DoD Awards $40.8M for MIDS JTRS Terminals to Data Link Solutions LLC
Contract Overview
Contract Amount: $40,810,000 ($40.8M)
Contractor: Data Link Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2020-01-07
End Date: 2021-12-31
Contract Duration: 724 days
Daily Burn Rate: $56.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MIDS JTRS TERMINALS
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 TERMINALS Key points: 1. Significant contract value of $40.8 million for specialized communication equipment. 2. Sole-source award to Data Link Solutions LLC raises questions about competition. 3. Risk of inflated pricing due to lack of competitive bidding. 4. Spending falls within the 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $40.8 million for MIDS JTRS Terminals appears high given the sole-source nature of the award. Without competitive bidding, it's difficult to benchmark against similar contracts or establish fair market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Data Link Solutions LLC, was considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition likely results in taxpayers paying a premium for these MIDS JTRS Terminals.
Public Impact
Military readiness may be impacted if essential communication equipment is procured at inflated prices. Taxpayer funds are being spent without the benefit of competitive market forces to ensure value. Dependence on a single supplier could create future supply chain vulnerabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential military equipment
- Fixed-price contract
Sector Analysis
This contract falls under the 'Other Communications Equipment Manufacturing' sector, which includes specialized electronic communication devices. Spending benchmarks for sole-source awards in this niche sector are difficult to establish without more data.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the pricing is justified and that future procurements explore competitive options.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpricing due to lack of competitive bidding.
- No small business participation noted.
- Contract duration is substantial (724 days).
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 TERMINALS
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 $40.8 million.
What is the period of performance?
Start: 2020-01-07. End: 2021-12-31.
What is the justification for the sole-source award of the MIDS JTRS Terminals contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirements. Without specific documentation, it's impossible to confirm the exact reason, but it's crucial for the DoD to clearly articulate and justify such decisions to ensure they are in the government's best interest and not simply a lack of effort in seeking competition.
What is the potential risk associated with the lack of competition for this contract?
The primary risk of a sole-source award is the potential for inflated pricing, as the vendor faces no competitive pressure to offer the best possible price. This can lead to inefficient use of taxpayer funds. Additionally, it can foster vendor lock-in and reduce flexibility in future procurement decisions, potentially impacting long-term costs and access to innovation.
How does this sole-source award impact the overall effectiveness of DoD spending on communication equipment?
Sole-source awards, while sometimes necessary, generally reduce the overall effectiveness of spending by foregoing the cost savings and innovation that competition brings. This specific award, valued at $40.8 million, represents a significant expenditure where competitive processes could have potentially yielded better value for the taxpayer and ensured broader market engagement.
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: $40,810,000
Exercised Options: $40,810,000
Current Obligation: $40,810,000
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: 2020-01-07
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2026-01-07
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