DoD's $23.2M aircraft parts contract awarded to Rockwell Collins, Inc. shows limited competition
Contract Overview
Contract Amount: $23,243,984 ($23.2M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-09-10
End Date: 2013-04-03
Contract Duration: 936 days
Daily Burn Rate: $24.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OTHER AIRCRAFT PART AND AUXILIARY EQUIPMENT MANUFACTURING
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $23.2 million to ROCKWELL COLLINS, INC. for work described as: OTHER AIRCRAFT PART AND AUXILIARY EQUIPMENT MANUFACTURING Key points: 1. The contract value of $23.2 million is moderate for aircraft parts manufacturing. 2. Limited competition may indicate specialized needs or a lack of market alternatives. 3. The firm fixed-price contract type shifts risk to the contractor. 4. The contract duration of 936 days suggests a substantial project scope. 5. Awarded by the Department of the Air Force, this contract supports aviation readiness. 6. The North American Industry Classification System (NAICS) code 336413 covers aircraft parts manufacturing.
Value Assessment
Rating: fair
Benchmarking the value of this $23.2 million contract is challenging without specific details on the aircraft parts procured. However, the award to a single, established contractor like Rockwell Collins suggests a potentially fair price given their expertise. Further analysis would require comparing the unit costs and specifications to similar procurements for comparable aircraft components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed openly, indicating potential limitations in the market or specific requirements that favored a sole source. The absence of a competitive bidding process means that the price discovery mechanism was not fully utilized, potentially leading to higher costs for the government compared to a fully competed award.
Taxpayer Impact: The lack of robust competition means taxpayers may not have received the best possible price for these aircraft parts, as the government did not benefit from multiple bids driving down costs.
Public Impact
The Department of the Air Force benefits from the acquisition of essential aircraft parts. This contract supports the operational readiness and maintenance of Air Force aircraft. The geographic impact is primarily centered around Rockwell Collins' facilities and their supply chain. The contract supports jobs within the aerospace manufacturing sector, particularly at Rockwell Collins and its suppliers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about potential overpricing and lack of innovation.
- Lack of transparency in the procurement process hinders public scrutiny.
- Reliance on a single contractor could create supply chain vulnerabilities.
Positive Signals
- Award to an established contractor like Rockwell Collins suggests a focus on reliability and quality.
- Firm fixed-price contract effectively manages cost risks for the government.
- The contract duration indicates a commitment to a specific program or need.
Sector Analysis
This contract falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector, a critical component of the broader aerospace industry. This sector is characterized by high technological demands, stringent quality control, and significant R&D investment. The market size for aircraft parts is substantial, driven by both military and commercial aviation needs. This specific contract likely supports a niche requirement within the Air Force's fleet maintenance or upgrade programs.
Small Business Impact
There is no indication that this contract included small business set-asides. Given the specialized nature of aircraft parts manufacturing and the award to a large prime contractor, the direct impact on small businesses may be limited unless they are part of Rockwell Collins' subcontracting chain. Further investigation into subcontracting plans would be necessary to assess the full impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program management within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified parts within agreed-upon terms. Transparency could be enhanced through more detailed public reporting on the specific parts procured and the justification for limited competition.
Related Government Programs
- Aircraft Component Manufacturing
- Aerospace Parts Procurement
- Defense Logistics Support
- Air Force Maintenance Contracts
Risk Flags
- Limited competition
- Lack of detailed product specification
- Potential for sole-source pricing
Tags
defense, department-of-defense, department-of-the-air-force, rockwell-collins-inc, aircraft-parts, auxiliary-equipment, firm-fixed-price, limited-competition, iowa, other-aircraft-parts-and-auxiliary-equipment-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.2 million to ROCKWELL COLLINS, INC.. OTHER AIRCRAFT PART AND AUXILIARY EQUIPMENT MANUFACTURING
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $23.2 million.
What is the period of performance?
Start: 2010-09-10. End: 2013-04-03.
What specific aircraft parts were procured under this contract, and what is their criticality to Air Force operations?
The provided data does not specify the exact aircraft parts procured under this $23.2 million contract awarded to Rockwell Collins, Inc. However, the NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' suggests a broad range of components beyond engines and airframes. These could include avionics, landing gear components, control systems, or specialized electronic equipment. The criticality to Air Force operations would depend on the specific aircraft platforms and mission requirements these parts support. Without this detailed information, it's difficult to assess the precise operational impact or justify the limited competition.
How does the $23.2 million contract value compare to typical spending for similar aircraft parts by the Department of Defense?
The $23.2 million contract value is moderate within the context of Department of Defense (DoD) spending on aircraft parts. The DoD procures a vast array of components, ranging from high-value, complex systems to more common replacement parts. While $23.2 million is a significant sum, it is not exceptionally large compared to major platform procurements or extensive upgrade programs. To provide a precise comparison, one would need to benchmark this against contracts for similar types of parts (e.g., avionics, structural components) for comparable aircraft platforms. The limited competition aspect, however, suggests that this might be for a specialized or proprietary item where direct cost comparisons are less straightforward.
What are the primary risks associated with awarding a contract of this nature with limited competition?
The primary risks associated with awarding a contract like this with limited competition include potential overpricing, reduced innovation, and a lack of flexibility. Without multiple bidders vying for the contract, the government may not achieve the most cost-effective price. Furthermore, a sole-source or limited-competition environment can disincentivize contractors from innovating or offering more efficient solutions, as they face less pressure from competitors. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, potentially leading to supply chain vulnerabilities and difficulties in sourcing alternatives if needed. This can also impact the long-term sustainment strategy for the affected aircraft.
What is Rockwell Collins, Inc.'s track record with the Department of Defense, particularly in aircraft parts manufacturing?
Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing and extensive track record as a major supplier to the Department of Defense (DoD) and other government agencies. They are well-known for providing advanced avionics, communication systems, navigation systems, and other integrated electronic systems for a wide range of military aircraft platforms. Their history with the DoD includes numerous contracts for both new systems and sustainment/upgrade of existing equipment. Given their established presence and expertise in aerospace technology, their selection for this contract likely reflects their capability and existing relationship with the Air Force, suggesting a degree of reliability and performance history.
How has historical spending on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) by the Department of the Air Force trended over the past decade?
Historical spending by the Department of the Air Force (DAF) on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) has likely remained substantial over the past decade, reflecting the ongoing need to maintain and modernize its vast fleet of aircraft. While specific aggregate spending figures for this NAICS code by the DAF are not readily available in this dataset, the defense budget generally prioritizes aviation readiness and sustainment. Trends would likely show consistent demand for parts, potentially increasing with the introduction of new platforms or aging of existing ones, necessitating more frequent repairs and part replacements. Fluctuations might also be influenced by specific modernization programs, depot maintenance cycles, and readiness directives.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA810510R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 02
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,243,984
Exercised Options: $23,243,984
Current Obligation: $23,243,984
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-10
Current End Date: 2013-04-03
Potential End Date: 2013-04-03 00:00:00
Last Modified: 2013-10-17
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