DoD Awards $19.9M for F/A-18 HUD Performance Based Logistics in Year 4
Contract Overview
Contract Amount: $19,886,233 ($19.9M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-11
End Date: 2026-09-25
Contract Duration: 379 days
Daily Burn Rate: $52.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY ORDER IS FOR YEAR 4 OF THE F/A-18 HUD PERFORMANCE BASED LOGISTICS CONTRACT. PR # 1700084480.
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $19.9 million to ROCKWELL COLLINS, INC. for work described as: THIS DELIVERY ORDER IS FOR YEAR 4 OF THE F/A-18 HUD PERFORMANCE BASED LOGISTICS CONTRACT. PR # 1700084480. Key points: 1. Contract awarded to Rockwell Collins, Inc. for the fourth year of a performance-based logistics program. 2. The contract focuses on Head-Up Display (HUD) components for the F/A-18 aircraft. 3. This is a sole-source award, raising questions about competition and potential price discovery. 4. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing, a critical defense industry.
Value Assessment
Rating: fair
The award amount of $19.9M for one year of performance-based logistics for F/A-18 HUD components appears reasonable given the specialized nature of the equipment and the established relationship with the incumbent. However, without a competitive benchmark, a definitive assessment of value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Rockwell Collins, Inc. The lack of competition limits price discovery and may result in higher costs for taxpayers compared to a competitive environment.
Taxpayer Impact: The absence of competition for this delivery order means taxpayers may not be receiving the best possible price for these critical aircraft components.
Public Impact
Ensures continued operational readiness of F/A-18 aircraft by maintaining critical HUD components. Supports a specific segment of the aerospace manufacturing industry. Potential for higher costs due to sole-source nature impacts overall defense budget efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of price transparency.
- Potential for cost overruns due to no competitive pressure.
Positive Signals
- Ensures continued support for critical F/A-18 components.
- Performance-based logistics can drive efficiency.
- Established relationship with incumbent may ensure smooth execution.
Sector Analysis
This contract falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector, which is vital for national defense. Spending in this area is often characterized by long-term contracts and specialized, high-value components, with limited competition for mature platforms.
Small Business Impact
There is no indication that small businesses were involved in this specific delivery order. The award went to Rockwell Collins, Inc., a large aerospace manufacturer, suggesting limited opportunities for small business participation in this particular contract.
Oversight & Accountability
The Department of the Navy awarded this delivery order. Oversight would typically involve monitoring performance against the contract's objectives and ensuring adherence to terms. The sole-source nature warrants closer scrutiny to ensure fair pricing and value.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited transparency on value for money
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.9 million to ROCKWELL COLLINS, INC.. THIS DELIVERY ORDER IS FOR YEAR 4 OF THE F/A-18 HUD PERFORMANCE BASED LOGISTICS CONTRACT. PR # 1700084480.
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 $19.9 million.
What is the period of performance?
Start: 2025-09-11. End: 2026-09-25.
What is the historical cost trend for this performance-based logistics contract over its previous years, and how does it compare to initial projections?
Analyzing historical cost data from previous years of this contract is crucial to understanding cost trends and identifying any deviations from projections. Without this historical context, it's difficult to assess if the current $19.9M award represents an escalation or a stable cost for the performance-based logistics. This information would help determine if the contract is delivering value as intended or if adjustments are needed.
What specific justifications were provided for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding the rationale behind bypassing the competitive process. Agencies typically require detailed documentation outlining why only one source can meet the requirement, such as unique capabilities or proprietary technology. Exploring whether alternative competitive strategies, like partial set-asides or phased approaches, were considered would shed light on the extent of efforts made to ensure fair market competition.
How is the 'performance-based' aspect of this contract measured, and what are the key performance indicators (KPIs) that determine contractor success and payment?
Understanding the performance-based metrics is key to evaluating the effectiveness of this contract. Identifying the specific KPIs for the F/A-18 HUD logistics, such as delivery timelines, component reliability, or system uptime, allows for an assessment of whether Rockwell Collins is meeting its obligations. This transparency is essential for ensuring that taxpayer funds are tied to tangible outcomes and that the 'performance-based' aspect genuinely drives value and readiness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
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: $19,886,233
Exercised Options: $19,886,233
Current Obligation: $19,886,233
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: 2025-09-11
Current End Date: 2026-09-25
Potential End Date: 2026-09-25 00:00:00
Last Modified: 2025-10-24
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