Air Force awards $13.7M engineering services contract to Rockwell Collins, Inc. for a 2-year period
Contract Overview
Contract Amount: $13,734,514 ($13.7M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-04-23
End Date: 2027-03-23
Contract Duration: 699 days
Daily Burn Rate: $19.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS ORDER COVERS ALL THE REQUIREMENTS IN THE TASK ASSIGNMENT (TA) RC24-001-135MOD R5.
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $13.7 million to ROCKWELL COLLINS, INC. for work described as: THIS ORDER COVERS ALL THE REQUIREMENTS IN THE TASK ASSIGNMENT (TA) RC24-001-135MOD R5. Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Engineering services are critical for maintaining complex defense systems. 3. The contract duration of nearly two years suggests a need for sustained support. 4. The cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 5. Performance is expected in Iowa, indicating a specific geographic focus for this service. 6. The absence of small business participation raises questions about broader economic impact.
Value Assessment
Rating: fair
The contract's value of $13.7 million over approximately two years for engineering services appears within a reasonable range for specialized defense support. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source engineering contracts for complex defense systems would be necessary for a more definitive evaluation. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D or uncertain scope work, carries inherent risks of cost escalation if not managed diligently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary specialized capabilities, proprietary technology, or when urgency dictates a rapid award. The lack of competition means the government did not benefit from a bidding process that could have driven down prices through market forces. This limits the opportunity to explore alternative solutions or pricing models that might have been available from other qualified contractors.
Taxpayer Impact: For taxpayers, a sole-source award means the absence of competitive pressure to achieve the lowest possible price. This can potentially lead to higher costs compared to a fully competed contract, as the contractor may not have the same incentive to offer the most cost-effective solution.
Public Impact
The Department of the Air Force benefits from specialized engineering services to support its operational requirements. This contract ensures the continued availability of critical engineering expertise for defense systems. The services are expected to be performed in Iowa, potentially supporting the local economy and workforce in that region. The contract's focus on engineering services implies support for technical personnel and potentially the development or maintenance of advanced technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings for taxpayers.
- Cost-plus-fixed-fee contract type can lead to cost overruns if not rigorously managed.
- Lack of small business participation may limit opportunities for smaller firms in the defense supply chain.
Positive Signals
- Award to Rockwell Collins, Inc., a known entity in aerospace and defense, suggests access to specialized expertise.
- The contract duration indicates a commitment to sustained support for critical systems.
- The specific task assignment (TA RC24-001-135MOD R5) implies a defined need for engineering services.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. This sector is characterized by high technical expertise, significant R&D investment, and stringent quality and security requirements. The market size for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and upgrades of complex military platforms. Comparable spending benchmarks would typically involve analyzing other sole-source or competed engineering support contracts for similar defense systems, considering factors like contract duration, scope of work, and the specific technologies involved.
Small Business Impact
This contract does not appear to include a small business set-aside, nor is there an indication of significant subcontracting opportunities for small businesses. The award to a large, established contractor like Rockwell Collins suggests that the primary focus was on specialized capabilities rather than broad-based small business engagement. This could limit the direct economic benefits to the small business ecosystem within the defense contracting sphere for this particular award.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures would include performance reviews, milestone tracking, and adherence to the terms of the Cost Plus Fixed Fee agreement. Transparency is generally maintained through contract databases and reporting requirements, though specific operational details may be classified. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.
Related Government Programs
- Defense Engineering Services
- Aerospace and Defense Support
- Air Force Systems Engineering
- Sole-Source Defense Contracts
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee pricing
- Lack of small business participation
Tags
defense, department-of-defense, department-of-the-air-force, rockwell-collins-inc, engineering-services, not-competed, cost-plus-fixed-fee, iowa, delivery-order, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.7 million to ROCKWELL COLLINS, INC.. THIS ORDER COVERS ALL THE REQUIREMENTS IN THE TASK ASSIGNMENT (TA) RC24-001-135MOD R5.
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 $13.7 million.
What is the period of performance?
Start: 2025-04-23. End: 2027-03-23.
What is the specific scope of engineering services required under Task Assignment (TA) RC24-001-135MOD R5?
The provided data indicates that this order covers all requirements in Task Assignment (TA) RC24-001-135MOD R5. However, the specific details of TA RC24-001-135MOD R5 are not publicly available in this dataset. Generally, engineering services in this context could encompass a wide range of activities, including system design, integration, testing, analysis, maintenance planning, and technical support for complex aerospace or defense platforms. The nature of these services would dictate the expertise required from Rockwell Collins and the specific deliverables expected under the contract. Further inquiry into the TA documentation would be necessary to ascertain the precise scope.
How does the $13.7 million contract value compare to similar engineering services contracts awarded by the Air Force?
Benchmarking the $13.7 million contract value requires comparing it against similar engineering services contracts awarded by the Department of the Air Force or other Department of Defense agencies. Factors such as contract duration (approximately two years), the specific type of engineering services (e.g., systems engineering, software engineering, mechanical engineering), the complexity of the systems being supported, and the pricing structure (Cost Plus Fixed Fee) are crucial for a meaningful comparison. Without access to a database of comparable contracts with detailed scope and pricing, it is difficult to definitively state whether $13.7 million represents a high, low, or average value. However, for specialized, long-term engineering support on defense systems, this value appears within a plausible range, though the sole-source nature warrants scrutiny for potential cost efficiencies.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure for this contract?
The Cost Plus Fixed Fee (CPFF) pricing structure, while common for contracts where the scope of work is not precisely defined or involves research and development, carries inherent risks. The primary risk is that the contractor may have less incentive to control costs compared to a fixed-price contract. While the 'fixed fee' portion is predetermined, the 'cost' portion is reimbursable up to a ceiling. If not managed diligently through robust oversight, the contractor could incur higher costs, leading to the government paying more than initially anticipated. This necessitates strong government oversight to ensure that all costs incurred are reasonable, allocable, and necessary for the performance of the contract. Effective monitoring of labor hours, material expenses, and subcontractor costs is critical to mitigate these risks.
What is Rockwell Collins, Inc.'s track record with the Department of Defense for similar engineering services?
Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing and extensive track record of providing a wide array of products and services to the Department of Defense, including complex engineering and technical support. Their history includes significant contributions to avionics, communication systems, navigation systems, and integrated mission systems for various military platforms. For the Air Force specifically, they have been a key supplier and service provider for decades. While this specific contract is a sole-source award for engineering services, Rockwell Collins' established presence and expertise in the defense sector suggest a high likelihood of possessing the requisite capabilities and a history of successful performance on similar, albeit potentially competed, contracts.
What are the implications of this contract being awarded as 'NOT COMPETED' for the Air Force's long-term engineering capabilities?
Awarding this contract as 'NOT COMPETED' (sole-source) means the Air Force did not leverage the competitive marketplace to secure these specific engineering services. While this may have been necessary due to unique requirements or urgency, a consistent reliance on sole-source awards can have long-term implications. It can reduce the incentive for innovation and cost-efficiency among existing contractors, as they face less direct market pressure. Furthermore, it can hinder the development of a broader base of qualified suppliers, potentially limiting future options and increasing dependency on a few key providers. For the Air Force, this underscores the importance of strategic sourcing and market research to ensure competition is pursued whenever feasible to foster a more robust and cost-effective defense industrial base.
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: 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: $13,734,514
Exercised Options: $13,734,514
Current Obligation: $13,734,514
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810523DB001
IDV Type: IDC
Timeline
Start Date: 2025-04-23
Current End Date: 2027-03-23
Potential End Date: 2027-03-23 00:00:00
Last Modified: 2025-10-31
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