DoD awards $41.7M for MIDS JTRS Terminals & Spares to Data Link Solutions LLC

Contract Overview

Contract Amount: $41,754,635 ($41.8M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2022-11-30

Contract Duration: 791 days

Daily Burn Rate: $52.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MIDS JTRS TERMINALS&SPARES

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $41.8 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS TERMINALS&SPARES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The contract duration is 791 days, indicating a medium-term supply requirement. 4. The awardee, Data Link Solutions LLC, is a key player in defense communications. 5. The North American Industry Classification System (NAICS) code 334290 points to specialized communications equipment manufacturing. 6. The contract is for terminals and spare parts, essential for maintaining operational readiness.

Value Assessment

Rating: good

The contract value of $41.7 million for MIDS JTRS terminals and spares appears reasonable given the specialized nature of military communications equipment. Benchmarking against similar sole-source or limited-competition contracts for advanced defense systems often reveals higher per-unit costs. The firm fixed-price structure provides cost certainty for the government, and the duration of the contract suggests a well-defined scope of work. Further analysis would require detailed cost breakdowns and comparisons to specific, comparable terminal procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for a selection based on a balance of cost and technical factors. This approach is generally favored for maximizing value for taxpayer dollars.

Taxpayer Impact: Full and open competition helps ensure that the Department of Defense is obtaining the best possible price for these critical communication terminals and spares, potentially saving taxpayer money compared to less competitive procurement methods.

Public Impact

The primary beneficiaries are Department of Defense units requiring secure and reliable data link capabilities for command and control. The services delivered include the provision of Multi-functional Information Distribution System (MIDS) Joint Tactical Radio System (JTRS) terminals and associated spare parts. The geographic impact is likely global, supporting deployed military operations across various theaters. Workforce implications may include specialized manufacturing and logistics roles within Data Link Solutions LLC and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of technology in rapidly evolving defense communications landscape.
Dependence on a single contractor for critical spares could lead to supply chain vulnerabilities.
Ensuring interoperability with existing and future military communication systems requires ongoing vigilance.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing and vendor selection.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor, Data Link Solutions LLC, has a demonstrated track record in defense communications systems.
The contract addresses the need for essential terminals and spares, supporting operational readiness.

Sector Analysis

The defense communications sector is characterized by high technological complexity, stringent security requirements, and significant government investment. Contracts like this are crucial for maintaining the operational effectiveness of military forces. The market includes a limited number of specialized manufacturers capable of producing advanced systems like MIDS JTRS terminals. Spending in this area is driven by modernization efforts and the need for secure, interoperable communication platforms across different branches of the military.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Data Link Solutions LLC voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), as indicated by 'sa'. Accountability measures are embedded in the Firm Fixed Price contract type, which places cost responsibility on the contractor. Transparency is facilitated through contract award databases, though detailed cost breakdowns are typically not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

MIDS JTRS Program
Tactical Data Links
Military Communications Systems
Defense Procurement

Risk Flags

Potential for technology obsolescence
Supply chain dependency
Interoperability challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.8 million to DATA LINK SOLUTIONS LLC. MIDS JTRS TERMINALS&SPARES

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 $41.8 million.

What is the period of performance?

Start: 2020-09-30. End: 2022-11-30.

What is the historical spending trend for MIDS JTRS terminals and spares with Data Link Solutions LLC?

Historical spending data for MIDS JTRS terminals and spares specifically with Data Link Solutions LLC would require a deeper dive into contract databases beyond the provided summary. However, the current award of $41.7 million suggests a significant, likely multi-year, procurement. Analyzing past awards to this contractor for similar items, or to other contractors for comparable systems, would provide context on whether this award represents an increase, decrease, or stable level of spending. Factors influencing historical spending include program maturity, technological upgrades, operational tempo, and overall defense budget allocations for communications modernization.

How does the pricing of these MIDS JTRS terminals compare to similar systems procured by other allied nations?

Directly comparing the pricing of these MIDS JTRS terminals to systems procured by allied nations is challenging without access to classified or non-public procurement data from those countries. However, the fact that this contract was awarded under full and open competition suggests that the Department of Defense sought competitive pricing. If allied nations procure similar systems through sole-source contracts or less competitive means, their per-unit costs could be significantly higher. Benchmarking would ideally involve comparing unit prices for comparable terminal capabilities, considering factors like quantity, included features, and support packages. Publicly available data on international defense procurements is often limited, making precise comparisons difficult.

What are the key performance indicators (KPIs) used to assess the performance of Data Link Solutions LLC under this contract?

While specific Key Performance Indicators (KPIs) are not detailed in the provided summary, typical performance metrics for such a contract would likely include on-time delivery of terminals and spares, adherence to technical specifications and quality standards, and responsiveness to support requests. For a Firm Fixed Price contract, meeting delivery schedules and ensuring the equipment functions as specified are paramount. The Defense Contract Management Agency (DCMA) would likely monitor these aspects. Failure to meet critical KPIs could result in penalties or impact future contract awards for Data Link Solutions LLC.

What is the potential risk associated with the technological obsolescence of the MIDS JTRS terminals being procured?

The risk of technological obsolescence for MIDS JTRS terminals is a significant consideration in the defense sector. While JTRS (Joint Tactical Radio System) aims for software-defined, re-programmable capabilities, the underlying hardware can still become outdated. The procurement duration of 791 days (over two years) means that by the end of the contract, newer technologies may be emerging. The Department of Defense mitigates this risk through strategies such as incorporating upgrade paths, ensuring software-defined architectures allow for future enhancements, and maintaining a robust research and development pipeline for next-generation systems. Continuous monitoring of the technology landscape and proactive planning for future upgrades are essential.

How does the 'Other Communications Equipment Manufacturing' NAICS code (334290) inform our understanding of the contractor's capabilities?

The NAICS code 334290, 'Other Communications Equipment Manufacturing,' indicates that Data Link Solutions LLC operates within a segment of the manufacturing industry focused on producing communication devices not elsewhere classified. This typically includes specialized equipment like radio and television broadcasting equipment, wireless communications equipment, and other electronic components used in transmitting and receiving information. For this contract, it signifies that the company is equipped to manufacture the specific, likely complex, hardware required for MIDS JTRS terminals and potentially related systems, suggesting a level of technical expertise and production capacity tailored to this niche.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0003919R1000

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

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: $41,754,635

Exercised Options: $41,754,635

Current Obligation: $41,754,635

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003920D0057

IDV Type: IDC

Timeline