DoD's $57.3M Avionics Replacement Contract with Rockwell Collins Faces Diminishing Sources
Contract Overview
Contract Amount: $57,320,329 ($57.3M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-12-19
End Date: 2025-12-31
Contract Duration: 2,934 days
Daily Burn Rate: $19.5K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DIMINISHING MANUFACTURING SOURCES REPLACEMENT OF AVIONICS FOR GLOBAL OPERATIONS AND NAVIGATION
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $57.3 million to ROCKWELL COLLINS, INC. for work described as: DIMINISHING MANUFACTURING SOURCES REPLACEMENT OF AVIONICS FOR GLOBAL OPERATIONS AND NAVIGATION Key points: 1. The contract addresses diminishing manufacturing sources for critical avionics, indicating potential obsolescence and supply chain risks. 2. Sole-source award to Rockwell Collins raises concerns about price discovery and potential overpayment. 3. The high value and long duration suggest significant taxpayer investment in maintaining aging aircraft systems. 4. The 'IA' status code for Iowa may indicate a specific operational need or location.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to assess if the pricing is fair compared to market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under Simplified Acquisition Procedures and was awarded as a sole-source definitive contract. This limits price competition and relies heavily on the government's negotiation with Rockwell Collins to ensure a reasonable price.
Taxpayer Impact: The lack of competition for this significant contract value means taxpayers may not be receiving the best possible price, potentially leading to higher overall spending.
Public Impact
Ensures continued operational capability for critical Air Force assets by addressing parts obsolescence. Supports a major defense contractor, potentially sustaining jobs within Rockwell Collins and its supply chain. Highlights the ongoing challenge of maintaining legacy military hardware in the face of evolving technology and supply chain issues.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Cost-plus contract type can incentivize higher spending.
- Diminishing manufacturing sources indicate obsolescence risk.
- Long contract duration increases exposure to cost overruns.
Positive Signals
- Addresses critical operational need for avionics.
- Maintains readiness of Air Force global operations.
- Supports a key defense industrial base supplier.
Sector Analysis
The aerospace and defense sector, particularly for legacy systems, often faces challenges with diminishing manufacturing sources. This contract falls within the instrument manufacturing sub-sector, where specialized components can be costly and difficult to source over time.
Small Business Impact
This contract was awarded to a large business (Rockwell Collins, Inc.). There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost reasonableness and prevent potential contractor overreach. Robust auditing and performance monitoring by the Department of the Air Force are crucial.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Diminishing manufacturing sources
- Potential for price inflation
- Long contract duration
Tags
search-detection-navigation-guidance-aer, department-of-defense, ia, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.3 million to ROCKWELL COLLINS, INC.. DIMINISHING MANUFACTURING SOURCES REPLACEMENT OF AVIONICS FOR GLOBAL OPERATIONS AND NAVIGATION
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 $57.3 million.
What is the period of performance?
Start: 2017-12-19. End: 2025-12-31.
What specific actions are being taken to mitigate the risks associated with diminishing manufacturing sources beyond this sole-source award?
The government should actively pursue strategies like technology insertion, alternative component sourcing, or engaging in long-term agreements with manufacturers to address the root cause of diminishing sources. Exploring partnerships for component redesign or seeking alternative qualified suppliers are also critical steps to ensure future availability and competitive pricing.
How is the government ensuring cost-effectiveness and preventing overruns in this Cost Plus Fixed Fee contract, given the sole-source nature?
Rigorous negotiation of the fixed fee, detailed cost audits, and stringent performance metrics are essential. The government must closely monitor Rockwell Collins's expenditures, validate all costs claimed, and ensure that the 'fixed fee' component adequately incentivizes efficient performance. Benchmarking against similar sole-source contracts, where possible, can also inform negotiation.
What is the long-term strategy for replacing or upgrading these avionics systems to avoid future diminishing source issues?
A comprehensive lifecycle management plan is needed, including market research for next-generation avionics and proactive technology insertion roadmaps. The Air Force should consider planned obsolescence and invest in R&D for more sustainable and adaptable systems. Establishing strategic partnerships with industry for future upgrades can also mitigate long-term sourcing challenges.
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: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $57,708,590
Exercised Options: $57,708,589
Current Obligation: $57,320,329
Actual Outlays: $2,448,834
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $588,170
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-12-19
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-12-29
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