DoD Awards $57M for MIDS WDL SF2 Radio Production to Rockwell Collins, Inc
Contract Overview
Contract Amount: $57,152,766 ($57.2M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2027-08-31
Contract Duration: 701 days
Daily Burn Rate: $81.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: MIDS WDL SF2 RADIO PRODUCTION
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $57.2 million to ROCKWELL COLLINS, INC. for work described as: MIDS WDL SF2 RADIO PRODUCTION Key points: 1. Significant contract value of $57.15M for specialized radio production. 2. Rockwell Collins, Inc. is the sole awardee, raising questions about competition. 3. Potential risk associated with single-source awards and price discovery. 4. Spending falls within the Other Communications Equipment Manufacturing sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Benchmarking against similar production contracts for advanced communication equipment is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although the contract was awarded under full and open competition, the specific award type (Delivery Order) suggests a potential for limited follow-on competition or a pre-selected vendor for this specific order. This could impact the government's ability to secure the best possible pricing.
Taxpayer Impact: Taxpayer funds are being used for advanced military communication equipment. The effectiveness of the competition method in ensuring value for money is a key consideration.
Public Impact
Ensures continued availability of critical communication systems for naval operations. Supports a specific defense contractor and its workforce. Potential for cost overruns due to the Cost Plus Fixed Fee structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Sole awardee for this delivery order
- Limited transparency on cost drivers
Positive Signals
- Addresses a critical defense need
- Long-term contract duration ensures supply stability
Sector Analysis
This contract falls under the Other Communications Equipment Manufacturing sector, which is vital for national defense. Spending benchmarks for highly specialized military radio systems are difficult to establish due to unique technical requirements and limited market size.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine if small businesses are being adequately included in the supply chain.
Oversight & Accountability
The Department of the Navy is the contracting agency. Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the delivery order meets specifications and budget constraints.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited competition for this specific delivery order.
- Lack of transparency on cost drivers.
- Dependence on a single supplier for this specific order.
Tags
other-communications-equipment-manufactu, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.2 million to ROCKWELL COLLINS, INC.. MIDS WDL SF2 RADIO PRODUCTION
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 $57.2 million.
What is the period of performance?
Start: 2025-09-29. End: 2027-08-31.
What is the rationale for awarding this delivery order to a single entity under full and open competition?
The rationale for awarding this specific delivery order to a single entity, even under a full and open competition umbrella, likely stems from the specialized nature of the MIDS WDL SF2 radio production. This could involve unique manufacturing capabilities, proprietary technology, or specific integration requirements that only Rockwell Collins, Inc. can meet for this particular order. Further documentation would clarify if this was a sole-source justification for the delivery order itself, despite the initial broad competition.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this radio production contract?
The Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost overruns. While the fixed fee provides the contractor with a guaranteed profit, the government bears the risk of increased costs. Effective oversight, stringent cost controls, and clear performance metrics are essential to mitigate this risk and ensure the project stays within budget. Without robust management, CPFF contracts can become more expensive than anticipated.
What is the long-term strategic value of this radio production contract for the Department of Defense?
The long-term strategic value lies in ensuring the continued operational readiness and technological superiority of naval communication systems. The MIDS WDL SF2 radio is likely a critical component for secure and reliable data links. By securing production through this contract, the DoD ensures a steady supply of essential equipment, supports interoperability, and maintains a key capability necessary for modern warfare and intelligence sharing.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0003924R4100
Offers Received: 2
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: $57,152,766
Exercised Options: $57,152,766
Current Obligation: $57,152,766
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003925D4006
IDV Type: IDC
Timeline
Start Date: 2025-09-29
Current End Date: 2027-08-31
Potential End Date: 2027-08-31 00:00:00
Last Modified: 2025-11-25
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