DoD Awards $24.7M for Mission Avionics Sustaining Engineering to Rockwell Collins

Contract Overview

Contract Amount: $24,721,711 ($24.7M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-11-26

End Date: 2021-11-30

Contract Duration: 735 days

Daily Burn Rate: $33.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MISSION AVIONICS SYSTEMS (MAS) SUSTAINING ENGINEERING (SE) FOLLOW-ON

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to ROCKWELL COLLINS, INC. for work described as: MISSION AVIONICS SYSTEMS (MAS) SUSTAINING ENGINEERING (SE) FOLLOW-ON Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award to Rockwell Collins raises competition concerns. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Focus on aircraft manufacturing sector, critical for defense readiness.

Value Assessment

Rating: questionable

The $24.7 million award for sustaining engineering is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar specialized avionics engineering.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Rockwell Collins. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this significant contract could lead to taxpayer funds being used less efficiently than if multiple vendors had vied for the work.

Public Impact

Ensures continued operational readiness of critical aircraft systems. Supports a key defense contractor, potentially impacting supply chain stability. Lack of transparency in pricing due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Cost Plus Fixed Fee contract type can incentivize cost overruns.
  • No indication of small business participation.

Positive Signals

  • Ensures critical sustaining engineering for defense assets.
  • Award to established contractor with known capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks for sustaining engineering services in this niche area are highly specialized and often dominated by incumbent contractors.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation in defense contracting.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste. Robust oversight is needed to monitor costs and performance under the Cost Plus Fixed Fee structure.

Related Government Programs

  • Aircraft Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Sole-source award
  • Cost Plus Fixed Fee contract type
  • Lack of small business participation
  • Potential for cost overruns
  • Limited price competition

Tags

aircraft-manufacturing, department-of-defense, ia, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to ROCKWELL COLLINS, INC.. MISSION AVIONICS SYSTEMS (MAS) SUSTAINING ENGINEERING (SE) FOLLOW-ON

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 $24.7 million.

What is the period of performance?

Start: 2019-11-26. End: 2021-11-30.

What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. Agencies must still conduct a price reasonableness analysis, often using historical data or market research, to ensure the price is fair. Without a competitive process, the rigor of this analysis is crucial for taxpayer protection.

What are the potential risks associated with the Cost Plus Fixed Fee contract type for this sustaining engineering effort?

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs, as their fee is a fixed percentage of the total cost. For sustaining engineering, where scope can be less defined, this structure may lead to higher overall expenditures than a fixed-price contract. Close monitoring of costs and scope creep is essential.

How does this contract contribute to the overall effectiveness and readiness of the specific aircraft systems it supports?

Sustaining engineering is vital for maintaining the operational effectiveness and longevity of complex systems like mission avionics. This contract ensures that necessary technical support, updates, and problem resolution are available, directly impacting aircraft readiness and mission capability. The continuity provided by Rockwell Collins is key.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001919R2804

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

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: $24,968,613

Exercised Options: $24,968,613

Current Obligation: $24,721,711

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $790,610

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001919G0031

IDV Type: BOA

Timeline

Start Date: 2019-11-26

Current End Date: 2021-11-30

Potential End Date: 2021-11-30 00:00:00

Last Modified: 2025-07-08

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