DoD Spends $38.5M on Rockwell Collins RT-1990A/ARC Receiver Transmitters via Non-Competitive Delivery Order
Contract Overview
Contract Amount: $38,463,490 ($38.5M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-09-14
End Date: 2023-06-30
Contract Duration: 1,019 days
Daily Burn Rate: $37.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RT-1990A(C)/ARC RECEIVER TRANSMITTER
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $38.5 million to ROCKWELL COLLINS, INC. for work described as: RT-1990A(C)/ARC RECEIVER TRANSMITTER Key points: 1. Significant spending on a single contract vehicle. 2. Sole-source award limits price discovery and competition. 3. Potential for higher costs due to lack of competition. 4. Contract supports critical defense communications equipment.
Value Assessment
Rating: questionable
The total award value of $38.5 million for receiver transmitters is substantial. Without competitive benchmarks or detailed cost breakdowns, assessing the value for money is difficult. The firm fixed-price contract type offers some cost certainty, but the lack of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding processes, which can lead to higher prices and reduced innovation. The rationale for the sole-source award is not provided, making it difficult to assess the necessity.
Taxpayer Impact: Taxpayers may be paying a premium for this equipment due to the absence of competitive pressure to drive down costs.
Public Impact
Ensures availability of critical communication equipment for defense operations. Lack of competition may lead to higher costs for taxpayers. Limited transparency into the justification for sole-source procurement. Potential impact on small business participation if not subcontracted.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Limited transparency on justification
Positive Signals
- Firm fixed-price contract
- Supports critical defense needs
Sector Analysis
The 'Other Communications Equipment Manufacturing' sector involves specialized electronic components. Spending benchmarks for sole-source contracts in this niche are hard to establish, but competitive procurements typically yield better pricing.
Small Business Impact
The data does not indicate any specific provisions for small business participation. As a sole-source award to a large prime contractor, opportunities for small businesses may be limited unless they are included as subcontractors.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency. Further oversight would involve reviewing the justification for the sole-source award and ensuring fair pricing, which is challenging without competition.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award raises concerns about price fairness.
- Lack of competitive bidding limits transparency and potential savings.
- No clear indication of small business participation.
- Potential for cost overruns due to lack of market pressure.
Tags
other-communications-equipment-manufactu, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.5 million to ROCKWELL COLLINS, INC.. RT-1990A(C)/ARC RECEIVER TRANSMITTER
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 $38.5 million.
What is the period of performance?
Start: 2020-09-14. End: 2023-06-30.
What was the specific justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as unique capabilities, urgent needs, or the unavailability of alternative sources. Without this information, it's impossible to fully assess the necessity and potential impact on cost-effectiveness.
How does the unit cost of this receiver transmitter compare to similar equipment procured competitively by the DoD or other agencies?
A direct comparison of unit costs is not possible with the given data. The absence of competitive bidding for this contract makes it difficult to establish a reliable benchmark. Further analysis would require access to pricing data from comparable competitive procurements of similar communication equipment.
What is the expected operational lifespan and criticality of these receiver transmitters to ensure the $38.5 million investment is justified?
The data indicates a contract duration of 1019 days, suggesting a significant operational period. Receiver transmitters are critical components for military communications, implying a high level of importance for national security. However, the justification for the specific investment amount hinges on the detailed technical requirements and the strategic value of these units.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042117R0017
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: $38,463,490
Exercised Options: $38,463,490
Current Obligation: $38,463,490
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042118D0004
IDV Type: IDC
Timeline
Start Date: 2020-09-14
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2022-06-01
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