Air Force awards $49.9M contract for C/KC-135 Avionics System Engineering Services to Rockwell Collins

Contract Overview

Contract Amount: $49,921,423 ($49.9M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-15

End Date: 2027-06-15

Contract Duration: 547 days

Daily Burn Rate: $91.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Defense

Official Description: THIS CONTRACT COVERS ALL THE REQUIREMENTS IN THE C/KC-135 AVIONICS SYSTEM ENGINEERING SERVICES (ASES) PERFORMANCE WORK STATEMENT (PWS), DD 1423-1 CONTRACT DATA REQUIREMENT LIST (CDRL) AND DOCUMENTS IDENTIFIED IN THE PWS.

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $49.9 million to ROCKWELL COLLINS, INC. for work described as: THIS CONTRACT COVERS ALL THE REQUIREMENTS IN THE C/KC-135 AVIONICS SYSTEM ENGINEERING SERVICES (ASES) PERFORMANCE WORK STATEMENT (PWS), DD 1423-1 CONTRACT DATA REQUIREMENT LIST (CDRL) AND DOCUMENTS IDENTIFIED IN THE PWS. Key points: 1. Contract focuses on essential avionics system engineering for C/KC-135 aircraft. 2. Long-term contract duration suggests a critical and ongoing need for these services. 3. Sole-source award raises questions about potential cost efficiencies and market competition. 4. Fixed-price contract type provides some cost certainty but may limit flexibility. 5. Performance period extends over two years, indicating a substantial scope of work. 6. Geographic focus on Iowa for Rockwell Collins, Inc.

Value Assessment

Rating: fair

The contract value of $49.9 million for approximately 547 days of service appears substantial. Without specific benchmarks for avionics system engineering services for this aircraft type, it's difficult to definitively assess value for money. However, the lack of competition in a sole-source award could potentially lead to higher costs than a competitively bid contract. Further analysis would require comparing this contract's per-unit costs or labor rates to similar services provided to other military aircraft programs or to commercial equivalents.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Rockwell Collins, Inc., was considered. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally limit price discovery and may not result in the most cost-effective outcome for the government. The absence of multiple bidders means the Air Force did not benefit from the potential for lower prices and innovative solutions that competition typically fosters.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive pressure. Without competing bids, there is less assurance that the price reflects the best possible value. This could translate to less efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. Air Force and its C/KC-135 fleet, ensuring the continued airworthiness and operational readiness of these critical aircraft. Services delivered include essential avionics system engineering, crucial for maintaining and upgrading complex aircraft systems. The geographic impact is primarily centered around the operations and maintenance of the C/KC-135 fleet, which has a nationwide presence. Workforce implications include the employment of specialized engineering talent by Rockwell Collins, Inc., likely in Iowa.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of competition may reduce incentives for innovation and efficiency from the contractor.
Contract duration and value warrant close monitoring to ensure performance aligns with expectations.

Positive Signals

Fixed-price contract provides a degree of cost predictability for the government.
Contract is for a critical system supporting essential military aircraft operations.
Awardee is an established entity with likely relevant experience in avionics.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aerospace and defense. The market for specialized avionics system engineering is often concentrated among a few key players due to the high technical expertise and security clearances required. The C/KC-135 is a long-standing platform, and contracts for its sustainment and modernization are typical within the defense aerospace industry. Spending in this area is driven by the need to maintain aging fleets and integrate new technologies.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The prime contractor, Rockwell Collins, Inc., is a large business. While large prime contractors often engage small businesses for subcontracting, this contract itself does not create a specific set-aside opportunity.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded in the contract's performance work statement (PWS) and delivery requirements. Transparency is generally maintained through contract award databases, though the specifics of performance monitoring and reporting are internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

C/KC-135 Fleet Sustainment Programs
Aerospace Engineering Services
Avionics Modernization Programs
Department of Defense Aircraft Maintenance Contracts

Risk Flags

Sole-source award may limit cost competition.
Contract duration increases exposure to potential scope creep or unforeseen technical issues.
Reliance on a single contractor for critical system engineering.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.9 million to ROCKWELL COLLINS, INC.. THIS CONTRACT COVERS ALL THE REQUIREMENTS IN THE C/KC-135 AVIONICS SYSTEM ENGINEERING SERVICES (ASES) PERFORMANCE WORK STATEMENT (PWS), DD 1423-1 CONTRACT DATA REQUIREMENT LIST (CDRL) AND DOCUMENTS IDENTIFIED IN THE PWS.

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 $49.9 million.

What is the period of performance?

Start: 2025-12-15. End: 2027-06-15.

What is Rockwell Collins, Inc.'s track record with the Department of Defense, particularly on C/KC-135 related contracts?

Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long history of providing avionics and systems integration for various U.S. military aircraft, including the C-130, B-1, B-2, and others. Their involvement with the C/KC-135 platform likely spans decades, encompassing upgrades, maintenance support, and system engineering. Historical data from contract databases would reveal the extent and nature of their previous work, including performance ratings and any past issues. Given their established presence, it's probable they possess significant institutional knowledge and technical expertise relevant to this specific contract, which could be a factor in the sole-source justification.

How does the $49.9 million contract value compare to historical spending on C/KC-135 avionics system engineering services?

To assess this, one would need to analyze historical spending data for C/KC-135 avionics system engineering services over previous years and contract periods. Comparing the current $49.9 million award against the average annual spending or the total value of previous, similar contracts would provide context. If historical spending was significantly lower or higher, it could indicate changes in scope, inflation, or market dynamics. The fact that this is a delivery order (aw='DELIVERY ORDER') suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, making direct year-over-year comparisons complex without understanding the parent contract's structure and total value.

What are the key performance indicators (KPIs) and risk indicators associated with this contract?

Key performance indicators (KPIs) would likely be defined in the Performance Work Statement (PWS) and could include metrics such as on-time delivery of engineering reports, successful resolution of avionics issues, adherence to technical specifications, and effective system integration. Risk indicators might include the contractor's historical performance on similar contracts, the complexity of the avionics systems involved, potential supply chain vulnerabilities for specialized components, and the long duration of the contract (547 days) which increases exposure to unforeseen technical challenges or changes in requirements. The sole-source nature itself is a risk indicator regarding potential cost overruns.

What is the expected impact of these avionics system engineering services on the operational readiness and lifespan of the C/KC-135 fleet?

These services are critical for maintaining and enhancing the operational readiness of the C/KC-135 Stratotanker fleet. Avionics systems are the 'brains' of an aircraft, controlling navigation, communication, flight management, and mission systems. By providing expert engineering support, this contract ensures that these complex systems function reliably, are updated to meet current threats and regulations, and are integrated with any new or upgraded components. This directly contributes to the fleet's ability to perform its strategic airlift and refueling missions effectively, and proper engineering support can extend the safe and effective operational lifespan of the aircraft.

Given the sole-source nature, what steps can the Air Force take to ensure fair pricing and contractor performance?

Even in a sole-source situation, the Air Force can employ several strategies to ensure fair pricing and performance. This includes conducting thorough cost and price analyses based on historical data, should-cost models, and market research for similar services. Robust contract administration, including detailed monitoring of progress against the PWS, regular performance reviews, and strict adherence to delivery schedules, is crucial. The contract should include clear deliverables, milestones, and quality assurance provisions. Furthermore, the Air Force can negotiate specific performance incentives or penalties within the contract terms to motivate the contractor and mitigate risks associated with the lack of competition.

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: FIXED PRICE LEVEL OF EFFORT (B)

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: $49,921,423

Exercised Options: $49,921,423

Current Obligation: $49,921,423

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