DoD Awards Rockwell Collins $31.17M for Airframe Parts and Spares
Contract Overview
Contract Amount: $31,170,073 ($31.2M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-12-02
End Date: 2012-12-31
Contract Duration: 2,586 days
Daily Burn Rate: $12.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200604!000019!5700!FA8105!OC-ALC/LAD 135 !FA810506C0001 !A!N! !N! !P00002!20051202!20100531!060605883!962960589!962960589!N!ROCKWELL COLLINS, INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LINN !IOWA !+000000268799!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!E! !3!B!S!C! ! !99990909!B! ! !A! !C!N!Y!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!A!N! ! ! ! ! ! !0001! !
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $31.2 million to ROCKWELL COLLINS, INC. for work described as: 200604!000019!5700!FA8105!OC-ALC/LAD 135 !FA810506C0001 !A!N! !N! !P00002!20051202!20100531!060605883!962960589!962960589!N!ROCKWELL COLLINS, INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LINN… Key points: 1. Contract awarded for airframe parts and spares, a critical component for military aviation. 2. Sole-source award to Rockwell Collins raises questions about competition and potential cost savings. 3. Long contract duration of over 7 years may indicate complex or ongoing support needs. 4. The $31.17 million value is significant, requiring careful oversight to ensure taxpayer value.
Value Assessment
Rating: fair
The contract value of $31.17 million over approximately 7 years suggests a substantial investment. Benchmarking against similar contracts for specialized aircraft parts is difficult without more detailed cost breakdowns, but the 'time and materials' pricing structure can lead to cost overruns if not closely managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Rockwell Collins, was considered. This limits price discovery and competition, potentially leading to higher costs for the government compared to a fully competed contract.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these aircraft parts and services.
Public Impact
Ensures continued availability of critical aircraft parts for Department of Defense operations. Potential for increased costs due to sole-source nature of the award. Long-term commitment may impact budget flexibility for future procurement needs. Supports a key defense contractor, contributing to the aerospace and defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Time and materials pricing can lead to cost escalation.
- Long contract duration increases risk of price increases and scope creep.
Positive Signals
- Ensures supply of critical aircraft parts.
- Supports established contractor with known capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically for airframes and spares. Spending in this area is crucial for maintaining military readiness. Benchmarks for such specialized parts are highly variable based on specific components and quantities, but significant investments are common for advanced military platforms.
Small Business Impact
The contract was awarded to Rockwell Collins, a large business. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense and the Defense Contract Management Agency to ensure fair pricing and prevent waste. Robust performance monitoring and justification for the sole-source decision are essential for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Vendor lock-in
- Limited transparency on pricing justification
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ia, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.2 million to ROCKWELL COLLINS, INC.. 200604!000019!5700!FA8105!OC-ALC/LAD 135 !FA810506C0001 !A!N! !N! !P00002!20051202!20100531!060605883!962960589!962960589!N!ROCKWELL COLLINS, INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LINN !IOWA !+000000268799!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!E! !3!B!S!C! ! !999
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $31.2 million.
What is the period of performance?
Start: 2005-12-02. End: 2012-12-31.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the best possible price was obtained?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure the best price, the government would ideally conduct market research, negotiate aggressively, and establish clear cost controls within the time and materials contract structure, though competition is the primary driver of optimal pricing.
How will the 'time and materials' pricing structure be managed to prevent cost overruns over the contract's long duration?
Managing 'time and materials' contracts involves rigorous monitoring of labor hours, rates, and material costs. The government should establish clear ceilings, require detailed invoicing, and conduct regular audits. Strong contract administration and proactive communication with the contractor are vital to identify and address potential cost escalations early in the performance period.
What is the expected impact of this long-term contract on the government's ability to adopt newer technologies or alternative solutions in the future?
A long-term contract, especially for specific parts, can create vendor lock-in, potentially hindering the adoption of newer technologies or alternative solutions. The government might face challenges in switching suppliers or integrating updated systems without incurring significant costs or contract termination penalties. Future procurement strategies should consider technology refresh cycles and maintain flexibility.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 52498
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $30,826,949
Exercised Options: $30,826,949
Current Obligation: $31,170,073
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-12-02
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2021-05-18
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