DoD's $29.8M ALCS-R TMRR Effort with Rockwell Collins Faces Technical Risks Despite Full Competition
Contract Overview
Contract Amount: $29,795,011 ($29.8M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-10-03
End Date: 2019-05-03
Contract Duration: 577 days
Daily Burn Rate: $51.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: IG::OT::IG AIRBORNE LAUNCH CONTROL SYSTEM REPLACEMENT (ALCS-R) TECHNICAL MATURATION RISK REDUCTION (TMRR) EFFORT
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $29.8 million to ROCKWELL COLLINS, INC. for work described as: IG::OT::IG AIRBORNE LAUNCH CONTROL SYSTEM REPLACEMENT (ALCS-R) TECHNICAL MATURATION RISK REDUCTION (TMRR) EFFORT Key points: 1. The $29.8 million contract for the ALCS-R TMRR effort awarded to Rockwell Collins, Inc. aims to mature technology for a critical defense system. 2. Full and open competition was utilized, suggesting a robust price discovery process, though the fixed-price incentive contract type introduces performance risks. 3. The contract falls under Research and Development in Physical, Engineering, and Life Sciences, a sector often characterized by inherent technical uncertainties. 4. The 'IA' (Iowa) state designation for the contractor may indicate regional economic impacts, though the overall scale is modest. 5. The contract duration of 577 days (approx. 1.6 years) is relatively short for a technology maturation effort, potentially indicating phased development or early-stage focus.
Value Assessment
Rating: fair
The contract is a Fixed Price Incentive type, which can lead to cost overruns if performance targets are not met. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the ALCS-R system.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the fixed-price incentive structure means the government's final price is tied to the contractor's performance, introducing potential cost variability.
Taxpayer Impact: While competition aims for fair pricing, the incentive structure and inherent R&D risks mean taxpayer costs could fluctuate based on technical success.
Public Impact
Ensures modernization of a critical nuclear command and control system, enhancing national security. Supports advanced technological development within the aerospace and defense sector. Potential for follow-on production contracts, creating sustained economic activity and jobs. The success of this TMRR effort is crucial for the overall ALCS-R program's viability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Technical maturation risk in R&D
- Fixed-price incentive contract risks
- Potential for schedule delays impacting readiness
Positive Signals
- Full and open competition utilized
- Focus on critical defense system modernization
- Contractor has established capabilities in aerospace
Sector Analysis
This contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector, specifically related to defense systems. Spending in this area is critical for maintaining technological superiority but often involves higher risk due to the experimental nature of the work.
Small Business Impact
The data indicates the prime contractor is Rockwell Collins, Inc., a large business. There is no explicit mention of small business participation in this specific contract award, suggesting potential for limited subcontracting opportunities.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration and oversight. The Inspector General (IG) is also involved, indicating a focus on accountability and risk reduction for this significant defense program.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Technical immaturity risk
- Potential for cost overruns due to FPI structure
- Dependence on a single large prime contractor
- Schedule slippage impacting program milestones
Tags
research-and-development-in-the-physical, department-of-defense, ia, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to ROCKWELL COLLINS, INC.. IG::OT::IG AIRBORNE LAUNCH CONTROL SYSTEM REPLACEMENT (ALCS-R) TECHNICAL MATURATION RISK REDUCTION (TMRR) EFFORT
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 $29.8 million.
What is the period of performance?
Start: 2017-10-03. End: 2019-05-03.
What are the specific technical risks identified in the ALCS-R TMRR effort, and what mitigation strategies are in place?
The specific technical risks are not detailed in the provided data. However, typical risks in such R&D efforts include integration challenges, performance shortfalls against requirements, and unforeseen technological hurdles. Mitigation strategies would likely involve rigorous testing, phased development with clear go/no-go decision points, and close collaboration between the government and contractor technical teams.
How does the fixed-price incentive contract structure balance cost control with the inherent uncertainties of R&D?
The Fixed Price Incentive (FPI) contract aims to balance cost control and R&D uncertainty by establishing a target cost, target profit, and a price ceiling. If costs are lower than target, both parties share in the savings. If costs exceed target, the government's share of the overrun is limited by the ceiling. This incentivizes the contractor to control costs while allowing for shared risk in the face of unpredictable R&D outcomes.
What is the long-term strategic importance of the ALCS-R TMRR effort for the Department of Defense's command and control capabilities?
The ALCS-R TMRR effort is strategically vital as it addresses the modernization of the Airborne Launch Control System, a core component of the nuclear triad's command and control infrastructure. Maturing the technology reduces the risk of system failure, enhances reliability, and ensures the long-term survivability and effectiveness of the nation's strategic deterrent in an evolving threat environment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA820416R0001
Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $81,876,480
Exercised Options: $33,784,370
Current Obligation: $29,795,011
Actual Outlays: $4,316
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-10-03
Current End Date: 2019-05-03
Potential End Date: 2019-05-03 00:00:00
Last Modified: 2023-06-16
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