DoD awards $20.3M for KC-135 production kits, citing sole-source justification
Contract Overview
Contract Amount: $20,316,340 ($20.3M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-03-22
End Date: 2025-09-30
Contract Duration: 923 days
Daily Burn Rate: $22.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KC-135 BLOCK 45 GROUP B PRODUCTION KITS
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $20.3 million to ROCKWELL COLLINS, INC. for work described as: KC-135 BLOCK 45 GROUP B PRODUCTION KITS Key points: 1. Contract awarded to Rockwell Collins, Inc. for specialized production kits. 2. The contract is a firm-fixed-price delivery order, indicating predictable costs. 3. Duration of 923 days suggests a sustained need for these components. 4. No small business set-aside was applied to this procurement. 5. The contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code. 6. Geographic location of the contractor is Iowa.
Value Assessment
Rating: questionable
Benchmarking the value for these specific KC-135 Block 45 Group B production kits is challenging without detailed cost breakdowns or comparisons to similar sole-source procurements. The firm-fixed-price structure provides cost certainty for the government, but the lack of competition raises concerns about whether the price reflects the best possible value. Further analysis would require understanding the unique nature of these kits and the justification for a sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The justification for this approach is not detailed in the provided data. Typically, sole-source awards occur when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The absence of competition means the government did not benefit from price discovery through multiple bids.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding. Without competing the requirement, there is a risk that the price is higher than it would be in a competitive environment.
Public Impact
The primary beneficiaries are the U.S. Air Force, which will receive essential production kits for its KC-135 aircraft. These kits are crucial for maintaining and upgrading the KC-135 fleet, ensuring its continued operational readiness. The services delivered are specialized manufacturing components, directly supporting national defense capabilities. The geographic impact is primarily within the Department of Defense's operational sphere, with potential indirect impacts on the aerospace manufacturing workforce in Iowa.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing.
- Sole-source award limits transparency and potential for cost savings.
- Dependence on a single supplier for critical components can pose supply chain risks.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Award to an established contractor with likely relevant experience.
- Contract supports the sustainment of a critical military asset (KC-135).
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized military aircraft components is often characterized by high barriers to entry, proprietary technology, and a limited number of qualified suppliers, which can lead to sole-source or limited competition procurements. Spending in this sub-sector is driven by defense modernization, sustainment, and upgrade programs for aging fleets like the KC-135.
Small Business Impact
This contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. The award to Rockwell Collins, Inc., a large corporation, suggests that the nature of these production kits requires capabilities typically found in larger aerospace manufacturers. This procurement does not appear to directly benefit the small business ecosystem.
Oversight & Accountability
The provided data does not detail specific oversight mechanisms for this contract. However, as a Department of Defense contract, it would likely fall under the purview of the Department of Defense's internal audit and oversight functions, potentially including the Inspector General. Transparency is limited due to the sole-source nature of the award.
Related Government Programs
- KC-135 Stratotanker Sustainment Programs
- Air Force Aircraft Parts Procurement
- Aerospace Manufacturing Contracts
- Defense Production Kits
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for higher costs due to lack of competition.
- Dependence on a single supplier for critical aircraft components.
Tags
defense, air-force, aircraft-parts, production-kits, rockwell-collins, iowa, sole-source, firm-fixed-price, delivery-order, avionics, kc-135, fleet-sustainment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.3 million to ROCKWELL COLLINS, INC.. KC-135 BLOCK 45 GROUP B PRODUCTION 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 $20.3 million.
What is the period of performance?
Start: 2023-03-22. End: 2025-09-30.
What is the specific function and necessity of the KC-135 Block 45 Group B Production Kits?
The KC-135 Block 45 Group B Production Kits are specialized components required for the upgrade and sustainment of the U.S. Air Force's KC-135 Stratotanker fleet. The KC-135 is a vital aerial refueling tanker and strategic airlift aircraft. Block 45 is a significant upgrade program aimed at modernizing the aircraft's avionics, communication, and navigation systems to meet current and future operational requirements and airspace regulations. These production kits likely contain the specific hardware, software, and integration elements necessary to implement the Block 45 modifications, ensuring the continued safe, effective, and compliant operation of these aging but critical aircraft.
What is Rockwell Collins, Inc.'s track record with the KC-135 program or similar defense contracts?
Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing history of providing avionics, communication, and mission systems for various military aircraft, including the KC-135 Stratotanker. They have been a key player in the modernization efforts for the KC-135 fleet, including previous avionics upgrade programs. Their extensive experience in the aerospace and defense sector, particularly with complex integrated systems and government contracts, suggests a strong capability to deliver the required production kits. Their track record indicates familiarity with the stringent requirements and performance expectations associated with military aviation sustainment and upgrade programs.
How does the $20.3 million award compare to historical spending on similar KC-135 upgrade components?
Comparing the $20.3 million award for these specific production kits to historical spending requires access to detailed historical contract data for KC-135 modernization efforts. However, given the nature of avionics and specialized component upgrades for a fleet of aircraft, this figure appears to be within a reasonable range for a sole-source procurement of this magnitude. Previous KC-135 modernization contracts, such as those for the Block 45 avionics suite, have involved significant investments, often in the tens or hundreds of millions of dollars, depending on the scope and number of aircraft affected. Without specific comparative data points for 'Group B Production Kits,' a precise benchmark is difficult, but the amount reflects the complexity and specialized nature of military aircraft upgrades.
What are the primary risks associated with this sole-source contract, and how are they mitigated?
The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition, which could lead to reduced value for taxpayer money. Another risk is supply chain vulnerability, as the Air Force is dependent on a single contractor, Rockwell Collins, Inc., for these critical components. Mitigation strategies are not explicitly detailed in the provided data but typically involve rigorous government cost analysis, negotiation, and close monitoring of contract performance. The firm-fixed-price structure helps mitigate cost overrun risks for the government once the contract is awarded. The long-term sustainment of the KC-135 fleet also implies a strategic relationship where the government may have leverage in future negotiations or alternative sourcing strategies.
What is the expected impact of these production kits on the operational effectiveness and lifespan of the KC-135 fleet?
The KC-135 Block 45 Group B Production Kits are expected to significantly enhance the operational effectiveness and extend the lifespan of the KC-135 Stratotanker fleet. The Block 45 upgrade focuses on modernizing the aircraft's avionics, including navigation, communication, and surveillance systems. This modernization is crucial for maintaining compliance with evolving air traffic control regulations (e.g., NextGen in the U.S.), improving situational awareness for flight crews, and enhancing interoperability with other military and civilian assets. By upgrading these critical systems, the Air Force ensures the KC-135 can continue to perform its vital aerial refueling and airlift missions safely and effectively for decades to come, delaying the need for a costly replacement fleet.
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: 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: $20,316,340
Exercised Options: $20,316,340
Current Obligation: $20,316,340
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810515D0002
IDV Type: IDC
Timeline
Start Date: 2023-03-22
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-06-11
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