DoD's $57.8M C-130 Upgrade for Pakistan Air Force Lacks Competition, Raises Oversight Concerns
Contract Overview
Contract Amount: $57,862,324 ($57.9M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-01-15
End Date: 2021-03-31
Contract Duration: 1,902 days
Daily Burn Rate: $30.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF UPGRADE OF C-130E AND C-130B AIRCRAFT FOR THE PAKISTAN AIR FORCE
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $57.9 million to ROCKWELL COLLINS, INC. for work described as: IGF::OT::IGF UPGRADE OF C-130E AND C-130B AIRCRAFT FOR THE PAKISTAN AIR FORCE Key points: 1. Significant spending on aircraft upgrades for a foreign military. 2. Sole-source award to Rockwell Collins, Inc. limits price discovery. 3. Long contract duration (1902 days) increases risk of cost overruns. 4. Engineering services sector sees substantial foreign military sales.
Value Assessment
Rating: questionable
The contract value of $57.8M for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price is fair compared to similar aircraft upgrade contracts. The firm fixed-price nature offers some cost certainty, but the lack of competition is a significant concern.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers. The justification for sole-source is not provided, which is a red flag.
Taxpayer Impact: Taxpayer funds are being used for foreign military sales, and the lack of competition suggests potential overspending, directly impacting the value for money.
Public Impact
US taxpayer funds supporting foreign military capabilities. Potential for technology transfer and strategic implications. Lack of transparency in a significant sole-source defense contract. Questions about the necessity and cost-effectiveness of the upgrade.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Foreign military sale
- Long contract duration
- Lack of competition justification
Positive Signals
- Firm fixed-price contract type
- Specific aircraft upgrade focus
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector often involved in complex defense projects. The $57.8M value is significant for a single contract, especially one supporting foreign military sales. Benchmarks for similar international aircraft upgrade projects are difficult to ascertain due to the sole-source nature.
Small Business Impact
The data indicates this contract was awarded to Rockwell Collins, Inc., a large corporation. There is no indication that small businesses were involved in this specific sole-source award, which is typical for large, specialized defense contracts.
Oversight & Accountability
The sole-source nature of this contract raises concerns about oversight and accountability. Without a competitive process, it is harder to ensure the government and taxpayers are receiving the best value. Further review of the justification for the sole-source award and the program's execution is warranted.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns due to long duration
- Limited transparency in sole-source award
- Foreign military sale implications
- No clear justification for sole-source provided
Tags
engineering-services, department-of-defense, ia, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.9 million to ROCKWELL COLLINS, INC.. IGF::OT::IGF UPGRADE OF C-130E AND C-130B AIRCRAFT FOR THE PAKISTAN AIR FORCE
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 $57.9 million.
What is the period of performance?
Start: 2016-01-15. End: 2021-03-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding the procurement process. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Without this justification, it's impossible to assess if competition was genuinely not feasible or if it was bypassed, potentially leading to suboptimal pricing and reduced accountability for taxpayer funds.
How does the $57.8M cost compare to similar C-130 upgrade projects, particularly those awarded competitively?
Comparing the $57.8M cost to similar projects is essential for value assessment. However, the sole-source nature of this contract makes direct comparison difficult. If competitive contracts for similar upgrades exist, they would likely reveal whether this price is inflated. The absence of competitive data hinders a robust cost-effectiveness analysis and raises concerns about potential overspending.
What mechanisms are in place to ensure effective oversight and accountability for this long-duration, sole-source foreign military sale contract?
Given the contract's sole-source status and foreign military sale designation, robust oversight is crucial. This includes monitoring performance, ensuring adherence to the firm fixed-price terms, and verifying the necessity and impact of the upgrades. Accountability relies heavily on the contracting officer's diligence and the presence of clear reporting requirements to mitigate risks associated with limited competition and potential cost escalations.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA855316R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 52498
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,862,324
Exercised Options: $57,862,324
Current Obligation: $57,862,324
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $87,012
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2016-01-15
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2021-03-31
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