DoD Awards $17.5M for Rockwell Collins RT-2036 Radios with 5-Year Warranty
Contract Overview
Contract Amount: $17,547,569 ($17.5M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-15
End Date: 2026-02-28
Contract Duration: 897 days
Daily Burn Rate: $19.6K/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 $17.5 million to ROCKWELL COLLINS, INC. for work described as: RT-2036 (C)/ARC W/ 5-YR WARRANTY (FMS) Key points: 1. Significant award to Rockwell Collins for specialized communication equipment. 2. Lack of competition raises questions about potential overpricing. 3. Long warranty period could mitigate long-term maintenance risks. 4. Focus on radio and wireless communications equipment manufacturing sector.
Value Assessment
Rating: questionable
The award amount of $17.5 million for RT-2036 radios with a 5-year warranty appears high without competitive benchmarking. Further analysis is needed to compare this price against similar advanced communication systems and warranty terms in the market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition procurement. This lack of competition limits price discovery and may result in a higher cost to the government than if multiple vendors had bid.
Taxpayer Impact: The absence of competition could lead to taxpayers paying a premium for this specialized equipment, as there was no market pressure to drive down prices.
Public Impact
Ensures critical communication capabilities for the Department of the Navy. Potential for extended operational readiness due to the long warranty. Limited visibility into the justification for sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Lack of competitive benchmarking
Positive Signals
- Includes a 5-year warranty
- Supports critical defense communications
Sector Analysis
This award falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector is crucial for maintaining advanced communication infrastructure, particularly for defense applications.
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 specific award, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the justification for bypassing full and open competition was robust and documented appropriately.
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.
- Potential for inflated costs due to lack of competition.
- Dependence on a single vendor for critical equipment.
- Limited transparency on procurement justification.
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 $17.5 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 $17.5 million.
What is the period of performance?
Start: 2023-09-15. End: 2026-02-28.
What is the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other vendors. Without access to the specific contract file, it's difficult to ascertain the exact reasoning. However, agencies must demonstrate that competition was not feasible or would be detrimental to the government's interests. This often requires extensive documentation and review.
How does the 5-year warranty impact the overall value proposition and long-term cost of ownership for this equipment?
A 5-year warranty can significantly enhance the value proposition by reducing unexpected repair costs and ensuring operational uptime. It suggests confidence in the product's reliability. However, the cost of this extended warranty should be factored into the total price. If the warranty premium is excessively high, it could negate some of the long-term savings, making a thorough cost-benefit analysis essential.
What are the potential risks associated with relying on a single vendor for such critical communication equipment over an extended period?
Relying on a single vendor for critical communication equipment carries risks such as vendor lock-in, potential price increases in future procurements, and dependence on the vendor's financial stability and continued product support. If the vendor discontinues the product line or faces financial difficulties, the government could be left without necessary support or replacement parts, impacting operational readiness.
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: 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: $17,547,569
Exercised Options: $17,547,569
Current Obligation: $17,547,569
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042123D0001
IDV Type: IDC
Timeline
Start Date: 2023-09-15
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-12-16
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