DoD's $48M KC-135 upgrade contract awarded to Rockwell Collins for GATM configuration

Contract Overview

Contract Amount: $48,170,479 ($48.2M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-06-10

End Date: 2017-04-02

Contract Duration: 1,392 days

Daily Burn Rate: $34.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UPGRADE OF THE FRENCH KC-135 FLEET TO THE GATM CONFIGURATION

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $48.2 million to ROCKWELL COLLINS, INC. for work described as: UPGRADE OF THE FRENCH KC-135 FLEET TO THE GATM CONFIGURATION Key points: 1. The contract value of $48.17 million for the KC-135 fleet upgrade represents a significant investment in enhancing aerial refueling capabilities. 2. Awarded to Rockwell Collins, the contract highlights the importance of specialized avionics and communication systems for military aircraft. 3. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the procurement process and potential missed opportunities for competitive pricing. 4. The firm-fixed-price contract type suggests that cost risks are primarily borne by the contractor, providing budget certainty for the government. 5. The duration of the contract (1392 days) indicates a substantial project timeline for the upgrade and integration of the GATM configuration. 6. The absence of small business involvement suggests this specialized upgrade may not have been suitable for set-aside programs.

Value Assessment

Rating: fair

Benchmarking the value of this specific upgrade is challenging without comparable contract data for the KC-135 fleet's GATM configuration. The total award of $48.17 million appears substantial for avionics and communication system upgrades. However, without detailed cost breakdowns or comparisons to similar fleet modernization efforts, it's difficult to definitively assess value for money. The firm-fixed-price nature provides cost predictability, but the lack of competition could have led to a higher price than a competed contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when urgent needs cannot be met through competitive means. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price and potentially explore innovative solutions from a wider range of suppliers.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing the requirement, there is less assurance that the government secured the best possible price for the upgrade.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel who operate the KC-135 Stratotanker fleet, receiving enhanced operational capabilities. The contract delivers the GATM (Global Air Traffic Management) configuration, improving navigation, communication, and situational awareness for the aircraft. This upgrade impacts the operational readiness and effectiveness of the U.S. Air Force's strategic airlift and aerial refueling capabilities. The successful implementation of the GATM configuration will support global military operations by ensuring more reliable and efficient air-to-air refueling missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in if GATM configuration is proprietary or requires specialized support.
Limited visibility into the specific performance metrics and success criteria for the upgrade.
No indication of small business participation, potentially missing opportunities for economic inclusion.

Positive Signals

Firm-fixed-price contract provides budget certainty for the Department of Defense.
Award to Rockwell Collins, a known entity in aerospace and defense, suggests a level of technical confidence.
Upgrade addresses critical operational needs for the KC-135 fleet's long-term viability.
Contract duration suggests a comprehensive and thorough implementation process.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government procurement. Contracts for aircraft modifications, such as avionics upgrades, are common and often involve specialized components and integration services. Rockwell Collins is a well-established player in this market, providing communication, navigation, and avionics systems. The market for such upgrades is often influenced by technological advancements, regulatory changes (like GATM requirements), and the lifecycle of existing military platforms. Spending in this area is critical for maintaining the operational effectiveness of aging fleets.

Small Business Impact

This contract does not appear to have involved small business set-asides, as indicated by 'sb': false. The nature of the upgrade, likely requiring specialized avionics and integration expertise, may have limited the opportunities for small businesses to participate as prime contractors. There is no information provided on subcontracting plans, so the extent of small business involvement in lower-tier roles remains unknown. This suggests that the primary focus was on securing the specific technological capabilities offered by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm-fixed-price contract type provides a degree of financial oversight by fixing the total cost. However, the sole-source nature of the award means that oversight efforts would focus more on ensuring the contractor meets the technical specifications and delivery schedule rather than on negotiating the best price. Transparency regarding the specific oversight activities and performance reviews is limited in the provided data.

Related Government Programs

KC-135 Stratotanker Fleet Modernization Programs
Airborne Communication and Navigation System Upgrades
Department of Defense Avionics Procurement
Global Air Traffic Management (GATM) Implementation

Risk Flags

Sole-source award may result in higher costs.
Lack of competitive bidding limits price discovery.
Potential for vendor lock-in for future support.
Limited public information on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.2 million to ROCKWELL COLLINS, INC.. UPGRADE OF THE FRENCH KC-135 FLEET TO THE GATM CONFIGURATION

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 $48.2 million.

What is the period of performance?

Start: 2013-06-10. End: 2017-04-02.

What is Rockwell Collins' track record with similar large-scale military aircraft upgrade contracts, particularly involving avionics and communication systems?

Rockwell Collins, now part of Collins Aerospace (a Raytheon Technologies company), has a long and extensive history of providing avionics, communication, and navigation systems for military aircraft. They have been a key supplier for numerous upgrade programs across various platforms, including the C-130, B-1, B-2, and various fighter jets. Their experience includes integrating complex systems like flight management systems, communication radios, navigation equipment, and cockpit displays. For the KC-135 specifically, Rockwell Collins has been involved in previous upgrades. Their track record generally indicates a strong capability in delivering sophisticated avionics solutions, though the success and cost-effectiveness of any specific large contract can vary based on program management, technical challenges, and evolving requirements.

How does the $48.17 million contract value compare to other major avionics upgrade programs for similar aircraft types?

Comparing the $48.17 million value directly to other major avionics upgrade programs requires careful consideration of scope, aircraft type, and technological complexity. For a fleet-wide upgrade of a strategic asset like the KC-135, this figure appears within a reasonable range for significant avionics and communication system modernization. For instance, upgrades to other large transport or tanker aircraft can range from tens to hundreds of millions of dollars, depending on the extent of modernization (e.g., glass cockpit, new communication suites, enhanced navigation). However, without knowing the exact number of aircraft upgraded under this contract and the specific GATM components installed, a precise benchmark is difficult. The sole-source nature also complicates direct value comparison, as competed programs often yield different price points.

What are the primary risks associated with a sole-source award for a critical aircraft upgrade like the KC-135 GATM configuration?

The primary risks associated with a sole-source award for the KC-135 GATM configuration upgrade include: 1. **Higher Costs:** Without competition, the government may pay a premium compared to what could have been achieved through a competitive bidding process. The contractor has less incentive to offer the lowest possible price. 2. **Limited Innovation:** A sole-source award can stifle innovation by excluding other potential vendors who might offer alternative, more cost-effective, or technologically superior solutions. 3. **Vendor Lock-in:** The government may become dependent on the sole-source provider for future upgrades, maintenance, and support, potentially leading to higher long-term costs and reduced flexibility. 4. **Reduced Transparency:** The justification for a sole-source award needs to be robust, and a lack of transparency in this process can raise concerns about fairness and efficiency.

What specific performance improvements does the GATM configuration bring to the KC-135 fleet, and how are these measured?

The Global Air Traffic Management (GATM) configuration aims to enhance the KC-135 fleet's ability to operate within evolving global air traffic control systems. Key performance improvements typically include: Enhanced Navigation: Integration of modern GPS and inertial navigation systems for more precise positioning and adherence to air routes. Improved Communication: Upgraded radios and data links to meet new communication standards (e.g., CPDLC - Controller-Pilot Data Link Communications) for more efficient and secure voice and data exchange with air traffic control. Increased Situational Awareness: Advanced displays and systems that provide pilots with better real-time information about their aircraft's position, surrounding traffic, and weather. Performance measurement would likely involve meeting specific technical specifications outlined in the contract, successful flight testing, achieving required certifications from aviation authorities, and demonstrating compliance with GATM standards during operational missions.

What has been the historical spending trend for KC-135 fleet upgrades or similar avionics modernization efforts by the Department of Defense?

Historical spending on KC-135 fleet upgrades and similar avionics modernization efforts by the Department of Defense has been substantial and ongoing, reflecting the long service life of the platform. The KC-135, first introduced in the late 1950s, has undergone numerous upgrades over the decades to maintain its operational relevance. These include engine retrofits (like the CFM56 engines), structural reinforcements, and various avionics modernization programs. Spending on avionics alone can run into the hundreds of millions of dollars over the life cycle of the fleet, especially when incorporating new communication, navigation, and surveillance technologies to meet evolving military and civilian air traffic management requirements. The GATM upgrade represents one such significant investment in extending the capability and lifespan of this critical asset.

Are there any known issues or concerns regarding Rockwell Collins' past performance on Department of Defense contracts, particularly those involving sole-source awards?

Information regarding specific performance issues or concerns with Rockwell Collins (now Collins Aerospace) on sole-source Department of Defense contracts is not readily available in public databases without extensive research into contract performance reports and potential disputes. Generally, large defense contractors like Rockwell Collins have a complex history with the DoD, involving both successful contract completions and occasional challenges related to cost overruns, schedule delays, or technical performance. Sole-source awards, by their nature, can sometimes attract scrutiny if the justification is weak or if performance issues arise, as there are fewer recourse options compared to competed contracts. However, without specific documented issues related to this particular contract or similar sole-source awards by Rockwell Collins, it's difficult to assess past performance risks definitively.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA810513R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 52498

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,170,479

Exercised Options: $48,170,479

Current Obligation: $48,170,479

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $12,167,343

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline