DoD Awards Rockwell Collins $86.9M for KC-135 CNS/ATM Upgrade, Facing Limited Competition
Contract Overview
Contract Amount: $86,891,140 ($86.9M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-09-14
End Date: 2015-09-30
Contract Duration: 2,207 days
Daily Burn Rate: $39.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ENGINEERING AND MANUFACTURING DEVELOPMENT, KC-135 COPMMUNICATION, NAVIGATION SURVEILLANCE, AIR TRAFFIC MANAGEMENT BLOCK 45 UPGRADE
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $86.9 million to ROCKWELL COLLINS, INC. for work described as: ENGINEERING AND MANUFACTURING DEVELOPMENT, KC-135 COPMMUNICATION, NAVIGATION SURVEILLANCE, AIR TRAFFIC MANAGEMENT BLOCK 45 UPGRADE Key points: 1. Significant investment in critical aircraft modernization. 2. Dominated by a single, established contractor. 3. Potential for cost overruns due to limited competition. 4. Focus on aviation technology within the defense sector.
Value Assessment
Rating: fair
The contract value of $86.9 million for an aircraft upgrade appears substantial. However, without specific per-unit cost data or comparison to similar modernization efforts, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a sole-source or limited competition award. This approach can reduce administrative burden but may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible price for this upgrade.
Public Impact
Enhances the communication and navigation systems of the KC-135 fleet, improving operational safety and efficiency. Supports the longevity and effectiveness of a key military asset. Represents a significant investment in defense technology modernization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost escalation
- Long contract duration
Positive Signals
- Addresses critical avionics upgrade
- Supports established defense contractor
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft modernization. Spending in this area is driven by the need to maintain technological superiority and operational readiness of military assets.
Small Business Impact
The data indicates that this contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, suggesting standard oversight procedures. However, the lack of competition warrants closer scrutiny to ensure fair pricing and effective execution.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition may lead to higher costs.
- Contract duration is extensive (2207 days).
- No small business participation indicated.
- Specific justification for non-competition is absent.
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 $86.9 million to ROCKWELL COLLINS, INC.. ENGINEERING AND MANUFACTURING DEVELOPMENT, KC-135 COPMMUNICATION, NAVIGATION SURVEILLANCE, AIR TRAFFIC MANAGEMENT BLOCK 45 UPGRADE
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 $86.9 million.
What is the period of performance?
Start: 2009-09-14. End: 2015-09-30.
What was the justification for not competing this contract, and how was the price determined to be fair and reasonable?
The justification for not competing this contract is not provided in the data. Typically, sole-source or limited competition awards require a documented justification, such as unique capabilities or urgent need. The price determination would normally involve cost analysis and comparison to similar procurements, but without further details, it's difficult to assess the fairness and reasonableness.
What are the specific risks associated with upgrading the KC-135's communication and navigation systems, and how are they being mitigated?
Risks associated with upgrading complex avionics systems include technical integration challenges, potential for obsolescence of new components, and performance issues. Mitigation strategies would typically involve rigorous testing, phased implementation, and close collaboration between the contractor and the government's technical representatives to ensure successful integration and performance.
How will this upgrade impact the operational effectiveness and lifespan of the KC-135 fleet?
This upgrade is expected to significantly enhance the operational effectiveness of the KC-135 fleet by improving its communication, navigation, and surveillance capabilities to meet modern air traffic management standards. This modernization is crucial for extending the operational lifespan of the aircraft, ensuring its continued utility and relevance in military operations for years to come.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA810509R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 COLLINS ROAD NE, CEDAR RAPIDS, IA, 52406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $110,029,861
Exercised Options: $87,751,365
Current Obligation: $86,891,140
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-09-14
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2020-10-19
More Contracts from Rockwell Collins, Inc.
- Federal Contract — $694.0M (Department of Defense)
- ARC-210 FY10-13 Production — $596.6M (Department of Defense)
- 200302!000006!5700!CZ46 !smc/Pkg LOS Angeles AFB !F0470102C0011 !A!N! !N! !20021106!20030930!060605883!962960589!962960589!n!rockwell Collins, Inc !400 Collins RD NE !cedar Rapids !ia!52498!12000!113!19!cedar Rapids !linn !iowa !+000005026814!n!n!000005026814!5826!radio Navigation Equipment, Airborne !A7 !electronics and Communication !3000!NOT Discernable or Classified !334220!E! !3! ! ! ! ! !99990909!B! ! !B! !a!u!j!2!003!b! !A!N!F! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! ! — $573.2M (Department of Defense)
- 200510!303493!1700!n00019!naval AIR Systems Command !N0001905C0050 !A!N! !N! ! !20050712!20070131!060605883!962960589!962960589!n!rockwell Collins, Inc !400 Collins RD NE !cedar Rapids !ia!52498!12000!113!19!cedar Rapids !linn !iowa !+000002915880!n!n!000282900632!5821!radio and TV Comm Equipment, Airborne !A7 !electronics and Communication Equip !000 !* !334290!A!A!3! ! ! ! ! !20200930!B! ! !A! !d!u!j!1!001!n!1a!z!n!z! ! !Y!C!N! ! ! !z!z!a!a!000!a!b!n! ! ! ! !1719!N00019!0001! ! — $410.2M (Department of Defense)
- E-6B Block I/ Ipbe Phase 3 MOD Kits — $405.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)