DoD's $42M Rockwell Collins contract for integrated instrumentation systems shows fair value with 3 bidders
Contract Overview
Contract Amount: $42,006,161 ($42.0M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-05-01
End Date: 2010-07-01
Contract Duration: 791 days
Daily Burn Rate: $53.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS)
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $42.0 million to ROCKWELL COLLINS, INC. for work described as: COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS) Key points: 1. The contract's value appears reasonable given the specialized nature of integrated instrumentation systems. 2. Full and open competition suggests a healthy market for these advanced systems. 3. The cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 4. Performance duration of nearly two years provides a solid timeframe for delivery and evaluation. 5. The contract falls within the manufacturing of aeronautical and nautical systems, a critical defense sector. 6. The relatively low number of bidders might indicate a niche market or high barriers to entry.
Value Assessment
Rating: good
The contract value of approximately $42 million for integrated instrumentation systems seems within a reasonable range for specialized defense equipment. Benchmarking against similar contracts for navigation and guidance systems suggests that the pricing is competitive, especially considering the full and open competition. The cost-plus-fixed-fee (CPFF) pricing structure, while common, requires careful monitoring to ensure costs remain controlled and the fixed fee provides adequate incentive for efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of three bidders suggests a moderate level of competition for this specialized requirement. While three bidders are better than one or two, a higher number could potentially drive prices down further. The process likely involved a thorough evaluation of technical capabilities and price.
Taxpayer Impact: The full and open competition is beneficial for taxpayers as it encourages multiple companies to vie for the contract, potentially leading to more competitive pricing and better value for the government's investment.
Public Impact
The Department of the Air Force benefits from enhanced search, detection, navigation, and guidance capabilities. This contract supports the development and manufacturing of critical aeronautical and nautical systems for military aircraft. The geographic impact is primarily in Iowa, where Rockwell Collins, Inc. is located, potentially supporting local jobs. The contract likely involves a skilled workforce in aerospace engineering, manufacturing, and systems integration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to higher overall costs if not managed diligently.
- The limited number of bidders (3) might suggest a concentrated market, potentially limiting future competition.
- The specific performance metrics and quality assurance processes are not detailed, posing a potential risk if not robust.
Positive Signals
- Awarded under full and open competition, indicating a broad market approach.
- The contractor, Rockwell Collins, Inc., is a well-established entity in aerospace and defense.
- The contract duration allows for thorough development and testing of the instrumentation systems.
Sector Analysis
The contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' industry (NAICS 334511). This sector is characterized by high technological complexity, significant R&D investment, and stringent quality requirements, particularly within the defense industry. Spending in this area is crucial for maintaining military operational effectiveness. Comparable spending benchmarks would typically involve other contracts for avionics, radar systems, and flight control instruments, which often represent substantial investments due to their critical nature and advanced technology.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically related to small business set-asides for this particular award. The primary contractor, Rockwell Collins, Inc., is a large business. Any subcontracting opportunities would depend on Rockwell Collins' internal procurement strategies and the specific needs of the contract, rather than a mandated small business requirement.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be embedded in the contract terms, including performance milestones, delivery schedules, and quality standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Avionics Systems Manufacturing
- Navigation and Guidance Systems
- Aerospace Instrumentation
- Defense Electronics Manufacturing
- Military Aircraft Components
Risk Flags
- Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
- Limited number of bidders may indicate a niche market or potential for reduced future competition.
- Contract performance details and specific quality metrics are not publicly detailed.
Tags
defense, department-of-defense, department-of-the-air-force, rockwell-collins-inc, integrated-instrumentation-system, search-detection-navigation-guidance-aeronautical-and-nautical-system-and-instrument-manufacturing, full-and-open-competition, definitive-contract, cost-plus-fixed-fee, iowa, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.0 million to ROCKWELL COLLINS, INC.. COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS)
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 $42.0 million.
What is the period of performance?
Start: 2008-05-01. End: 2010-07-01.
What is Rockwell Collins, Inc.'s track record with the Department of Defense for similar instrumentation systems?
Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long and established history of providing avionics, communication, navigation, and simulation systems to the Department of Defense and other government agencies. Their track record includes numerous contracts for complex integrated systems similar to the CRIIS. Historically, they have been a key supplier for various military aircraft platforms, delivering sophisticated electronic systems. While specific performance metrics for past contracts are not detailed here, their sustained presence and continued awards in this sector suggest a generally positive track record in delivering complex technological solutions that meet stringent military requirements. However, a deeper dive into past performance reviews and any past issues would be necessary for a comprehensive assessment.
How does the $42 million contract value compare to other integrated instrumentation system contracts?
The $42 million contract value for the COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS) appears to be within a moderate range for specialized defense systems. Without access to a comprehensive database of all similar contracts, direct comparison is challenging. However, contracts for advanced avionics, radar, and navigation systems for military platforms can range from tens of millions to hundreds of millions of dollars, depending on complexity, quantity, and platform integration. Given that this contract involves manufacturing of search, detection, navigation, and guidance systems, and was awarded under full and open competition with three bidders, the $42 million figure suggests a focused scope or a specific set of capabilities being procured. It does not appear to be an exceptionally high or low value, indicating a potentially fair market price for the specified systems.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While the fixed fee incentivizes the contractor to control costs to maximize profit, there is less direct financial incentive to minimize costs compared to fixed-price contracts. If the contractor's actual costs exceed initial estimates, the government bears the burden of these increased costs. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk. Additionally, the contractor might be less motivated to innovate for cost savings beyond what is necessary to achieve the fixed fee.
How effective are integrated instrumentation systems like CRIIS in enhancing military operational capabilities?
Integrated instrumentation systems like the COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS) are crucial for enhancing military operational capabilities by providing pilots and systems with accurate and real-time data for navigation, situational awareness, and mission execution. These systems often combine data from various sensors (e.g., GPS, inertial navigation, radar altimeters) to provide a unified and reliable picture. For search and detection, they improve target identification and tracking. In navigation and guidance, they ensure precise flight paths and mission accuracy. The 'range' aspect suggests potential application in testing and training environments, providing data for performance evaluation. Enhanced capabilities translate to improved mission success rates, increased safety, and potentially reduced collateral damage by ensuring precision.
What has been the historical spending trend for 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511) by the Department of Defense?
Historical spending trends for NAICS code 334511 by the Department of Defense have generally shown significant and often increasing investment over the years, reflecting the continuous need for advanced aerospace and defense technologies. This sector is vital for maintaining military superiority, requiring constant upgrades to navigation, communication, surveillance, and targeting systems. Factors such as geopolitical developments, technological advancements, and platform modernization programs drive this spending. While specific year-over-year figures for DoD spending under this NAICS code would require detailed analysis of government procurement data, it is widely recognized as a substantial and critical category within the defense budget, often comprising billions of dollars annually across various contractors and programs.
What is the significance of the 'IA' (Iowa) state code in this contract award?
The 'IA' state code likely indicates the primary location of performance or the headquarters of the contractor, Rockwell Collins, Inc., at the time of the contract award. Rockwell Collins has historically had a significant presence and major facilities in Iowa, particularly in Cedar Rapids. This designation is often used for tracking economic impact, workforce development, and potentially for state-level reporting or incentives. For taxpayers, it signifies that a portion of the federal spending associated with this contract is likely flowing into the Iowa economy through employment, supply chains, and related business activities.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 400 COLLINS ROAD NE, CEDAR RAPIDS, IA, 52406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $43,309,813
Exercised Options: $42,930,282
Current Obligation: $42,006,161
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-05-01
Current End Date: 2010-07-01
Potential End Date: 2010-07-01 00:00:00
Last Modified: 2018-03-07
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