DoD awards $12.8M to Rockwell Collins for navigation systems, raising value-for-money questions
Contract Overview
Contract Amount: $12,805,980 ($12.8M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-03-09
End Date: 2027-03-09
Contract Duration: 1,826 days
Daily Burn Rate: $7.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NEW ORDER AND INCREMENTAL FUNDING
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $12.8 million to ROCKWELL COLLINS, INC. for work described as: NEW ORDER AND INCREMENTAL FUNDING Key points: 1. Contract awarded via 'not competed' justification, limiting price discovery. 2. Long performance period (5 years) suggests potential for cost overruns. 3. Cost-plus-fixed-fee structure may incentivize higher spending. 4. Lack of competition raises concerns about fair market pricing. 5. Specific system details are not publicly available, hindering performance assessment. 6. Contractor has a history of significant federal awards.
Value Assessment
Rating: questionable
The $12.8 million award to Rockwell Collins for navigation systems lacks a clear benchmark for value. As a sole-source award, it's difficult to compare pricing against market rates or competitive bids. The cost-plus-fixed-fee contract type, while allowing for flexibility, can sometimes lead to higher overall costs if not tightly managed. Without more data on the specific systems and their expected performance, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a 'not competed' justification, indicating a sole-source procurement. This means only one vendor, Rockwell Collins, Inc., was solicited. The lack of competition limits the government's ability to explore alternative solutions or negotiate the best possible price. It suggests that either only Rockwell Collins could meet the specific requirements, or the justification for sole-sourcing was not thoroughly explored.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, potentially missing out on cost savings that a more open process could have yielded.
Public Impact
The Department of the Navy benefits from the acquisition of critical navigation systems. These systems are essential for the operational readiness of naval assets. The contract supports advanced manufacturing and engineering roles within the defense industrial base. Geographic impact is likely concentrated around Rockwell Collins' facilities and Navy operational bases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Cost-plus-fixed-fee structure may not be the most cost-effective.
- Long contract duration increases risk of cost escalation.
- Limited public information on system specifics hinders performance evaluation.
Positive Signals
- Award to an established contractor with a track record in defense systems.
- Contract supports critical national defense capabilities.
- Fixed fee component provides some cost certainty for the contractor's effort.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the manufacturing of navigation and guidance systems. The market for such specialized equipment is often characterized by high barriers to entry due to technological complexity and stringent quality requirements. Comparable spending in this sub-sector can vary widely depending on the specific technology and platform, but typically involves significant investment in R&D and production.
Small Business Impact
There is no indication that this contract includes small business set-asides or subcontracting requirements. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely minimal unless Rockwell Collins voluntarily engages them for specific components or services.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The Inspector General's office for the Department of Defense may conduct audits or investigations into the contract's execution and cost management. Transparency is limited due to the sole-source nature and the proprietary details of the navigation systems involved.
Related Government Programs
- Naval Aviation Systems
- Defense Navigation Technology
- Aerospace Manufacturing Contracts
- Department of Defense Procurement
Risk Flags
- Sole-source award lacks competitive justification.
- Cost-plus-fixed-fee contract type may inflate costs.
- Limited transparency on system specifics and performance.
- Long contract duration increases risk exposure.
Tags
defense, department-of-defense, department-of-the-navy, rockwell-collins, navigation-systems, sole-source, cost-plus-fixed-fee, delivery-order, not-competed, maryland, aerospace-and-defense, systems-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to ROCKWELL COLLINS, INC.. NEW ORDER AND INCREMENTAL FUNDING
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 $12.8 million.
What is the period of performance?
Start: 2022-03-09. End: 2027-03-09.
What specific navigation systems are being procured under this contract, and what are their intended applications?
The provided data indicates the contract is for 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' However, the specific systems are not detailed. These likely include advanced GPS receivers, inertial navigation units, radar altimeters, or other sophisticated equipment crucial for aircraft and vessel operations. The 'Search, Detection, Navigation, Guidance' classification suggests a broad range of applications, potentially encompassing everything from basic flight control to complex targeting and situational awareness systems for naval aviation and surface fleets.
What was the justification for awarding this contract on a sole-source basis?
The data explicitly states the contract type as 'NOT COMPETED,' which is synonymous with a sole-source award. While the specific justification narrative is not provided, common reasons for sole-sourcing include unique technical requirements that only one vendor can meet, urgent and compelling needs where competition is impractical, or follow-on work to a previously competed contract where the original contractor possesses unique knowledge or capabilities. Without the official justification document, it's impossible to determine the precise rationale, but it implies a perceived lack of viable alternatives or a critical need that precluded a competitive process.
How does the cost-plus-fixed-fee (CPFF) contract type typically impact overall spending compared to other contract types?
The Cost-Plus-Fixed-Fee (CPFF) contract type is characterized by the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not well-defined or involves significant uncertainty, such as in research and development. While the fixed fee provides some cost ceiling on the profit, the total cost is variable and depends on the actual costs incurred. Compared to fixed-price contracts, CPFF generally carries higher cost risk for the government, as there is less incentive for the contractor to control costs beyond what is necessary to complete the work. This can lead to higher overall spending if not rigorously managed and overseen.
What is Rockwell Collins' track record with similar federal contracts, particularly within the Department of Defense?
Rockwell Collins, now part of Collins Aerospace (a Raytheon Technologies company), has a substantial track record with the federal government, particularly the Department of Defense. They are a well-established provider of avionics, communication, and navigation systems for military aircraft and platforms. Historical data indicates numerous large contracts awarded to Rockwell Collins and its successor entities for similar products and services across various military branches. While this specific contract is a sole-source award, their broader history suggests a capability to deliver complex defense systems, though it doesn't inherently validate the value or necessity of this particular sole-source procurement.
Are there any publicly available performance metrics or past performance evaluations for Rockwell Collins on similar navigation system contracts?
Detailed public performance metrics or specific past performance evaluations for Rockwell Collins on similar navigation system contracts are generally not readily available. Contract performance data is often considered sensitive or proprietary. While contract award databases may list contract values and timelines, they rarely include qualitative assessments of performance unless a contract was terminated for default or faced significant issues that led to public reporting. Government agencies maintain internal past performance databases used in source selection, but these are not typically shared publicly for competitive reasons.
What is the typical duration for contracts of this nature (navigation systems), and how does this contract's duration compare?
Contracts for complex defense systems like navigation equipment can have varying durations, often encompassing development, production, and sustainment phases. A 5-year period (from March 2022 to March 2027) for a delivery order is relatively standard for systems requiring integration, testing, and potential upgrades over time. Shorter durations might be suitable for off-the-shelf items, while longer periods are common for systems with extended lifecycles or those involving ongoing support and maintenance. This 5-year duration suggests a need for sustained capability and potential for incremental improvements or modifications throughout the contract period.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $18,218,921
Exercised Options: $18,218,921
Current Obligation: $12,805,980
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $438,482
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042120G0006
IDV Type: BOA
Timeline
Start Date: 2022-03-09
Current End Date: 2027-03-09
Potential End Date: 2027-03-09 00:00:00
Last Modified: 2025-12-22
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