Dod Awards $47.1M for Spares (with Warranty) to Data Link Solutions LLC

Contract Overview

Contract Amount: $47,160,978 ($47.2M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-14

End Date: 2024-06-30

Contract Duration: 717 days

Daily Burn Rate: $65.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SPARES (WITH WARRANTY)

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $47.2 million to DATA LINK SOLUTIONS LLC for work described as: SPARES (WITH WARRANTY) Key points: 1. Significant award for specialized spare parts with a warranty. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to the specific nature of the equipment and warranty terms. 4. Sector is Other Communications Equipment Manufacturing, indicating a niche market.

Value Assessment

Rating: good

The award value of $47.1M for spare parts with warranty appears reasonable given the duration and the nature of specialized equipment. Benchmarking against similar contracts for defense-grade communication spares would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of potential suppliers. The use of a delivery order under an existing contract structure likely facilitated efficient price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential spare parts, with the competitive process aiming to ensure value for money.

Public Impact

Ensures operational readiness of critical communication systems. Supports the Department of the Navy's mission capabilities. Potential for long-term sustainment and maintenance of equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Other Communications Equipment Manufacturing sector, which is vital for national defense. Spending benchmarks in this niche area are difficult to establish without specific equipment details, but the award size is substantial.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The award is a delivery order, suggesting it's part of a larger contracting vehicle. Oversight would focus on the performance of DATA LINK SOLUTIONS LLC against the terms of the delivery order and the parent contract.

Related Government Programs

Risk Flags

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 $47.2 million to DATA LINK SOLUTIONS LLC. SPARES (WITH WARRANTY)

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 $47.2 million.

What is the period of performance?

Start: 2022-07-14. End: 2024-06-30.

What is the specific nature of the 'SPARES (WITH WARRANTY)' and their criticality to naval operations?

The specific nature of the 'SPARES (WITH WARRANTY)' is not detailed in the provided data. However, given the context of a Department of the Navy award, these spares are likely critical components for communication equipment essential to naval operations. Understanding their function and failure rates would clarify their criticality and the impact of potential supply chain disruptions.

How does the warranty provision impact the overall cost-effectiveness and risk for the Department of the Navy?

The warranty provision is expected to enhance cost-effectiveness by transferring the risk of defects and premature failure to the contractor, DATA LINK SOLUTIONS LLC. This reduces the likelihood of unexpected repair or replacement costs for the Navy, thereby improving the long-term value proposition of the spares and mitigating operational risks associated with equipment downtime.

What is the potential for price escalation or cost overruns given the contract duration and fixed-price nature?

The contract is a Firm Fixed Price (FFP) type, which generally limits the potential for cost overruns for the government, as the price is set. However, given the 717-day duration (approx. 2 years), there's a theoretical risk of market fluctuations impacting the contractor's costs. The FFP structure, combined with full and open competition, should have mitigated significant price escalation risks during the bidding process.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingOther 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: $47,160,978

Exercised Options: $47,160,978

Current Obligation: $47,160,978

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

Start Date: 2022-07-14

Current End Date: 2024-06-30

Potential End Date: 2024-06-30 00:00:00

Last Modified: 2024-06-05

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