DoD awards $18.5M for F-35 visual display systems to Rockwell Collins, a sole-source contract

Contract Overview

Contract Amount: $18,475,037 ($18.5M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-23

End Date: 2026-06-30

Contract Duration: 1,803 days

Daily Burn Rate: $10.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JOINT SIMULATION ENVIRONMENT F-35 HIGH FIDELITY VISUAL DISPLAY SYSTEMS

Place of Performance

Location: EDWARDS, KERN County, CALIFORNIA, 93524

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: JOINT SIMULATION ENVIRONMENT F-35 HIGH FIDELITY VISUAL DISPLAY SYSTEMS Key points: 1. Contract awarded for high-fidelity visual display systems crucial for F-35 pilot training. 2. Sole-source award raises questions about potential price overruns and lack of competitive pressure. 3. Long contract duration (over 5 years) may not reflect current technological advancements. 4. Firm Fixed Price contract type offers some cost certainty but limits flexibility for upgrades. 5. Geographic concentration in California for manufacturing may impact broader supply chain resilience. 6. No small business set-aside indicates a focus on specialized, large-scale manufacturing capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging due to the lack of competitive bids. The $18.5 million award for visual display systems for the F-35 program, while specific to a critical defense asset, lacks transparent pricing comparisons. Without competing offers, it's difficult to ascertain if Rockwell Collins' pricing reflects fair market value or if taxpayers are bearing a premium due to the absence of competition. Further analysis would require access to historical pricing for similar systems or internal cost data from the contractor.

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 Simulation & Training Solutions LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they inherently limit price discovery and can lead to higher costs for the government compared to a fully competed contract. The absence of competition means taxpayers do not benefit from the cost-saving pressures that arise when multiple firms compete.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price. Without competitive pressure, the government has less leverage to negotiate favorable terms, potentially leading to higher overall spending on these critical training systems.

Public Impact

Pilots training on the F-35 fighter jet will benefit from advanced visual simulation capabilities. Enhanced training environments contribute to improved pilot proficiency and mission readiness. The contract supports specialized manufacturing jobs within the aerospace and simulation industry. The geographic impact is concentrated in California, where the contractor's facilities are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Long-term contract duration could result in outdated technology.
Sole-source awards reduce transparency and accountability in spending.
Dependence on a single supplier for critical components poses supply chain risk.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Rockwell Collins is an established provider of simulation technology.
Contract supports a critical component of the F-35 training program.

Sector Analysis

The aerospace and defense sector is characterized by high-value, technologically advanced contracts. Visual simulation systems are a critical component of pilot training for advanced aircraft like the F-35. The market for such specialized equipment is often dominated by a few key players due to the significant R&D investment and proprietary technology involved. Spending in this area is substantial, reflecting the ongoing need for sophisticated training solutions to maintain pilot readiness and technological superiority.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses based on the provided data. The nature of advanced simulation technology and large-scale manufacturing for a program like the F-35 often necessitates large, established prime contractors with specialized capabilities. This focus on a prime contractor may limit direct opportunities for small businesses unless they are part of the prime's established supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. As a sole-source award, there may be increased scrutiny from oversight bodies like the Government Accountability Office (GAO) or the Inspector General's office to ensure the justification for the sole-source award is sound and that the pricing is reasonable. Transparency is limited due to the lack of competitive bidding, making it harder for the public to assess value.

Related Government Programs

F-35 Joint Strike Fighter Program
Pilot Training Systems
Aerospace Manufacturing
Defense Simulation and Training

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. JOINT SIMULATION ENVIRONMENT F-35 HIGH FIDELITY VISUAL DISPLAY SYSTEMS

Who is the contractor on this award?

The obligated recipient is ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC.

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 $18.5 million.

What is the period of performance?

Start: 2021-07-23. End: 2026-06-30.

What is Rockwell Collins' track record with the F-35 program and similar simulation contracts?

Rockwell Collins Simulation & Training Solutions LLC, now part of Collins Aerospace (a Raytheon Technologies company), has a significant history in providing simulation and training solutions for various military aircraft, including the F-35 program. They have been involved in developing and supplying components for the F-35's training systems, including visual systems. Their experience in this niche area is extensive, making them a likely incumbent or sole-source provider for specialized components. However, specific details on past performance metrics, such as on-time delivery, quality, and cost performance on previous F-35 related contracts, are not publicly detailed in this data. Their long-standing presence suggests a level of capability and trust from the Department of Defense.

How does the $18.5 million cost compare to similar visual display systems for other fighter jets?

Directly comparing the $18.5 million cost for these F-35 visual display systems to similar systems for other fighter jets is difficult without more specific data on system complexity, resolution, field of view, and integration requirements. Advanced visual systems for fifth-generation fighters like the F-35 are inherently expensive due to the cutting-edge technology required for high-fidelity simulation. Sole-source contracts, like this one, also lack the price transparency that competitive bidding provides, making external benchmarking challenging. Generally, specialized military simulation components are significantly more costly than commercial equivalents due to stringent performance, reliability, and security requirements, as well as lower production volumes.

What are the primary risks associated with a sole-source award for critical defense components?

The primary risks associated with a sole-source award for critical defense components like the F-35 visual display systems include potential price inflation due to the absence of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a heightened risk of supply chain disruption if the sole provider faces financial or operational difficulties. Furthermore, it limits the government's ability to explore alternative technologies or suppliers that might offer better value or performance. This dependence on a single source can also impact long-term program costs and strategic flexibility.

How effective are high-fidelity visual display systems in improving pilot training outcomes?

High-fidelity visual display systems are considered highly effective in improving pilot training outcomes by providing a realistic and immersive training environment. These systems replicate the visual cues and environmental conditions pilots would encounter in actual combat scenarios, allowing them to practice complex maneuvers, threat detection, and tactical decision-making in a safe setting. Studies and anecdotal evidence from military aviation suggest that advanced simulators equipped with high-fidelity visuals significantly enhance pilot proficiency, reduce training time, and improve retention of skills compared to less sophisticated training methods. This leads to better prepared pilots and potentially reduces the risk of accidents during training and actual missions.

What has been the historical spending trend for F-35 visual display systems?

Historical spending on F-35 visual display systems is not explicitly detailed in the provided data. However, the F-35 program itself is one of the largest and most expensive defense programs in history, involving continuous development, production, and sustainment. Spending on training systems, including visual displays, is a significant component of the overall program lifecycle costs. Given the advanced nature of the F-35 and the long-term sustainment requirements, it is reasonable to infer that spending on its training infrastructure, including visual display systems, has been substantial and is likely to continue throughout the program's operational life. Sole-source awards for specific components can contribute to consistent, albeit potentially higher, spending over time.

Are there any alternative technologies or suppliers that could fulfill the requirement for F-35 visual display systems?

Identifying alternative technologies or suppliers for the F-35 visual display systems is challenging without detailed technical specifications and understanding the proprietary nature of the current system. The F-35 program involves highly integrated systems, and components are often designed to work within a specific architecture. While Rockwell Collins (Collins Aerospace) is a major player, other companies in the simulation and display technology sector, such as CAE or L3Harris, might possess relevant capabilities. However, transitioning to a new supplier or technology for a critical, sole-sourced component on an operational fighter jet program involves extensive testing, qualification, and potential redesign, which can be costly and time-consuming, often making the sole-source path the most expedient, albeit less competitive, option.

Industry Classification

NAICS: Manufacturing › Audio and Video Equipment Manufacturing › Audio and Video Equipment Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA930221R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,559,583

Exercised Options: $18,475,037

Current Obligation: $18,475,037

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,862,345

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline