DoD Awards $1.4B for MIDS JTRS Terminals to Data Link Solutions LLC

Contract Overview

Contract Amount: $13,955,850 ($14.0M)

Contractor: Data Link Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-03

End Date: 2027-08-31

Contract Duration: 819 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MIDS JTRS TERMINAL PRODUCTION

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to DATA LINK SOLUTIONS LLC for work described as: MIDS JTRS TERMINAL PRODUCTION Key points: 1. Significant contract award for critical communication equipment. 2. Data Link Solutions LLC is the sole awardee, raising questions about competition. 3. Long-term contract duration (2025-2027) suggests ongoing need. 4. The award falls under 'Other Communications Equipment Manufacturing'.

Value Assessment

Rating: fair

The contract value of $1.4 billion over approximately 2.75 years is substantial. Benchmarking against similar complex communication systems is difficult without more specific data on unit quantities and technical specifications. The firm fixed price contract provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors were likely considered. However, the award to a single entity, Data Link Solutions LLC, suggests they may be the only capable or best-value provider for this specific requirement.

Taxpayer Impact: The firm fixed price nature of the contract helps control costs for taxpayers, but the overall value indicates a significant investment in defense communication capabilities.

Public Impact

Ensures continued operational capability for critical military communication systems. Supports advanced data link and radio functionalities for naval operations. Potential impact on future procurements for similar communication hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole awardee raises competition concerns.
  • Long contract duration requires ongoing monitoring.
  • Potential for cost overruns if initial estimates are inaccurate.

Positive Signals

  • Firm fixed price contract provides cost certainty.
  • Awarded under full and open competition.
  • Addresses critical defense communication needs.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on communication equipment manufacturing. Spending in this area is driven by modernization efforts and the need for secure, interoperable communication systems for military operations. Benchmarks are highly dependent on the specific technology and scale.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor, Data Link Solutions LLC, is likely a large business, and opportunities for small businesses would typically be through subcontracting roles.

Oversight & Accountability

The Department of the Navy is the contracting agency, responsible for oversight. The firm fixed price contract and the full and open competition method suggest established oversight processes are in place. However, the long duration necessitates continued vigilance.

Related Government Programs

  • Other Communications Equipment Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of specific unit cost data for benchmarking.
  • Sole awardee may limit future competitive pressure.
  • Long contract duration increases risk of obsolescence or price creep.
  • Dependence on a single supplier for critical equipment.

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 $14.0 million to DATA LINK SOLUTIONS LLC. MIDS JTRS TERMINAL PRODUCTION

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 $14.0 million.

What is the period of performance?

Start: 2025-06-03. End: 2027-08-31.

What is the specific unit cost for the MIDS JTRS terminals, and how does it compare to industry benchmarks for similar advanced communication equipment?

The provided data does not specify the number of units or the exact unit cost, making direct comparison difficult. The total award is $1.4 billion over approximately 819 days. To assess value, one would need to know the quantity of terminals and their technical specifications to compare against market rates for comparable advanced military-grade communication systems.

Given the sole award to Data Link Solutions LLC, what measures are in place to ensure continued innovation and prevent potential price gouging in future contract modifications or renewals?

While awarded under full and open competition, the sole awardee status necessitates proactive oversight. The government should leverage contract clauses that allow for review of pricing if market conditions change significantly. Regular performance reviews and market research should be conducted to ensure the government continues to receive fair pricing and that the contractor remains incentivized to innovate.

How will the performance and reliability of these MIDS JTRS terminals be monitored throughout the contract's duration to ensure mission effectiveness?

Performance and reliability will be monitored through standard government contract oversight mechanisms, including acceptance testing of delivered units, regular performance reviews with the contractor, and potentially through operational feedback from end-users in the field. The Department of the Navy will likely assign contracting officers' representatives (CORs) to oversee technical performance and ensure the equipment meets all specified requirements.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003924R4000

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

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: $13,955,850

Exercised Options: $13,955,850

Current Obligation: $13,955,850

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003924D4004

IDV Type: IDC

Timeline

Start Date: 2025-06-03

Current End Date: 2027-08-31

Potential End Date: 2027-08-31 00:00:00

Last Modified: 2025-12-22

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