DoD awards $80.1M for MIDS JTRS terminals to Data Link Solutions LLC, a sole-source contract

Contract Overview

Contract Amount: $80,133,851 ($80.1M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2019-07-19

End Date: 2022-05-31

Contract Duration: 1,047 days

Daily Burn Rate: $76.5K/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 $80.1 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS TERMINAL Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. The contract duration of over 1000 days suggests a long-term need for these terminals. 3. The North American Industry Classification System (NAICS) code 334290 indicates a focus on communications equipment manufacturing. 4. The contract is a delivery order under a larger, unspecified contract. 5. The firm fixed-price contract type aims to control costs for the government. 6. The absence of small business set-aside indicates this was not specifically targeted for small businesses.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to assess if the $80.1 million award represents good value for money. Benchmarking against similar sole-source contracts for communication equipment is challenging due to the lack of public data. The firm fixed-price nature of the contract provides some cost certainty, but the absence of competition limits the government's ability to secure the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This typically occurs when a unique capability is required or when only one source is available. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in less efficient use of taxpayer funds.

Public Impact

The Department of Defense benefits from the acquisition of critical communication equipment. The contract supports the operational readiness of naval forces by providing essential communication terminals. The geographic impact is primarily within Department of the Navy operations, with potential global reach. The contract supports jobs in the communications equipment manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings.
Lack of transparency in the justification for sole-source award.
Contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Firm fixed-price contract type provides cost certainty.
Award to a specific company suggests a potentially established relationship or specialized capability.
Delivery order structure may indicate efficient procurement of specific needs.

Sector Analysis

The MIDS JTRS terminal falls within the broader defense electronics and communications equipment manufacturing sector. This sector is characterized by high research and development costs, stringent quality requirements, and significant government procurement. The market size for such specialized defense equipment is substantial, driven by ongoing modernization efforts and operational needs of military branches worldwide. This contract represents a specific procurement within this larger ecosystem.

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. This suggests that the prime contractor, Data Link Solutions LLC, is likely a large business. The absence of small business participation goals means that the direct economic benefit to the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses indirectly.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which shifts cost risk to the contractor. Transparency is limited due to the sole-source nature and lack of detailed public justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

MIDS Terminals
JTRS Program
Tactical Data Links
Defense Communications Systems

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.1 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 $80.1 million.

What is the period of performance?

Start: 2019-07-19. End: 2022-05-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED.' Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For defense systems like the MIDS JTRS terminal, this could be due to proprietary technology, unique integration requirements with existing platforms, or a lack of alternative qualified manufacturers. A detailed justification document, usually available through official channels like SAM.gov or agency FOIA requests, would outline the specific reasons, such as the unique capabilities of Data Link Solutions LLC, the need to maintain interoperability with existing systems, or the absence of viable competitive alternatives within the required timeframe.

How does the $80.1 million cost compare to similar MIDS JTRS terminal procurements?

Direct comparison of the $80.1 million award for MIDS JTRS terminals is challenging without knowing the exact quantity of terminals procured and the specific model or configuration. Publicly available data on individual terminal costs is often limited, especially for sole-source contracts. However, historical data suggests that MIDS terminals can range from tens of thousands to over a hundred thousand dollars per unit, depending on the variant and capabilities. Given the total award amount and the contract duration, this likely represents a significant quantity or a mix of terminal types. A comprehensive value assessment would require benchmarking against other sole-source awards for similar equipment or analyzing the cost per unit if that information were available.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not be achieving the best possible price for the MIDS JTRS terminals. Another risk is vendor lock-in, where the reliance on a single supplier could limit future flexibility and potentially increase long-term costs. Furthermore, if Data Link Solutions LLC faces production issues or financial instability, it could disrupt the supply chain for critical defense communication equipment, posing a national security risk. The long contract duration also introduces risks related to technological obsolescence and the need for effective contract management to ensure performance.

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

Data Link Solutions LLC (DLS) is a known entity in the defense sector, often associated with communication systems and avionics. They have a history of supplying various components and integrated systems to military branches. While specific details on their performance for MIDS JTRS terminals under this particular contract are not provided, DLS has generally been a significant player in providing Link 16 terminals and related technologies. Their track record would typically be assessed by the procuring agency based on past performance evaluations, on-time delivery, quality of products, and adherence to contract terms in previous engagements. A review of their past performance history within the DoD would be crucial for a complete understanding.

How does this contract fit into the broader context of DoD's communication modernization efforts?

This contract for MIDS JTRS terminals aligns with the Department of Defense's ongoing efforts to modernize its tactical data link capabilities. The Joint Tactical Radio System (JTRS) program, of which MIDS JTRS is a part, aims to provide secure, networked, and interoperable voice and data communications across different military services and platforms. Procurements like this ensure that warfighters have access to advanced communication systems necessary for situational awareness, command and control, and network-centric warfare. It supports the transition towards more integrated and resilient communication networks, crucial for joint operations in complex environments.

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 (UEI: 001344142)

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: $80,133,851

Exercised Options: $80,133,851

Current Obligation: $80,133,851

Actual Outlays: $5,238,244

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0003915D0007

IDV Type: IDC

Timeline