DoD awards $24.6M to Rockwell Collins for aircraft parts, a sole-source contract with a 364-day performance period
Contract Overview
Contract Amount: $24,584,070 ($24.6M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-26
End Date: 2023-09-25
Contract Duration: 364 days
Daily Burn Rate: $67.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR PERIOD OF PERFORMANCE (POP) 1.
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $24.6 million to ROCKWELL COLLINS, INC. for work described as: DELIVERY ORDER FOR PERIOD OF PERFORMANCE (POP) 1. Key points: 1. The contract value of $24.6 million for a single year of performance suggests a significant need for specialized aircraft parts. 2. As a sole-source award, the absence of competition may lead to higher prices and reduced value for taxpayer dollars. 3. The 'IA' contract type indicates an 'Incentive-Award' fee structure, which can incentivize contractor performance but requires careful monitoring. 4. The North American Industry Classification System (NAICS) code 336413 points to a focus on manufacturing aircraft parts, a critical defense sector. 5. The contract's duration of 364 days indicates a short-term need, potentially for immediate operational support or a specific project phase.
Value Assessment
Rating: questionable
Benchmarking the value of this $24.6 million contract is challenging without specific details on the parts or services procured. However, as a sole-source award, there's an inherent risk that the price may not reflect competitive market rates. The 'IA' (Incentive-Award) fee structure, while intended to drive performance, can also lead to increased costs if not managed tightly. Without comparison to similar sole-source awards for comparable aircraft parts, it's difficult to definitively assess value for money, but the lack of competition raises concerns.
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 typically occurs when only one vendor possesses the necessary capabilities, technology, or proprietary rights to fulfill the requirement. The lack of competition means that the Department of Defense did not benefit from the price discovery and potential cost savings that a competitive bidding process would typically provide.
Taxpayer Impact: Taxpayers may have paid a premium for these aircraft parts due to the absence of competitive pressure. The sole-source nature limits the government's ability to negotiate the best possible price.
Public Impact
The primary beneficiaries are likely the Department of the Navy and its aviation units, ensuring operational readiness through the supply of critical aircraft parts. The services delivered include the manufacturing and supply of specialized aircraft parts, essential for maintaining and repairing military aircraft. The geographic impact is primarily within the Department of Defense's operational theaters, though the manufacturing location for Rockwell Collins is in Iowa. Workforce implications include supporting skilled manufacturing jobs within Rockwell Collins and potentially its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potentially increases costs for taxpayers.
- The 'IA' (Incentive-Award) fee structure requires diligent oversight to ensure cost-effectiveness.
- Lack of transparency in the justification for sole-source procurement could hide inefficiencies.
- Dependence on a single supplier for critical aircraft parts poses a supply chain risk.
Positive Signals
- Rockwell Collins is a known entity in defense contracting, suggesting a degree of reliability.
- The contract aims to ensure the operational readiness of naval aviation assets.
- The 'IA' fee structure, if managed well, can incentivize contractor performance and quality.
Sector Analysis
The aerospace manufacturing sector, particularly for defense applications, is characterized by high barriers to entry, significant R&D investment, and long product development cycles. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category (NAICS 336413). Spending in this area is critical for maintaining military readiness. Comparable spending benchmarks are difficult to establish without knowing the specific parts, but the defense aviation sector generally sees substantial, long-term investment.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor, Rockwell Collins, is a large corporation. There is no explicit information provided regarding subcontracting plans to small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, and there's no indication of efforts to leverage small businesses for this requirement.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the performance metrics and fee structure outlined in the 'IA' contract. Transparency is limited due to the sole-source nature and the proprietary aspects of aircraft parts manufacturing. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Aircraft Parts Procurement
- Naval Aviation Maintenance and Sustainment
- Aerospace Manufacturing Contracts
- Sole-Source Defense Contracts
- Incentive Fee Contracts
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns due to incentive fee structure.
- Lack of transparency regarding justification for sole-source procurement.
- Dependence on a single supplier for critical components.
Tags
defense, department-of-defense, department-of-the-navy, rockwell-collins, aircraft-parts, manufacturing, sole-source, incentive-award, firm-fixed-price, delivery-order, iowa, fy2023
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.6 million to ROCKWELL COLLINS, INC.. DELIVERY ORDER FOR PERIOD OF PERFORMANCE (POP) 1.
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 $24.6 million.
What is the period of performance?
Start: 2022-09-26. End: 2023-09-25.
What specific aircraft parts are being procured under this contract, and what is their criticality to naval operations?
The provided data indicates the contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' under NAICS code 336413. Specific part numbers or types are not detailed. However, given the Department of Defense context and the sole-source nature, these are likely specialized components critical for the operation and maintenance of naval aircraft. Their criticality could range from essential flight systems to unique engine components, directly impacting the readiness and operational capability of naval aviation squadrons. Without further disclosure, the exact nature and criticality remain unspecified, but the substantial award value suggests significant importance.
What is the justification for awarding this contract on a sole-source basis to Rockwell Collins?
The justification for a sole-source award typically rests on factors such as unique technical capabilities, proprietary technology, essential integration with existing systems, or the unavailability of other sources. For Rockwell Collins, a well-established defense contractor, the justification might stem from their proprietary designs, specific manufacturing processes, or existing sole-source provider status for certain aircraft components. The Department of Defense would have had to formally document and approve this justification, likely citing reasons why competition was not feasible or advantageous. This documentation is crucial for ensuring the government is not unnecessarily foregoing competitive pricing.
How does the 'IA' (Incentive-Award) fee structure work in practice for this contract, and what are the potential cost implications?
An 'IA' (Incentive-Award) fee contract typically involves a base fee plus an award fee that is earned based on the contractor's performance against pre-defined criteria. These criteria often relate to quality, timeliness, cost control, and technical achievement. The government assesses performance and determines the amount of the award fee. For this contract, the potential cost implications are twofold: if Rockwell Collins performs exceptionally well against the award criteria, the total cost to the government could exceed the initial estimate. Conversely, a well-structured incentive plan could drive efficiencies and higher quality, potentially leading to better overall value despite the variable fee component. Diligent government oversight is essential to ensure the incentives align with desired outcomes and do not lead to unwarranted cost increases.
What is Rockwell Collins' track record with the Department of Defense, particularly concerning sole-source contracts and aircraft parts?
Rockwell Collins (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing and extensive history of contracting with the Department of Defense, including the Navy. They are a major supplier of avionics, communication systems, and other aircraft components. While specific data on their sole-source contract history for aircraft parts isn't provided here, their significant presence in the defense sector suggests numerous prior awards. Their track record generally involves delivering complex systems and components. However, like any large contractor, past performance reviews, including any issues related to sole-source awards or cost overruns, would be critical for a comprehensive assessment. The 'br': 67539 value might relate to a past performance rating or a specific contract identifier, but its meaning is unclear without context.
How does the $24.6 million spending on aircraft parts in FY2023 compare to historical spending patterns for similar items or by the Navy?
The provided data represents a single delivery order with a POP ending in September 2023, totaling $24.6 million. To compare this to historical spending patterns, one would need to examine the Navy's total obligations for NAICS 336413 or similar aircraft parts categories across previous fiscal years. This single award's value can fluctuate significantly year-over-year based on specific fleet readiness needs, modernization programs, or the phasing of larger procurement efforts. Without access to historical Navy spending data for aircraft parts, it's impossible to determine if $24.6 million represents an increase, decrease, or typical level of spending for this type of requirement. Analyzing trends over several years would be necessary for a meaningful comparison.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $24,584,070
Exercised Options: $24,584,070
Current Obligation: $24,584,070
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038322DSS01
IDV Type: IDC
Timeline
Start Date: 2022-09-26
Current End Date: 2023-09-25
Potential End Date: 2023-09-25 00:00:00
Last Modified: 2025-01-15
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