DoD awards $48.9M for E-6B aircraft modifications to Rockwell Collins, facing limited competition
Contract Overview
Contract Amount: $48,891,414 ($48.9M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-09-11
End Date: 2014-02-28
Contract Duration: 1,631 days
Daily Burn Rate: $30.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: E-6B BLOCK IA ECP UCA TAS::17 1804::TAS
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $48.9 million to ROCKWELL COLLINS, INC. for work described as: E-6B BLOCK IA ECP UCA TAS::17 1804::TAS Key points: 1. Significant contract value of $48.9 million for aircraft modifications. 2. Sole-source award to Rockwell Collins raises concerns about competition. 3. Potential for cost overruns given the Cost Plus Incentive Fee contract type. 4. Sector focus on Defense, specifically aircraft parts manufacturing.
Value Assessment
Rating: questionable
The contract value of $48.9 million for aircraft modifications appears high, especially considering it was not competed. Benchmarking against similar sole-source modifications is difficult, but the lack of competition suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The E-6B aircraft is critical for strategic communications, making its maintenance and upgrades essential. Dependence on a single contractor for specialized modifications can create long-term risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Incentive Fee contract type
- Lack of transparency in pricing
Positive Signals
- Essential military aircraft upgrade
- Contract awarded to established defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft parts and auxiliary equipment manufacturing. Spending in this area is critical for maintaining military readiness, but competitive sourcing is crucial for cost efficiency.
Small Business Impact
The contract was awarded to Rockwell Collins, Inc., a large defense contractor. There is no indication that small businesses were involved in this specific sole-source award, limiting opportunities for them.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is reasonable and that future requirements are competed whenever possible to maximize value for taxpayers.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Incentive Fee contract type can lead to cost overruns.
- Lack of small business participation.
- Potential for contractor lock-in.
- Limited transparency on pricing justification.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ia, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.9 million to ROCKWELL COLLINS, INC.. E-6B BLOCK IA ECP UCA TAS::17 1804::TAS
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 $48.9 million.
What is the period of performance?
Start: 2009-09-11. End: 2014-02-28.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by a single contractor. However, without detailed documentation, it's difficult to ascertain if alternative competitive strategies were thoroughly explored. Agencies should provide clear rationales and evidence that competition was not feasible or advantageous.
How does the Cost Plus Incentive Fee structure impact the final cost and contractor performance?
A Cost Plus Incentive Fee (CPIF) contract aims to incentivize the contractor to control costs by sharing savings or cost overruns with the government based on performance targets. While intended to manage expenses, the incentive structure can still lead to higher final costs if targets are not met or if the base cost is inflated. Close monitoring is essential.
What is the long-term strategic impact of relying on a single vendor for critical aircraft modifications?
Long-term reliance on a single vendor for critical modifications can create a dependency that reduces future negotiating power and potentially increases costs. It also poses a risk if the vendor faces financial difficulties or decides to exit the market. Diversifying suppliers or developing in-house capabilities can mitigate these risks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001908R0111
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 COLLINS ROAD NE, CEDAR RAPIDS, IA, 52406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $48,891,414
Exercised Options: $48,891,414
Current Obligation: $48,891,414
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-09-11
Current End Date: 2014-02-28
Potential End Date: 2014-02-28 00:00:00
Last Modified: 2019-09-20
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