DoD awards $28M to Rockwell Collins for Other Communications Equipment, no competition
Contract Overview
Contract Amount: $27,981,990 ($28.0M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-01-11
End Date: 2023-05-31
Contract Duration: 505 days
Daily Burn Rate: $55.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RT-2036(C)/ARC
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $28.0 million to ROCKWELL COLLINS, INC. for work described as: RT-2036(C)/ARC Key points: 1. Significant award to a single large business. 2. No competition raises questions about price discovery. 3. Contract duration is substantial at 505 days. 4. Sector is Other Communications Equipment Manufacturing.
Value Assessment
Rating: questionable
The award amount of $27,981,990 for 'Other Communications Equipment Manufacturing' lacks specific details for a precise benchmark. Without comparable contract data or a breakdown of the equipment, assessing pricing against similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This approach can lead to higher prices as there is no market pressure to drive down costs.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the goods or services received.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on specialized equipment, potentially limiting competitive options. Transparency in sole-source awards is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency
Positive Signals
- Award to established contractor
- Specific equipment for defense needs
Sector Analysis
The 'Other Communications Equipment Manufacturing' sector is broad and can include highly specialized items. Benchmarking spending in this area is challenging without knowing the exact nature of the equipment procured.
Small Business Impact
This contract was awarded to Rockwell Collins, Inc., a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for a sole-source award was robust and that fair pricing was still pursued.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of detailed equipment description
- No small business participation noted
- Potential for price inflation
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 $28.0 million to ROCKWELL COLLINS, INC.. RT-2036(C)/ARC
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 $28.0 million.
What is the period of performance?
Start: 2022-01-11. End: 2023-05-31.
What specific 'Other Communications Equipment' was procured under this contract, and what is the justification for not competing the award?
The specific 'Other Communications Equipment' procured is not detailed in the provided data. The justification for not competing the award is also absent. Typically, sole-source awards are justified by factors such as unique capabilities, urgent needs, or the unavailability of alternatives. Further investigation would be required to ascertain the precise reasons and the nature of the equipment.
How can the Department of Defense ensure fair pricing when awarding contracts on a sole-source basis?
Ensuring fair pricing in sole-source contracts involves rigorous negotiation, independent cost analysis, and market research to establish a reasonable price range. Agencies should also explore options for future competition or phased procurements to introduce market forces. Transparency in the justification and pricing methodology is also key to accountability and public trust.
What is the potential impact on future procurements if sole-source awards become a common practice for this type of equipment?
If sole-source awards become common for this type of equipment, it could stifle innovation and competition within the industry. Contractors may have less incentive to invest in cost-saving measures or develop new technologies if they anticipate guaranteed contracts. This could lead to sustained higher costs for the government and taxpayers over time.
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: $27,981,990
Exercised Options: $27,981,990
Current Obligation: $27,981,990
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $75,072
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042118D0004
IDV Type: IDC
Timeline
Start Date: 2022-01-11
Current End Date: 2023-05-31
Potential End Date: 2023-05-31 00:00:00
Last Modified: 2022-11-30
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