Dod Awards $47.1M for Spares (with Warranty) to Data Link Solutions LLC
Contract Overview
Contract Amount: $47,160,978 ($47.2M)
Contractor: Data Link Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2022-07-14
End Date: 2024-06-30
Contract Duration: 717 days
Daily Burn Rate: $65.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SPARES (WITH WARRANTY)
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $47.2 million to DATA LINK SOLUTIONS LLC for work described as: SPARES (WITH WARRANTY) Key points: 1. Significant award for specialized spare parts with a warranty. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to the specific nature of the equipment and warranty terms. 4. Sector is Other Communications Equipment Manufacturing, indicating a niche market.
Value Assessment
Rating: good
The award value of $47.1M for spare parts with warranty appears reasonable given the duration and the nature of specialized equipment. Benchmarking against similar contracts for defense-grade communication spares would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of potential suppliers. The use of a delivery order under an existing contract structure likely facilitated efficient price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential spare parts, with the competitive process aiming to ensure value for money.
Public Impact
Ensures operational readiness of critical communication systems. Supports the Department of the Navy's mission capabilities. Potential for long-term sustainment and maintenance of equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Warranty terms and coverage clarity.
- Potential for obsolescence of spare parts over time.
- Supplier's ability to meet delivery schedules for critical spares.
Positive Signals
- Full and open competition utilized.
- Inclusion of warranty provides added value and risk mitigation.
- Firm fixed price contract type offers cost certainty.
Sector Analysis
This contract falls within the Other Communications Equipment Manufacturing sector, which is vital for national defense. Spending benchmarks in this niche area are difficult to establish without specific equipment details, but the award size is substantial.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The award is a delivery order, suggesting it's part of a larger contracting vehicle. Oversight would focus on the performance of DATA LINK SOLUTIONS LLC against the terms of the delivery order and the parent contract.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Warranty coverage details.
- Supplier performance history.
- Potential for parts obsolescence.
- Delivery schedule adherence.
Tags
other-communications-equipment-manufactu, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.2 million to DATA LINK SOLUTIONS LLC. SPARES (WITH WARRANTY)
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 $47.2 million.
What is the period of performance?
Start: 2022-07-14. End: 2024-06-30.
What is the specific nature of the 'SPARES (WITH WARRANTY)' and their criticality to naval operations?
The specific nature of the 'SPARES (WITH WARRANTY)' is not detailed in the provided data. However, given the context of a Department of the Navy award, these spares are likely critical components for communication equipment essential to naval operations. Understanding their function and failure rates would clarify their criticality and the impact of potential supply chain disruptions.
How does the warranty provision impact the overall cost-effectiveness and risk for the Department of the Navy?
The warranty provision is expected to enhance cost-effectiveness by transferring the risk of defects and premature failure to the contractor, DATA LINK SOLUTIONS LLC. This reduces the likelihood of unexpected repair or replacement costs for the Navy, thereby improving the long-term value proposition of the spares and mitigating operational risks associated with equipment downtime.
What is the potential for price escalation or cost overruns given the contract duration and fixed-price nature?
The contract is a Firm Fixed Price (FFP) type, which generally limits the potential for cost overruns for the government, as the price is set. However, given the 717-day duration (approx. 2 years), there's a theoretical risk of market fluctuations impacting the contractor's costs. The FFP structure, combined with full and open competition, should have mitigated significant price escalation risks during the bidding process.
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: Rockwell Collins Australia PTY Limited
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: $47,160,978
Exercised Options: $47,160,978
Current Obligation: $47,160,978
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
Start Date: 2022-07-14
Current End Date: 2024-06-30
Potential End Date: 2024-06-30 00:00:00
Last Modified: 2024-06-05
More Contracts from Data Link Solutions LLC
- Mids Jtrs Spares Production — $304.7M (Department of Defense)
- 200503!051058!1700!n00039!space and Naval Warfare Systems !N0003900D2100 !A!N! !N!0033 ! !20041223!20070930!018619986!018619986!217304393!n!bae Systems/Rockwell Collins D!350 Collins RD NE !cedar Rapids !ia!52498!77870!031!34!wayne !passaic !NEW Jersey!+000011000000!n!n!000000000000!5821!radio and TV Comm Equipment, Airborne !A7 !electronics and Communication Equip !554 !mids-Lvt !334290!E! !5!B!S! ! ! !20200930!B! ! !A! !d!n!v!1!001!n!1a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! !1739!N00039!0001! ! — $202.8M (Department of Defense)
- Mids Jtrs Terminal & Spares Production — $157.6M (Department of Defense)
- Tactical Targeting Network Technology (ttnt) Spectrum Relocation Development Delivery Order — $147.9M (Department of Defense)
- Spares Mids Jtrs — $134.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)