DoD's $25.5M MIDS JTRS SE&I contract awarded to DATA LINK SOLUTIONS LLC for communications equipment

Contract Overview

Contract Amount: $25,466,392 ($25.5M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-07

End Date: 2025-07-01

Contract Duration: 1,181 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MIDS JTRS SE&I

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS SE&I Key points: 1. The contract value of $25.5M appears reasonable for a multi-year program involving specialized communication equipment. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract type (Cost Plus Fixed Fee) carries inherent risk of cost overruns, requiring robust oversight. 4. Performance is scheduled over approximately three years, indicating a moderate duration for this type of acquisition. 5. This contract falls within the Defense sector, specifically supporting communications equipment manufacturing. 6. The absence of small business set-aside indicates a focus on large prime contractors for this specialized need.

Value Assessment

Rating: good

Benchmarking this contract's value against similar Department of Defense procurements for communication systems is challenging without more specific technical details. However, the $25.5 million total value over roughly three years suggests a moderate investment. The Cost Plus Fixed Fee (CPFF) structure means the government pays for allowable costs plus a fixed fee, which can lead to higher final costs if not managed carefully. Compared to sole-source or limited competition contracts, this full and open competition likely resulted in a more competitive price, though the CPFF type introduces some cost uncertainty.

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 specific number of bidders is not provided, but this method generally fosters a competitive environment. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government. The use of full and open competition suggests that the contracting agency sought the best value through a broad market solicitation.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of innovative solutions being considered, leading to better overall value for the investment.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, receiving critical communication equipment. The contract supports the MIDS JTRS SE&I program, likely enhancing secure and interoperable communication capabilities for military platforms. The geographic impact is primarily within the United States, where the contractor operates and where the equipment will be deployed. Workforce implications include employment opportunities for engineers, technicians, and support staff involved in the manufacturing and integration of communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns if not closely monitored.
Lack of specific details on performance metrics makes it difficult to assess the contractor's historical performance on similar programs.
The duration of the contract (over 3 years) requires sustained oversight to ensure continued value and adherence to scope.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
The contractor, DATA LINK SOLUTIONS LLC, is likely experienced in defense communications, given the nature of the award.
The contract supports a critical defense program (MIDS JTRS SE&I), indicating alignment with strategic military needs.

Sector Analysis

The defense communications sector is characterized by high technological complexity, stringent security requirements, and significant government investment. This contract for MIDS JTRS SE&I falls within the 'Other Communications Equipment Manufacturing' NAICS code, indicating a focus on specialized hardware. The market is often dominated by a few large prime contractors capable of meeting the rigorous demands of military specifications. Spending in this area is driven by the need for secure, interoperable, and advanced communication systems to maintain military readiness and technological superiority.

Small Business Impact

This contract does not appear to include a small business set-aside, as indicated by the 'sb' field being false. This suggests that the primary contract was awarded to a large business, DATA LINK SOLUTIONS LLC. While there is no direct set-aside, the prime contractor may be required to subcontract a portion of the work to small businesses as part of their overall contract obligations or through a subcontracting plan. The impact on the small business ecosystem would depend on the extent of any subcontracting opportunities generated by this award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the CPFF contract structure, requiring the contractor to justify costs and meet performance milestones. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

MIDS (Multifunctional Information Distribution System)
JTRS (Joint Tactical Radio System)
Defense Communications Systems
Naval Air Systems Command (NAVAIR) Contracts
Communications Equipment Manufacturing

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Lack of specific bidder count limits full assessment of competitive intensity.
Performance metrics and contractor past performance data not readily available for a comprehensive risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to DATA LINK SOLUTIONS LLC. MIDS JTRS SE&I

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 $25.5 million.

What is the period of performance?

Start: 2022-04-07. End: 2025-07-01.

What is the specific nature of the 'SE&I' (Systems Engineering & Integration) services provided under this contract?

The 'SE&I' designation typically refers to Systems Engineering and Integration services. For the MIDS JTRS program, this likely involves ensuring that the Multifunctional Information Distribution System (MIDS) and the Joint Tactical Radio System (JTRS) components are effectively integrated, compatible, and meet the overall system requirements. This can include activities such as requirements analysis, system design, interface management, testing, verification, validation, and ensuring interoperability between different communication platforms and waveforms. The contractor would be responsible for the technical planning, execution, and management of these integration efforts to ensure the MIDS JTRS system functions as intended within the broader defense network.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other common DoD contract types for similar procurements?

The Cost Plus Fixed Fee (CPFF) contract type is often used by the DoD for research and development or complex system integration efforts where the scope of work is not precisely defined at the outset, or where innovation is a key driver. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with Fixed Price contracts, where the price is set regardless of actual costs, offering more cost certainty to the government but potentially higher risk for the contractor. Cost Plus Incentive Fee (CPIF) contracts offer shared savings or cost overruns, incentivizing efficiency. For mature production or well-defined services, Fixed Price contracts are often preferred. The CPFF here suggests a degree of uncertainty in the integration and engineering tasks, requiring close government oversight to manage costs effectively.

What is the historical spending trend for MIDS JTRS SE&I or similar programs within the Department of Defense?

Historical spending on MIDS JTRS SE&I and related programs within the DoD has been substantial, reflecting the critical nature of secure and interoperable communications. The JTRS program, in particular, has undergone significant evolution and restructuring over the years, with substantial investments made across various components and integration efforts. MIDS, as a key component of tactical data links, also represents a long-term investment. While specific year-over-year spending for this exact SE&I task order is not detailed here, the overall budget allocated to tactical data links, software-defined radios, and communication system integration within the DoD typically runs into hundreds of millions, if not billions, of dollars annually across various programs and agencies. This $25.5M award represents a segment of that larger, ongoing investment.

What are the potential risks associated with DATA LINK SOLUTIONS LLC's performance on this contract, given their track record?

Assessing the specific risks associated with DATA LINK SOLUTIONS LLC's performance requires a detailed review of their past performance history, including any past performance evaluations, contract awards, and any instances of disputes, terminations, or performance deficiencies on similar government contracts. Without access to this specific performance data, it's difficult to pinpoint concrete risks. However, general risks for any contractor on a CPFF contract of this nature include potential cost overruns due to scope creep or inefficient execution, schedule delays impacting program timelines, and challenges in meeting complex technical integration requirements. The government's risk mitigation strategies would involve robust contract surveillance, regular performance reviews, and clear communication channels.

How does the 'Other Communications Equipment Manufacturing' NAICS code (334290) typically relate to defense spending?

The 'Other Communications Equipment Manufacturing' NAICS code (334290) encompasses establishments primarily engaged in manufacturing communication equipment, not elsewhere classified. For defense spending, this code is highly relevant as it covers a wide array of specialized equipment crucial for military operations, including tactical radios, secure communication devices, data links, satellite communication terminals, and related components. Defense contractors often operate within this sector, producing systems designed to meet stringent military specifications for reliability, security, and interoperability in harsh environments. Contracts awarded under this NAICS code often involve significant research, development, and integration efforts, aligning with the nature of the MIDS JTRS SE&I contract.

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: COST PLUS FIXED FEE (U)

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: $26,722,016

Exercised Options: $26,722,016

Current Obligation: $25,466,392

Actual Outlays: $41,158

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