DoD's $40.8M MIDS JTRS MMI2 Contract Awarded to Data Link Solutions LLC
Contract Overview
Contract Amount: $40,795,861 ($40.8M)
Contractor: Data Link Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2019-03-01
End Date: 2022-04-29
Contract Duration: 1,155 days
Daily Burn Rate: $35.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MIDS JTRS MMI2
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $40.8 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS MMI2 Key points: 1. Significant contract value of over $40 million for communication equipment. 2. Sole-source award to Data Link Solutions LLC raises questions about competition. 3. Contract duration of nearly four years suggests a substantial project. 4. The 'Other Communications Equipment Manufacturing' sector is critical for defense operations.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for this specialized equipment.
Public Impact
Ensures critical communication capabilities for Department of Defense operations. Potential for increased costs due to sole-source award impacts taxpayer funds. Reliability and performance of MIDS JTRS MMI2 are vital for mission success.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Provides essential defense communication technology
- Long-term contract indicates sustained need
Sector Analysis
This contract falls within the 'Other Communications Equipment Manufacturing' sector, which is vital for modern military operations. Spending in this sector is often characterized by high R&D costs and specialized production, making competitive benchmarking challenging.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award. Future contracts should explore opportunities for small business participation to foster innovation and economic growth.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. The Department of Defense Contract Management Agency is responsible for monitoring performance and costs.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Limited transparency on pricing
- No small business participation noted
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 $40.8 million to DATA LINK SOLUTIONS LLC. MIDS JTRS MMI2
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 $40.8 million.
What is the period of performance?
Start: 2019-03-01. End: 2022-04-29.
What specific justifications were provided for the sole-source award, and were alternatives thoroughly explored?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For this contract, the justification would likely relate to proprietary technology, unique capabilities, or essential interoperability requirements. A thorough review of the justification documentation is needed to confirm that alternatives were indeed explored and deemed unsuitable.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs for this specialized equipment?
The CPFF structure shifts some cost risk to the government, as the contractor is reimbursed for allowable costs plus a fixed fee. While it can incentivize contractors to perform, it requires robust government oversight to manage cost ceilings and prevent scope creep. Without detailed cost data, it's difficult to assess if this structure is optimal for controlling expenses on this specific contract.
What is the long-term strategic value of the MIDS JTRS MMI2 system, and how does this contract contribute to it?
The MIDS JTRS MMI2 system likely provides critical data link and communication capabilities essential for joint tactical operations and network-centric warfare. This contract ensures the continued availability and support of this vital system, contributing to the overall modernization and operational readiness of defense forces. Its strategic value lies in enabling secure and reliable information exchange across various platforms.
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: 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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,778,946
Exercised Options: $41,778,946
Current Obligation: $40,795,861
Actual Outlays: $12,016,801
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003915D0007
IDV Type: IDC
Timeline
Start Date: 2019-03-01
Current End Date: 2022-04-29
Potential End Date: 2022-04-29 00:00:00
Last Modified: 2022-12-09
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)