DoD's $21.4M contract for navigation systems awarded to Rockwell Collins, with no competition
Contract Overview
Contract Amount: $21,419,220 ($21.4M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-08-16
End Date: 2027-05-31
Contract Duration: 1,018 days
Daily Burn Rate: $21.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PHASE 3 FMS
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $21.4 million to ROCKWELL COLLINS, INC. for work described as: PHASE 3 FMS Key points: 1. The contract value of $21.4 million represents a significant investment in specialized navigation systems. 2. The sole-source award to Rockwell Collins raises questions about potential price inflation and limited market engagement. 3. The 'IA' (Intelligence/Allied) contract type suggests a focus on sensitive or classified operations. 4. The duration of over 1000 days indicates a long-term need for these critical systems. 5. The absence of small business participation in this specific award warrants further investigation into subcontracting opportunities.
Value Assessment
Rating: questionable
Benchmarking the value of this $21.4 million contract is challenging without specific performance metrics or comparable sole-source awards. However, the lack of competition inherently limits the government's ability to secure the best possible price. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex R&D or specialized services, can sometimes lead to higher costs if not meticulously managed, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without a competitive bidding process, it's difficult to ascertain if this price reflects fair market value.
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, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from multiple qualified vendors. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they limit price discovery and can reduce the incentive for contractors to offer their most competitive pricing.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition. Without competing bids, there is less assurance that the government is receiving the most cost-effective solution available in the market.
Public Impact
This contract directly benefits the U.S. Special Operations Command (SOCOM) by providing essential navigation systems. The services delivered are critical for the operational effectiveness and safety of special operations forces. The geographic impact is primarily within SOCOM's operational theaters, supporting global missions. Workforce implications are likely concentrated within Rockwell Collins' specialized engineering and manufacturing divisions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potentially increases costs for taxpayers.
- Lack of transparency in the justification for a sole-source award.
- Cost Plus Fixed Fee contract type can lead to cost overruns if not tightly managed.
- Absence of small business set-aside or participation noted in this specific award.
Positive Signals
- Award to a known contractor (Rockwell Collins) suggests a reliance on established expertise.
- Contract duration indicates a long-term commitment to a critical capability.
- Focus on specialized navigation systems addresses a specific and important military need.
Sector Analysis
The aerospace and defense sector is characterized by high R&D costs, long product development cycles, and significant government procurement. Navigation systems, a sub-sector of aeronautical and nautical instrument manufacturing (NAICS 334511), are critical for military operations, requiring advanced technology and high reliability. Spending in this area is often driven by technological advancements and evolving mission requirements. Comparable spending benchmarks would typically involve other sole-source or competitive awards for similar advanced navigation or guidance systems within the DoD.
Small Business Impact
This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. The sole-source nature of the award further limits the opportunity for small businesses to participate directly. While Rockwell Collins may engage small businesses in its supply chain, the absence of explicit set-asides or subcontracting plans in the award details suggests a minimal direct impact on the small business ecosystem for this particular contract.
Oversight & Accountability
Oversight for this contract would fall under the U.S. Special Operations Command (SOCOM) contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing by SOCOM and potentially the Defense Contract Audit Agency (DCAA) would be expected to ensure allowable costs and fair pricing. Transparency regarding the justification for the sole-source award and performance metrics would be key accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- DoD Navigation and Guidance Systems Procurement
- Special Operations Forces Equipment Acquisition
- Rockwell Collins Defense Contracts
- Aeronautical and Nautical Instrument Manufacturing
- Sole-Source Defense Contracts
Risk Flags
- Sole-source award
- Lack of competition
- Cost Plus Fixed Fee contract type
Tags
defense, department-of-defense, u-s-special-operations-command, rockwell-collins, navigation-systems, sole-source, delivery-order, cost-plus-fixed-fee, special-operations, iowa, 334511
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.4 million to ROCKWELL COLLINS, INC.. PHASE 3 FMS
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 $21.4 million.
What is the period of performance?
Start: 2024-08-16. End: 2027-05-31.
What specific justification was provided for awarding this contract on a sole-source basis to Rockwell Collins, Inc.?
Sole-source awards are typically justified when a specific capability is only available from a single source, or in cases of urgent and compelling need where competition is not feasible. For this contract, the justification would likely stem from Rockwell Collins' unique technological expertise, proprietary systems, or existing integration with SOCOM platforms that make them the only viable provider. Without access to the specific Justification for Other Than Full and Open Competition (JOFOC) document, the precise rationale remains undisclosed. However, such justifications are subject to review by contracting officers and potentially oversight bodies to ensure they meet regulatory requirements and are not merely for convenience.
How does the Cost Plus Fixed Fee (CPFF) pricing structure for this $21.4M contract compare to industry benchmarks for similar navigation system development or sustainment?
The CPFF structure reimburses the contractor for all allowable costs plus a predetermined fixed fee, representing profit. Benchmarking CPFF contracts is complex as it depends heavily on the specific scope of work, technical challenges, and risk allocation. For navigation systems, which can involve intricate software and hardware integration, CPFF is often used when the final costs are uncertain. However, it places a significant burden on the government to meticulously audit costs. Compared to fixed-price contracts, CPFF can sometimes result in higher overall costs for the government if cost controls are not stringent, as the contractor is incentivized to incur costs to complete the work, while their profit (the fee) remains fixed. Industry benchmarks often focus on the fee percentage relative to total estimated cost.
What are the key performance indicators (KPIs) or metrics used to assess the performance and value delivered by Rockwell Collins under this contract?
Performance assessment for complex defense contracts like this typically involves a combination of technical, schedule, and cost metrics. For navigation systems, KPIs might include accuracy (e.g., mean error rate), reliability (e.g., Mean Time Between Failures - MTBF), system availability, software performance, and adherence to delivery schedules. Value is assessed by comparing the delivered performance against the contract requirements and the price paid. Given the sole-source nature, value assessment is particularly critical and would likely involve comparing the system's capabilities and reliability against operational needs and potentially against alternative solutions that might have been pursued through competition. SOCOM would have internal processes for quality assurance and performance monitoring.
What is the historical spending pattern for navigation systems by U.S. Special Operations Command, and how does this $21.4M award fit within that trend?
U.S. Special Operations Command (SOCOM) historically invests significantly in advanced technologies to maintain operational superiority, including sophisticated navigation and guidance systems. Spending patterns can fluctuate based on technological obsolescence, new platform integration, and evolving mission requirements. This $21.4 million award, while substantial, needs to be viewed in the context of SOCOM's overall budget and its specific needs for specialized equipment. Without access to SOCOM's detailed historical procurement data for navigation systems, it's difficult to definitively state if this award represents an increase, decrease, or continuation of a trend. However, sole-source awards for specialized systems are not uncommon within SOCOM, reflecting the unique nature of its operations and equipment requirements.
Are there any known performance issues or past contract disputes involving Rockwell Collins, Inc. with the Department of Defense related to navigation systems?
Rockwell Collins, now part of Collins Aerospace (an RTX business), has a long history of supplying avionics and communication systems to the Department of Defense. While specific contract disputes are not publicly detailed without extensive database searches, major defense contractors generally experience occasional performance issues or contract disagreements. These can range from minor quality control issues to more significant disputes over contract scope, delivery schedules, or technical performance. A thorough review would involve examining contract performance reports (e.g., CPARS), litigation records, and any publicly available information on past performance issues. However, the award of a new, significant contract suggests that, overall, Rockwell Collins' performance has met DoD standards for this type of specialized equipment.
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: $21,419,220
Exercised Options: $21,419,220
Current Obligation: $21,419,220
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,259,443
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: 2024-08-16
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2024-12-27
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