DHS Coast Guard awards $19.4M for A1U Upgrade to Rockwell Collins, citing no competition
Contract Overview
Contract Amount: $19,416,982 ($19.4M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2010-05-10
End Date: 2014-11-03
Contract Duration: 1,638 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: A1U UPGRADE
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Homeland Security obligated $19.4 million to ROCKWELL COLLINS, INC. for work described as: A1U UPGRADE Key points: 1. Significant contract value of $19.4M for aircraft parts. 2. Sole-source award to Rockwell Collins indicates potential lack of competition. 3. Contract duration of 1638 days suggests a long-term need. 4. The 'Other Aircraft Parts' sector is broad and requires specific context for deeper analysis.
Value Assessment
Rating: fair
The contract value of $19.4M for aircraft parts is substantial. Without specific benchmarks for 'A1U Upgrade' components, it's difficult to definitively assess pricing. However, the lack of competition raises concerns about whether a fair market price was achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning it was not competed. This method limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award potentially means taxpayers paid more than necessary due to the absence of competitive bidding.
Public Impact
Taxpayers may have overpaid due to the lack of competition. The U.S. Coast Guard's operational readiness could be impacted by the availability and cost of these aircraft parts. Dependence on a single supplier can create supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Specific upgrade for Coast Guard aircraft
- Firm fixed price contract
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining aviation fleets across government agencies. Benchmarks are highly dependent on the specific components and their complexity.
Small Business Impact
The awardee, Rockwell Collins, Inc., is a large business. There is no indication that small businesses were involved in this specific sole-source contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source justification and award process would be subject to oversight by the Department of Homeland Security's contracting officers and potentially the Government Accountability Office (GAO) if protested. Transparency in the justification for sole-source is key.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in price negotiation.
- Risk of vendor lock-in.
- No small business participation noted.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-homeland-security, ia, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $19.4 million to ROCKWELL COLLINS, INC.. A1U UPGRADE
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $19.4 million.
What is the period of performance?
Start: 2010-05-10. End: 2014-11-03.
What specific justification was provided for the sole-source award, and was it adequately documented to ensure fair value?
The justification for a sole-source award typically needs to demonstrate that only one responsible source can satisfy the agency's needs. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without access to the specific justification document, it's impossible to verify its adequacy or confirm if fair value was achieved through negotiation.
What is the long-term risk associated with relying on Rockwell Collins for these specific aircraft parts, especially given the lack of competition?
The primary long-term risk is vendor lock-in and potential price escalation over time. Without competitive pressure, Rockwell Collins may have less incentive to offer competitive pricing in future procurements. Additionally, the Coast Guard's ability to source parts from alternative suppliers or negotiate better terms is diminished, potentially impacting maintenance schedules and budgets.
How does the 'A1U Upgrade' contribute to the U.S. Coast Guard's mission effectiveness, and was this upgrade essential enough to warrant a sole-source procurement?
The 'A1U Upgrade' likely enhances the performance, safety, or operational capabilities of specific Coast Guard aircraft, thereby contributing to mission effectiveness. However, the necessity of a sole-source award hinges on whether alternative solutions or suppliers could have met these critical needs. A thorough analysis would compare the benefits of the upgrade against the potential costs and risks of non-competitive procurement.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,416,982
Exercised Options: $19,416,982
Current Obligation: $19,416,982
Parent Contract
Parent Award PIID: DTCG3803D200011
IDV Type: IDC
Timeline
Start Date: 2010-05-10
Current End Date: 2014-11-03
Potential End Date: 2014-11-03 00:00:00
Last Modified: 2015-01-15
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