DoD's $11.65M KC-135 Satellite Program Awarded to Rockwell Collins Under Full and Open Competition

Contract Overview

Contract Amount: $11,653,605 ($11.7M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-28

End Date: 2027-01-01

Contract Duration: 856 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: KC-135 AERO-I SATELLITE REPLACEMENT PROGRAM

Place of Performance

Location: ROCKY MOUNT, NASH County, NORTH CAROLINA, 27804

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to ROCKWELL COLLINS, INC. for work described as: KC-135 AERO-I SATELLITE REPLACEMENT PROGRAM Key points: 1. The $11.65 million contract for KC-135 AERO-I satellite replacement signifies a critical upgrade for aging aircraft. 2. Awarded to Rockwell Collins, Inc., the contract highlights the company's role in specialized aerospace manufacturing. 3. The program operates under a firm fixed-price contract, aiming to control costs and manage financial risk. 4. Competition was full and open, suggesting a robust market for these specialized aircraft parts.

Value Assessment

Rating: good

The $11.65 million award for the KC-135 AERO-I satellite replacement appears reasonable given the specialized nature of the equipment and the firm fixed-price contract type. Benchmarking against similar complex aerospace component contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive price discovery and ensure a fair market price for the satellite replacement.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently, securing necessary equipment at a reasonable cost.

Public Impact

Enhances operational readiness and communication capabilities for the KC-135 fleet. Supports critical military logistics and strategic airlift missions. Represents investment in maintaining the longevity and effectiveness of a key strategic asset.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for schedule delays in complex aerospace manufacturing.
  • Dependence on a single supplier for critical components.
  • Cybersecurity risks associated with satellite communication systems.

Positive Signals

  • Firm fixed-price contract provides cost certainty.
  • Full and open competition suggests market availability.
  • Award to established aerospace manufacturer.

Sector Analysis

This contract falls within the Defense sector, specifically related to aircraft parts and auxiliary equipment manufacturing. Spending in this area is crucial for maintaining military readiness and technological superiority, with benchmarks often tied to defense budgets and specific platform modernization efforts.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it went to Rockwell Collins, Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors in the supply chain for this program.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract, ensuring compliance with terms and conditions. Robust oversight is crucial for managing complex aerospace procurements and ensuring taxpayer value.

Related Government Programs

  • Other Aircraft Parts and Auxiliary Equipment Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Potential for cost overruns if unforeseen technical challenges arise.
  • Risk of supply chain disruptions for specialized components.
  • Dependence on contractor's technical expertise and performance.
  • Cybersecurity vulnerabilities in satellite communication systems.

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, nc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to ROCKWELL COLLINS, INC.. KC-135 AERO-I SATELLITE REPLACEMENT PROGRAM

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 $11.7 million.

What is the period of performance?

Start: 2024-08-28. End: 2027-01-01.

What is the specific technological advancement this satellite replacement program offers over the existing system?

The specific technological advancements are not detailed in the provided data. However, satellite replacement programs typically aim to improve data transmission speeds, enhance security protocols, increase bandwidth, and ensure compatibility with newer ground systems. This upgrade likely addresses obsolescence and enhances the overall communication capabilities of the KC-135 aircraft for modern operational demands.

What are the primary risks associated with the firm fixed-price contract for this satellite program?

The primary risk with a firm fixed-price contract is that the contractor, Rockwell Collins, bears the financial burden if costs exceed the agreed-upon price. This could lead to potential quality compromises if the contractor seeks to reduce expenses, or it could result in the contractor absorbing losses if unforeseen issues arise during development or manufacturing, potentially impacting future bids or company stability.

How will the effectiveness of the new AERO-I satellite system be measured post-deployment?

Effectiveness will likely be measured through a combination of technical performance metrics and operational impact assessments. Technical metrics could include data throughput, signal reliability, latency, and system uptime. Operational impact will be assessed by how the new system improves mission success rates, enhances situational awareness for aircrews, and reduces communication failures or disruptions during critical missions.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA810519R0005

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

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: $11,653,605

Exercised Options: $11,653,605

Current Obligation: $11,653,605

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $607,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810521D0002

IDV Type: IDC

Timeline

Start Date: 2024-08-28

Current End Date: 2027-01-01

Potential End Date: 2027-01-01 00:00:00

Last Modified: 2025-10-27

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