DoD Awards $177M to Rockwell Collins for KC-135 MUOS Program, Sole-Source Contract
Contract Overview
Contract Amount: $17,714,945 ($17.7M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-02-17
End Date: 2025-12-24
Contract Duration: 1,406 days
Daily Burn Rate: $12.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: KC-135 MOBILE USER OBJECTIVE SYSTEM (MUOS) PROGRAM EA# RC21-004-135SWK
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $17.7 million to ROCKWELL COLLINS, INC. for work described as: KC-135 MOBILE USER OBJECTIVE SYSTEM (MUOS) PROGRAM EA# RC21-004-135SWK Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award raises questions about competition and price. 3. Long contract duration (2025) suggests ongoing program needs. 4. Focus on IT and engineering services within the Defense sector.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the $177M price is optimal.
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 increases costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract suggests critical, ongoing support for the KC-135 fleet. Potential for cost overruns inherent in Cost Plus Fixed Fee contracts requires close monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing due to no competition
Positive Signals
- Essential support for critical military aircraft
- Long-term commitment indicates program stability
Sector Analysis
This contract falls under Engineering Services within the Defense sector, specifically supporting the KC-135 aircraft's Mobile User Objective System (MUOS) program. Spending in this area is critical for maintaining aging military assets and integrating new technologies.
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 this specific award notice.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of the Air Force to ensure costs are reasonable and performance meets objectives. Robust auditing of the Cost Plus Fixed Fee structure is essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Limited transparency on pricing
- Long contract duration without clear exit strategy for competition
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 $17.7 million to ROCKWELL COLLINS, INC.. KC-135 MOBILE USER OBJECTIVE SYSTEM (MUOS) PROGRAM EA# RC21-004-135SWK
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 $17.7 million.
What is the period of performance?
Start: 2022-02-17. End: 2025-12-24.
What specific technical challenges or unique capabilities justify a sole-source award for the KC-135 MUOS program?
A sole-source award typically implies that only one vendor possesses the necessary proprietary knowledge, technology, or capability to fulfill the requirement. For the KC-135 MUOS program, this could relate to highly specialized integration of the MUOS system with the aircraft's existing avionics and communication systems, potentially requiring unique intellectual property or extensive prior development by Rockwell Collins.
How will the Department of Defense ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded without competition?
The DoD must implement stringent oversight mechanisms, including detailed cost audits, performance monitoring, and regular reviews of the contractor's financial records. Establishing clear performance metrics and milestones tied to fee achievement can incentivize efficiency. Benchmarking against similar services, even if not directly competitive, can also help identify potential cost anomalies.
What is the long-term strategy for ensuring competitive sourcing for future MUOS program needs or related upgrades?
The DoD should explore options for breaking down future requirements into smaller, more competitive packages or developing alternative solutions that could foster competition. Conducting market research to identify potential new entrants or alternative technologies is crucial. If sole-source remains necessary, a clear justification and plan for eventual competition or technology refresh should be documented.
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: $19,508,934
Exercised Options: $19,508,934
Current Obligation: $17,714,945
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $421,804
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: 2022-02-17
Current End Date: 2025-12-24
Potential End Date: 2025-12-24 00:00:00
Last Modified: 2025-09-16
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