DoD awards $22.8M for KC-135 production kits, with limited competition and no small business set-aside
Contract Overview
Contract Amount: $22,861,113 ($22.9M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-03-30
End Date: 2017-12-26
Contract Duration: 636 days
Daily Burn Rate: $35.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KC-135 BLOCK 45 GROUP B PRODUCTION KIT
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $22.9 million to ROCKWELL COLLINS, INC. for work described as: KC-135 BLOCK 45 GROUP B PRODUCTION KIT Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined cost expectations. 2. Sole-source award suggests potential for higher pricing due to lack of competition. 3. No small business participation noted, potentially limiting broader economic impact. 4. Contract duration of 636 days for delivery orders. 5. Focus on aircraft parts manufacturing aligns with broader defense sustainment needs. 6. Awarded by the Defense Contract Management Agency, indicating oversight within the DoD. 7. The specific production kit (Block 45 Group B) points to a defined upgrade or modification.
Value Assessment
Rating: fair
The contract value of $22.8 million for production kits is moderate for defense procurements. Without specific benchmarks for this particular kit, it's difficult to definitively assess value for money. However, the sole-source nature raises concerns about potential overpricing compared to a competitive environment. The firm-fixed-price structure provides cost certainty for the government, but the absence of competitive pressure may have inflated the unit costs.
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, Inc., was solicited. This significantly limits the opportunity for price discovery and potentially leads to higher costs for the government. The justification for a sole-source award would need to be examined to understand if there were unique capabilities or circumstances that precluded full and open competition.
Taxpayer Impact: Sole-source awards generally mean taxpayers may not be receiving the best possible price due to the lack of competitive bidding.
Public Impact
The primary beneficiaries are the U.S. Air Force's KC-135 Stratotanker fleet, ensuring continued operational readiness. Services delivered include the production of specific kits for aircraft modification or upgrade. Geographic impact is primarily within the defense industrial base, with potential for Rockwell Collins' facilities in Iowa to be involved. Workforce implications include skilled labor in aerospace manufacturing and engineering at the contractor's facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
- Lack of small business participation means missed opportunities for smaller firms in the defense supply chain.
- Reliance on a single source for critical production kits could pose a supply chain risk if the contractor faces disruptions.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Award supports the sustainment and modernization of a critical military asset (KC-135).
- Contracting through the Defense Contract Management Agency ensures a level of oversight.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and components. The market for such specialized production kits is often concentrated among a few key suppliers due to high technical barriers to entry and proprietary technology. Spending in this area is critical for maintaining the operational readiness and modernization of aging military fleets like the KC-135.
Small Business Impact
This contract did not include a small business set-aside, nor does it appear to have provisions for small business subcontracting based on the provided data. This means that opportunities for small businesses to participate in this specific procurement were not prioritized. Consequently, the broader small business ecosystem within the aerospace manufacturing sector may not benefit from this particular award.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm-fixed-price nature of the contract provides a degree of accountability regarding cost. Transparency is generally facilitated through contract databases, but the specific justification for the sole-source award would be a key area for detailed review.
Related Government Programs
- KC-135 Stratotanker Sustainment Programs
- DoD Aircraft Component Production
- Aerospace Manufacturing Contracts
- Defense Production Kits
Risk Flags
- Sole Source Justification
- Potential for Cost Overruns
- Lack of Small Business Participation
Tags
defense, department-of-defense, rockwell-collins, kc-135, production-kit, sole-source, firm-fixed-price, aircraft-parts, iowa, defense-contract-management-agency, block-45
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.9 million to ROCKWELL COLLINS, INC.. KC-135 BLOCK 45 GROUP B PRODUCTION KIT
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 $22.9 million.
What is the period of performance?
Start: 2016-03-30. End: 2017-12-26.
What is the specific technical capability or justification for awarding this contract on a sole-source basis to Rockwell Collins, Inc.?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the lack of adequate competition within a reasonable timeframe. For the KC-135 Block 45 Group B production kit, Rockwell Collins (now part of Collins Aerospace) likely possesses specialized knowledge, existing tooling, or intellectual property related to this specific upgrade or modification. Without access to the official Justification and Approval (J&A) document, the precise reasons remain speculative. However, such justifications are crucial for ensuring that sole-source awards are only used when truly necessary and that taxpayers are not disadvantaged by the absence of competition.
How does the $22.8 million contract value compare to historical spending on similar KC-135 modernization or production kits?
Comparing the $22.8 million award for the KC-135 Block 45 Group B production kit to historical spending requires access to detailed procurement data for similar items. The KC-135 is a long-serving aircraft, and various upgrades and modifications have been undertaken over its lifespan. Without specific data points on the cost of previous production kits for different blocks or similar systems, a direct comparison is challenging. However, given the sole-source nature, it is reasonable to infer that the cost might be higher than if it had been competitively procured. Analyzing trends in sustainment and modernization spending for the KC-135 fleet would provide broader context.
What are the potential risks associated with a sole-source award for critical aircraft production kits?
Sole-source awards for critical components like production kits carry several risks. Primarily, the lack of competition can lead to inflated prices, meaning taxpayers may pay more than necessary. There's also a reduced incentive for the sole provider to innovate or improve efficiency, as they face no direct market pressure. Furthermore, reliance on a single supplier can create supply chain vulnerabilities; if the contractor experiences production issues, delays, or financial instability, it could significantly impact the operational readiness of the KC-135 fleet. This also limits the government's leverage in negotiating terms and conditions.
What is Rockwell Collins' track record with the KC-135 program and similar defense contracts?
Rockwell Collins, now part of Collins Aerospace, has a long-standing history of providing avionics, communication, and other systems for various military aircraft, including the KC-135 Stratotanker. They have been involved in upgrades and modifications for the KC-135 fleet over the years. Their track record generally includes successful delivery of complex systems within the defense sector. However, specific performance metrics, past issues, or controversies related to their KC-135 contracts would require a deeper dive into contract performance databases and historical records. The current sole-source award suggests a continued reliance on their specific expertise for this particular kit.
What is the expected impact of these production kits on the operational effectiveness and lifespan of the KC-135 fleet?
The 'Block 45 Group B' designation suggests a specific upgrade or modification package intended to enhance the capabilities or maintain the airworthiness of the KC-135 Stratotanker. These kits likely address obsolescence issues, improve avionics, enhance communication systems, or incorporate other technological advancements. Such upgrades are crucial for extending the operational lifespan of aging aircraft platforms and ensuring they can meet current and future mission requirements. The specific impact would depend on the exact nature of the Block 45 Group B modifications, but generally, they contribute to improved reliability, safety, and potentially new mission capabilities for the fleet.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $307,807,461
Exercised Options: $307,807,461
Current Obligation: $22,861,113
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810515D0002
IDV Type: IDC
Timeline
Start Date: 2016-03-30
Current End Date: 2017-12-26
Potential End Date: 2017-12-26 00:00:00
Last Modified: 2019-08-08
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