DoD awards $304.6M for MIDS JTRS Spares Production to Data Link Solutions LLC

Contract Overview

Contract Amount: $304,650,459 ($304.7M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-17

End Date: 2027-11-30

Contract Duration: 804 days

Daily Burn Rate: $378.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MIDS JTRS SPARES PRODUCTION

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $304.7 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS SPARES PRODUCTION Key points: 1. Contract value represents a significant investment in critical communication equipment. 2. Competition dynamics for specialized defense components can be limited, potentially impacting price. 3. Performance period extends over two years, requiring sustained contractor capability. 4. This contract supports the Navy's operational readiness and technological advantage. 5. The sector involves specialized manufacturing for defense applications, with high barriers to entry.

Value Assessment

Rating: good

The contract value of $304.6 million for MIDS JTRS spares production appears reasonable given the specialized nature of the equipment and the duration of the contract. Benchmarking against similar sole-source or limited-competition contracts for advanced military hardware is challenging, but the firm-fixed-price structure suggests an effort to control costs. Further analysis would require detailed cost breakdowns and comparisons to previous awards for similar components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a degree of competition, though the specific number of bids does not always correlate directly with the competitiveness of pricing for highly specialized defense systems. The agency's decision to proceed with full and open competition is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing, potentially leading to cost savings compared to sole-source procurements.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational units relying on MIDS JTRS systems. This contract ensures the availability of spare parts, crucial for maintaining the functionality of communication systems. The geographic impact is primarily within the United States, supporting domestic manufacturing and defense supply chains. Workforce implications include skilled manufacturing and technical roles within the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if follow-on procurements are not competitively bid.
Dependence on a single contractor for critical spares could pose supply chain risks.
Ensuring long-term sustainment and obsolescence management for specialized components.

Positive Signals

Awarded under full and open competition, promoting market-based pricing.
Firm-fixed-price contract type helps to mitigate cost overrun risks for the government.
Long-term contract provides stability for production and supply chain planning.

Sector Analysis

The defense electronics manufacturing sector is characterized by high research and development costs, stringent quality requirements, and long product lifecycles. Companies operating in this space often possess specialized expertise and proprietary technologies. The market size for such specialized components is driven by defense budgets and modernization programs. This contract fits within the broader category of defense communications and avionics manufacturing, where spending is often concentrated among a few key prime contractors and their specialized suppliers.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Given the specialized nature of MIDS JTRS spares production, it is possible that the prime contractor may rely on a supply chain that includes small businesses for certain components or services. However, without explicit set-aside goals, the direct impact on the small business ecosystem is not immediately clear.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified spares according to quality standards and timelines. Transparency is generally maintained through contract award announcements and public contract databases, though detailed cost breakdowns may be considered proprietary.

Related Government Programs

MIDS JTRS Production
Defense Communications Equipment
Naval Aviation Support Systems
Military Spares and Sustainment

Risk Flags

Supply Chain Risk
Component Obsolescence
Production Quality Control
Long-Lead Time Components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $304.7 million to DATA LINK SOLUTIONS LLC. MIDS JTRS 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $304.7 million.

What is the period of performance?

Start: 2025-09-17. End: 2027-11-30.

What is the historical spending pattern for MIDS JTRS spares by the Department of Defense?

Historical spending on MIDS JTRS (Multifunctional Information Distribution System Joint Tactical Radio System) spares by the Department of Defense can be substantial, reflecting the system's critical role in secure, jam-resistant communications across various platforms. While specific figures for spares alone are often embedded within larger sustainment or procurement contracts, the overall investment in MIDS JTRS has been in the billions over its lifecycle. Analyzing past contract awards for similar components, including sole-source procurements and competitive bids, would provide context for the current $304.6 million award. Trends often show a shift towards sustainment and upgrade contracts as the system matures. Understanding the frequency and value of previous spares orders is crucial to assessing whether this award represents a typical procurement or a significant surge in demand.

How does the pricing of this contract compare to similar defense communication equipment procurements?

Benchmarking the pricing of this $304.6 million contract for MIDS JTRS spares against similar defense communication equipment procurements requires careful consideration of component complexity, technology generation, and production volume. Contracts for advanced, secure communication systems like MIDS JTRS typically command higher prices due to rigorous testing, certification, and specialized manufacturing processes. Comparing it to less complex or older generation communication gear would be misleading. Ideally, comparisons would be made with other firm-fixed-price awards for specialized avionics or tactical data link components from the same or similar defense programs. The fact that this was a full and open competition with two bidders provides some basis for price discovery, but without access to detailed cost proposals, a definitive value-for-money assessment relative to market rates is difficult.

What are the key performance indicators (KPIs) expected from the contractor for this spares production contract?

Key performance indicators (KPIs) for this MIDS JTRS spares production contract would likely focus on several critical areas. Foremost among these would be on-time delivery rates, ensuring that spare parts are available when needed to maintain operational readiness. Quality assurance metrics, such as defect rates and adherence to stringent military specifications (MIL-SPEC), are paramount. Production yield and efficiency could also be tracked to ensure cost-effectiveness. Furthermore, the contractor's ability to manage its supply chain effectively and maintain adequate inventory levels for critical components would be essential. Compliance with security protocols and reporting requirements would also be integral KPIs, given the sensitive nature of defense systems.

What is the contractor's track record with similar defense contracts, particularly for communication systems?

Data Link Solutions LLC has a significant track record in providing communication systems and related components for defense applications. As a joint venture between Collins Aerospace and BAE Systems, it inherits extensive experience in avionics, data links, and secure communication technologies. The company has been a key player in the MIDS program for many years, suggesting a deep understanding of the system's requirements and production nuances. Past performance evaluations and contract history would reveal their reliability in terms of delivery schedules, quality, and responsiveness to government needs. Their established presence in this specific market segment indicates a strong capability to fulfill the requirements of this $304.6 million spares production contract.

Are there any identified risks associated with the production or supply chain for these MIDS JTRS spares?

Potential risks associated with the production and supply chain for MIDS JTRS spares include the reliance on specialized, potentially long-lead-time components, which could be subject to obsolescence or single-source availability. The complexity of the MIDS JTRS system means that disruptions in the supply of even a few critical parts could impact overall availability. Geopolitical factors affecting raw material sourcing or international component suppliers could also pose a risk. Furthermore, ensuring consistent quality across numerous production runs and maintaining the security of the manufacturing process against counterfeiting or tampering are ongoing concerns in defense contracting. The firm-fixed-price nature of the contract shifts some cost risk to the contractor, but significant production delays or quality failures could still impact program timelines and readiness.

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: $304,650,459

Exercised Options: $304,650,459

Current Obligation: $304,650,459

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