DoD's $19.6M Air Vehicle Computer contract awarded to Rockwell Collins, Inc. with no competition

Contract Overview

Contract Amount: $19,628,977 ($19.6M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-14

End Date: 2028-03-13

Contract Duration: 1,095 days

Daily Burn Rate: $17.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AIR VEHICLE COMPUTER (AVC)

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $19.6 million to ROCKWELL COLLINS, INC. for work described as: AIR VEHICLE COMPUTER (AVC) Key points: 1. The contract value of $19.6 million for Air Vehicle Computers represents a significant investment in specialized aerospace technology. 2. The sole-source award to Rockwell Collins, Inc. raises questions about potential price inflation and limited market exploration. 3. The 'IA' (Information Assurance) system type suggests a focus on secure and resilient computing for critical defense applications. 4. The contract duration of 1095 days (3 years) indicates a long-term need for these specialized components. 5. The absence of small business set-asides suggests the contract is not structured to benefit smaller enterprises. 6. The 'COST PLUS FIXED FEE' contract type can lead to cost overruns if not carefully managed.

Value Assessment

Rating: questionable

Benchmarking the value of this specific Air Vehicle Computer (AVC) contract is challenging due to the lack of competitive bidding and the specialized nature of the equipment. Without comparable contract data or market analysis for similar AVCs, it's difficult to definitively assess if the $19.6 million price represents fair market value. The 'COST PLUS FIXED FEE' structure, while providing flexibility, also carries inherent risks of cost escalation, making rigorous oversight crucial to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Rockwell Collins, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances, such as when a unique capability is required or only one vendor possesses the necessary expertise, they inherently limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these Air Vehicle Computers, as there was no incentive for vendors to underbid each other.

Public Impact

The primary beneficiaries are likely the U.S. Special Operations Command (SOCOM) and its operational units, which will receive advanced computing hardware for air vehicles. The contract will deliver critical Air Vehicle Computer (AVC) systems essential for navigation, guidance, and potentially other flight control functions. The geographic impact is primarily within the Department of Defense's operational theaters, supporting SOCOM's global missions. The contract may indirectly impact the aerospace and defense technology workforce, particularly those skilled in the development and manufacturing of specialized avionics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contract type carries a risk of cost overruns if not managed effectively.
Lack of transparency in the procurement process due to no-bid award.
Potential for vendor lock-in with specialized hardware and software.
Limited opportunities for small businesses to participate in this specific contract.

Positive Signals

Award to a known entity (Rockwell Collins) suggests a potentially reliable supplier for critical components.
The 'IA' designation indicates a focus on information assurance, crucial for secure military operations.
The contract duration suggests a stable, long-term requirement, allowing for planned integration and support.
The specific NAICS code (334511) points to a specialized manufacturing capability.

Sector Analysis

The Air Vehicle Computer (AVC) market falls within the broader aerospace and defense electronics sector, specifically the instrument manufacturing sub-sector (NAICS 334511). This industry is characterized by high technological barriers to entry, stringent quality and reliability requirements, and significant government procurement. Companies like Rockwell Collins are established players in this domain, often holding proprietary technologies and long-standing relationships with defense agencies. Spending in this area is driven by the need for advanced avionics to support modern military aircraft capabilities, including navigation, sensor integration, and mission systems.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, as indicated by 'sb': false. Furthermore, the sole-source nature of the award significantly limits opportunities for small businesses to participate, either as prime contractors or potentially even as subcontractors unless specifically included by the prime. This suggests that the primary focus was on securing a specific capability from a known provider rather than fostering small business engagement.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Defense's contracting and program management structures, specifically within U.S. Special Operations Command. Given the 'COST PLUS FIXED FEE' contract type, rigorous financial oversight and performance monitoring will be essential to manage costs and ensure deliverables meet specifications. The contract's duration and value may also trigger reviews by the Government Accountability Office (GAO) or the Inspector General's office if specific concerns arise regarding waste, fraud, or abuse.

Related Government Programs

Defense Avionics Systems
Aerospace Navigation Equipment Manufacturing
Special Operations Forces Equipment Procurement
Military Computer Systems
Information Assurance Technology

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competitive bidding
Potential for cost overruns
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 million to ROCKWELL COLLINS, INC.. AIR VEHICLE COMPUTER (AVC)

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 $19.6 million.

What is the period of performance?

Start: 2025-03-14. End: 2028-03-13.

What is Rockwell Collins, Inc.'s track record with the Department of Defense, particularly for Air Vehicle Computer systems?

Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long and established history of supplying avionics and integrated systems to the Department of Defense and other military branches. They are a major contractor for various aircraft platforms, providing navigation, communication, surveillance, and flight control systems. Their track record includes numerous contracts for complex electronic systems, often involving advanced technology and stringent performance requirements. For Air Vehicle Computers specifically, their experience likely spans various generations of aircraft and mission requirements, positioning them as a key supplier for specialized computing needs within military aviation.

How does the $19.6 million contract value compare to similar Air Vehicle Computer procurements by the DoD?

Direct comparison of the $19.6 million contract value for Air Vehicle Computers is difficult without access to detailed specifications and quantities for comparable procurements. The 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511) category encompasses a wide range of products. However, given the sole-source nature and the 'COST PLUS FIXED FEE' structure, this specific award might be higher than a competitively bid contract for similar, albeit not identical, systems. The specialized nature for U.S. Special Operations Command could also justify a premium due to unique requirements not found in standard Air Force or Navy platforms.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for critical defense components like Air Vehicle Computers?

The primary risks associated with this contract structure are twofold. Firstly, the sole-source award eliminates competitive pressure, potentially leading to inflated pricing and reduced incentive for the contractor to optimize costs. The government may end up paying more than necessary. Secondly, the 'Cost Plus Fixed Fee' (CPFF) structure, while allowing for flexibility in development or production where costs are uncertain, carries the inherent risk of cost overruns. If the contractor's actual costs exceed initial estimates, the government bears the burden, although the fixed fee provides some predictability for the contractor's profit. Effective oversight is critical to mitigate these risks.

What does the 'IA' (Information Assurance) designation imply for the functionality and security of these Air Vehicle Computers?

The 'IA' designation signifies that these Air Vehicle Computers are designed with a strong emphasis on Information Assurance. This means they incorporate features and protocols to protect the integrity, confidentiality, and availability of the data and systems they manage. For military applications, this is critical to prevent unauthorized access, tampering, or disruption of flight control, navigation, and mission systems. It implies that the computers will likely employ robust cybersecurity measures, encryption, secure boot processes, and potentially operate within highly controlled network environments to ensure operational security and mission success in potentially hostile cyber environments.

What is the historical spending trend for Air Vehicle Computers or similar avionics systems within the Department of Defense?

Historical spending on Air Vehicle Computers and related avionics systems within the Department of Defense has been substantial and generally increasing, driven by the continuous modernization of military aircraft fleets and the integration of more sophisticated technologies. Defense spending in areas like navigation, guidance, and control systems is a consistent requirement. While specific figures for 'Air Vehicle Computers' as a distinct category can be difficult to isolate from broader avionics or aircraft electronics procurement, the overall trend shows significant and sustained investment. Factors such as technological advancements, platform upgrades, and the need for enhanced operational capabilities contribute to this ongoing expenditure.

How might the 'DELIVERY ORDER' (aw: DELIVERY ORDER) status impact the overall program timeline and budget?

The 'DELIVERY ORDER' status typically indicates that this contract is a task order issued against a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework agreement. This means the $19.6 million is for a specific quantity or set of services to be delivered within the contract's period of performance. While it signifies a defined scope for this particular order, it also implies that there might be other delivery orders under the same basic contract, potentially leading to cumulative spending that could exceed initial projections if not carefully managed. The 'DELIVERY ORDER' itself doesn't inherently change the program timeline or budget beyond the scope of this specific order, but it's part of a potentially larger contractual vehicle.

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: $19,628,977

Exercised Options: $19,628,977

Current Obligation: $19,628,977

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $71,402

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