DoD awards $26.8M to Rockwell Collins for E-6B aircraft interoperability and communication kits
Contract Overview
Contract Amount: $26,755,595 ($26.8M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-03-27
End Date: 2012-09-30
Contract Duration: 1,283 days
Daily Burn Rate: $20.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS NEW CONTRACT WITH ROCKWELL COLLINS WILL PROVIDE NON-RECURRING ENGINEERING (NRE) AND DNS KITS FOR THE E-6B AIRCRAFT THAT WILL ENSURE THE E-6B AIRCRAFT HAS THE NECESSARY INTEROPERABILITY AND THE PROPER CONFIGURATION TO COMMUNICATE WITH DNS GROUND SITES.
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $26.8 million to ROCKWELL COLLINS, INC. for work described as: THIS NEW CONTRACT WITH ROCKWELL COLLINS WILL PROVIDE NON-RECURRING ENGINEERING (NRE) AND DNS KITS FOR THE E-6B AIRCRAFT THAT WILL ENSURE THE E-6B AIRCRAFT HAS THE NECESSARY INTEROPERABILITY AND THE PROPER CONFIGURATION TO COMMUNICATE WITH DNS GROUND SITES. Key points: 1. Contract addresses critical communication needs for the E-6B aircraft fleet. 2. Focus on non-recurring engineering and specific kits suggests a targeted upgrade. 3. Sole-source award raises questions about potential cost efficiencies and market alternatives. 4. Long duration of the contract (over 3 years) implies significant integration or development effort. 5. Aircraft manufacturing sector is characterized by high technical complexity and specialized suppliers. 6. Fixed-price contract structure shifts some risk to the contractor. 7. Lack of competition may limit opportunities for price discovery and innovation.
Value Assessment
Rating: fair
Benchmarking the value of this sole-source contract is challenging without comparable sole-source awards for similar E-6B modifications. The firm-fixed-price structure is generally favorable for the government in controlling costs, but the absence of competition means there's no direct market pressure to ensure optimal pricing. The total award amount of approximately $26.8 million over three years for specialized engineering and kits appears substantial, warranting scrutiny to ensure it aligns with the scope of work and industry standards for such modifications.
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. The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of adequate competition. Without a competitive bidding process, it is difficult to assess the breadth of available market solutions or whether the government secured the best possible price and terms.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits the opportunity for other capable businesses to compete for and win government contracts.
Public Impact
The primary beneficiaries are the U.S. Air Force and Navy personnel operating the E-6B Mercury aircraft, ensuring their ability to communicate effectively. The contract delivers essential Non-Recurring Engineering (NRE) and Digital Network System (DNS) kits, crucial for maintaining and upgrading the aircraft's communication systems. This ensures the E-6B's interoperability with ground-based DNS sites, vital for command and control missions. The contract supports the operational readiness and strategic communication capabilities of the U.S. military's airborne command post and communications relay functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Lack of transparency in the justification for sole-sourcing could mask underlying issues.
- Contract duration of over three years may indicate potential for cost overruns if not managed tightly.
- Absence of small business participation noted, potentially missing opportunities for economic inclusion.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- Rockwell Collins is a known entity in aerospace and defense, suggesting technical capability.
- Contract addresses a specific, critical need for aircraft communication systems.
- Awarded by the Defense Contract Management Agency, indicating established oversight processes.
Sector Analysis
The aerospace and defense sector is characterized by high barriers to entry due to technological complexity, stringent regulatory requirements, and significant capital investment. Aircraft manufacturing, specifically, involves intricate design, engineering, and production processes. This contract falls within the specialized niche of aircraft modification and systems integration, where established players like Rockwell Collins often hold significant market share due to their expertise and existing relationships with defense agencies. Comparable spending in this sub-sector can vary widely based on the complexity of the modifications and the specific aircraft platform.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Rockwell Collins, Inc., is a large business. This suggests that small businesses were not specifically targeted for this procurement. There is no information provided regarding subcontracting plans, so the extent to which small businesses might be involved indirectly through subcontracting is unknown. The lack of a set-aside may mean missed opportunities for small businesses to contribute to this defense program.
Oversight & Accountability
Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), a component of the Department of Defense responsible for ensuring contractors meet contractual requirements. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency regarding the sole-source justification would be key to assessing accountability. Inspector General jurisdiction would typically apply to investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- E-6B Mercury Program
- Airborne Command Post Systems
- Strategic Communications Aircraft
- DoD Aircraft Modernization Programs
- Defense Communications Infrastructure
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited transparency on justification
Tags
defense, department-of-defense, rockwell-collins, e-6b-aircraft, aircraft-manufacturing, sole-source, firm-fixed-price, non-recurring-engineering, communication-systems, iowa, defense-contract-management-agency, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.8 million to ROCKWELL COLLINS, INC.. THIS NEW CONTRACT WITH ROCKWELL COLLINS WILL PROVIDE NON-RECURRING ENGINEERING (NRE) AND DNS KITS FOR THE E-6B AIRCRAFT THAT WILL ENSURE THE E-6B AIRCRAFT HAS THE NECESSARY INTEROPERABILITY AND THE PROPER CONFIGURATION TO COMMUNICATE WITH DNS GROUND SITES.
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 $26.8 million.
What is the period of performance?
Start: 2009-03-27. End: 2012-09-30.
What is Rockwell Collins' track record with similar sole-source contracts for aircraft modifications?
Rockwell Collins, now part of Collins Aerospace, has a long history of providing avionics, communication, and integration solutions for various military aircraft platforms. While specific data on their sole-source contract history for E-6B modifications isn't detailed here, their extensive experience suggests a capacity to deliver complex systems. However, sole-source awards, by definition, lack direct competitive benchmarking. A deeper analysis would involve reviewing past performance metrics on similar sole-source engagements, scrutinizing any cost overruns or schedule delays, and assessing customer satisfaction feedback from the DoD on previous sole-source procurements to gauge reliability and value beyond the immediate contract.
How does the per-unit cost of these DNS kits compare to market rates or similar government procurements?
Determining a precise per-unit cost for the DNS kits is difficult without a breakdown of the total contract value allocated to the kits versus the non-recurring engineering (NRE) effort. The contract value is $26,755,594.84, and the duration is 1283 days. If we assume the kits represent a significant portion of the cost, and if multiple kits were procured, the per-unit cost could be estimated. However, without knowing the quantity of kits or the specific nature of the NRE, direct comparison to market rates or other government procurements is not feasible from the provided data. Sole-source awards inherently limit the ability to establish a clear market-based per-unit cost benchmark.
What are the primary risks associated with this sole-source contract for the E-6B aircraft?
The primary risk is the potential for inflated costs due to the lack of competition. Without competing bids, Rockwell Collins may not have been incentivized to offer the lowest possible price. Another risk is vendor lock-in; the government becomes dependent on a single supplier for critical components and expertise, potentially limiting future flexibility or negotiation leverage. Technical risks also exist, such as integration challenges with the E-6B's existing systems or unforeseen complexities during the NRE phase, which could lead to schedule delays or cost overruns, although the firm-fixed-price contract aims to mitigate the latter. Finally, there's a risk that alternative, potentially more cost-effective solutions from other vendors were not explored.
How effective is the E-6B aircraft's communication system expected to be after this upgrade?
The contract aims to ensure the E-6B aircraft has the 'necessary interoperability and the proper configuration to communicate with DNS ground sites.' This implies that the current system has deficiencies in these areas. The upgrade, involving NRE and DNS kits, is designed to rectify these issues, thereby enhancing the aircraft's ability to perform its critical command and control and communications relay missions. The effectiveness post-upgrade will depend on the successful execution of the engineering and integration work by Rockwell Collins and the actual performance of the new DNS kits in real-world operational scenarios, which is not detailed in the award data.
What has been the historical spending trend for E-6B aircraft modifications and communication systems?
Historical spending data for E-6B modifications and communication systems is not provided in this data snippet. However, the E-6B Mercury is a highly specialized and aging aircraft platform critical for U.S. strategic deterrence. Modifications and upgrades to its complex communication and command systems are typically substantial investments due to the platform's unique role and the advanced technology involved. Such programs often involve multi-year funding cycles and significant contract values, especially when addressing obsolescence or enhancing interoperability with evolving ground infrastructure. A comprehensive analysis would require access to historical contract databases and budget allocations for the E-6B program over several fiscal years.
What is the significance of the 'Non-Recurring Engineering (NRE)' component of this contract?
Non-Recurring Engineering (NRE) refers to the one-time costs associated with the design, development, and testing of a new product or system. In this context, it means Rockwell Collins will undertake the engineering effort required to design, adapt, or integrate the DNS kits specifically for the E-6B aircraft. This includes activities like system design, prototyping, testing, and validation. NRE costs are typically incurred upfront and are not repeated for subsequent units produced. The inclusion of NRE signifies that this is not just a procurement of off-the-shelf components but involves significant engineering work to ensure compatibility and functionality within the E-6B's unique operational environment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001908R0093
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3200 E RENNER RD, RICHARDSON, TX, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,755,595
Exercised Options: $26,755,595
Current Obligation: $26,755,595
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2009-03-27
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2012-06-05
More Contracts from Rockwell Collins, Inc.
- Federal Contract — $694.0M (Department of Defense)
- ARC-210 FY10-13 Production — $596.6M (Department of Defense)
- 200302!000006!5700!CZ46 !smc/Pkg LOS Angeles AFB !F0470102C0011 !A!N! !N! !20021106!20030930!060605883!962960589!962960589!n!rockwell Collins, Inc !400 Collins RD NE !cedar Rapids !ia!52498!12000!113!19!cedar Rapids !linn !iowa !+000005026814!n!n!000005026814!5826!radio Navigation Equipment, Airborne !A7 !electronics and Communication !3000!NOT Discernable or Classified !334220!E! !3! ! ! ! ! !99990909!B! ! !B! !a!u!j!2!003!b! !A!N!F! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! ! — $573.2M (Department of Defense)
- 200510!303493!1700!n00019!naval AIR Systems Command !N0001905C0050 !A!N! !N! ! !20050712!20070131!060605883!962960589!962960589!n!rockwell Collins, Inc !400 Collins RD NE !cedar Rapids !ia!52498!12000!113!19!cedar Rapids !linn !iowa !+000002915880!n!n!000282900632!5821!radio and TV Comm Equipment, Airborne !A7 !electronics and Communication Equip !000 !* !334290!A!A!3! ! ! ! ! !20200930!B! ! !A! !d!u!j!1!001!n!1a!z!n!z! ! !Y!C!N! ! ! !z!z!a!a!000!a!b!n! ! ! ! !1719!N00019!0001! ! — $410.2M (Department of Defense)
- E-6B Block I/ Ipbe Phase 3 MOD Kits — $405.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)