DoD awards $21.4M for aircraft parts, raising questions about competition and value
Contract Overview
Contract Amount: $21,433,694 ($21.4M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-26
End Date: 2025-09-25
Contract Duration: 364 days
Daily Burn Rate: $58.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PBL PERIOD OF PERFORMANCE 3 DELIVERY ORDER
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $21.4 million to ROCKWELL COLLINS, INC. for work described as: PBL PERIOD OF PERFORMANCE 3 DELIVERY ORDER Key points: 1. Contract awarded without competition, limiting price discovery and potentially increasing costs. 2. The fixed-price contract type offers some cost certainty but doesn't mitigate the lack of competition. 3. Performance period of one year is standard for this type of award. 4. The awardee, Rockwell Collins, Inc., is a significant player in the aerospace industry. 5. The contract falls under the 'Other Aircraft Parts' manufacturing NAICS code. 6. No small business set-aside was utilized for this procurement.
Value Assessment
Rating: questionable
Benchmarking the value of this $21.4 million contract is challenging due to the lack of competitive bidding. Without comparison to other offers, it's difficult to ascertain if the pricing is fair market value. The firm fixed-price structure provides some predictability, but the absence of competition means taxpayers may not be receiving the best possible price. Further analysis would require access to historical pricing for similar components or internal cost data from the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Rockwell Collins, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they inherently reduce price competition and can lead to higher costs for the government.
Taxpayer Impact: The lack of competition means taxpayers are not benefiting from potential cost savings that could arise from a bidding war among multiple suppliers. This could result in a higher overall expenditure for the required aircraft parts.
Public Impact
The Department of the Navy benefits from the acquisition of necessary aircraft parts. This contract supports the operational readiness of naval aviation assets. The services delivered are critical for maintaining and repairing aircraft. The geographic impact is primarily within the United States, supporting domestic manufacturing and defense capabilities. Workforce implications include continued employment for those involved in the manufacturing and supply chain at Rockwell Collins, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competitive bidding raises concerns about potential overpayment.
- Sole-source award limits transparency in pricing and value determination.
- Reliance on a single supplier could create future supply chain vulnerabilities.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Awardee is an established entity with experience in aerospace manufacturing.
- Contract supports critical defense needs for the Department of the Navy.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' encompasses a broad range of components. The market for such parts is often characterized by specialized production, high quality standards, and significant government procurement. While specific market size data for this niche is not provided, the overall aerospace manufacturing industry is substantial, with defense contracts forming a key segment.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large, established contractor like Rockwell Collins, Inc. suggests that small business participation may be limited unless they are direct suppliers to the prime contractor. This procurement does not appear to actively foster the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Aircraft Procurement
- Naval Aviation Maintenance and Repair
- Aerospace Component Manufacturing
- Defense Supply Chain Management
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for inflated pricing due to lack of competition.
- Limited transparency in cost and value assessment.
Tags
defense, department-of-defense, department-of-the-navy, rockwell-collins-inc, sole-source, firm-fixed-price, aircraft-parts, manufacturing, other-aircraft-parts-and-auxiliary-equipment-manufacturing, delivery-order, iowa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.4 million to ROCKWELL COLLINS, INC.. PBL PERIOD OF PERFORMANCE 3 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 $21.4 million.
What is the period of performance?
Start: 2024-09-26. End: 2025-09-25.
What is Rockwell Collins, Inc.'s track record with the Department of the Navy for similar aircraft parts?
Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing relationship with the Department of Defense, including the Navy, for various aerospace components and systems. Historical data would need to be reviewed to detail their specific performance on contracts for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' under NAICS code 336413. This would involve examining past delivery performance, quality metrics, and any disputes or contract modifications. Given their established presence, it is likely they have a substantial history of fulfilling such requirements, but the specifics of their performance on comparable sole-source awards would be crucial for a complete assessment.
How does the $21.4 million value compare to similar sole-source contracts for aircraft parts?
Direct comparison of the $21.4 million value to similar sole-source contracts is difficult without access to a comprehensive database of historical sole-source procurements for comparable aircraft parts. Generally, sole-source awards are expected to be higher than competitively bid contracts due to the lack of price pressure. To assess value, one would ideally benchmark this against previous sole-source awards by the Navy for similar components, or against competitively sourced contracts for equivalent parts if available. The 'br': 58884 value, potentially representing a benchmark or reference price, is not sufficiently defined to be used in this comparison without further context.
What are the primary risks associated with awarding this contract on a sole-source basis?
The primary risks associated with this sole-source award include potential overpayment due to the absence of competitive pricing, reduced incentive for the contractor to innovate or offer cost efficiencies, and a potential lack of transparency in the pricing structure. Furthermore, relying on a single supplier can create supply chain vulnerabilities if the contractor experiences production issues, financial instability, or geopolitical disruptions. There's also a risk that the government might not be aware of or able to access superior alternative solutions that could have emerged from a competitive process.
How effective is the firm fixed-price contract type in mitigating risks for this specific sole-source award?
The firm fixed-price (FFP) contract type is effective in mitigating cost overrun risks for the government, as the contractor assumes responsibility for delivering the specified goods at the agreed-upon price. This provides budget certainty. However, FFP does not mitigate the risk of paying an inflated price due to the lack of competition. While the government knows its maximum liability, it doesn't guarantee that this maximum liability represents the best possible value. The effectiveness of FFP is thus limited in addressing the core risk of non-competitive pricing in this sole-source scenario.
What is the historical spending pattern for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of the Navy?
Historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) by the Department of the Navy would reveal the aggregate investment in this category over time. Analyzing this data could show trends in contract volume, average award values, and the prevalence of competitive versus sole-source procurements. Such analysis might indicate if spending in this area has been increasing or decreasing, and whether the Navy increasingly relies on sole-source awards for these parts. This context is crucial for understanding the significance of the current $21.4 million award within the broader spending landscape.
What justification was provided for awarding this contract as sole-source instead of through full and open competition?
The provided data indicates the contract was 'NOT COMPETED' and is a 'SOLE SOURCE' award. However, the specific justification for this determination is not included. Federal Acquisition Regulation (FAR) Part 6 outlines the policies and procedures for contracting, including circumstances under which full and open competition is not required, such as when only one responsible source can satisfy the agency's needs (FAR 6.302-1). Typical justifications might include unique technical capabilities, proprietary data, urgent and compelling needs, or specific follow-on requirements where only the original source can provide the necessary parts or services. Without the official justification document, the rationale remains speculative.
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: 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: $21,433,694
Exercised Options: $21,433,694
Current Obligation: $21,433,694
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: 2024-09-26
Current End Date: 2025-09-25
Potential End Date: 2025-09-25 00:00:00
Last Modified: 2025-11-24
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