DoD awards $58M contract for MIDS JTRS Terminals, with warranty, to Data Link Solutions LLC

Contract Overview

Contract Amount: $58,072,348 ($58.1M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-28

End Date: 2025-05-31

Contract Duration: 976 days

Daily Burn Rate: $59.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MIDS JTRS TERMINALS (WITH WARRANTY)

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $58.1 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS TERMINALS (WITH WARRANTY) Key points: 1. Contract awarded to a single vendor, potentially limiting competitive pricing. 2. The contract duration of nearly 3 years suggests a need for sustained supply. 3. Fixed-price contract type aims to control costs for the government. 4. The specific equipment, MIDS JTRS Terminals, is critical for military communications. 5. Warranty inclusion indicates a focus on long-term operational readiness and reduced lifecycle costs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific unit cost data or comparisons to similar recent awards for MIDS JTRS terminals. The total award amount of $58 million over a period of approximately 32 months (from September 2022 to May 2025) suggests a significant investment. The firm fixed-price nature of the contract provides cost certainty, but the absence of detailed pricing breakdowns or competitive bids makes a definitive value-for-money assessment difficult. Further analysis would require understanding the specific capabilities and quantities of terminals procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data provided does not specify the number of bids received. A high level of competition typically drives down prices and encourages innovation. Without knowing the number of bidders, it's difficult to definitively assess the effectiveness of the competition in securing the best value.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can lead to lower prices and better quality goods and services.

Public Impact

The primary beneficiaries are the Department of the Navy and other Department of Defense entities requiring secure and reliable communication capabilities. The contract delivers MIDS JTRS Terminals, essential for tactical data links and interoperability among various military platforms. Geographic impact is likely global, supporting deployed forces wherever the Navy operates. Workforce implications may include specialized manufacturing, testing, and logistics roles within the contractor's organization and potentially its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific competition details beyond 'full and open' limits assessment of price competitiveness.
Limited insight into the specific technical requirements and quantities procured, making value assessment difficult.
No data on contractor past performance for this specific equipment type.

Positive Signals

Awarded under full and open competition, suggesting a broad market search.
Firm fixed-price contract type provides cost predictability.
Inclusion of a warranty indicates a commitment to product reliability and reduced long-term costs.
The contract addresses critical communication needs for national defense.

Sector Analysis

The contract falls within the Other Communications Equipment Manufacturing sector (NAICS 334290). This sector is characterized by the production of a wide range of communication devices. The MIDS JTRS terminals are specialized, high-technology components crucial for military command and control systems, particularly for tactical data links. Spending in this area is driven by defense modernization efforts and the need for secure, interoperable communication systems across different military branches and allied forces. Comparable spending benchmarks would typically be found within defense procurement databases focusing on electronic warfare and communication systems.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this contract. This suggests that the prime contract was not set aside for small businesses, nor does it appear to have specific subcontracting goals mandated in the data. Consequently, the direct impact on the small business ecosystem through this specific award is likely minimal, unless Data Link Solutions LLC has its own robust small business subcontracting program that is not detailed here.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting activity within the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed-upon price. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Joint Tactical Information Distribution System (JTIDS)
Multifunctional Information Distribution System (MIDS)
Joint Tactical Radio System (JTRS)
Tactical Data Links
Defense Communications Systems

Risk Flags

Potential for vendor lock-in despite initial full and open competition.
Lack of detailed quantity and unit cost data hinders value assessment.
Limited insight into the number of bidders received during the competition phase.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.1 million to DATA LINK SOLUTIONS LLC. MIDS JTRS TERMINALS (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 $58.1 million.

What is the period of performance?

Start: 2022-09-28. End: 2025-05-31.

What is the specific unit cost for the MIDS JTRS Terminals procured under this contract?

The provided data does not include the specific unit cost for the MIDS JTRS Terminals. The total contract value is $58,072,348, with a duration of 976 days (approximately 32 months). To determine the unit cost, we would need the total number of terminals procured. Without this quantity, a precise unit cost cannot be calculated. For example, if 1,000 terminals were procured, the average unit cost would be approximately $58,072. If 5,000 terminals were procured, the average unit cost would be approximately $11,614. The absence of quantity information prevents a direct unit cost analysis and makes it difficult to benchmark against market rates or previous procurements.

How does the pricing of this contract compare to similar MIDS JTRS terminal procurements by the DoD?

A direct comparison of pricing for this $58 million contract is difficult without access to specific unit costs and quantities, which are not provided. The contract is for MIDS JTRS Terminals (with warranty) awarded to Data Link Solutions LLC under full and open competition. To benchmark effectively, we would need to identify comparable contracts for the same or similar terminal configurations, awarded around the same period, and ideally also under full and open competition. Factors such as included warranty duration, specific technical specifications (e.g., software versions, hardware capabilities), and delivery schedules significantly influence pricing. Without these granular details, any comparison would be speculative. However, the firm fixed-price nature suggests an effort to lock in costs.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, given the nature of the product (MIDS JTRS Terminals) and the inclusion of a warranty, it can be inferred that performance expectations likely revolve around factors such as terminal reliability, Mean Time Between Failures (MTBF), delivery timelines for ordered units, and potentially uptime or operational availability if maintenance or support services are implicitly included. The firm fixed-price structure implies that the contractor is obligated to deliver the specified terminals meeting all technical requirements by the contract's end date. Further details on specific performance metrics would typically be found within the contract's statement of work (SOW) or performance work statement (PWS).

What is the track record of Data Link Solutions LLC in delivering similar communication equipment to the government?

Data Link Solutions LLC (DLS) is a known entity in the defense communications sector. While specific details on their track record for MIDS JTRS terminals under this exact contract are not provided in the summary data, DLS has historically been involved in providing communication systems and components for military applications. They are often associated with Link 16 terminals and related technologies. A comprehensive assessment of their track record would involve reviewing their past performance evaluations on federal contract databases, examining the history of on-time delivery, quality of products, and overall customer satisfaction on previous, similar contracts. Their involvement suggests a level of established capability in this specialized area.

How has federal spending on MIDS JTRS terminals evolved over the past five years?

Analyzing the historical spending trends for MIDS JTRS terminals requires accessing comprehensive federal procurement data over the last five years. This specific contract award of approximately $58 million represents a single data point. To understand the evolution, one would need to aggregate all contracts awarded for MIDS JTRS terminals (and potentially closely related systems like JTIDS) across all federal agencies, particularly the Department of Defense. Key trends to look for would include the total annual spending, the number of contracts awarded, the primary awarding agencies (e.g., Navy, Air Force, Army), and the dominant contractors. Factors influencing spending include operational tempo, modernization programs, technological upgrades, and geopolitical requirements. Without this broader dataset, it's impossible to describe the spending evolution.

What are the potential risks associated with relying on a single vendor for MIDS JTRS terminals, even with full and open competition?

Even when a contract is awarded under full and open competition, relying on a single vendor for critical equipment like MIDS JTRS terminals presents several potential risks. Firstly, there's the risk of vendor lock-in, where the government becomes highly dependent on that specific supplier for future needs, upgrades, or sustainment, potentially limiting future competitive opportunities. Secondly, if the vendor faces financial difficulties, production issues, or supply chain disruptions, it could lead to significant delays or shortages impacting military readiness. Thirdly, while competition occurred initially, the long-term nature of sustainment and follow-on procurements might see reduced competitive pressure if the initial vendor remains the sole qualified source. Lastly, the vendor might have less incentive to innovate or offer aggressive pricing on subsequent orders if they perceive limited alternative options for the government.

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: $58,072,348

Exercised Options: $58,072,348

Current Obligation: $58,072,348

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