Air Force awards $28.1M for KC-135 modification kits, citing sole-source justification

Contract Overview

Contract Amount: $28,109,664 ($28.1M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-06-03

End Date: 2021-06-02

Contract Duration: 364 days

Daily Burn Rate: $77.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: KC-135 BLOCK 45 GROUP B KITS

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to ROCKWELL COLLINS, INC. for work described as: KC-135 BLOCK 45 GROUP B KITS Key points: 1. Contract awarded to Rockwell Collins, Inc. for specialized modification kits. 2. The contract is a sole-source award, raising questions about competition. 3. Delivery order issued under an existing contract, suggesting a continuation of services. 4. The contract duration is one year, aligning with the delivery of specific kits. 5. The award falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 6. The fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: fair

The contract value of $28.1 million for KC-135 modification kits appears to be a significant investment. Without direct comparable contract data for this specific kit type, it is difficult to definitively benchmark the value. However, the sole-source nature of the award means that a competitive bidding process was not utilized, which typically leads to higher prices than if multiple vendors had competed. Further analysis would require understanding the unique nature of these kits and the market for such specialized aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Rockwell Collins, Inc. The data indicates it was 'NOT COMPETED'. This means that the Air Force did not solicit bids from multiple vendors. Sole-source awards are typically justified when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or existing system integration. The lack of competition limits price discovery and may result in a higher cost to the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the U.S. Air Force and its KC-135 Stratotanker fleet, ensuring operational readiness. The services delivered involve the provision of specialized modification kits for aircraft. The geographic impact is likely centered around Air Force bases where KC-135s are operated and maintained. Workforce implications may include specialized technicians for installation and maintenance of the modified aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-source award requires further scrutiny.
Reliance on a single supplier could create future supply chain risks.
The specific nature of the 'Block 45 Group B Kits' is not detailed, hindering independent value assessment.

Positive Signals

The contract is a firm-fixed-price award, providing cost certainty for the government.
The award is a delivery order against an existing contract, suggesting a pre-established relationship and potentially streamlined process.
The kits are for the KC-135, a critical asset for Air Mobility Command, indicating a focus on essential operational capabilities.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and modifications. The market for specialized aircraft components, particularly for legacy platforms like the KC-135, can be niche. Rockwell Collins, Inc. is a known supplier in this space. While the total market size for KC-135 modification kits is not readily available, spending on aircraft parts and maintenance for the U.S. Air Force represents a significant portion of the defense budget, often in the billions annually.

Small Business Impact

The data indicates that this contract was not competed and does not appear to have a small business set-aside component (sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The primary contractor, Rockwell Collins, Inc., is a large business. The absence of a set-aside means that opportunities for small businesses to participate in this specific contract are limited.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, the justification for this procurement method would be subject to review. Transparency regarding the specific technical requirements and the rationale for sole-sourcing is crucial for accountability. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

KC-135 Stratotanker Sustainment Programs
Air Force Aircraft Parts Procurement
Defense Logistics Agency (DLA) Aviation Support
Avionics and Aircraft Systems Modernization Contracts

Risk Flags

Sole-source award requires strong justification.
Lack of competition may lead to suboptimal pricing.
Need for detailed technical specifications of the kits.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to ROCKWELL COLLINS, INC.. KC-135 BLOCK 45 GROUP B KITS

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 $28.1 million.

What is the period of performance?

Start: 2020-06-03. End: 2021-06-02.

What is the specific function and technical necessity of the 'KC-135 BLOCK 45 GROUP B KITS' that justifies a sole-source award?

The 'KC-135 BLOCK 45 GROUP B KITS' likely refer to specific upgrade or modification packages for the KC-135 Stratotanker aircraft, potentially related to avionics, communication systems, or structural enhancements under the 'Block 45' program. The justification for a sole-source award typically stems from proprietary technology, unique integration requirements with existing systems, or the contractor being the sole authorized provider of these specific kits. Without detailed technical specifications or the official justification document (e.g., Justification and Approval - J&A), it's difficult to ascertain the precise necessity. However, such modifications are often critical for maintaining operational effectiveness, ensuring compliance with evolving regulations, or extending the service life of aging aircraft platforms like the KC-135.

How does the $28.1 million contract value compare to historical spending on similar KC-135 modification kits?

Direct comparison of this $28.1 million award for 'KC-135 BLOCK 45 GROUP B KITS' to historical spending is challenging without more granular data on previous kit procurements. The 'Block 45' designation suggests a specific upgrade phase, and the 'Group B' might indicate a subset of components or a particular iteration. Historical spending on KC-135 sustainment and modernization is substantial, often running into hundreds of millions or billions annually across various contracts. However, the value of individual modification kits can vary significantly based on their complexity and scope. Given this is a sole-source award, a price comparison against competitively procured similar items would be ideal but is not possible here. Benchmarking would require access to detailed contract histories for specific KC-135 upgrade packages.

What are the potential risks associated with awarding this contract on a sole-source basis to Rockwell Collins, Inc.?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Taxpayers may not be receiving the best possible value for their money. Another significant risk is vendor lock-in; the Air Force becomes dependent on Rockwell Collins for these specific kits, potentially limiting future flexibility and increasing long-term sustainment costs. There's also a risk of reduced innovation, as the absence of competition may lessen the incentive for the contractor to develop more cost-effective or advanced solutions. Furthermore, reliance on a single supplier can create supply chain vulnerabilities, especially if Rockwell Collins faces production issues or business disruptions.

What is Rockwell Collins, Inc.'s track record with the Department of Defense, particularly for KC-135 related contracts?

Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing and extensive track record of providing avionics, communication systems, and other technology solutions to the Department of Defense (DoD) across various platforms, including the KC-135. They are a major defense contractor known for its expertise in integrated flight decks, navigation systems, and communication suites. Their involvement with the KC-135 program likely spans decades, encompassing upgrades, maintenance, and the supply of various components. While this specific award is for 'Block 45 Group B Kits,' their broader history suggests a deep understanding of the KC-135's systems and the DoD's requirements. Past performance reviews and contract databases would provide more specific details on their delivery and performance history for the Air Force.

How does this contract fit into the broader modernization or sustainment strategy for the KC-135 fleet?

This contract for 'KC-135 BLOCK 45 GROUP B KITS' is likely a component of the Air Force's ongoing strategy to modernize and sustain its aging KC-135 Stratotanker fleet. The KC-135, first introduced in the late 1950s, requires continuous upgrades to maintain its operational relevance and safety. The 'Block 45' program, in particular, has focused on enhancing the aircraft's communication, navigation, and surveillance (CNS) capabilities to meet future air traffic management requirements and improve interoperability. These kits probably represent specific hardware or software installations necessary to achieve the objectives of the Block 45 upgrade, ensuring the fleet can continue to perform its critical air refueling and airlift missions effectively for years to come.

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

Solicitation ID: FA810515R0006

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: $28,109,664

Exercised Options: $28,109,664

Current Obligation: $28,109,664

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810515D0002

IDV Type: IDC

Timeline