DoD's $100M MIDS JTRS SE&I contract awarded to DATA LINK SOLUTIONS LLC for communications equipment

Contract Overview

Contract Amount: $100,402,544 ($100.4M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-13

End Date: 2026-12-12

Contract Duration: 729 days

Daily Burn Rate: $137.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MIDS JTRS SE&I BALANCE

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $100.4 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS SE&I BALANCE Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are being monitored, with a focus on performance and delivery timelines. 4. Performance context is framed by the contract duration and delivery order structure. 5. Sector positioning places this contract within the broader defense communications equipment manufacturing industry.

Value Assessment

Rating: good

The contract value of approximately $100.4 million over two years appears reasonable given the scope of systems engineering and integration for advanced communications equipment. Benchmarking against similar large-scale defense IT and communications contracts suggests that the pricing is within expected ranges for specialized services. The cost-plus-fixed-fee (CPFF) structure allows for flexibility while providing a defined profit margin, which is common for complex development and integration efforts. Further analysis of the fixed fee component would provide more granular insight into the contractor's profit expectations.

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. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment. This approach is generally favored to ensure the government receives the best possible technical solutions and pricing by leveraging the widest possible market.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it is designed to foster a competitive environment that drives down costs and encourages innovation, ultimately leading to better value for public funds.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, through enhanced command, control, and communications capabilities. The contract delivers essential systems engineering and integration services for the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio System (JTRS). Geographic impact is national, supporting military operations across various theaters. Workforce implications include specialized engineering and technical roles within the contractor's organization and potentially supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Dependency on a single contractor for critical systems integration could pose supply chain risks.
Ensuring timely delivery of complex integrated systems within the specified duration requires close monitoring.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing structure.
Contractor has a track record in defense contracting, implying familiarity with DoD requirements.
The contract is for essential defense communications infrastructure, aligning with strategic national security objectives.

Sector Analysis

This contract falls within the Defense Information Technology (IT) and Communications Equipment Manufacturing sector. This sector is characterized by high R&D investment, stringent security requirements, and long product lifecycles. The market size for defense communications systems is substantial, driven by continuous modernization efforts and evolving threats. Comparable spending benchmarks in this area often involve multi-year, high-value contracts for complex systems integration and sustainment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While this specific award may not directly benefit small businesses through a set-aside, large prime contractors like DATA LINK SOLUTIONS LLC are often required to meet subcontracting goals with small businesses. The extent of small business participation will depend on the subcontracting plan negotiated for this contract, which is crucial for fostering the broader small business defense industrial base.

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 contract terms, including performance metrics and delivery schedules. Transparency is facilitated through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense may conduct audits or investigations as deemed necessary to ensure proper use of funds and contract compliance.

Related Government Programs

MIDS Program
JTRS Program
Defense Communications Systems
Naval Information Warfare Systems Command (NAVWAR) Contracts
Tactical Data Links

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Technical Integration Complexity
Cybersecurity Vulnerabilities
Supply Chain Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $100.4 million to DATA LINK SOLUTIONS LLC. MIDS JTRS SE&I 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 $100.4 million.

What is the period of performance?

Start: 2024-12-13. End: 2026-12-12.

What is the contractor's past performance record with the Department of Defense, particularly on similar systems integration contracts?

DATA LINK SOLUTIONS LLC has a history of performing contracts with the Department of Defense. While specific details on past performance for MIDS JTRS SE&I are not provided in this summary, their track record on similar large-scale defense IT and communications integration projects would be a key factor in the award decision. A review of their contract history, including any past performance evaluations or awards, would be necessary to fully assess their capability and reliability for this critical program. Agencies typically maintain performance metrics that inform future source selections.

How does the estimated cost per year for this contract compare to similar systems engineering and integration efforts within the DoD?

The total contract value is approximately $100.4 million over two years, averaging around $50.2 million per year. Benchmarking this against similar large-scale systems engineering and integration (SE&I) contracts within the DoD requires access to a broader dataset of comparable procurements. However, for complex defense systems requiring specialized integration and engineering, annual costs in the tens of millions are not uncommon. Factors such as the specific technologies involved, the level of customization, and the criticality of the system influence these costs. A detailed comparison would involve analyzing contracts with similar scope, duration, and technical complexity.

What are the primary technical risks associated with the MIDS JTRS SE&I program, and how are they being mitigated?

The MIDS JTRS SE&I program likely involves integrating advanced radio communications technology with existing and future tactical data link systems. Key technical risks could include interoperability challenges between different communication waveforms, cybersecurity vulnerabilities, ensuring backward compatibility with legacy systems, and the complexity of software-defined radios. Mitigation strategies typically involve rigorous testing and evaluation phases, phased integration approaches, robust cybersecurity protocols, and close collaboration between the contractor and government engineers. The contract's CPFF structure allows for flexibility in addressing unforeseen technical challenges, but requires diligent oversight to manage associated costs.

What is the historical spending trend for MIDS JTRS SE&I or similar programs over the past five years?

Historical spending data for the MIDS JTRS SE&I program specifically is not provided in the summary. However, the MIDS program itself has been a long-standing initiative within the DoD, and the JTRS program represents a significant modernization effort for tactical radios. Spending in these areas typically reflects ongoing investment in upgrading and maintaining secure, interoperable communication capabilities for the warfighter. Trends would likely show consistent, substantial investment, potentially with fluctuations based on program milestones, technological advancements, and evolving defense priorities. Analyzing broader DoD spending on tactical communications and C4ISR systems would provide context.

What is the potential impact of this contract on the future development and deployment of secure military communication systems?

This contract is crucial for the continued development and integration of the MIDS JTRS system, which is a cornerstone of modern tactical communications for the U.S. military and its allies. Successful execution will enhance interoperability, improve data throughput, and bolster the security of communications in contested environments. It supports the broader DoD objective of network-centric warfare and ensures that warfighters have reliable and secure means to share information. The insights gained and technologies matured under this contract could influence future procurements and the direction of military communication system development.

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: 1

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: $239,599,600

Exercised Options: $239,599,600

Current Obligation: $100,402,544

Actual Outlays: $37,333

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