermore, the sole-source contractor may have less incentive to innovate or improve efficiency, as there is no direct competitive pressure. This can also lead to a reduced ability to hold the contractor accountable for performance issues, as switching vendors would be difficult and costly. Ensuring robust contract oversight and clear performance metrics becomes even more critical in sole-source situations to mitigate these risks.

What is the strategic importance of MIDS JTRS terminals for the Department of Defense?

MIDS (Multifunctional Information Distribution System) JTRS (Joint Tactical Radio System) terminals are vital for the Department of Defense's command, control, communications, computers, and intelligence (C4I) capabilities. They enable secure, jam-resistant, high-volume data and voice communication across different platforms and services. The JTRS program aims to provide a common, software-defined radio architecture, enhancing interoperability and flexibility. MIDS JTRS terminals are critical for maintaining situational awareness, coordinating operations, and ensuring effective battlefield communication in complex, contested environments. Their reliability and performance directly impact mission success and force protection.

Are there specific performance metrics or Key Performance Indicators (KPIs) associated with this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) associated with this $66.5 million contract for MIDS JTRS terminals and spares. In defense contracts, especially for critical equipment, KPIs typically focus on aspects such as delivery timelines, equipment reliability (e.g., Mean Time Between Failures - MTBF), operational availability, adherence to technical specifications, and cybersecurity compliance. For spares, metrics might include inventory availability rates and lead times for replenishment. Given the sole-source nature, the government would rely heavily on clearly defined contractual clauses and rigorous inspection and acceptance processes to ensure the contractor meets all performance expectations.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

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: $66,456,044

Exercised Options: $66,456,044

Current Obligation: $66,456,044

Actual Outlays: $15,322,721

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