DoD awards $24.8M for MIDS-LVT spares, with 2 bidders competing for this firm-fixed-price delivery order

Contract Overview

Contract Amount: $24,781,847 ($24.8M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-23

End Date: 2025-08-31

Contract Duration: 1,073 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MIDS-LVT SPARES / LRUS AND SRUS

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to DATA LINK SOLUTIONS LLC for work described as: MIDS-LVT SPARES / LRUS AND SRUS Key points: 1. Value appears reasonable given the scope of specialized electronic spares and support equipment. 2. The contract was competed, suggesting a degree of price discovery and potential for competitive pricing. 3. Risk indicators are low, with a firm-fixed-price structure and a defined delivery period. 4. Performance context is within the defense sector's need for operational readiness of communication systems. 5. This contract positions the supplier within the critical defense electronics supply chain.

Value Assessment

Rating: good

The total award of $24.8 million for MIDS-LVT spares and LRUS/SRUS appears to be within a reasonable range for specialized defense electronic components. Benchmarking against similar contracts for avionics or communication system spares would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. Without specific unit pricing or detailed scope breakdowns, a definitive comparison to market rates is challenging, but the overall award size is consistent with the procurement of such critical support equipment.

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 offers. The presence of two bidders suggests a moderately competitive environment for this specific requirement. While two bidders are better than one, a higher number of competitors could potentially drive prices down further. The competition level here likely ensured a fair price was obtained, but there may be room for increased competition in future procurements to maximize taxpayer value.

Taxpayer Impact: The full and open competition, with two bidders, suggests that taxpayers received a fair price for these critical spares. However, exploring avenues to attract more bidders in the future could lead to even greater cost savings.

Public Impact

The primary beneficiaries are the U.S. Navy and potentially other Department of Defense branches relying on the MIDS-LVT system for secure, high-volume data links. The services delivered include the provision of Line Replaceable Units (LRUs) and Shop Replaceable Units (SRUs), which are essential for maintaining and repairing the MIDS-LVT communication systems. The geographic impact is primarily within military operational theaters where these communication systems are deployed, ensuring readiness and interoperability. Workforce implications include supporting specialized manufacturing and logistics roles within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for sole-source or limited competition in future procurements if only one supplier can meet stringent technical requirements.
Dependence on a limited number of suppliers for critical, specialized electronic components can create supply chain vulnerabilities.
The long lead times often associated with specialized defense electronics could impact readiness if spares are not procured proactively.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Awarding under full and open competition demonstrates a commitment to leveraging the market for best value.
The contract duration extends to August 2025, ensuring sustained support for critical systems.
The supplier, DATA LINK SOLUTIONS LLC, is likely an established entity within the defense electronics sector, suggesting a degree of reliability.

Sector Analysis

The defense electronics sector is characterized by high technological complexity, stringent quality requirements, and significant government investment. Contracts like this are crucial for maintaining the operational readiness of military platforms. The market for specialized communication spares is often concentrated among a few key players due to the technical expertise and security clearances required. Spending benchmarks in this area are highly specific to the platform and technology, but overall defense electronics procurement represents a substantial portion of the DoD's budget.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, DATA LINK SOLUTIONS LLC, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Future analysis could explore whether the prime contractor has a history of engaging small businesses in its supply chain for similar contracts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified spares by the deadline. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

MIDS-LVT Program
Tactical Data Links
Avionics Spares Procurement
Defense Communication Systems
Naval Air Systems Command (NAVAIR) Contracts

Risk Flags

Potential for limited future competition due to specialized nature of components.
Supply chain risks associated with defense electronics.
Long lead times for specialized manufacturing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to DATA LINK SOLUTIONS LLC. MIDS-LVT SPARES / LRUS AND SRUS

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 $24.8 million.

What is the period of performance?

Start: 2022-09-23. End: 2025-08-31.

What is the track record of DATA LINK SOLUTIONS LLC in fulfilling defense contracts, particularly for communication systems?

DATA LINK SOLUTIONS LLC has a significant history of performing on defense contracts, often related to communication and avionics systems. As a joint venture between BAE Systems and Collins Aerospace, it benefits from the established expertise and resources of its parent companies. While specific performance metrics for this particular contract are not yet available due to its recent award, the company's background suggests a capacity to handle complex defense procurements. Historical data from similar contracts would be needed to assess their on-time delivery rates, quality compliance, and overall customer satisfaction within the DoD.

How does the $24.8 million award compare to historical spending on MIDS-LVT spares and related components?

To accurately compare this $24.8 million award, historical spending data for MIDS-LVT spares and LRUS/SRUS would need to be analyzed. This would involve examining previous contract awards for similar items, considering factors like quantity, specific component types, and inflation over time. The current award represents a single delivery order under a larger potential contract vehicle (SPARES). Without access to the full contract history and the specific items procured in this order, a direct comparison is difficult. However, the award size suggests a significant procurement to replenish or maintain inventory for these critical communication system components.

What are the primary risks associated with procuring specialized electronic spares like MIDS-LVT components, and how are they mitigated?

Key risks include supply chain disruptions, obsolescence of technology, long lead times for manufacturing, and potential for cost overruns if not managed properly. Mitigation strategies employed here include the firm-fixed-price contract type, which shifts cost risk to the contractor. The full and open competition aims to ensure competitive pricing. Furthermore, the contract's defined period (ending August 2025) and the supplier's established role in the defense sector help manage delivery and performance risks. Proactive inventory management and strategic sourcing by the DoD are also crucial.

How effective is the current competition level (2 bidders) in ensuring optimal value for taxpayers for this type of specialized defense equipment?

A competition level of two bidders is generally considered adequate but not ideal for maximizing taxpayer value. While it ensures some level of price discovery and prevents a sole-source situation, a higher number of bidders typically leads to more aggressive pricing and innovation. For specialized defense equipment like MIDS-LVT spares, the market may naturally be limited due to technical barriers to entry. The Department of Defense may have explored options to broaden the supplier base, but factors like technical qualifications and existing infrastructure can constrain the number of viable competitors. Future solicitations could focus on strategies to encourage more participation.

What is the strategic importance of the MIDS-LVT system, and how does this contract contribute to its sustainment?

The Multifunctional Information Distribution System - Low Volume Terminal (MIDS-LVT) is a critical component of the U.S. military's tactical data link (TDL) architecture, enabling secure, jam-resistant, high-volume voice and data communications. It is essential for situational awareness, command and control, and interoperability among various platforms (air, ground, sea). This contract, by providing necessary spares and Line/Shop Replaceable Units (LRUs/SRUs), directly contributes to the sustainment and operational readiness of the MIDS-LVT system. Ensuring the availability of these components is vital for maintaining the effectiveness of the TDL network in operational environments.

Are there any indications of potential cost growth or contract modifications anticipated based on the contract type and duration?

The contract is a Firm Fixed Price (FFP) Delivery Order, which is designed to provide maximum price certainty and minimize the risk of cost growth for the government. Under an FFP contract, the contractor is obligated to perform the work for a fixed price, regardless of their actual costs. Therefore, significant cost growth is not typically anticipated unless there are substantial changes to the contract's scope of work, which would necessitate formal modifications. The duration of the order (ending August 2025) is reasonable for the supply of spares, and modifications would likely only arise from unforeseen technical issues or changes in requirements.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - NETWORK

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: $24,781,847

Exercised Options: $24,781,847

Current Obligation: $24,781,847

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