DoD awards $22.1M for KC-135 avionics sustaining engineering, with limited competition
Contract Overview
Contract Amount: $22,155,527 ($22.2M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-07-11
End Date: 2022-05-31
Contract Duration: 1,420 days
Daily Burn Rate: $15.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: KC135 AVIONICS SUSTAINING ENGINEERING SERVICES
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $22.2 million to ROCKWELL COLLINS, INC. for work described as: KC135 AVIONICS SUSTAINING ENGINEERING SERVICES Key points: 1. Contract focuses on essential engineering services for aging KC-135 aircraft. 2. Sole-source award raises questions about price competitiveness and value. 3. Long contract duration (over 3 years) suggests a need for sustained support. 4. Engineering services are critical for maintaining the operational readiness of strategic assets. 5. The award falls within the broader defense sector's significant spending on aircraft sustainment.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without detailed cost breakdowns and comparisons to similar sole-source engineering support contracts. The fixed-fee structure provides some cost control, but the lack of competition limits the government's ability to negotiate the most favorable pricing. Given the specialized nature of sustaining engineering for legacy aircraft, costs may be higher than for more common services. Further analysis of historical pricing trends for Rockwell Collins on similar contracts would be beneficial.
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 approach is typically used when a unique capability or proprietary technology is required, or in situations where only one responsible source can fulfill the requirement. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This necessitates robust oversight to ensure the awarded price is fair and reasonable.
Public Impact
The U.S. Air Force benefits from continued operational readiness of its KC-135 Stratotanker fleet. Essential engineering services ensure the airworthiness and longevity of critical military aircraft. The contract supports specialized engineering jobs, likely within Rockwell Collins' facilities. Geographic impact is primarily tied to the locations of Rockwell Collins' engineering centers and potentially Air Force bases requiring support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in higher costs for taxpayers.
- Sole-source nature limits opportunities for other qualified vendors.
- Long-term sustainment contracts can sometimes lack flexibility for evolving needs.
Positive Signals
- Ensures continued operational capability of a vital strategic asset.
- Leverages specialized engineering expertise for complex avionics systems.
- Provides stability for critical aircraft maintenance and upgrades.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment and engineering services. The market for such services is characterized by long-term relationships between defense contractors and the government, often involving proprietary technology and specialized knowledge. Spending on aircraft sustainment is a significant portion of the Department of Defense budget, aimed at maintaining the readiness of aging fleets.
Small Business Impact
This contract was not set aside for small businesses, nor is there an indication of significant subcontracting opportunities for small businesses within the provided data. The sole-source nature of the award further limits the potential for small business participation. This contract primarily benefits the large prime contractor, Rockwell Collins, Inc.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and conditions. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs to ensure they remain within the agreed-upon fixed fee. Transparency is generally maintained through contract reporting mechanisms, though specific details of cost and performance may be less accessible due to the sole-source nature.
Related Government Programs
- KC-135 Stratotanker Maintenance and Repair
- Aerospace Engineering Services
- Avionics Systems Support
- Department of Defense Aircraft Sustainment Programs
Risk Flags
- Sole-source award
- Potential for cost overruns
- Long contract duration
Tags
defense, department-of-defense, rockwell-collins, kc-135, avionics, sustaining-engineering, sole-source, engineering-services, cost-plus-fixed-fee, aircraft-maintenance, legacy-aircraft, iowa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to ROCKWELL COLLINS, INC.. KC135 AVIONICS SUSTAINING ENGINEERING SERVICES
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 $22.2 million.
What is the period of performance?
Start: 2018-07-11. End: 2022-05-31.
What is the historical spending trend for KC-135 avionics sustaining engineering services with Rockwell Collins?
Analyzing historical spending requires access to past contract awards and modifications for KC-135 avionics sustaining engineering services specifically with Rockwell Collins, Inc. Without this granular data, it's difficult to establish a precise trend. However, given the age of the KC-135 fleet (first operational in 1957), it is reasonable to infer that sustaining engineering services have been a consistent requirement for decades. The current $22.1 million award represents a specific period of support (July 2018 - May 2022). To understand trends, one would need to examine the total obligated amounts, contract durations, and the nature of services provided across multiple contract vehicles over time. This would help determine if spending has been increasing, decreasing, or remaining stable, and whether the scope of work has evolved.
How does the pricing of this contract compare to similar sole-source engineering support contracts within the DoD?
Direct comparison of pricing for this sole-source contract is challenging without access to detailed cost breakdowns and a benchmark of similar sole-source contracts for specialized engineering services. Sole-source awards inherently lack the price discovery mechanism of competition. However, the Cost Plus Fixed Fee (CPFF) structure suggests that while Rockwell Collins is reimbursed for its allowable costs, the profit (fixed fee) is predetermined. To assess value, one would need to compare the fixed fee percentage and the total cost against the scope of work and compare it to industry standards for similar sole-source sustainment engineering contracts. Factors like the complexity of the avionics, the criticality of the KC-135, and the specific technical challenges involved would influence pricing. A thorough review would involve benchmarking against other sole-source contracts for legacy aircraft sustainment within the DoD, considering the specific services rendered.
What are the primary risks associated with a sole-source award for critical aircraft sustainment?
The primary risk associated with a sole-source award for critical aircraft sustainment, such as the KC-135 avionics, is the potential for inflated costs due to the absence of competitive bidding. Without market pressure, the contractor may have less incentive to offer the most cost-effective solutions. Another significant risk is vendor lock-in, where the government becomes overly reliant on a single provider, potentially limiting future flexibility and innovation. Furthermore, if the sole-source contractor experiences financial difficulties or operational issues, it could directly impact the sustainment of critical assets, leading to readiness gaps. Ensuring fair pricing and robust oversight becomes paramount in sole-source situations to mitigate these risks.
What is Rockwell Collins' track record in providing sustaining engineering services for military aircraft?
Rockwell Collins (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing and extensive track record in providing avionics and sustainment engineering services for numerous military aircraft platforms, including the KC-135. Their history includes developing, manufacturing, and supporting complex electronic systems for a wide range of defense applications. The company has consistently been a key supplier to the Department of Defense for decades, indicating a deep understanding of military requirements and sustainment needs. Their involvement in sustaining engineering suggests a capability to manage obsolescence, implement upgrades, and ensure the continued operational effectiveness of aging avionics systems, which is crucial for platforms like the KC-135.
How does the duration of this contract (1420 days) impact the overall value and risk for the government?
The contract duration of 1420 days (approximately 3.9 years) for KC-135 avionics sustaining engineering services provides the government with long-term stability and ensures continuous support for a critical asset. This extended period allows for a deeper integration of the contractor's expertise into the sustainment process, potentially leading to more efficient operations and proactive problem-solving. From a risk perspective, a longer duration can mitigate the risks associated with frequent re-competition and transition periods, which can be costly and disruptive. However, it also increases the government's exposure to potential cost increases over time if not managed effectively, and reinforces the risk of vendor lock-in. The CPFF structure necessitates diligent oversight throughout the contract's life to ensure costs remain reasonable and performance objectives are met.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
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: $22,155,527
Exercised Options: $22,155,527
Current Obligation: $22,155,527
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $4,715,658
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810516D0001
IDV Type: IDC
Timeline
Start Date: 2018-07-11
Current End Date: 2022-05-31
Potential End Date: 2023-04-23 00:00:00
Last Modified: 2025-06-23
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