Navy awards $7.27M contract for F-35 pilot refurbishment equipment to Collins Elbit Vision Systems

Contract Overview

Contract Amount: $7,272,592 ($7.3M)

Contractor: Collins Elbit Vision Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2019-12-20

End Date: 2026-12-31

Contract Duration: 2,568 days

Daily Burn Rate: $2.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-35 PILOT REFURBISHMENT CENTER EQUIPMENT AND SUPPORT FOR NLD MOD

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $7.3 million to COLLINS ELBIT VISION SYSTEMS, LLC for work described as: F-35 PILOT REFURBISHMENT CENTER EQUIPMENT AND SUPPORT FOR NLD MOD Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration is over 6 years, suggesting a long-term need. 3. The primary contractor, Collins Elbit Vision Systems, is a specialized entity. 4. The contract is for equipment and support, indicating a focus on sustainment. 5. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, a high-value sector. 6. The contract is a definitive contract, implying a firm commitment. 7. The contract is firm-fixed-price, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and specific equipment focus. Without competitive bids, it's difficult to ascertain if the $7.27 million represents optimal value for money. The firm-fixed-price structure provides some cost certainty, but the lack of competition raises questions about potential overpricing. Further analysis would require comparing the specific equipment and support services to similar offerings in the market or historical data for comparable refurbishment needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or is the sole provider of the required goods or services. The lack of competition means there were no other bidders to compare against, potentially impacting price discovery and the government's ability to secure the lowest possible price.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. The absence of multiple offers could lead to a higher overall cost for this equipment and support.

Public Impact

The primary beneficiaries are the pilots of the F-35 aircraft, who will receive refurbished equipment essential for their training and operational readiness. The contract delivers specialized equipment and ongoing support services critical for maintaining the functionality of F-35 pilot systems. The geographic impact is primarily centered around the Department of the Navy's operations and potentially the contractor's facilities in Iowa. Workforce implications may include specialized technical roles at the contractor's site for refurbishment and support, as well as roles within the Navy for managing and utilizing the equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration could lead to price escalation if not managed carefully.
Lack of transparency in the sole-source justification requires scrutiny.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Specialized nature of the equipment suggests a critical need for specific capabilities.
Contractor is a known entity in specialized aerospace systems.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft components and support systems. The market for specialized military aircraft equipment is characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this sector is often driven by national security needs and long-term modernization programs, such as the F-35 Joint Strike Fighter. Comparable spending benchmarks would typically involve other sustainment and refurbishment contracts for advanced military platforms.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business subcontracting) is also false. This suggests that the prime contract is not specifically targeting small business participation, nor are there explicit requirements for subcontracting to small businesses mandated within this award. The primary contractor, Collins Elbit Vision Systems, LLC, is likely a larger entity, and the nature of the specialized equipment may not lend itself to broad subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy, a component of the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods and services at an agreed-upon price. Transparency may be limited due to the sole-source nature of the award, though contract details are typically available through federal procurement databases. The Inspector General for the Department of Defense would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

F-35 Program Support Contracts
Aerospace Equipment Manufacturing
Defense Contractor Sustainment Services
Pilot Training Equipment
Military Aircraft Refurbishment

Risk Flags

Sole-source award
Potential for uncompetitive pricing
Long-term contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.3 million to COLLINS ELBIT VISION SYSTEMS, LLC. F-35 PILOT REFURBISHMENT CENTER EQUIPMENT AND SUPPORT FOR NLD MOD

Who is the contractor on this award?

The obligated recipient is COLLINS ELBIT VISION SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2019-12-20. End: 2026-12-31.

What is the track record of Collins Elbit Vision Systems, LLC with Department of Defense contracts, particularly for F-35 related equipment?

Collins Elbit Vision Systems, LLC, is a joint venture that combines the expertise of Collins Aerospace and Elbit Systems. Both parent companies have extensive experience with the Department of Defense and in aerospace systems. Collins Aerospace is a major supplier of avionics, cabin systems, and other components for various military aircraft, including the F-35. Elbit Systems is a global defense electronics company with a strong presence in areas like electro-optics, command and control, and unmanned aircraft systems. While specific contract history for the joint venture might be less extensive than for its parent companies, the combined capabilities suggest a strong foundation for delivering specialized equipment and support for complex platforms like the F-35. Reviewing past performance on similar sole-source or specialized procurements would provide further insight into their reliability and quality.

How does the $7.27 million contract value compare to similar F-35 pilot refurbishment equipment procurements?

Direct comparison of the $7.27 million contract value for F-35 pilot refurbishment equipment is difficult without more specific details on the exact nature of the 'equipment and support' being procured. This contract is sole-source, meaning there's no competitive benchmark. However, the duration of over six years (2019-2026) suggests a sustained need for maintenance, repair, or upgrade of existing systems rather than a one-time purchase of new equipment. The annual value averages around $1.1 million. To assess value, one would need to compare the scope of work, the specific components or systems involved, and the level of support against other sustainment contracts for the F-35 program or comparable advanced military aircraft. The firm-fixed-price nature provides cost certainty but doesn't inherently guarantee the best market price without competition.

What are the primary risks associated with this sole-source contract for refurbishment equipment?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive bidding. Without multiple vendors vying for the contract, the government may not achieve the most cost-effective solution. Another risk is vendor lock-in; if Collins Elbit Vision Systems, LLC is the only provider of necessary parts or specialized knowledge for refurbishment, the Navy could be dependent on them for an extended period, potentially facing future price increases or supply chain vulnerabilities. Furthermore, the effectiveness and quality of the refurbishment services, while expected to be high given the specialized nature, carry inherent performance risks. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.

What is the expected program effectiveness or outcome of this contract for the F-35 program?

The expected outcome of this contract is the sustained operational readiness and effectiveness of the F-35 fleet by ensuring that critical pilot refurbishment equipment is maintained, repaired, and supported. Refurbished equipment is vital for pilot safety, training efficacy, and overall mission capability. By providing necessary support and equipment, this contract helps mitigate the risk of system failures or performance degradation that could impact pilot performance or ground the aircraft. The long-term nature of the contract suggests a commitment to the ongoing sustainment of these systems, contributing to the long-term viability and operational success of the F-35 program for the U.S. Navy and its allies.

How does this contract fit into the broader historical spending patterns for F-35 sustainment and support?

This contract represents a component of the broader, and often substantial, spending allocated to the sustainment and support of the F-35 program. While the $7.27 million is specific to pilot refurbishment equipment for the Netherlands (NLD) variant, it aligns with the overall trend of significant investment in maintaining the readiness of the F-35 fleet. Historically, sustainment costs, including maintenance, repair, overhaul, and support services, constitute a major portion of a platform's total lifecycle cost. Contracts like this, even if sole-source and for specific international variants, reflect the ongoing commitment and financial resources dedicated to ensuring the F-35 remains operational and technologically advanced throughout its service life. It is part of a larger ecosystem of contracts supporting the global F-35 user base.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 400 COLLINS ROAD NE, CEDAR RAPIDS, IA, 52498

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,974,424

Exercised Options: $7,272,592

Current Obligation: $7,272,592

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline