DoD's $313M JTRS Spares Contract Awarded to Data Link Solutions LLC Under Sole Source
Contract Overview
Contract Amount: $31,310,069 ($31.3M)
Contractor: Data Link Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2022-04-30
Contract Duration: 943 days
Daily Burn Rate: $33.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SPARES MIDS JTRS
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $31.3 million to DATA LINK SOLUTIONS LLC for work described as: SPARES MIDS JTRS Key points: 1. Significant investment in critical communication equipment spares. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (943 days) may indicate complex supply chain needs. 4. Focus on 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $313M for spares is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar communication equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition in this large contract could result in taxpayers paying a premium for essential communication spares.
Public Impact
Ensures availability of critical spare parts for Joint Tactical Radio Systems (JTRS). Supports military readiness and operational effectiveness by maintaining communication equipment. Potential for increased costs due to sole-source procurement method.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Ensures critical spares availability
- Supports military operations
Sector Analysis
This contract falls within the 'Other Communications Equipment Manufacturing' sector, which is vital for national defense. Benchmarks for similar sole-source spares contracts are difficult to establish without competitive data.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small businesses were subcontracting opportunities.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that the justification for not competing was sound.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in price determination
- No small business participation indicated
Tags
other-communications-equipment-manufactu, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.3 million to DATA LINK SOLUTIONS LLC. SPARES MIDS JTRS
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 $31.3 million.
What is the period of performance?
Start: 2019-09-30. End: 2022-04-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves situations where only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, or urgent needs where competition is not feasible. A thorough review of the contract file would be necessary to confirm the specific rationale.
What is the potential cost overrun risk associated with this sole-source contract?
Sole-source contracts inherently carry a higher risk of cost overruns due to the absence of competitive pressure. Without competing bids, the contractor may have less incentive to control costs. Robust cost monitoring and auditing by the agency are crucial to mitigate this risk and ensure the government pays a fair and reasonable price.
How does the performance of Data Link Solutions LLC on this contract compare to industry standards for similar equipment?
Assessing performance against industry standards requires access to detailed delivery schedules, quality metrics, and technical performance data. Without this specific information, it's challenging to make a direct comparison. Post-award performance reviews and contract close-out data would provide insights into the contractor's adherence to terms and quality expectations.
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
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: $31,310,069
Exercised Options: $31,310,069
Current Obligation: $31,310,069
Actual Outlays: $227,402
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003915D0007
IDV Type: IDC
Timeline
Start Date: 2019-09-30
Current End Date: 2022-04-30
Potential End Date: 2022-04-30 00:00:00
Last Modified: 2022-02-16
More Contracts from Data Link Solutions LLC
- Mids Jtrs Spares Production — $304.7M (Department of Defense)
- 200503!051058!1700!n00039!space and Naval Warfare Systems !N0003900D2100 !A!N! !N!0033 ! !20041223!20070930!018619986!018619986!217304393!n!bae Systems/Rockwell Collins D!350 Collins RD NE !cedar Rapids !ia!52498!77870!031!34!wayne !passaic !NEW Jersey!+000011000000!n!n!000000000000!5821!radio and TV Comm Equipment, Airborne !A7 !electronics and Communication Equip !554 !mids-Lvt !334290!E! !5!B!S! ! ! !20200930!B! ! !A! !d!n!v!1!001!n!1a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! !1739!N00039!0001! ! — $202.8M (Department of Defense)
- Mids Jtrs Terminal & Spares Production — $157.6M (Department of Defense)
- Tactical Targeting Network Technology (ttnt) Spectrum Relocation Development Delivery Order — $147.9M (Department of Defense)
- Spares Mids Jtrs — $134.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)