DoD awards $134M for SPARES MIDS JTRS, with Data Link Solutions LLC as prime

Contract Overview

Contract Amount: $134,182,201 ($134.2M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2023-11-30

Contract Duration: 882 days

Daily Burn Rate: $152.1K/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 $134.2 million to DATA LINK SOLUTIONS LLC for work described as: SPARES MIDS JTRS Key points: 1. Contract value of $134M suggests significant investment in critical defense communication systems. 2. The award was made under full and open competition, indicating a robust bidding process. 3. Fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs. 4. The duration of 882 days points to a substantial, multi-year requirement for these spares. 5. The North American Industry Classification System (NAICS) code 334290 covers 'Other Communications Equipment Manufacturing', placing this within a specialized industrial sector. 6. The contract's focus on spares implies a need to maintain existing operational capabilities rather than procure new systems.

Value Assessment

Rating: good

Benchmarking the value of $134M for spares requires detailed analysis of specific component costs and quantities. However, the firm fixed-price nature suggests that the government has negotiated a definitive price, which is a positive indicator for cost control. Without specific per-unit data or comparisons to similar spare parts procurements for MIDS JTRS or comparable systems, a precise value-for-money assessment is challenging. The contract's duration and the nature of spares suggest a need for ongoing support, and the fixed price aims to provide predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the designation 'full and open' implies a broad solicitation.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential suppliers.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) units requiring operational MIDS JTRS (Multifunctional Information Distribution System Joint Tactical Radio System) capabilities. The services delivered include the provision of spare parts essential for maintaining the functionality and readiness of these critical communication systems. The geographic impact is likely widespread, supporting DoD operations globally where MIDS JTRS equipment is deployed. Workforce implications may include jobs in manufacturing, logistics, and quality assurance within the defense industrial base, particularly at Data Link Solutions LLC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data makes detailed value assessment difficult.
The 'Other Communications Equipment Manufacturing' NAICS code is broad; specific component details are needed for deeper analysis.
Reliance on spares indicates potential aging of existing MIDS JTRS equipment, which could lead to future sustainment challenges.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract type provides cost certainty.
The contract supports critical defense communication systems, ensuring operational readiness.

Sector Analysis

This contract falls within the Defense sector, specifically related to communications equipment manufacturing and sustainment. The market for defense communication spares is specialized, often dominated by a few key manufacturers or integrators with specific knowledge and certifications. Spending benchmarks for such specialized spares are difficult to establish without detailed technical specifications and quantities, but the $134M value indicates a significant procurement for the DoD's communication infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Data Link Solutions LLC, may engage small businesses as subcontractors for components or services, depending on their own supply chain strategy and federal subcontracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified parts at the agreed-upon price. Transparency is facilitated by the contract award data being publicly available, though detailed technical specifications and pricing breakdowns are often proprietary.

Related Government Programs

MIDS JTRS Program
Defense Communications Systems
Tactical Data Links
Electronic Warfare Systems
Military Spares Procurement

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of component obsolescence if not managed proactively.
Quality assurance challenges in manufacturing specialized electronic parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $134.2 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $134.2 million.

What is the period of performance?

Start: 2021-07-01. End: 2023-11-30.

What is the historical spending trend for MIDS JTRS spares procured by the DoD?

Analyzing historical spending for MIDS JTRS spares requires accessing historical contract databases and filtering for relevant contract line items and descriptions. Without direct access to such historical data, it's challenging to provide a precise trend. However, the current $134M award suggests a significant, ongoing need for these components. Typically, spending on spares can fluctuate based on equipment lifecycle, operational tempo, and obsolescence management strategies. A sustained or increasing trend in spares procurement might indicate aging platforms or increased operational demands, while a decreasing trend could suggest successful modernization efforts or improved component reliability.

How does the unit cost of these spares compare to similar components in other defense communication systems?

A direct comparison of unit costs for these MIDS JTRS spares to similar components in other defense communication systems is difficult without specific part numbers, quantities, and detailed cost breakdowns. The 'Other Communications Equipment Manufacturing' NAICS code is broad. However, specialized defense communication hardware, especially for systems like MIDS JTRS which are critical for tactical operations, often carries a premium due to stringent performance requirements, security certifications, and limited production runs. Benchmarking would require identifying comparable systems and their respective spare part procurements, considering factors like technological sophistication, obsolescence, and supplier competition.

What are the primary risks associated with the performance of Data Link Solutions LLC on this contract?

Potential performance risks for Data Link Solutions LLC on this $134M contract for MIDS JTRS spares include supply chain disruptions affecting component availability, quality control issues leading to non-conforming parts, delivery delays impacting operational readiness, and potential cost overruns if unforeseen technical challenges arise (though mitigated by the fixed-price nature). The company's track record with similar defense contracts, its manufacturing capabilities, and its ability to manage complex logistics for specialized electronic components are key factors. The DoD's contract performance management system would monitor these aspects, with potential for corrective actions if performance deviates significantly from requirements.

What is the assessed value-for-money for this contract, considering the price and expected benefits?

The value-for-money assessment for this $134M contract hinges on the criticality of MIDS JTRS spares to DoD's operational effectiveness and the competitiveness of the awarded price. The firm fixed-price structure provides cost certainty, which is a positive aspect. The fact that it was awarded under full and open competition suggests that the price achieved is likely competitive. However, a definitive value-for-money judgment requires comparing the price against independent cost estimates, market research, and the expected lifespan and reliability of the procured spares. Without these granular details, the assessment remains qualitative, leaning towards 'good' due to competitive sourcing and price certainty.

How does the competition level (full and open) impact the overall cost to taxpayers for this procurement?

A 'full and open' competition generally benefits taxpayers by fostering a competitive environment. This encourages multiple qualified vendors, like Data Link Solutions LLC, to submit bids, driving down prices as they vie for the contract. It increases the likelihood that the government secures the best possible price for the required spares. Conversely, sole-source or limited competition contracts often result in higher prices due to the lack of competitive pressure. Therefore, the full and open competition strategy employed here is a positive factor for taxpayer cost-efficiency on this $134M award.

What are the implications of the contract duration (882 days) on long-term sustainment planning for MIDS JTRS?

The 882-day duration (approximately 2.4 years) for this spares contract indicates a medium-term commitment to supporting the MIDS JTRS system. This duration suggests that the DoD anticipates a continued need for these specific spare parts over this period, potentially reflecting the operational tempo or the planned service life of the equipment. It allows for more predictable budgeting and supply chain management for these critical components. However, it also implies that the underlying MIDS JTRS platforms are not nearing immediate retirement, and long-term sustainment strategies, including potential upgrades or replacements, will need to be considered beyond this contract's period of performance.

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: $134,182,201

Exercised Options: $134,182,201

Current Obligation: $134,182,201

Actual Outlays: $2,686,554

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003920D0057

IDV Type: IDC

Timeline