DoD awards $26.8M for MIDS JTRS TTNT PRT procurement to Data Link Solutions LLC

Contract Overview

Contract Amount: $26,808,421 ($26.8M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2017-06-01

End Date: 2020-08-31

Contract Duration: 1,187 days

Daily Burn Rate: $22.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MIDS JTRS TTNT PRT PROCUREMENT

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS TTNT PRT PROCUREMENT Key points: 1. Contract awarded as a sole-source delivery order, raising questions about competition and potential cost savings. 2. The contract duration of nearly three years suggests a significant need for these specialized communication equipment components. 3. Fixed-price contract type aims to control costs, but the lack of competition may limit price discovery. 4. The procurement falls under 'Other Communications Equipment Manufacturing,' a broad category with varying market dynamics. 5. Performance is in Iowa, indicating a specific geographic concentration for this defense-related activity. 6. No small business set-aside was utilized, suggesting the primary contractor is not a small business or the contract scope did not lend itself to set-asides.

Value Assessment

Rating: fair

The contract value of $26.8 million over approximately three years for specialized communication equipment is difficult to benchmark without more detailed cost breakdowns or comparisons to similar sole-source awards. The firm fixed-price nature is a positive indicator for cost control. However, the absence of competitive bidding prevents a robust assessment of value-for-money against market alternatives. Further analysis would require understanding the unique capabilities of Data Link Solutions LLC and the necessity of a sole-source award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed. This approach is typically used when only one source can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means that pricing was not subject to market forces, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible prices through competitive bidding, potentially resulting in less favorable terms for taxpayers.

Public Impact

The Department of the Navy benefits from the procurement of essential communication equipment for its operations. This contract supports the MIDS JTRS TTNT PRT program, crucial for secure and reliable data links in military communications. The services are delivered to the Department of Defense, enhancing its operational capabilities. Workforce implications are likely concentrated within Data Link Solutions LLC and its supply chain, primarily in Iowa.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Sole-source awards can reduce transparency in pricing.
Dependence on a single contractor for critical components poses a supply chain risk.

Positive Signals

Firm fixed-price contract type helps manage cost overruns.
The contract supports a critical defense communication program.
The awardee, Data Link Solutions LLC, is likely experienced in this specialized field.

Sector Analysis

The 'Other Communications Equipment Manufacturing' sector encompasses a wide range of products, from basic components to complex integrated systems. This contract for MIDS JTRS TTNT PRT components falls into a specialized niche within defense communications. Market size for such specific military-grade equipment is difficult to ascertain but is driven by defense budgets and technological requirements. Comparable spending benchmarks are challenging due to the proprietary nature of many defense communication systems and the limited number of qualified suppliers.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have a small business subcontracting plan indicated in the provided data. This suggests that the primary contractor, Data Link Solutions LLC, is likely a large business, and the nature of the specialized equipment may not lend itself to subcontracting opportunities for small businesses. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which places the cost risk on the contractor. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Joint Tactical Network (JTN)
Multifunctional Information Distribution System (MIDS)
Tactical Targeting Network Technology (TTNT)
Procurement of Defense Communication Equipment

Risk Flags

Sole-source award limits price competition.
Potential for supply chain risk due to single-source dependency.
Lack of transparency in cost justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to DATA LINK SOLUTIONS LLC. MIDS JTRS TTNT PRT PROCUREMENT

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 $26.8 million.

What is the period of performance?

Start: 2017-06-01. End: 2020-08-31.

What is the track record of Data Link Solutions LLC in fulfilling similar defense communication contracts?

Data Link Solutions LLC (DLS) has a significant history of providing communication systems and components to the U.S. military. As a joint venture between Collins Aerospace (formerly Rockwell Collins) and BAE Systems, DLS benefits from the extensive experience and resources of its parent companies. They are known for their work on the Multifunctional Information Distribution System (MIDS) family of terminals, which includes the MIDS Low Volume Terminal (LVT) and the MIDS Joint Tactical Information Distribution System (JTIDS). Their expertise in secure data links and airborne communication systems is well-established. While specific performance metrics for past contracts are often not publicly detailed, their continued selection for critical programs like this suggests a satisfactory performance history and a recognized capability in meeting stringent military specifications.

How does the $26.8 million contract value compare to similar procurements for advanced communication equipment?

Benchmarking the $26.8 million contract value for MIDS JTRS TTNT PRT procurement is challenging due to the specialized nature of the equipment and the sole-source award. Typically, advanced military communication systems, especially those involving secure data links and integrated network capabilities like MIDS and JTIDS, represent significant investments. Contracts for similar components or systems can range from tens to hundreds of millions of dollars, depending on the quantity, technological sophistication, and duration. The firm fixed-price nature of this award suggests a defined scope. Without access to competitive bids or detailed cost breakdowns, a direct comparison to market rates is difficult. However, the value appears consistent with the procurement of specialized, high-technology defense hardware where few suppliers exist.

What are the primary risks associated with this sole-source award for the Department of Defense?

The primary risk associated with this sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not be achieving the best possible value for its expenditure. Another significant risk is contractor dependency; the DoD becomes reliant on Data Link Solutions LLC for these critical components, potentially creating supply chain vulnerabilities if the contractor faces production issues, financial instability, or decides to discontinue the product line. Furthermore, the absence of competition can stifle innovation, as there is less incentive for the contractor to invest in improving the product or offering more cost-effective solutions. Finally, sole-source awards can sometimes indicate a lack of market research or planning, although in specialized defense procurements, it often reflects genuine technological exclusivity.

How effective is the firm fixed-price contract type in managing costs for this type of specialized equipment?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks associated with performance are relatively low or can be reasonably estimated by the contractor. For specialized equipment like the MIDS JTRS TTNT PRT components, an FFP contract places the primary responsibility for cost control on the contractor, Data Link Solutions LLC. This means that any cost overruns incurred by the contractor are absorbed by them, not the government. This structure incentivizes the contractor to be efficient and manage their expenses effectively. However, the effectiveness of FFP in a sole-source situation is somewhat diminished, as the initial price negotiation is not informed by competitive market dynamics. While it controls costs *after* the price is set, it doesn't guarantee the *initial* price is the best possible.

What are the historical spending patterns for MIDS JTRS TTNT PRT procurements by the Department of the Navy?

Historical spending patterns for MIDS JTRS TTNT PRT procurements by the Department of the Navy, and the DoD more broadly, indicate a consistent investment in advanced communication systems. The Multifunctional Information Distribution System (MIDS) and its related technologies, including Joint Tactical Radio System (JTRS) components and Tactical Targeting Network Technology (TTNT), are critical for network-centric warfare. Spending in this area is typically characterized by multi-year contracts, often awarded to a limited number of specialized defense contractors. While the exact figures for this specific 'procurement' line item are not detailed here, the Navy has historically allocated substantial budgets towards maintaining and upgrading its tactical data link capabilities. These procurements are often driven by evolving threats, technological advancements, and the need for interoperability across different platforms and services, leading to recurring investments over many years.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003914R0021

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 350 COLLINS RD NE, CEDAR RAPIDS, IA, 52498

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,808,421

Exercised Options: $26,808,421

Current Obligation: $26,808,421

Actual Outlays: $-123,774

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0003915D0007

IDV Type: IDC

Timeline