DoD Awards $29.5M Contract for Radio Equipment to Rockwell Collins, Inc

Contract Overview

Contract Amount: $29,540,780 ($29.5M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-29

End Date: 2026-09-30

Contract Duration: 1,128 days

Daily Burn Rate: $26.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RT-2036 (C)/ARC W/ 5-YR WARRANTY (FMS)

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to ROCKWELL COLLINS, INC. for work described as: RT-2036 (C)/ARC W/ 5-YR WARRANTY (FMS) Key points: 1. Contract awarded to a single, established vendor, Rockwell Collins, Inc. 2. The contract is for radio and wireless communications equipment. 3. A 5-year warranty is included, potentially increasing long-term value. 4. The award is a delivery order under an existing contract.

Value Assessment

Rating: fair

The contract value of $29.5 million over approximately 3.75 years needs comparison to similar radio equipment procurements. Without benchmarks, assessing if this price is competitive 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 may limit price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition could result in the government paying more than necessary for the radio equipment.

Public Impact

Ensures continued operational capability for Navy communications. Supports a specific technology requirement within the Department of Defense. Potential for follow-on contracts based on performance and needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Potential for price inflation due to sole-source award

Positive Signals

  • Inclusion of a 5-year warranty
  • Award to an established vendor with likely relevant expertise

Sector Analysis

The procurement falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector is critical for defense communications infrastructure, with significant government investment.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

As a delivery order under an existing contract, oversight may be less intensive than for a new sole-source award. However, the contracting agency (Department of the Navy) is responsible for ensuring proper execution and value.

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 limits price competition.
  • Potential for overpayment due to lack of competitive bidding.
  • Risk of vendor lock-in with specific technology.
  • Limited transparency on the justification for sole-source.

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 $29.5 million to ROCKWELL COLLINS, INC.. RT-2036 (C)/ARC W/ 5-YR WARRANTY (FMS)

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 $29.5 million.

What is the period of performance?

Start: 2023-08-29. End: 2026-09-30.

What was the justification for awarding this contract sole-source instead of competing it?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent needs, or the unavailability of other sources. Without specific documentation, it's impossible to determine the exact reason. However, sole-source awards often raise concerns about potential price inflation and reduced innovation compared to competitive processes.

How does the 5-year warranty impact the overall value proposition of this contract?

A 5-year warranty significantly enhances the value proposition by reducing the risk of unexpected repair costs and ensuring the equipment's operational readiness for an extended period. This can lead to lower total cost of ownership over the equipment's lifecycle, even if the initial price is higher than a contract without such a warranty.

What is the potential impact on future technological advancements if this equipment is not regularly re-competed?

If this specific radio equipment is not regularly re-competed, it could stifle innovation by reducing the incentive for vendors to develop next-generation technologies. The government might become locked into older systems, potentially missing out on more efficient, secure, or capable solutions that could emerge in a competitive market.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingRadio 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: 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: $29,540,780

Exercised Options: $29,540,780

Current Obligation: $29,540,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0042123D0001

IDV Type: IDC

Timeline

Start Date: 2023-08-29

Current End Date: 2026-09-30

Potential End Date: 2026-09-30 00:00:00

Last Modified: 2026-01-12

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