Air Force awards $2.1M for software licenses, raising questions about competition and value
Contract Overview
Contract Amount: $2,142,510 ($2.1M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2026-02-27
Contract Duration: 151 days
Daily Burn Rate: $14.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: L4 SOFTWARE LICENSE
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $2.1 million to ROCKWELL COLLINS, INC. for work described as: L4 SOFTWARE LICENSE Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Limited competition raises concerns about whether the government secured the best possible value. 3. The contract duration of 151 days is relatively short, suggesting a focused need. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The specific software license type (IA) and its application are not detailed, hindering deeper analysis. 6. The award amount is modest, suggesting it may be for a specific, limited-use software.
Value Assessment
Rating: fair
Benchmarking the value of this specific software license is challenging without more detail on its functionality and market alternatives. Given the sole-source nature, it's difficult to definitively assess if the $2.14M price represents optimal value for money. However, the firm fixed-price structure provides some cost certainty. Comparison to similar software license procurements by the Air Force or other agencies would be necessary for a more robust value assessment.
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 can provide the required goods or services, or in urgent situations. The lack of competition means there was no opportunity for multiple companies to bid, which can limit price negotiation and potentially lead to higher costs for the government.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from competitive pricing that could arise from a more open bidding process. This can result in a higher overall expenditure for the government.
Public Impact
The primary beneficiary is the Department of the Air Force, which will receive the software licenses. The services delivered are software licenses, crucial for operational capabilities within the Air Force. The geographic impact is likely concentrated within the Air Force's operational footprint. Workforce implications are minimal, as this is a software license purchase rather than a service contract requiring significant labor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing.
- Limited transparency into the justification for sole-source award.
- Potential for vendor lock-in if the software is proprietary and critical.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Short contract duration suggests a well-defined need.
- Awarded to a known entity (Rockwell Collins) which may have existing expertise.
Sector Analysis
The Information Assurance (IA) sector within the broader IT industry encompasses software and services related to cybersecurity and data protection. This contract for software licenses likely supports the Air Force's critical infrastructure and operational security needs. The market for IA software is competitive, but specific niche solutions can sometimes lead to sole-source situations.
Small Business Impact
This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses. The award to a large contractor like Rockwell Collins suggests that small business participation is unlikely in this specific procurement.
Oversight & Accountability
Oversight for this contract would fall under the Department of the Air Force's contracting and financial management offices. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Air Force IT Modernization Programs
- Department of Defense Cybersecurity Initiatives
- Software Licensing and Maintenance Contracts
Risk Flags
- Sole-source award lacks competitive pricing.
- Limited transparency into justification for sole-source.
- Potential for vendor lock-in.
Tags
it, defense, air-force, delivery-order, not-competed, firm-fixed-price, information-assurance, rockwell-collins, iowa, software-license
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.1 million to ROCKWELL COLLINS, INC.. L4 SOFTWARE LICENSE
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 $2.1 million.
What is the period of performance?
Start: 2025-09-29. End: 2026-02-27.
What is the specific type of software being licensed and its intended use by the Air Force?
The provided data indicates the software license is categorized under 'IA' (Information Assurance). This typically refers to software related to cybersecurity, data protection, network security, or secure communications. However, without further details, the precise function and application of this specific license remain unclear. Understanding the software's role is crucial for assessing its necessity, potential alternatives, and the justification for a sole-source award. For instance, if it's a highly specialized security tool unique to Rockwell Collins' systems, a sole-source award might be more justifiable than if it were a more common cybersecurity solution.
What was the justification for awarding this contract on a sole-source basis?
The data explicitly states the contract type as 'NOT COMPETED', which in this context implies a sole-source award. The specific justification for this sole-source determination is not provided in the data. Typically, sole-source awards require a formal justification, such as the unique capability of a single vendor, urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previously competed effort where only one vendor can provide the necessary services. Without this justification, it is difficult to assess the validity of the sole-source decision and whether it truly served the government's best interest.
How does the $2.14 million award amount compare to similar software license procurements by the Air Force or other defense agencies?
Direct comparison of the $2.14 million award for 'IA' software licenses is difficult without knowing the specific software's capabilities, user base, and licensing model (e.g., perpetual, subscription, per-user). However, for context, the Department of Defense procures a vast array of software licenses annually, with individual awards ranging from thousands to hundreds of millions of dollars depending on scope and criticality. A $2.14 million award for specialized software, especially if it's for a critical operational system or a significant upgrade, could be within a reasonable range. However, the lack of competition means this figure cannot be benchmarked against competitive bids, making it harder to ascertain if it represents optimal value.
What is Rockwell Collins' track record with the Department of Defense, particularly for software and information assurance solutions?
Rockwell Collins, now part of Collins Aerospace (a Raytheon Technologies company), has a long-standing and extensive history of providing complex systems, software, and services to the Department of Defense and other government agencies. Their expertise spans avionics, communications, simulation, and information technology solutions. For information assurance (IA) and cybersecurity, they have been involved in developing and integrating secure systems for various platforms, including aircraft and command and control systems. Their track record generally indicates a capability to deliver sophisticated technological solutions, but specific performance on past IA software contracts would require a deeper dive into contract databases and performance reviews.
What are the potential risks associated with this sole-source award, beyond cost?
Beyond the potential for inflated costs, sole-source awards carry other risks. One significant risk is vendor lock-in, where the government becomes dependent on a single provider for critical software, making it difficult and expensive to switch to alternative solutions in the future. This can stifle innovation and reduce leverage in future negotiations. Additionally, without competitive pressure, there might be less incentive for the contractor to provide exceptional customer support or proactively address potential issues. The lack of transparency inherent in sole-source decisions can also mask underlying problems or inefficiencies in the procurement process itself.
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: 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: $2,142,510
Exercised Options: $2,142,510
Current Obligation: $2,142,510
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: 2025-09-29
Current End Date: 2026-02-27
Potential End Date: 2026-02-27 00:00:00
Last Modified: 2026-01-07
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