DoD awards $15.5M for engineering services to Rockwell Collins, Inc., with limited competition

Contract Overview

Contract Amount: $15,540,804 ($15.5M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-05-11

End Date: 2012-09-30

Contract Duration: 3,064 days

Daily Burn Rate: $5.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200408!000221!1700!A8104 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042104C0081 !A!N! !Y! ! !20040511!20060212!060605883!962960589!962960589!N!ROCKWELL COLLINS, INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LINN !IOWA !+000013833858!N!N!000014642330!R425!ENGINEERING TECHNICAL SERVICES !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !334511!E! !3! ! ! ! ! !99990909!B!A!Y!A! !D!U!J!1!001!N!1A!Z!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! ! ! ! !0001! !

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $15.5 million to ROCKWELL COLLINS, INC. for work described as: 200408!000221!1700!A8104 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042104C0081 !A!N! !Y! ! !20040511!20060212!060605883!962960589!962960589!N!ROCKWELL COLLINS, INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LINN… Key points: 1. Contract awarded for engineering and technical services related to aircraft equipment. 2. Limited competition suggests potential for higher pricing and reduced value for taxpayer dollars. 3. Contract duration of over 8 years raises concerns about long-term cost-effectiveness. 4. The specific nature of the services (engineering technical services) is critical to understanding value. 5. Geographic concentration in Iowa for the contractor may indicate regional economic impact. 6. The 'NOT COMPETED' status warrants scrutiny regarding the justification for limited bidding.

Value Assessment

Rating: questionable

The contract value of $15.5 million for engineering technical services over an extended period of approximately 8 years (from May 2004 to September 2012) requires careful benchmarking. Without specific details on the deliverables and the scope of 'engineering technical services,' it is difficult to definitively assess value for money. However, the limited competition (indicated by 'NOT COMPETED') often leads to less favorable pricing for the government compared to fully competed contracts. Further analysis would involve comparing the per-hour rates or project costs to similar contracts for comparable services within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was designated as 'NOT COMPETED,' indicating a sole-source or limited competition award. The data does not provide the specific justification for this determination, which is crucial for understanding why other potential bidders were not considered. Typically, sole-source awards occur when only one responsible source can provide the required supplies or services. The lack of a competitive bidding process means that the government did not benefit from the price discovery and innovation that typically arises from multiple offers.

Taxpayer Impact: The absence of full and open competition for this $15.5 million contract means taxpayers may have paid a premium. Without competitive pressure, the contractor had less incentive to offer the lowest possible price, potentially leading to a less efficient use of public funds.

Public Impact

The primary beneficiary of this contract is the Department of Defense, specifically entities requiring engineering and technical services for aircraft equipment. Services delivered include specialized engineering and technical support, crucial for maintaining and developing defense capabilities. The geographic impact is concentrated in Cedar Rapids, Iowa, where Rockwell Collins, Inc. is located, potentially supporting local employment and the regional economy. Workforce implications include the employment of engineers, technicians, and support staff at Rockwell Collins, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The extended contract duration (over 8 years) could indicate a lack of flexibility and potential for cost overruns if not managed effectively.
Lack of transparency regarding the justification for 'NOT COMPETED' status hinders a full assessment of the award process.
The specific nature of 'engineering technical services' is broad and requires further definition to assess performance and value.

Positive Signals

Rockwell Collins, Inc. is a known entity in the aerospace and defense industry, suggesting a level of established expertise.
The contract was awarded to a single, established company, potentially ensuring continuity of service for critical defense needs.
The contract type is Firm Fixed Price, which generally shifts cost risk to the contractor and provides budget certainty.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector (NAICS 334511). This is a specialized area within the broader aerospace and defense industry, characterized by high technological requirements and significant government procurement. The market size for such systems is substantial, driven by national security needs. Comparable spending benchmarks would involve analyzing other contracts for similar engineering and technical services awarded to large defense contractors for aircraft systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). As a large contract awarded to a major corporation, Rockwell Collins, Inc., the primary focus is unlikely to be on direct small business participation through set-asides. However, there may be subcontracting opportunities for small businesses within Rockwell Collins' supply chain, though this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent of such subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited by the 'NOT COMPETED' status and the lack of detailed justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Air Warfare Center Contracts
Department of Defense Engineering Services
Aircraft Systems Development
Aeronautical and Nautical Instrument Manufacturing
Defense Contractor Services

Risk Flags

Limited competition award
Extended contract duration
Lack of justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to ROCKWELL COLLINS, INC.. 200408!000221!1700!A8104 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042104C0081 !A!N! !Y! ! !20040511!20060212!060605883!962960589!962960589!N!ROCKWELL COLLINS, INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LINN !IOWA !+000013833858!N!N!000014642330!R425!ENGINEERING TECHNICAL SERVICES !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !334511!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is ROCKWELL COLLINS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $15.5 million.

What is the period of performance?

Start: 2004-05-11. End: 2012-09-30.

What specific engineering and technical services were provided under this contract, and how do they align with the Naval Air Warfare Center's mission?

The contract specifies 'ENGINEERING TECHNICAL SERVICES' under NAICS code 334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing). While the precise nature of these services is not detailed, they likely encompass design, development, testing, integration, and sustainment support for aircraft systems, particularly those related to navigation, guidance, and potentially search/detection equipment. These services are critical for the Naval Air Warfare Center's role in developing and acquiring advanced aviation capabilities for the Navy and Marine Corps. The specific alignment would depend on the particular aircraft platforms or systems Rockwell Collins supported, such as avionics upgrades, sensor integration, or flight control system enhancements.

How does the $15.5 million contract value compare to similar engineering services contracts awarded by the DoD for aircraft systems?

Benchmarking the $15.5 million contract value requires comparing it to similar Firm Fixed Price (FFP) contracts for engineering technical services related to aircraft systems awarded around the same period (2004-2012) by the Department of Defense. Factors such as contract duration, scope of work, specific systems involved (e.g., avionics, propulsion, structural), and the level of competition significantly influence pricing. Given this contract was sole-source, its price is likely higher than if it had been competed. A comprehensive comparison would involve analyzing contract databases for average per-year costs, total contract values for similar scopes, and the number of bidders on comparable competed contracts to establish a fair market price range.

What are the primary risks associated with a sole-source award for critical engineering services, and how were they mitigated in this case?

The primary risks associated with a sole-source award for critical engineering services include potential overpricing due to lack of competition, reduced incentive for innovation, and the risk of vendor lock-in. Without competitive pressure, the contractor may not offer the most cost-effective solutions. Mitigation strategies typically involve rigorous negotiation of terms, detailed performance metrics, and potentially independent cost analyses by the government. However, the provided data does not detail the specific mitigation efforts employed for this contract. The 'NOT COMPETED' status itself suggests that the government determined only one source was capable, potentially mitigating risks related to capability but not necessarily price.

What was the historical spending trend for similar engineering technical services at the Naval Air Warfare Center prior to and following this contract?

Analyzing historical spending trends for similar engineering technical services at the Naval Air Warfare Center (NAWC) would provide context for the $15.5 million award. This involves examining spending patterns for NAWC contracts classified under relevant Product Service Codes (PSCs) or NAICS codes related to engineering and technical support for aircraft systems. Understanding whether spending in this category has been increasing, decreasing, or remaining stable can indicate market dynamics, program priorities, and the overall demand for such services. Comparing the duration and value of this contract against historical averages would reveal if it represents a typical, larger, or smaller investment for the NAWC during that period.

What is Rockwell Collins, Inc.'s track record with the Department of Defense, particularly concerning engineering and technical services contracts?

Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing and extensive track record as a major supplier to the Department of Defense, particularly in avionics, communication, and simulation systems for military aircraft. Their history includes numerous contracts for the design, development, manufacturing, and support of complex systems. For engineering and technical services specifically, their track record generally reflects significant expertise and capability in supporting advanced aerospace programs. However, like any large contractor, past performance reviews, any contract disputes, or instances of cost overruns on previous DoD contracts would be relevant to a full assessment.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 02

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline