DoD's $81.6M MIDS JTRS SE&I contract awarded to Data Link Solutions LLC for communications equipment

Contract Overview

Contract Amount: $81,580,090 ($81.6M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2023-03-31

End Date: 2026-04-30

Contract Duration: 1,126 days

Daily Burn Rate: $72.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MIDS JTRS SE&I (CPFF) BALANCE

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $81.6 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS SE&I (CPFF) BALANCE Key points: 1. Contract value appears reasonable given the duration and scope of systems engineering and integration. 2. Full and open competition suggests a healthy market for these specialized services. 3. Potential risks include schedule delays or cost overruns common in complex integration projects. 4. Performance context is critical for assessing the effectiveness of the MIDS JTRS system. 5. This contract falls within the broader defense communications and electronics sector. 6. The fixed-fee structure provides some cost control for the government.

Value Assessment

Rating: good

The contract's value of approximately $81.6 million over roughly three years for systems engineering and integration services seems within a reasonable range for complex defense programs. Benchmarking against similar large-scale defense IT and communications integration contracts would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, requires careful monitoring to ensure costs remain controlled and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely invited to bid. This approach generally fosters a competitive environment, driving down prices and encouraging innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust selection process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for obtaining the best value through a wide range of offers, leading to more competitive pricing and potentially higher quality services.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, through enhanced command and control capabilities. The contract delivers essential systems engineering and integration services for the MIDS JTRS program. Geographic impact is likely national, supporting military operations across various theaters. Workforce implications include specialized engineering and technical roles within the contractor's organization and potentially government oversight personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of systems integration can lead to unforeseen technical challenges and cost overruns.
Reliance on a single contractor for critical SE&I functions may pose long-term dependency risks.
Ensuring effective knowledge transfer and documentation is crucial for future sustainment and upgrades.

Positive Signals

Awarded under full and open competition, suggesting a competitive process and potential for strong vendor performance.
The CPFF contract type allows for flexibility in addressing evolving technical requirements.
The contractor, Data Link Solutions LLC, likely possesses specialized expertise in defense communication systems.

Sector Analysis

This contract operates within the defense electronics and communications sector, a significant segment of the federal IT market. The MIDS JTRS program involves advanced tactical data links and joint tactical radio systems, crucial for modern military interoperability. Spending in this area is driven by the need for secure, reliable, and interoperable communication systems for all branches of the military. Comparable spending benchmarks would involve other large-scale defense system integration and engineering contracts.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While Data Link Solutions LLC may utilize small businesses in its supply chain or as subcontractors, there is no explicit requirement for small business set-asides within this specific award. The impact on the small business ecosystem would depend on the subcontracting opportunities generated by the prime contractor.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and program management personnel. They are responsible for monitoring costs, ensuring compliance with contract terms, and verifying performance against milestones. Transparency is facilitated through regular reporting requirements from the contractor. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

MIDS (Multifunctional Information Distribution System)
JTRS (Joint Tactical Radio System)
Defense Communications Systems
Naval Air Systems Command (NAVAIR) Contracts
Systems Engineering and Integration Services

Risk Flags

Potential for cost overruns in CPFF contracts.
Complexity of integrating advanced communication systems.
Dependency on contractor expertise for critical SE&I functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $81.6 million to DATA LINK SOLUTIONS LLC. MIDS JTRS SE&I (CPFF) BALANCE

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 $81.6 million.

What is the period of performance?

Start: 2023-03-31. End: 2026-04-30.

What is the track record of Data Link Solutions LLC in performing similar large-scale defense systems engineering and integration contracts?

Data Link Solutions LLC has a history of performing complex defense contracts, often in partnership or as a subsidiary involved in avionics and communication systems. Their experience typically spans various platforms and technologies critical to military operations. Assessing their specific track record on contracts of similar size, scope, and complexity to the MIDS JTRS SE&I program is crucial. This includes evaluating past performance metrics, on-time delivery rates, budget adherence, and customer satisfaction feedback from previous government awards. A review of their contract history, particularly with the Department of the Navy and other defense agencies, would reveal their capabilities in managing intricate systems integration projects and their ability to meet demanding technical and programmatic requirements.

How does the awarded value of $81.6 million compare to similar systems engineering and integration contracts for defense communication systems?

The $81.6 million contract value for MIDS JTRS SE&I services over approximately three years appears to be within a reasonable range for complex defense systems engineering and integration efforts. However, a precise comparison requires benchmarking against contracts with similar scope, technical complexity, duration, and the specific systems involved (e.g., tactical data links, radio systems). Factors such as the level of innovation required, the maturity of the technology, and the specific integration challenges influence costs. Contracts for less complex IT services or hardware procurement would not be directly comparable. A detailed analysis would involve identifying contracts for similar SE&I work on programs like JTRS or other advanced military communication initiatives, considering their award values, contract types, and performance periods to establish a robust value-for-money assessment.

What are the primary risks associated with the systems engineering and integration (SE&I) aspects of the MIDS JTRS program, and how are they being mitigated?

The primary risks associated with SE&I for complex programs like MIDS JTRS often include technical integration challenges, interoperability issues between different system components, schedule delays due to unforeseen technical hurdles, and potential cost overruns. Ensuring seamless communication and data flow across diverse platforms and ensuring compliance with stringent security requirements are critical. Mitigation strategies typically involve robust systems engineering processes, rigorous testing and validation phases, proactive risk management plans, and close collaboration between the contractor and government program offices. The CPFF contract type allows for flexibility but necessitates strong government oversight to manage cost risks. Clear performance metrics and milestone tracking are essential for monitoring progress and identifying deviations early.

What is the expected impact of this contract on the operational effectiveness and interoperability of US Navy communication systems?

This contract is expected to significantly enhance the operational effectiveness and interoperability of US Navy communication systems by ensuring the proper integration and functioning of the MIDS JTRS components. MIDS JTRS is a critical enabler for secure, jam-resistant tactical data exchange, facilitating better situational awareness and command and control across various platforms. Effective SE&I ensures that these systems can communicate seamlessly with other existing and future communication assets, both within the Navy and across different branches of the military and allied forces. Improved interoperability leads to more coordinated operations, reduced communication errors, and faster decision-making, ultimately bolstering the Navy's overall combat readiness and mission success.

How has federal spending on MIDS JTRS and related communication systems evolved over the past five years?

Federal spending on the MIDS JTRS program and related advanced communication systems has generally been substantial, reflecting the ongoing need for modernization and enhanced capabilities in military communications. While specific figures for MIDS JTRS SE&I contracts fluctuate based on program phases and requirements, the overall trend in defense communications spending has been driven by technological advancements, evolving threat landscapes, and the push for greater network-centric warfare capabilities. Analyzing historical spending patterns for the MIDS JTRS program, including prime contract awards and associated systems engineering, software development, and hardware procurement, would reveal trends in investment. This context helps in understanding the long-term commitment to these systems and the potential for future funding.

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: COST PLUS FIXED FEE (U)

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: $94,484,510

Exercised Options: $84,650,400

Current Obligation: $81,580,090

Actual Outlays: $367,980

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