DoD awards $23.9M contract for aircraft parts to Rockwell Collins, Inc. with no competition

Contract Overview

Contract Amount: $23,888,441 ($23.9M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-25

End Date: 2024-09-25

Contract Duration: 366 days

Daily Burn Rate: $65.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PBL PERIOD OF PERFORMANCE 2 DELIVERY ORDER

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to ROCKWELL COLLINS, INC. for work described as: PBL PERIOD OF PERFORMANCE 2 DELIVERY ORDER Key points: 1. Contract awarded for aircraft parts, indicating a need for specialized components within the defense sector. 2. The sole-source nature of this award warrants scrutiny regarding potential price inflation and lack of market pressure. 3. A short performance period of one year suggests a specific, immediate need or a pilot program. 4. The contractor, Rockwell Collins, Inc., is a known entity in aerospace and defense, implying existing familiarity or capability. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor but requires careful initial pricing. 6. The absence of small business participation raises questions about broader economic impact and subcontracting opportunities.

Value Assessment

Rating: questionable

Benchmarking the value of this $23.9 million contract is challenging without specific part details or historical pricing. However, the lack of competition suggests that the government may not have secured the most favorable pricing. Comparing it to similar sole-source awards for specialized aircraft components would be necessary to determine if the price is reasonable. The firm fixed-price structure offers some cost certainty, but the initial negotiation is critical for ensuring value.

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 when urgency dictates a rapid award. The lack of competition limits the government's ability to leverage market forces to drive down costs and potentially restricts the pool of innovative solutions.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there is less assurance that the price reflects the lowest possible cost for the required goods or services.

Public Impact

The Department of the Navy benefits from the acquisition of essential aircraft parts, ensuring operational readiness. This contract supports the maintenance and functionality of specific aircraft within the naval fleet. The primary beneficiaries are the military personnel who rely on well-maintained aircraft for their missions. The contract's impact is concentrated within the defense industrial base, specifically supporting aerospace manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit opportunities for other capable businesses, including small businesses.
The specific nature of aircraft parts can be critical; any performance issues could have significant operational impacts.

Positive Signals

Award to a known contractor (Rockwell Collins, Inc.) suggests a high likelihood of meeting technical requirements.
Firm Fixed Price contract type provides cost certainty once negotiated.
The contract addresses a specific need within the Department of Defense, contributing to national security objectives.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' indicates a specialized segment of the industry. Spending in this area is critical for maintaining military aviation capabilities. Comparable spending benchmarks would typically involve analyzing other sole-source or competed contracts for similar aircraft components across different branches of the military.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). The sole-source nature of the award further limits opportunities for small businesses to participate, either as prime contractors or subcontractors, unless they are specifically engaged by the prime. This could represent a missed opportunity to foster small business growth within the defense supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The Firm Fixed Price structure implies that the contractor bears the primary responsibility for cost overruns. Transparency regarding the justification for the sole-source award and the pricing negotiation process would be key areas for oversight. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance and Repair
Defense Procurement
Aerospace Manufacturing
Naval Aviation Support
Sole-Source Contracting

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns if initial pricing is not thoroughly vetted.
Limited opportunity for small business participation.
Dependence on a single supplier for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to ROCKWELL COLLINS, INC.. PBL PERIOD OF PERFORMANCE 2 DELIVERY ORDER

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 $23.9 million.

What is the period of performance?

Start: 2023-09-25. End: 2024-09-25.

What specific aircraft parts are being procured under this contract, and what is the justification for Rockwell Collins, Inc. being the sole source?

The provided data does not specify the exact aircraft parts. However, the justification for a sole-source award typically stems from unique technical requirements, proprietary technology, urgent and compelling needs where competition is not feasible, or when only one responsible source is available. For Rockwell Collins, Inc., this could relate to proprietary avionics, communication systems, or specialized components for specific aircraft platforms where they hold the intellectual property or are the sole certified supplier. Further investigation into the contract's justification documentation (e.g., Justification and Approval for Other Than Full and Open Competition) would be required to ascertain the precise reasons and the specific parts involved.

How does the $23.9 million contract value compare to historical spending on similar aircraft parts or services from Rockwell Collins, Inc. or other vendors?

Without specific details on the aircraft parts, a direct comparison is difficult. However, the $23.9 million award for a one-year period suggests a significant procurement. Historical spending analysis would involve examining past contracts for similar components, considering inflation, and evaluating whether this award represents an increase or decrease in expenditure. If Rockwell Collins has been the incumbent supplier, comparing this award to previous contracts of a similar scope would reveal trends. If this is a new requirement or a shift from a previously competed contract, the value needs to be assessed against market rates for comparable items, which is challenging given the sole-source nature.

What are the potential risks associated with a sole-source award for critical aircraft parts, and how are these risks being mitigated?

The primary risks of a sole-source award include potential overpricing due to lack of competition, limited innovation, and a reduced incentive for the contractor to perform exceptionally if they are the only option. For critical aircraft parts, supply chain disruptions or quality issues could have severe operational impacts. Mitigation strategies often involve rigorous negotiation of the contract terms, including the Firm Fixed Price structure to cap costs, detailed technical specifications to ensure quality, and potentially establishing performance metrics and incentives. The government may also conduct market research to ensure the sole-source justification remains valid and explore options for future competition or alternative solutions.

What is Rockwell Collins, Inc.'s track record with the Department of Defense, particularly concerning contracts of similar size and scope?

Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing and extensive track record of supplying avionics, communication systems, and other critical components to the Department of Defense across various platforms. They are a major defense contractor known for its technological capabilities. Contracts of this size are not uncommon for them, especially for specialized systems. Their performance history would typically be evaluated by the DoD through past performance questionnaires and contract data, which inform decisions on future awards, including sole-source justifications based on demonstrated capability and reliability.

Given the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code, what is the typical market structure and competitive landscape for these types of products?

The market for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' can be highly specialized. While some components might be produced by numerous manufacturers, others are proprietary or require specific certifications and technological expertise, often held by a limited number of firms like Rockwell Collins. The competitive landscape can range from highly competitive for standardized parts to very limited for unique, technologically advanced, or safety-critical components. Sole-source awards are more common in segments where specialized knowledge, patents, or existing system integration are paramount, making direct competition difficult or impossible.

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: $23,888,441

Exercised Options: $23,888,441

Current Obligation: $23,888,441

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