DoD Awards $6.175 Billion for MIDS-LVT(1) Production Units to Data Link Solutions LLC
Contract Overview
Contract Amount: $36,926,334 ($36.9M)
Contractor: Data Link Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2020-09-09
End Date: 2022-04-30
Contract Duration: 598 days
Daily Burn Rate: $61.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MIDS-LVT(1) [BU2] PRODUCTION UNITS
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $36.9 million to DATA LINK SOLUTIONS LLC for work described as: MIDS-LVT(1) [BU2] PRODUCTION UNITS Key points: 1. Significant contract value of $6.175 billion highlights major defense spending. 2. Sole-source award to Data Link Solutions LLC raises questions about competition. 3. Risk of overpayment exists due to lack of competitive bidding. 4. Spending falls within the 'IT' sector due to communication equipment manufacturing.
Value Assessment
Rating: questionable
The contract value of $6.175 billion is substantial. Without a competitive benchmark, it's difficult to assess if this pricing is optimal compared to similar defense communication equipment contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was awarded as a delivery order under a larger contract, and the data indicates 'limited' competition. This suggests that the initial contract may not have undergone full and open competition, potentially impacting price discovery.
Taxpayer Impact: The lack of robust competition could lead to taxpayers paying more than necessary for these critical defense communication systems.
Public Impact
Ensures continued availability of essential communication equipment for military operations. Potential for higher costs due to limited competitive pressure. Supports a key defense contractor, impacting the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 100 / 10
Warning Flags
- Limited competition
- Potential for price inflation
- Lack of transparency in initial contract award
Positive Signals
- Ensures supply of critical defense technology
- Supports established contractor with proven capabilities
Sector Analysis
This contract falls under the Information Technology sector, specifically focusing on wireless communications equipment manufacturing. Defense spending in this area is crucial for maintaining technological superiority and operational effectiveness.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. The prime contractor is Data Link Solutions LLC, and further analysis would be needed to determine their small business subcontracting efforts.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to ensure performance, quality, and adherence to contract terms, especially given the significant value.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Lack of transparency in initial contract award
- Dependency on a single supplier
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.9 million to DATA LINK SOLUTIONS LLC. MIDS-LVT(1) [BU2] PRODUCTION UNITS
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 $36.9 million.
What is the period of performance?
Start: 2020-09-09. End: 2022-04-30.
What was the rationale for limiting competition on the base contract from which this delivery order was issued?
The rationale for limiting competition on the base contract is not explicitly provided in the data. Typically, such limitations might stem from specific technical requirements, existing system integration needs, or prior performance considerations. Further investigation into the original contract award documentation would be necessary to ascertain the precise justification.
What are the specific risks associated with relying on a single or limited source for this critical communication equipment?
Relying on a single or limited source for critical communication equipment poses several risks. These include potential price escalation due to lack of competitive pressure, vulnerability to supply chain disruptions if the sole provider faces issues, and a reduced incentive for the contractor to innovate or improve efficiency. It also limits the government's ability to leverage new technologies from other vendors.
How does the fixed-price contract type mitigate or exacerbate potential cost overruns for this large-value award?
A Firm Fixed Price (FFP) contract type generally aims to mitigate cost overruns by shifting the risk to the contractor. The contractor is obligated to deliver the specified goods or services for the agreed-upon price, regardless of their actual costs. However, if the initial price was not adequately benchmarked due to limited competition, the FFP could still result in the government paying an inflated price.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0003915R0222
Offers Received: 2
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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,926,334
Exercised Options: $36,926,334
Current Obligation: $36,926,334
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003915D0042
IDV Type: IDC
Timeline
Start Date: 2020-09-09
Current End Date: 2022-04-30
Potential End Date: 2022-04-30 00:00:00
Last Modified: 2024-09-30
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)