DoD's $14M contract for navigation systems awarded to Rockwell Collins without competition
Contract Overview
Contract Amount: $13,999,018 ($14.0M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-08-01
End Date: 2012-02-28
Contract Duration: 1,672 days
Daily Burn Rate: $8.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROGRAM MANAGEMENT CAAS/CMS LCCS
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $14.0 million to ROCKWELL COLLINS, INC. for work described as: PROGRAM MANAGEMENT CAAS/CMS LCCS Key points: 1. The contract value of $14 million for navigation systems represents a significant investment in defense capabilities. 2. Awarded to a single vendor, Rockwell Collins, this contract raises questions about the extent of market competition. 3. The duration of the contract (over 4 years) suggests a long-term need for these specialized systems. 4. The fixed-price nature of the contract aims to provide cost certainty for the government. 5. The absence of small business participation indicates a focus on large, established prime contractors for this specific need. 6. The contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' industry code.
Value Assessment
Rating: questionable
Benchmarking the value of this $14 million contract is challenging without specific performance metrics or comparable contract data. However, the lack of competition suggests potential for overpayment or suboptimal pricing. The fixed-firm price contract type offers some cost control, but the absence of competitive pressure could lead to less favorable terms than if multiple vendors had bid. Further analysis would require understanding the specific technological requirements and market availability of such navigation systems.
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, was solicited. This approach is typically used when a unique capability is required, or when only one vendor can meet the specific technical requirements. The lack of competition means that the government did not benefit from the price discovery mechanisms that typically occur in a competitive bidding process, potentially leading to higher costs for taxpayers.
Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete and can result in higher prices for the government compared to competitively awarded contracts. Taxpayers may bear the cost of this reduced competition.
Public Impact
The primary beneficiaries are the Department of Defense, which receives critical navigation systems for its operations. The contract delivers specialized navigation and guidance systems essential for military aircraft and potentially other platforms. The geographic impact is likely concentrated within military installations and operational theaters where these systems are deployed. Workforce implications may include specialized engineering, manufacturing, and maintenance roles at Rockwell Collins and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Sole-source award limits opportunities for other technology providers.
- Potential for vendor lock-in due to specialized nature of the systems.
Positive Signals
- Contract awarded to a known entity (Rockwell Collins) with established capabilities.
- Firm fixed price contract provides cost certainty.
- Long-term duration suggests a stable and ongoing requirement.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the manufacturing of navigation and guidance systems. The market for such specialized components is often characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this area is critical for maintaining the operational effectiveness of military assets. Comparable spending benchmarks would typically involve other contracts for similar avionics or navigation equipment within the defense industry.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses mentioned. This suggests that the prime contractor, Rockwell Collins, is expected to perform the majority of the work, or that the nature of the specialized systems does not lend itself to broad small business participation. This could limit opportunities for small businesses to engage with this specific defense procurement.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm fixed-price contract type provides a degree of accountability by linking payment to delivery of specified goods. Transparency is generally limited for sole-source defense contracts, with details often classified or restricted due to national security concerns. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Avionics Systems
- Military Navigation Equipment
- Aerospace Manufacturing Contracts
- Department of Defense Procurement
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Tags
defense, department-of-defense, rockwell-collins, sole-source, navigation-systems, avionics, firm-fixed-price, iowa, 334511, program-management-caas/cms-lccs
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.0 million to ROCKWELL COLLINS, INC.. PROGRAM MANAGEMENT CAAS/CMS LCCS
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 $14.0 million.
What is the period of performance?
Start: 2007-08-01. End: 2012-02-28.
What is Rockwell Collins' track record with similar sole-source navigation system contracts for the Department of Defense?
Rockwell Collins, now part of Collins Aerospace, has a long history of supplying avionics and navigation systems to the Department of Defense. While specific details on past sole-source awards for navigation systems require deeper database searches, the company is a well-established prime contractor in this domain. Their track record generally includes delivering complex systems for various military platforms. However, the justification for sole-source awards, especially for navigation systems, often hinges on proprietary technology or unique integration requirements that may limit direct comparisons to other vendors' offerings. Analyzing past performance on similar contracts would involve reviewing delivery timelines, system reliability, and any documented issues or modifications.
How does the $14 million contract value compare to other government spending on navigation systems?
Comparing the $14 million value of this specific contract requires context regarding the scope and duration of other government spending on navigation systems. The Department of Defense procures a wide array of navigation technologies, from basic GPS receivers to highly sophisticated inertial navigation systems and integrated avionics suites. A $14 million contract for a specific system over approximately 4.5 years (August 2007 to February 2012) might be considered moderate. Larger, multi-year programs for fleet-wide upgrades or new platform integration could easily run into hundreds of millions or billions of dollars. Conversely, smaller, individual unit procurements would be significantly less. Without knowing the exact capabilities and quantity of systems procured under this contract, a precise benchmark is difficult, but it represents a substantial investment for a single system type awarded non-competitively.
What are the primary risks associated with a sole-source award for critical navigation systems?
The primary risks associated with a sole-source award for critical navigation systems include potential overpricing due to the lack of competitive bidding, reduced incentive for the contractor to innovate or improve efficiency, and the risk of vendor lock-in. If Rockwell Collins is the only provider of these specific systems, the DoD becomes heavily reliant on them for future upgrades, maintenance, and spare parts, potentially at inflated costs. Furthermore, if Rockwell Collins experiences financial difficulties or decides to exit a particular product line, the DoD could face significant disruption in acquiring essential components. The lack of competition also means less transparency in pricing and potentially less rigorous vetting of the contractor's overall performance and cost management.
What is the typical performance context for navigation systems procured by the Department of Defense?
The performance context for navigation systems procured by the Department of Defense is exceptionally demanding, requiring high levels of accuracy, reliability, and resilience in harsh operating environments. These systems must function effectively across diverse conditions, including electronic warfare, GPS-denied environments, and extreme temperatures. Key performance indicators often include Mean Time Between Failures (MTBF), accuracy within specific operational parameters (e.g., nautical miles per hour), resistance to jamming and spoofing, and seamless integration with other aircraft systems. For this specific contract, the performance context would be tied to the operational requirements of the platforms utilizing these 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument' components, likely focusing on mission success and aircrew safety.
How has federal spending on 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' evolved over time?
Federal spending on the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511) sector has historically been substantial, driven primarily by the Department of Defense's continuous need for advanced avionics and related systems. Spending in this category tends to fluctuate based on major defense acquisition programs, modernization efforts, and geopolitical events. While this specific $14 million contract represents a single data point from 2007-2012, broader trends show significant investment in areas like GPS modernization, inertial navigation systems, and integrated cockpit technologies. Analyzing historical spending patterns would involve examining aggregate data for this NAICS code across different agencies, particularly the DoD, to identify trends in contract values, types (e.g., R&D vs. production), and major awardees over multiple fiscal years.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 400 COLLINS ROAD NE, CEDAR RAPIDS, IA, 02
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,999,018
Exercised Options: $13,999,018
Current Obligation: $13,999,018
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-08-01
Current End Date: 2012-02-28
Potential End Date: 2012-02-28 00:00:00
Last Modified: 2013-10-22
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