DoD's $27M contract for aircraft parts awarded to Rockwell Collins, Inc. shows fair value
Contract Overview
Contract Amount: $27,007,581 ($27.0M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2024-02-29
Contract Duration: 1,613 days
Daily Burn Rate: $16.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: EVA
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $27.0 million to ROCKWELL COLLINS, INC. for work described as: EVA Key points: 1. The contract's value appears reasonable when benchmarked against similar procurements. 2. Competition was robust, suggesting favorable pricing dynamics for the government. 3. No significant risk indicators were identified in the contract's execution. 4. Performance context indicates a standard procurement for aircraft components. 5. This contract fits within the broader Defense sector's spending on aircraft sustainment. 6. The fixed-fee structure provides cost control for the government.
Value Assessment
Rating: good
The contract's total value of approximately $27 million for aircraft parts appears to be within a reasonable range when compared to similar procurements for specialized components. The cost-plus-fixed-fee (CPFF) pricing structure, while allowing for flexibility, was managed with a fixed fee, which provides a degree of cost certainty for the government. Benchmarking against industry standards for similar aircraft parts suggests that the pricing achieved through full and open competition is likely competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of two bids suggests a healthy level of competition for this requirement. This competitive environment generally leads to better price discovery and can result in more favorable terms for the government, as contractors vie to win the award.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down costs and ensured the government received a fair price for the aircraft parts procured.
Public Impact
The Department of Defense benefits from the reliable supply of essential aircraft parts. This contract supports the operational readiness of Navy aircraft. The services delivered are critical for aircraft maintenance and sustainment. The geographic impact is primarily within the defense supply chain, potentially supporting jobs in manufacturing and logistics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition.
- Fixed fee component provides cost predictability.
- Contract duration aligns with expected sustainment needs.
- Contractor has a significant presence in the aerospace industry.
Sector Analysis
The aerospace and defense sector is characterized by complex supply chains and high-value components. This contract for aircraft parts falls within the broader category of defense sustainment and maintenance, a critical area for ensuring military readiness. Spending in this sector is often driven by long-term platform life cycles and technological advancements. Comparable spending benchmarks for aircraft parts can vary widely based on specificity, but this contract's value is consistent with procurements for specialized, non-commercial components.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. Therefore, the direct impact on the small business ecosystem for this particular award is likely minimal, although the prime contractor may engage small businesses in its broader supply chain.
Oversight & Accountability
The contract is subject to standard Department of Defense oversight mechanisms for procurement and contract management. Accountability is maintained through performance reviews and adherence to the contract terms. Transparency is generally provided through contract databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Aircraft Parts Procurement
- Defense Logistics and Sustainment
- Naval Aviation Support
- Aerospace Component Manufacturing
Tags
defense, department-of-defense, department-of-the-navy, rockwell-collins-inc, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, aircraft-parts, iowa, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.0 million to ROCKWELL COLLINS, INC.. EVA
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 $27.0 million.
What is the period of performance?
Start: 2019-09-30. End: 2024-02-29.
What is Rockwell Collins, Inc.'s track record with the Department of Defense, particularly in supplying aircraft parts?
Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing and extensive track record with the Department of Defense, including the Department of the Navy. They are a major supplier of avionics, communication systems, navigation equipment, and other critical aircraft components. Their history with the DoD includes numerous contracts for both new platforms and sustainment of existing fleets. This specific contract for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' aligns with their core competencies. Historical data generally shows them as a reliable contractor, though like any large defense supplier, they have been involved in various contract types and values over the years, necessitating ongoing performance monitoring.
How does the pricing of this contract compare to other similar procurements for aircraft parts within the DoD?
Benchmarking the pricing of this $27 million contract requires detailed analysis of the specific aircraft parts procured and their complexity. However, given that it was awarded under full and open competition with two bidders, the pricing is likely competitive. The cost-plus-fixed-fee (CPFF) structure means the government pays the actual costs plus a predetermined fixed fee. While CPFF can sometimes lead to higher overall costs if not managed tightly, the fixed fee component provides a ceiling on the contractor's profit. Compared to sole-source or limited-competition contracts for similar specialized parts, this procurement likely achieved better value for the government due to the competitive bidding process.
What are the primary risk indicators associated with this type of contract and contractor?
For a contract of this nature (aircraft parts manufacturing) with a well-established contractor like Rockwell Collins, the primary risks are typically related to supply chain disruptions, potential cost overruns if the fixed fee is too low relative to unforeseen complexities, or performance issues affecting delivery schedules or quality. However, the CPFF structure with a fixed fee generally mitigates some cost overrun risks for the government compared to pure cost-plus contracts. Rockwell Collins' extensive experience in this sector suggests a lower risk of technical failure or contractor default. The duration of the contract (over 4 years) also introduces some risk related to potential changes in requirements or technology over its lifecycle.
How effective is the cost-plus-fixed-fee (CPFF) structure in ensuring value for money for the government in this context?
The Cost-Plus-Fixed-Fee (CPFF) structure is often used when the exact costs are difficult to estimate upfront, but the government wants to limit the contractor's profit. In this case, the fixed fee provides a clear incentive for the contractor to control costs, as any savings below the estimated cost do not reduce their fee, and any overruns do not increase it. This structure can be effective in ensuring value for money, especially when coupled with robust government oversight to monitor costs and performance. It balances the need for flexibility in uncertain environments with the government's objective of obtaining goods and services at a reasonable price, preventing excessive contractor profit.
What are the historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of the Navy?
Historical spending by the Department of the Navy (DoN) on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS code 336413) is substantial, reflecting the continuous need to maintain and upgrade its diverse aviation fleet. This category encompasses a wide array of components beyond engines and airframes, including avionics, electrical systems, hydraulic parts, and structural elements. Spending in this area fluctuates based on fleet modernization programs, operational tempo, and depot maintenance cycles. The DoN consistently awards numerous contracts in this category annually, with values ranging from small purchases to multi-million dollar definitive contracts, often utilizing competitive bidding processes to ensure cost-effectiveness.
What is the significance of the contract type being a 'Definitive Contract'?
A 'Definitive Contract' is a standard, legally binding agreement that specifies all the terms and conditions, including price, quantity, and delivery schedule. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, which allow for flexibility in ordering, a definitive contract typically represents a single, fixed commitment for a specific set of goods or services. For this procurement of aircraft parts, a definitive contract suggests a clearly defined requirement and scope of work. This provides certainty for both the government and the contractor regarding the obligations and expected outcomes, simplifying administration and ensuring a clear path for delivery and payment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0042118R0091
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
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: $49,714,889
Exercised Options: $28,666,648
Current Obligation: $27,007,581
Actual Outlays: $195,726
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $11,569,088
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-30
Current End Date: 2024-02-29
Potential End Date: 2024-02-29 00:00:00
Last Modified: 2024-02-27
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