DoD's $21.7M Avionics Management System contract awarded to Rockwell Collins, Inc. with no competition
Contract Overview
Contract Amount: $21,743,614 ($21.7M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-11-05
End Date: 2025-09-30
Contract Duration: 1,425 days
Daily Burn Rate: $15.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AVIONICS MANAGEMENT SYSTEM (AMS)V3
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $21.7 million to ROCKWELL COLLINS, INC. for work described as: AVIONICS MANAGEMENT SYSTEM (AMS)V3 Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. The contract duration of 1425 days suggests a long-term need for the avionics management system. 3. The 'IA' (Information Assurance) status indicates a focus on cybersecurity requirements for the system. 4. The 'COST PLUS FIXED FEE' contract type may incentivize cost overruns by the contractor. 5. The absence of small business participation is noted, with no set-aside or subcontracting requirements. 6. The contract is for an Avionics Management System (AMS) V3, implying an upgrade or new version of existing technology.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to its sole-source nature and lack of publicly available cost breakdowns. The 'COST PLUS FIXED FEE' structure, while common for complex systems, can lead to higher costs compared to fixed-price contracts if not managed rigorously. Without competitive bids, it's difficult to ascertain if the government is receiving optimal value for the $21.7 million expenditure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor possesses the necessary capabilities or technology. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms. It also raises concerns about whether alternative solutions were adequately explored.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure, potentially leading to higher overall program costs.
Public Impact
The U.S. Special Operations Command (SOCOM) is the primary beneficiary, receiving an upgraded Avionics Management System. The system is crucial for navigation, guidance, and detection for special operations aircraft. The contract supports the operational readiness and technological superiority of SOCOM's aviation assets. The geographic impact is primarily within the operational theaters where SOCOM aircraft are deployed. The contract supports specialized technical roles within Rockwell Collins, Inc. for system development and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Cost-plus contract type can incentivize higher spending.
- Lack of small business involvement limits broader economic participation.
- Cybersecurity ('IA' status) requires ongoing vigilance and potential for future cost increases.
Positive Signals
- Award to an established contractor (Rockwell Collins) suggests potential for reliable delivery.
- Focus on advanced avionics supports critical national security missions.
- Long contract duration indicates a sustained commitment to a vital capability.
Sector Analysis
The Avionics Management System falls within the broader aerospace and defense manufacturing sector, specifically focusing on navigation, guidance, and control systems. This sector is characterized by high R&D investment, stringent regulatory requirements, and significant government procurement. The market for such specialized systems is often dominated by a few key players due to the technical expertise and certifications required. Comparable spending benchmarks are difficult to establish without more detailed system specifications and competitive data.
Small Business Impact
This contract does not appear to include any small business set-aside provisions, nor are there explicit requirements for subcontracting to small businesses. Rockwell Collins, Inc. is a large business. This means that the direct economic benefits for small businesses from this specific contract are likely minimal, potentially missing opportunities to foster innovation and growth within the small business ecosystem for specialized avionics components or services.
Oversight & Accountability
Oversight for this contract would primarily fall under the U.S. Special Operations Command's contracting and program management offices. The 'IA' designation suggests that cybersecurity oversight is a key component. Transparency may be limited due to the sole-source nature and proprietary information associated with advanced avionics. The Department of Defense's Inspector General could conduct audits or investigations if specific concerns arise regarding cost, performance, or compliance.
Related Government Programs
- Defense Logistics Agency (DLA) Aviation
- Naval Air Systems Command (NAVAIR) contracts
- Air Force Life Cycle Management Center (AFLCMC) procurements
- Avionics Systems Development and Integration
- Special Operations Forces (SOF) Aviation Support
Risk Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
- No small business participation
Tags
defense, department-of-defense, u-s-special-operations-command, rockwell-collins-inc, avionics-management-system, ams-v3, sole-source, cost-plus-fixed-fee, information-assurance, aircraft-systems, navigation-guidance-systems, iowa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to ROCKWELL COLLINS, INC.. AVIONICS MANAGEMENT SYSTEM (AMS)V3
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $21.7 million.
What is the period of performance?
Start: 2021-11-05. End: 2025-09-30.
What is the specific functionality and technological advancement of Avionics Management System (AMS) V3 compared to previous versions?
The provided data does not detail the specific advancements of AMS V3. However, avionics management systems typically integrate and manage various aircraft subsystems, including navigation, communication, flight control, and mission systems. V3 likely represents an iterative improvement, potentially incorporating enhanced processing power, updated software for improved situational awareness, better data integration capabilities, advanced cybersecurity features, and potentially compatibility with newer sensor or communication technologies. These upgrades are crucial for maintaining operational effectiveness and safety in evolving threat environments and technological landscapes.
What are the key performance metrics used to evaluate the success of this contract?
Key performance metrics for an Avionics Management System (AMS) contract typically revolve around system reliability, availability, maintainability, and performance against specified requirements. This includes metrics such as Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), system uptime percentages, and adherence to operational parameters defined in the contract's Performance Work Statement (PWS). For AMS V3, specific metrics might also include data processing speed, accuracy of navigation and guidance outputs, and the effectiveness of its cybersecurity protocols in preventing unauthorized access or disruption. Successful delivery of software updates and system integration with other platforms would also be critical.
What is the historical spending pattern for Avionics Management Systems by the Department of Defense or U.S. Special Operations Command?
Historical spending on Avionics Management Systems (AMS) by the Department of Defense (DoD) and its components like U.S. Special Operations Command (SOCOM) is substantial and ongoing, reflecting the critical role of advanced avionics in military aviation. While specific figures for AMS V3 or comparable systems are not provided, the DoD consistently invests billions annually in aviation modernization, which includes sophisticated avionics suites. SOCOM, in particular, requires highly specialized and often customized avionics for its unique platforms, leading to significant procurement actions. Tracking historical spending requires analyzing numerous contracts across different services and fiscal years, often involving sole-source awards for specialized upgrades or new systems.
What are the potential risks associated with a sole-source 'Cost Plus Fixed Fee' contract for advanced avionics?
A sole-source 'Cost Plus Fixed Fee' (CPFF) contract for advanced avionics presents several risks. Sole-sourcing eliminates competitive pressure, potentially leading to higher prices than a competed contract. The 'Cost Plus' element means the government reimburses the contractor for allowable costs plus a fixed fee, which can incentivize the contractor to incur higher costs to increase the absolute fee (if the fee is a percentage of costs) or simply to cover expenses without strong cost-control motivation. For fixed fee, the risk is that the contractor may not be sufficiently motivated to control costs if the fee is a significant portion of the total contract value. This structure requires robust government oversight to scrutinize costs and ensure efficient performance, which can be resource-intensive.
How does the 'IA' (Information Assurance) designation impact the contract's scope and potential future costs?
The 'IA' designation signifies that Information Assurance (cybersecurity) is a critical aspect of this contract. This means the Avionics Management System (AMS) V3 must meet stringent cybersecurity requirements to protect sensitive data and ensure operational integrity against cyber threats. This impacts the contract by requiring specific security protocols, testing, and potentially specialized hardware/software components. Future costs can be influenced as cybersecurity threats evolve, necessitating ongoing updates, patches, and potentially system redesigns to maintain compliance and security posture. The contractor will need to demonstrate continuous adherence to IA standards throughout the contract lifecycle.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: H9224119R0003
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
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: $21,743,614
Exercised Options: $21,743,614
Current Obligation: $21,743,614
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $703,800
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9224120D0002
IDV Type: IDC
Timeline
Start Date: 2021-11-05
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-05-15
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