DoD Awards $113M for MIDS JTRS Terminals to Data Link Solutions LLC
Contract Overview
Contract Amount: $113,012,665 ($113.0M)
Contractor: Data Link Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2019-02-20
End Date: 2021-11-30
Contract Duration: 1,014 days
Daily Burn Rate: $111.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MIDS JTRS TERMINAL
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $113.0 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS TERMINAL Key points: 1. Significant contract value of $113 million for specialized communication equipment. 2. Sole-source award raises questions about competition and potential price inflation. 3. Contract duration of over 1000 days suggests a long-term need. 4. Focus on 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: questionable
Benchmarking is difficult without competitive data. The $113 million award for MIDS JTRS terminals suggests a high per-unit cost, but without comparable contracts or detailed specifications, a precise assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential communication terminals.
Public Impact
Ensures critical communication capabilities for Navy operations. Potential for higher costs due to sole-source nature impacts budget allocation. Supports a specific defense contractor, Data Link Solutions LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing.
- Long contract duration.
Positive Signals
- Provides essential communication equipment.
- Supports DoD mission requirements.
Sector Analysis
This contract falls under the 'Other Communications Equipment Manufacturing' sector, which is crucial for defense operations. Spending in this area is often characterized by specialized, high-value equipment with limited suppliers.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' fields are false. This suggests the prime contractor is a larger entity, and there's no immediate indication of small business subcontracting.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Further oversight may be needed to confirm the justification for not competing the contract.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for overpricing
- Limited transparency
Tags
other-communications-equipment-manufactu, department-of-defense, ia, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $113.0 million to DATA LINK SOLUTIONS LLC. MIDS JTRS TERMINAL
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 $113.0 million.
What is the period of performance?
Start: 2019-02-20. End: 2021-11-30.
What is the justification for the sole-source award of the MIDS JTRS terminals, and how does it ensure value for money?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can meet requirements. For the MIDS JTRS terminals, this could be due to specific interoperability standards or specialized components. However, without detailed documentation, it's difficult to definitively assess if this approach truly maximizes value for money compared to a competitive bid.
What are the potential risks associated with a sole-source contract of this magnitude and duration?
The primary risks include inflated pricing due to a lack of competitive pressure, potential for vendor complacency, and limited opportunities for innovation. Taxpayers may bear a higher cost. Additionally, reliance on a single supplier can create supply chain vulnerabilities if that supplier faces production issues or financial instability.
How effective is the MIDS JTRS terminal in meeting the Department of the Navy's communication needs, and is this contract the most efficient way to procure it?
The MIDS JTRS terminal is designed to provide secure, jam-resistant communications, crucial for modern naval operations. Its effectiveness is likely high given its role. However, the efficiency of procurement via a sole-source award is questionable. A competitive process, even if more complex, could potentially yield better pricing or identify alternative solutions that meet the need more cost-effectively.
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: $113,012,665
Exercised Options: $113,012,665
Current Obligation: $113,012,665
Actual Outlays: $25,781,017
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003915D0007
IDV Type: IDC
Timeline
Start Date: 2019-02-20
Current End Date: 2021-11-30
Potential End Date: 2021-11-30 00:00:00
Last Modified: 2022-05-12
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