DoD's $31.5M MIDS JTRS SE&I contract awarded to Data Link Solutions LLC for communications equipment

Contract Overview

Contract Amount: $31,542,932 ($31.5M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-04

End Date: 2025-01-31

Contract Duration: 1,033 days

Daily Burn Rate: $30.5K/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 $31.5 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS SE&I Key points: 1. Contract value appears reasonable given the scope of systems engineering and integration for a critical defense communication system. 2. Full and open competition suggests a healthy market for this type of specialized defense support. 3. Potential risks include integration complexities and long-term sustainment of advanced communication technologies. 4. Performance context is within the Department of the Navy's broader efforts to modernize tactical data links. 5. This contract positions Data Link Solutions LLC as a key provider in the defense communications sector.

Value Assessment

Rating: good

The contract value of approximately $31.5 million for MIDS JTRS SE&I services appears to be within a reasonable range for specialized defense systems engineering and integration. Benchmarking against similar contracts for complex communication systems, this award reflects the intricate nature of ensuring interoperability and functionality for critical military platforms. The cost-plus-fixed-fee structure allows for flexibility while maintaining cost control, though detailed cost breakdowns would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but the competitive nature of the award suggests that the Department of the Navy sought the best value from a range of qualified sources. This process is designed to foster price discovery and ensure that the government receives competitive pricing for complex technical services.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the most capable and cost-effective solution is selected.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units, who will receive enhanced and integrated communication capabilities. Services delivered include systems engineering, integration, and support for the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio System (JTRS). The geographic impact is likely global, supporting deployed naval forces and joint operations. Workforce implications include specialized engineering and technical roles within Data Link Solutions LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
Dependency on a single contractor for critical systems engineering could pose long-term sustainment risks.
Ensuring seamless integration with existing and future communication architectures requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially better value.
Contractor has experience in defense communications, indicated by their role in MIDS JTRS SE&I.
Clear performance period (2022-2025) allows for focused execution and evaluation.

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 and upgrading the tactical data links that enable joint force interoperability. The market includes a mix of large defense contractors and specialized engineering firms. Spending in this area is driven by the need for secure, reliable, and advanced communication systems to support modern warfare.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside for this contract. While there is no explicit small business set-aside, the prime contractor, Data Link Solutions LLC, may engage small businesses as subcontractors to fulfill specific requirements or leverage specialized capabilities. The extent of subcontracting to small businesses would need further investigation to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee contract structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may be subject to proprietary or security restrictions. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

MIDS JTRS Program
Tactical Data Link Systems
Naval Communication Systems
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Long-term sustainment and integration risks for complex communication systems.
Cybersecurity vulnerabilities in defense communication networks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 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 $31.5 million.

What is the period of performance?

Start: 2022-04-04. End: 2025-01-31.

What is the specific performance history of Data Link Solutions LLC on similar defense communication contracts?

Data Link Solutions LLC (DLS) has a significant track record in supporting defense communication systems, particularly those related to the Multifunctional Information Distribution System (MIDS) and Joint Tactical Radio System (JTRS). Their involvement in the MIDS JTRS SE&I contract suggests a deep understanding of these complex platforms. While specific past performance details for this exact contract are not publicly detailed in the provided data, DLS's continued engagement in this specialized area implies a history of successful execution and technical competence. Further analysis would involve reviewing past performance evaluations and any documented issues or successes on prior related contracts to fully assess their reliability and capability in delivering complex systems engineering and integration services for critical defense communication infrastructure.

How does the awarded amount of $31.5 million compare to the estimated market value for similar Systems Engineering and Integration (SE&I) services in the defense sector?

Benchmarking the $31.5 million award for MIDS JTRS SE&I requires comparing it to similar contracts for complex defense communication systems integration. The market for such specialized services is highly variable, influenced by factors like technology maturity, security requirements, and the specific platforms being integrated. Contracts for SE&I on advanced tactical data links can range from tens to hundreds of millions of dollars over their lifecycle. Given that this award covers a period of approximately three years (April 2022 to January 2025), the annual value is roughly $10.5 million. This figure appears reasonable when considering the specialized expertise, rigorous testing, and integration challenges associated with systems like MIDS JTRS. Without access to detailed statements of work and specific technical requirements of comparable contracts, a precise market value comparison is difficult, but the awarded amount does not immediately suggest significant overpricing, especially given the full and open competition.

What are the primary risks associated with the integration of MIDS JTRS systems, and how does this contract address them?

The primary risks associated with integrating MIDS JTRS systems include ensuring interoperability across diverse platforms and services, managing software and hardware obsolescence, maintaining cybersecurity, and achieving seamless communication in contested electromagnetic environments. This contract, focused on Systems Engineering and Integration (SE&I), directly addresses these risks by providing dedicated technical expertise to manage the complexities. The SE&I role involves defining system requirements, overseeing design and development, conducting rigorous testing and validation, and ensuring that the integrated system meets operational needs. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility in addressing unforeseen technical challenges that often arise during complex integration efforts, while the fixed fee provides an incentive for the contractor to manage costs efficiently. However, effective oversight by the government is crucial to mitigate risks related to scope creep and cost overruns inherent in CPFF arrangements.

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

Historical spending on MIDS JTRS SE&I and related tactical data link programs within the Department of the Navy has been substantial, reflecting the ongoing need to modernize and maintain advanced communication capabilities. While specific historical figures for MIDS JTRS SE&I are not detailed in the provided data, the MIDS program itself has seen significant investment over many years, encompassing development, procurement, and sustainment. The Joint Program Office (JPO) for MIDS has managed budgets that often run into hundreds of millions of dollars annually across various contract actions for hardware, software, and support services. Spending trends are typically driven by program milestones, technology refresh cycles, and evolving operational requirements. The current $31.5 million award represents a specific segment of this broader, long-term investment in ensuring robust and secure tactical communications for naval aviation and other platforms.

How does the 'Other Communications Equipment Manufacturing' (NAICS 334290) classification impact the understanding of this contract's scope?

The NAICS code 334290, 'Other Communications Equipment Manufacturing,' provides a broad classification for the industry sector related to this contract. While the contract itself is for Systems Engineering and Integration (SE&I), the underlying equipment being supported falls under this manufacturing category. This suggests that the MIDS JTRS system involves the production or significant modification of specialized communication hardware. The SE&I services are critical for ensuring that this manufactured equipment functions correctly within the complex military network, meets performance specifications, and is interoperable with other systems. The classification highlights that the contract is tied to the lifecycle of physical communication devices, requiring expertise in both the hardware's capabilities and the software/integration aspects necessary for its effective deployment and operation in demanding defense environments.

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: $31,668,446

Exercised Options: $31,668,446

Current Obligation: $31,542,932

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