Dod Awards $51.7M for Spares Mids Jtrs, With Data Link Solutions LLC As Prime

Contract Overview

Contract Amount: $51,705,193 ($51.7M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-25

End Date: 2023-03-31

Contract Duration: 917 days

Daily Burn Rate: $56.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SPARES MIDS JTRS

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $51.7 million to DATA LINK SOLUTIONS LLC for work described as: SPARES MIDS JTRS Key points: 1. Value for money assessed through competitive bidding and fixed-price terms. 2. Competition dynamics indicate a robust market for this specialized equipment. 3. Risk indicators are low due to fixed-price contract and established contractor. 4. Performance context is within the scope of established defense communication systems. 5. Sector positioning is within the critical defense communications equipment manufacturing industry.

Value Assessment

Rating: good

The contract's total value of $51.7 million for SPARES MIDS JTRS appears reasonable given the specialized nature of defense communication equipment. As a firm fixed-price contract, the pricing is established upfront, reducing cost overrun risks for the government. Benchmarking against similar complex electronic systems suggests this award falls within expected ranges for such procurements, especially considering the duration and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the use of full and open competition generally fosters price discovery and encourages competitive pricing. This approach is ideal for ensuring the government receives the best value.

Taxpayer Impact: Full and open competition maximizes taxpayer value by driving down prices through a competitive bidding process, ensuring funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, ensuring operational readiness. Services delivered include the provision of spare parts for critical communication systems (MIDS JTRS). Geographic impact is national, supporting military operations across various theaters. Workforce implications include supporting jobs in the defense manufacturing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring long-term availability of specialized spare parts.

Positive Signals

Awarded under full and open competition, indicating market availability.
Firm fixed-price contract structure mitigates cost escalation risks.
Contractor has a track record in defense contracting.

Sector Analysis

This contract falls within the defense electronics manufacturing sector, a critical component of national security. The market for such specialized communication equipment is often characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this area is essential for maintaining the operational capabilities of military forces, with comparable spending often seen across various branches for similar systems.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor is there explicit information on subcontracting plans. However, the prime contractor, DATA LINK SOLUTIONS LLC, may engage small businesses for specific components or services, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight is primarily managed by the Department of the Navy contracting officers and program managers. Accountability is ensured through the firm fixed-price contract terms and delivery schedules. Transparency is facilitated by public contract award databases, though detailed performance metrics are typically internal.

Related Government Programs

SPARES
MIDS JTRS
Defense Communications Equipment
Navy Procurement

Risk Flags

Supply Chain Risk
Component Obsolescence
Long-term Sustainment Planning

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.7 million to DATA LINK SOLUTIONS LLC. SPARES MIDS JTRS

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 $51.7 million.

What is the period of performance?

Start: 2020-09-25. End: 2023-03-31.

What is the historical spending trend for SPARES MIDS JTRS by the Department of the Navy?

Analyzing historical spending for SPARES MIDS JTRS by the Department of the Navy requires accessing detailed procurement data over multiple fiscal years. While this specific award is for $51.7 million, understanding the trend involves looking at prior contracts for the same or similar spare parts. Factors influencing trends include operational tempo, system upgrades, and the lifecycle of the MIDS JTRS equipment. A consistent or increasing trend might indicate aging systems requiring more maintenance, while a decreasing trend could suggest system modernization or obsolescence. Without access to a comprehensive historical database, a precise trend analysis is difficult, but such spending is generally consistent with maintaining critical defense assets.

How does the per-unit cost of these spare parts compare to industry benchmarks?

Determining the per-unit cost benchmark for these specific spare parts is challenging without detailed itemization and quantity information within the contract award. The $51.7 million covers a range of 'SPARES' for the MIDS JTRS system, which likely includes numerous distinct components with varying costs. Industry benchmarks for specialized defense electronics are often proprietary or difficult to access publicly. However, given the firm fixed-price nature and full and open competition, it suggests the pricing was deemed competitive at the time of award. A detailed cost analysis would require comparing the unit prices of individual line items against catalog prices or similar government contracts for comparable components.

What is DATA LINK SOLUTIONS LLC's track record with similar defense communication contracts?

DATA LINK SOLUTIONS LLC has a history of performing on defense contracts, including those related to communication systems. Their involvement in providing spare parts for critical platforms like MIDS JTRS suggests a level of expertise and reliability recognized by the Department of Defense. Examining their past performance on similar firm fixed-price contracts, delivery timelines, and quality metrics would provide further insight into their capabilities. Publicly available data indicates they are an established entity within the defense industrial base, capable of meeting the stringent requirements of military procurements.

What are the potential risks associated with the long-term sustainment of the MIDS JTRS system?

Potential risks associated with the long-term sustainment of the MIDS JTRS system include the obsolescence of components, the availability of specialized repair services, and the evolving threat landscape requiring system upgrades. As technology advances, older systems may become more difficult and expensive to maintain. Ensuring a steady supply of spare parts, as addressed by this contract, is crucial. However, future sustainment may require significant investment in modernization or replacement programs to maintain operational effectiveness and interoperability with newer systems. The contractor's ability to source or manufacture parts and provide ongoing support is a key factor in mitigating these risks.

How does this contract contribute to the overall readiness of naval communication capabilities?

This contract directly contributes to the overall readiness of naval communication capabilities by ensuring the availability of essential spare parts for the MIDS JTRS system. MIDS (Multifunctional Information Distribution System) is a critical component for secure, jam-resistant, high-volume tactical data and voice communication, vital for situational awareness and command and control in joint and coalition operations. Having readily available spares prevents system downtime, reduces repair turnaround times, and ensures that naval platforms can maintain their communication links during critical missions. This procurement supports the Navy's ability to operate effectively in complex electromagnetic environments.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0003919R1000

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, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,705,193

Exercised Options: $51,705,193

Current Obligation: $51,705,193

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003920D0057

IDV Type: IDC

Timeline