Air Force awards $69.6M contract for KC-135 Avionics Sustaining Engineering Services to Rockwell Collins
Contract Overview
Contract Amount: $69,634,995 ($69.6M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-05-27
End Date: 2026-09-30
Contract Duration: 1,952 days
Daily Burn Rate: $35.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: KC135 AVIONICS SUSTAINING ENGINEERING SERVICES UCA
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $69.6 million to ROCKWELL COLLINS, INC. for work described as: KC135 AVIONICS SUSTAINING ENGINEERING SERVICES UCA Key points: 1. Contract awarded to a single, established provider for specialized engineering services. 2. Focus on sustaining critical avionics for the KC-135 fleet. 3. Long-term contract duration suggests a need for ongoing support. 4. Potential for cost overruns given the Cost Plus Fixed Fee structure.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. While this can be appropriate for R&D or uncertain scope, it carries a higher risk of cost overruns compared to fixed-price contracts. Benchmarking CPFF contracts for similar engineering services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs than if competitive bids were solicited. The justification for sole-source is not provided but likely relates to specialized knowledge or existing system integration.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential engineering services.
Public Impact
Ensures continued operational readiness of the KC-135 Stratotanker fleet, vital for global logistics and refueling. Supports the sustainment of aging but critical avionics systems, extending their service life. Impacts the Air Force's ability to maintain its strategic airlift and refueling capabilities. Potential for job creation within Rockwell Collins' engineering and technical support divisions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Long contract duration (over 3 years) may not reflect current market efficiencies.
Positive Signals
- Addresses critical sustainment needs for a key military asset.
- Leverages established expertise from a known contractor.
- Provides long-term stability for essential engineering support.
Sector Analysis
This contract falls under Engineering Services within the broader aerospace and defense sector. Spending on sustaining engineering for legacy aircraft like the KC-135 is common and crucial for maintaining operational readiness. Benchmarks for similar sole-source sustaining engineering contracts can vary widely based on system complexity and criticality.
Small Business Impact
The contract was awarded to Rockwell Collins, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight would typically involve contract management teams monitoring performance, costs, and adherence to the contract terms. The sole-source nature warrants scrutiny to ensure fair pricing and necessity.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- CPFF contract type presents a risk of cost overruns.
- Potential for vendor lock-in due to specialized knowledge.
- Long-term contract duration may not reflect evolving technology or market prices.
Tags
engineering-services, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.6 million to ROCKWELL COLLINS, INC.. KC135 AVIONICS SUSTAINING ENGINEERING SERVICES UCA
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 $69.6 million.
What is the period of performance?
Start: 2021-05-27. End: 2026-09-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the need for compatibility with existing systems. Without the specific justification document, it's difficult to assess if alternative solutions, such as competitive bidding for specific engineering tasks or exploring different sustainment strategies, were adequately considered. This lack of transparency can obscure potential cost savings.
How does the Cost Plus Fixed Fee structure compare to industry benchmarks for similar avionics sustaining engineering services, and what controls are in place to mitigate cost overruns?
CPFF contracts are often used when cost estimation is difficult. Benchmarking is challenging without detailed cost breakdowns. Mitigation strategies typically include robust government oversight, detailed cost reporting requirements, and negotiation of realistic fixed fees based on historical data and projected effort. The effectiveness of these controls depends heavily on the diligence of the contracting officer and the transparency of the contractor's cost submissions.
What is the projected impact of these sustaining engineering services on the long-term operational readiness and cost-effectiveness of the KC-135 fleet?
These services are intended to ensure the continued airworthiness and operational capability of the KC-135's avionics systems, directly supporting fleet readiness. The cost-effectiveness hinges on whether the contract price is reasonable compared to the value of maintaining these critical assets and the potential costs of deferring maintenance or replacing the fleet prematurely. Long-term analysis is needed to fully assess the economic benefit.
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: $69,634,995
Exercised Options: $69,634,995
Current Obligation: $69,634,995
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $2,931,033
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: 2021-05-27
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-06-11
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