DoD Awards $23.3M for RT-2036 Radios to Rockwell Collins, Lacking Competition
Contract Overview
Contract Amount: $23,303,088 ($23.3M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-04-10
End Date: 2025-08-30
Contract Duration: 873 days
Daily Burn Rate: $26.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RT-2036 (C)/ARC W/ 3 YEAR WARRANTY
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $23.3 million to ROCKWELL COLLINS, INC. for work described as: RT-2036 (C)/ARC W/ 3 YEAR WARRANTY Key points: 1. Significant award value for specialized communication equipment. 2. Sole-source award limits competitive pricing and innovation. 3. Potential risk of overpayment due to lack of competition. 4. Focus on defense sector, specifically naval communications.
Value Assessment
Rating: questionable
The award of $23.3 million for RT-2036 radios with a warranty appears high given the lack of competitive bidding. Without market comparison or competing offers, it's difficult to ascertain if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Rockwell Collins, Inc., was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the radio equipment and warranty.
Public Impact
Naval forces may face higher costs for essential communication hardware. Limited visibility into the justification for sole-source procurement. Taxpayers bear the financial burden of non-competitive pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Awarded to established vendor
- Includes warranty
Sector Analysis
This award falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Defense spending in this area often involves specialized, high-cost equipment where competition can be challenging but is crucial for cost efficiency.
Small Business Impact
The contract was awarded to Rockwell Collins, Inc., a large business. There is no indication that small businesses were involved in this sole-source procurement, missing an opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the justification is sound and that the pricing is reasonable. Accountability for the procurement decision is essential.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for inflated costs due to absence of market competition.
- Limited transparency regarding procurement justification.
- Missed opportunity for small business engagement.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to ROCKWELL COLLINS, INC.. RT-2036 (C)/ARC W/ 3 YEAR WARRANTY
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 $23.3 million.
What is the period of performance?
Start: 2023-04-10. End: 2025-08-30.
What is the specific justification for awarding this contract on a sole-source basis, and has it been adequately documented?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A thorough review of the contract file would be necessary to determine the official justification, such as unique capabilities, urgent need, or lack of alternatives. Without this documentation, it's difficult to assess the validity of bypassing competitive procedures.
How does the unit cost of the RT-2036 radio compare to similar or previous procurements, especially considering the included warranty?
Benchmarking the unit cost is challenging without access to historical data or competitor pricing. Given the sole-source nature, it's crucial to investigate if Rockwell Collins has supplied similar equipment to other agencies or if previous contracts for this item existed. Any significant deviation from historical pricing or industry benchmarks would be a red flag.
What is the long-term strategic value of the RT-2036 radio system to the Department of the Navy, and are there plans for future competitive procurements?
The long-term value depends on the system's technological relevance, reliability, and integration capabilities within the Navy's communication network. Future competitive procurements are essential to ensure ongoing cost-effectiveness and access to technological advancements. The current sole-source award should ideally be a temporary measure, not a permanent strategy.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042122R0154
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: $23,303,088
Exercised Options: $23,303,088
Current Obligation: $23,303,088
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042123D0001
IDV Type: IDC
Timeline
Start Date: 2023-04-10
Current End Date: 2025-08-30
Potential End Date: 2025-08-30 00:00:00
Last Modified: 2025-01-29
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