DoD awards $1.58B for MIDS JTRS Terminal & Spares Production to Data Link Solutions LLC

Contract Overview

Contract Amount: $157,554,907 ($157.6M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-21

End Date: 2026-06-30

Contract Duration: 739 days

Daily Burn Rate: $213.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MIDS JTRS TERMINAL & SPARES PRODUCTION

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $157.6 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS TERMINAL & SPARES PRODUCTION Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract is for production and spares, indicating a need for ongoing sustainment of communication systems. 3. Fixed-price contract type generally shifts risk to the contractor, potentially leading to cost efficiencies. 4. The duration of the contract suggests a long-term need for these critical communication components. 5. The North American Industry Classification System (NAICS) code 334290 points to a specialized manufacturing sector. 6. The award value is substantial, reflecting the importance and scale of the MIDS JTRS program.

Value Assessment

Rating: good

The contract value of $1.58 billion over approximately two years is significant. Without specific benchmark data for MIDS JTRS terminals and spares, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure is a positive indicator for cost control, as it incentivizes the contractor to manage expenses efficiently. The existence of two bids suggests a degree of market validation for the pricing proposed by Data Link Solutions LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that two bids were received suggests a healthy, albeit potentially concentrated, market for this specialized equipment. A higher number of bidders typically leads to more aggressive pricing and innovation, but two bids still provide a basis for price comparison and negotiation.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. The government secured pricing through a process designed to elicit the best value from the market.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) and its various branches, which will receive critical communication terminals and spare parts. This contract ensures the continued operational readiness and modernization of the DoD's communication infrastructure. The services delivered are the production and supply of MIDS JTRS terminals and associated spares, vital for secure and reliable data links. The geographic impact is primarily national, supporting DoD operations globally, with manufacturing likely concentrated within the United States. Workforce implications may include skilled manufacturing and engineering jobs within Data Link Solutions LLC and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Reliance on a single contractor for production and spares could create future sole-source risks if competition diminishes.
Ensuring long-term interoperability with evolving communication standards.

Positive Signals

Firm-fixed-price contract type mitigates cost overrun risk for the government.
Awarded through full and open competition, indicating market engagement and potential for competitive pricing.
The contractor, Data Link Solutions LLC, likely has established expertise in this domain, reducing technical risk.

Sector Analysis

The defense electronics manufacturing sector is highly specialized, characterized by stringent performance requirements, long product lifecycles, and significant R&D investment. The MIDS JTRS program falls within the broader category of military communications equipment, a critical sub-sector for national security. Spending in this area is often driven by modernization efforts and the need to maintain technological superiority. Comparable spending benchmarks would typically involve other large-scale defense system production contracts, often in the hundreds of millions to billions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The large contract value suggests that Data Link Solutions LLC is a prime contractor likely capable of handling such a significant award. There is no explicit information on subcontracting plans for small businesses within the provided data, which warrants further investigation to understand the potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. The firm-fixed-price nature of the contract places the onus on the contractor to manage costs and adhere to specifications. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Joint Tactical Information Distribution System (JTIDS)
Multifunctional Information Distribution System (MIDS)
Advanced Tactical Data Links
Defense Communications Systems
Military Radio and Signal Transmission Equipment Manufacturing

Risk Flags

Potential for supply chain vulnerabilities
Long-term sustainment and obsolescence management
Ensuring continued competition for future procurements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $157.6 million to DATA LINK SOLUTIONS LLC. MIDS JTRS TERMINAL & SPARES PRODUCTION

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 $157.6 million.

What is the period of performance?

Start: 2024-06-21. End: 2026-06-30.

What is the historical spending trend for MIDS JTRS terminals and spares, and how does this award compare?

Analyzing historical spending for MIDS JTRS terminals and spares requires access to detailed contract databases beyond the provided summary. However, the current award of $1.58 billion for a period of approximately two years suggests a significant and sustained investment in this technology. If previous awards for similar scope were in a comparable range, it indicates consistent program funding. Conversely, a substantial increase or decrease from prior spending levels might signal program expansion, cost efficiencies, or shifts in strategic priorities. Without historical data, it's difficult to definitively benchmark this award against past expenditures, but its magnitude points to the ongoing importance of the MIDS JTRS system within the DoD's operational framework.

What is the track record of Data Link Solutions LLC in delivering similar defense communication systems?

Data Link Solutions LLC (DLS) is a joint venture between Collins Aerospace (a Raytheon Technologies company) and BAE Systems. Both parent companies have extensive and well-established track records in developing and producing complex defense communication and avionics systems. DLS itself is known for its expertise in Link 16 terminals, which are a core component of the MIDS JTRS program. Their history likely includes successful production runs, upgrades, and sustainment support for these critical systems. The award of a large-value contract like this often reflects a demonstrated capability and past performance that meets the stringent requirements of the Department of Defense, suggesting a reliable track record for delivering on such programs.

How does the firm-fixed-price contract type impact the risk profile for the government and the contractor?

A firm-fixed-price (FFP) contract is designed to provide price certainty for the buyer (the government) and shifts most of the cost risk to the seller (the contractor). Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This means that if the contractor's expenses exceed their estimates, their profit margin will decrease, and if costs are lower than anticipated, their profit will increase. For the government, this structure minimizes the risk of cost overruns, making budgeting more predictable. However, it can also lead to higher initial prices as contractors may build in a contingency premium to account for potential cost uncertainties. The contractor is highly incentivized to control costs and improve efficiency to maximize profitability.

What are the potential performance risks associated with the production of MIDS JTRS terminals and spares?

Potential performance risks in producing MIDS JTRS terminals and spares include technical challenges in manufacturing complex electronic components to exacting specifications, ensuring consistent quality across all units, and meeting demanding delivery schedules. Supply chain disruptions for specialized parts or raw materials could lead to delays. Furthermore, ensuring the long-term reliability and maintainability of the terminals, especially as technology evolves, presents an ongoing performance consideration. The contractor must also manage potential issues related to software integration and cybersecurity vulnerabilities. The firm-fixed-price nature of the contract means the contractor bears the financial burden if these risks materialize and impact their ability to deliver on time and to specification.

What is the market size and competitive landscape for MIDS JTRS terminal production?

The market for MIDS JTRS terminals and related spares is a niche but critical segment within the broader defense communications sector. It is characterized by high barriers to entry due to specialized technology, stringent qualification processes, and long-term relationships with defense agencies. The competitive landscape is often limited to a few highly capable and experienced defense contractors. The fact that this contract was awarded under full and open competition with two bidders suggests that while the market isn't wide open, there are at least a couple of viable players capable of meeting the DoD's requirements. The overall market size is substantial, driven by the ongoing need for secure, jam-resistant data links across various military platforms and services.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003924R4000

Offers Received: 2

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: $157,554,907

Exercised Options: $157,554,907

Current Obligation: $157,554,907

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003924D4004

IDV Type: IDC

Timeline