DoD Awards $27.4M for KC-135 Production Kits to Rockwell Collins, Lacking Competition
Contract Overview
Contract Amount: $27,424,068 ($27.4M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-06-28
End Date: 2020-06-28
Contract Duration: 366 days
Daily Burn Rate: $74.9K/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 $27.4 million to ROCKWELL COLLINS, INC. for work described as: KC-135 BLOCK 45 GROUP B PRODUCTION KIT Key points: 1. Significant award for aircraft parts, highlighting a specific defense program. 2. Sole-source award to Rockwell Collins raises questions about competitive pricing. 3. Potential risk associated with limited competition and lack of price discovery. 4. Sector context is defense manufacturing, specifically aircraft parts.
Value Assessment
Rating: questionable
The award of $27.4 million for production kits appears to be a significant investment. Without competitive bidding, it is difficult to assess if this price represents fair market value compared to similar contracts or alternative solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for these essential aircraft parts.
Public Impact
Impacts the operational readiness of the KC-135 fleet. Affects the defense industrial base by awarding to a single supplier. Raises concerns about government procurement practices and cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Supports critical defense asset (KC-135)
- Awarded to established defense contractor
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation capabilities. Benchmarks are difficult to establish without competitive data.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses could have competed for this requirement.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency. Oversight effectiveness is difficult to gauge without knowing the justification for the sole-source award and any price negotiation strategies employed.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of market pressure.
- Dependency on a single supplier for critical components.
- Lack of transparency regarding the justification for sole-sourcing.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.4 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 $27.4 million.
What is the period of performance?
Start: 2019-06-28. End: 2020-06-28.
What was the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without this specific justification, it's impossible to assess the necessity. Fair and reasonable pricing in sole-source contracts often relies on historical pricing, cost analysis, or comparison to similar, albeit not identical, market data. The absence of competition inherently weakens the government's negotiating position.
What is the potential risk to the KC-135 program if Rockwell Collins faces production issues or significantly increases prices in future orders?
A sole-source award creates significant program risk. If Rockwell Collins experiences production delays or quality issues, the KC-135 program could face operational disruptions. Furthermore, without competitive pressure, Rockwell Collins may have less incentive to control costs, potentially leading to price increases that strain the defense budget and impact the program's long-term affordability.
How does this sole-source award impact the overall effectiveness of the Department of Defense's procurement strategy for aircraft parts?
Sole-source awards, when used sparingly and with strong justification, can be effective for specialized needs. However, frequent sole-source awards, like this one, can undermine the overall effectiveness of the DoD's procurement strategy by reducing competition, potentially leading to higher costs and less innovation. It suggests a potential over-reliance on specific vendors, which can be a strategic vulnerability.
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
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: $27,424,068
Exercised Options: $27,424,068
Current Obligation: $27,424,068
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810515D0002
IDV Type: IDC
Timeline
Start Date: 2019-06-28
Current End Date: 2020-06-28
Potential End Date: 2020-06-28 00:00:00
Last Modified: 2020-06-17
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