DoD awards $20.6M for 10 DRSS kits to Rockwell Collins, Inc. under a non-competed delivery order

Contract Overview

Contract Amount: $20,618,522 ($20.6M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-12-30

End Date: 2026-04-30

Contract Duration: 2,313 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE 10 DRSS KITS.

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to ROCKWELL COLLINS, INC. for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE 10 DRSS KITS. Key points: 1. The contract value of $20.6 million for 10 kits suggests a significant per-unit cost, warranting scrutiny of pricing and necessity. 2. A sole-source award for critical aircraft components raises concerns about potential overpayment and lack of competitive pressure to reduce costs. 3. The extended performance period of nearly 2.5 years for a small number of kits may indicate complex integration or support requirements. 4. The 'Aircraft Manufacturing' NAICS code suggests a focus on production, but the specific 'DRSS kits' require further definition to assess their role. 5. The absence of small business participation is noted, with no indication of set-asides or subcontracting plans. 6. The contract's 'IA' (Information Assurance) status implies potential cybersecurity considerations for the delivered kits.

Value Assessment

Rating: questionable

The awarded amount of $20.6 million for 10 DRSS kits translates to approximately $2.06 million per kit. Without specific details on the DRSS kits' functionality and complexity, it is difficult to benchmark this cost. However, given the nature of aircraft components, this per-unit cost appears high and warrants further investigation into the necessity of this specific configuration and the justification for the sole-source award. The firm-fixed-price contract type offers some cost certainty, but the lack of competition limits the ability to assess if this price represents fair market value.

Cost Per Unit: Approximately $2.06 million per kit. Benchmarking is difficult without detailed specifications of the DRSS kits.

Competition Analysis

Competition Level: sole-source

This delivery order was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The data indicates that Rockwell Collins, Inc. was the only source considered for this procurement. This approach bypasses the standard competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The justification for a sole-source award would need to be robust, likely citing unique capabilities or proprietary technology held by Rockwell Collins.

Taxpayer Impact: Sole-source awards limit taxpayer value by preventing competitive bidding, which could have driven down the price for these DRSS kits. This lack of competition means taxpayers may be paying a premium for the procured items.

Public Impact

The primary beneficiaries are likely entities within the Department of the Navy requiring the specific functionality of the DRSS kits for aircraft operations. The services delivered include the procurement of 10 DRSS kits, which are critical components for specific aircraft platforms. The geographic impact is centered around the Department of the Navy's operational bases and maintenance facilities, primarily within Iowa where Rockwell Collins is located. Workforce implications may include specialized manufacturing and assembly roles at Rockwell Collins, contributing to the local economy in Iowa.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant dollar amount raises concerns about potential price inflation and missed opportunities for cost savings.
The high per-unit cost, estimated at over $2 million, requires thorough justification to ensure value for taxpayer money.
The extended performance period could indicate unforeseen complexities or potential for cost overruns if not managed effectively.
Limited transparency into the specific nature and necessity of 'DRSS kits' makes independent assessment of value challenging.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, limiting the risk of cost overruns on the base contract.
Rockwell Collins is an established defense contractor, suggesting a degree of reliability in production and delivery.
The contract is for a specific quantity (10 kits), indicating a defined scope of work.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government investment. Aircraft manufacturing, under NAICS code 336411, is a key segment. Spending in this area often involves specialized components and systems, where sole-source procurements can occur due to proprietary technology or unique integration requirements. Comparable spending benchmarks are difficult to establish without knowing the exact specifications of 'DRSS kits,' but large, complex aircraft systems can run into millions of dollars per unit.

Small Business Impact

This contract does not appear to include any small business set-asides, as indicated by 'sb': false. There is also no explicit mention of subcontracting plans for small businesses. This suggests that the primary awardee, Rockwell Collins, Inc., will be performing the majority, if not all, of the work. Consequently, this contract is unlikely to provide direct opportunities for small businesses within the defense supply chain for this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a delivery order under a larger contract vehicle, existing oversight mechanisms for that vehicle would apply. Transparency is limited by the sole-source nature of the award and the proprietary details of the 'DRSS kits.' Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Component Manufacturing
Defense Procurement
Naval Aviation Systems
Sole-Source Contracts
Information Assurance Systems

Risk Flags

Sole-source award may lead to higher costs.
Lack of competition limits price discovery.
High per-unit cost requires justification.
Limited transparency into 'DRSS kits' functionality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to ROCKWELL COLLINS, INC.. THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE 10 DRSS KITS.

Who is the contractor on this award?

The obligated recipient is ROCKWELL COLLINS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2019-12-30. End: 2026-04-30.

What are 'DRSS kits' and what is their specific function within naval aviation?

DRSS kits likely refer to a specific system or component related to Data Recording and Simulation Systems or similar specialized avionics. Without further declassification or specific contract details, the exact function remains proprietary. However, in the context of naval aviation, such kits could be related to flight data recording for accident investigation, mission simulation for training, or electronic warfare support. The 'IA' (Information Assurance) designation suggests that these kits may handle sensitive data or require secure communication protocols, underscoring their importance in modern military operations. The high cost per unit implies a sophisticated technological component.

What is the justification for awarding this contract on a sole-source basis to Rockwell Collins, Inc.?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For Rockwell Collins, this could be due to possessing unique technology, proprietary designs, or essential integration expertise for the DRSS kits that no other company can replicate. The Department of Defense would have required a formal justification and approval (J&A) process to bypass full and open competition. This process usually involves demonstrating that competition is not feasible or would not be in the government's best interest, often citing factors like patent rights, critical system integration, or the need for commonality with existing fielded systems.

How does the $2.06 million per-unit cost compare to similar procurements or industry benchmarks for advanced avionics?

Benchmarking the $2.06 million per-unit cost for DRSS kits is challenging without precise specifications. However, advanced avionics suites for military aircraft can indeed cost millions of dollars, especially if they involve complex sensor integration, data processing, secure communication, and specialized software. If these DRSS kits are integral to a specific platform's mission capability or safety, and require unique interfaces or proprietary technology developed by Rockwell Collins, the cost might be justifiable within the defense sector. Nevertheless, the lack of competition means there's no direct market comparison to confirm if this represents a competitive price.

What are the potential risks associated with a sole-source award for critical aircraft components?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Taxpayers may end up paying more than necessary. Additionally, sole-source awards can stifle innovation by limiting market entry for other potential suppliers and can create vendor lock-in, making future procurements or upgrades more expensive and less flexible. There's also a risk that the sole provider might face production issues or financial instability, which could disrupt the supply chain for critical components without readily available alternatives.

What is the historical spending pattern for DRSS kits or similar components procured by the Department of the Navy?

Historical spending data for 'DRSS kits' specifically is not readily available in the provided information. However, the Department of the Navy, as part of the broader Department of Defense, consistently spends billions of dollars annually on aircraft components, avionics, and related systems. Procurements for specialized or proprietary systems often involve significant investment. Analyzing past sole-source awards for similar complex avionics or mission-critical systems within the Navy could provide context, but direct comparisons require detailed understanding of the DRSS kits' technical specifications and their role in naval aviation programs.

What oversight mechanisms are in place to ensure the quality and timely delivery of these DRSS kits?

Oversight for this delivery order would be managed by the contracting officer and the program office within the Department of the Navy responsible for the parent contract. This typically involves contract surveillance, quality assurance inspections during manufacturing, and acceptance testing upon delivery. The firm-fixed-price nature of the contract incentivizes the contractor to meet specifications within the agreed budget. However, the effectiveness of oversight also depends on the resources allocated to monitoring the contractor's performance and adherence to contractual requirements, especially given the sole-source nature.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

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: $20,827,077

Exercised Options: $20,618,522

Current Obligation: $20,618,522

Actual Outlays: $3,336,404

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $112,470

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001919G0031

IDV Type: BOA

Timeline