DoD Awards $24.8M for Rockwell Collins ARC Receiver Transmitters, Sole-Sourced
Contract Overview
Contract Amount: $24,828,573 ($24.8M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-08-31
End Date: 2024-07-31
Contract Duration: 700 days
Daily Burn Rate: $35.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RT-2036(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 $24.8 million to ROCKWELL COLLINS, INC. for work described as: RT-2036(C)/ARC RECEIVER TRANSMITTER Key points: 1. Significant award to a single vendor for critical communication equipment. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract is for 'Other Communications Equipment Manufacturing', a niche sector. 4. Awarded as a Delivery Order under an unspecified contract vehicle.
Value Assessment
Rating: questionable
The contract value of $24.8M is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar receiver transmitters. Benchmarking is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition suggests taxpayers may be paying a premium for this equipment, as the government did not explore potentially lower-cost alternatives.
Public Impact
Military readiness may be impacted if this equipment is critical and costs are inflated. Taxpayers are footing the bill for a significant sole-source procurement. Potential for reduced innovation if only one vendor is consistently awarded contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No clear justification for sole-sourcing provided
Positive Signals
- Awarded to a known defense contractor
- Contract duration is defined
Sector Analysis
The 'Other Communications Equipment Manufacturing' sector includes a wide range of specialized devices. Without specific details on the ARC Receiver Transmitter, it's hard to benchmark against industry standards, but large sole-source awards in niche manufacturing can be costly.
Small Business Impact
This award went to Rockwell Collins, Inc., a large business. There is no indication that small businesses were involved in this specific procurement, missing an opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further investigation into the justification for not competing the contract and the price negotiation process is recommended to ensure accountability.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing due to no competition.
- No justification for sole-sourcing provided.
- Missed opportunity for small business participation.
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 $24.8 million to ROCKWELL COLLINS, INC.. RT-2036(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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $24.8 million.
What is the period of performance?
Start: 2022-08-31. End: 2024-07-31.
What is the specific technical capability of the ARC Receiver Transmitter and why is it only available from Rockwell Collins?
The specific technical capabilities of the RT-2036(C)/ARC Receiver Transmitter are not detailed in the provided data. However, sole-source awards often stem from proprietary technology, unique specifications, or a lack of alternative suppliers meeting stringent military requirements. Further investigation into the technical specifications and market availability would be needed to confirm the necessity of a sole-source approach.
How was the price of $24.8 million determined without competitive bidding?
Without competitive bidding, the price is typically determined through negotiation between the government agency and the sole-source contractor. This often involves reviewing historical pricing, cost proposals from the contractor, and potentially using independent government cost estimates. However, the absence of competing offers means there's no market validation, raising concerns about whether the final price represents the best value achievable.
What is the potential impact on future procurements if sole-sourcing becomes a common practice for this type of equipment?
If sole-sourcing becomes common for this equipment, it could stifle competition and innovation in the 'Other Communications Equipment Manufacturing' sector. Taxpayers might face consistently higher prices due to the lack of market pressure. Furthermore, it could limit the government's ability to leverage new technologies or more cost-effective solutions that might emerge from a competitive environment.
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: 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: $24,828,573
Exercised Options: $24,828,573
Current Obligation: $24,828,573
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $192,975
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042118D0004
IDV Type: IDC
Timeline
Start Date: 2022-08-31
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2024-03-20
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