DoD Awards $8.66M Task Order to Rockwell Collins for Navigation Systems Support
Contract Overview
Contract Amount: $8,662,021 ($8.7M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2026-09-30
Contract Duration: 1,098 days
Daily Burn Rate: $7.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TO AWARD TASK ORDER FOR CONTINUED IDIQ SUPPORT
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $8.7 million to ROCKWELL COLLINS, INC. for work described as: TO AWARD TASK ORDER FOR CONTINUED IDIQ SUPPORT Key points: 1. This task order focuses on critical navigation and guidance systems for the Navy. 2. Rockwell Collins, a significant player in aerospace, is the sole awardee. 3. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 4. The sector is dominated by large, established defense contractors.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable. Benchmarking against similar navigation system support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This task order was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: Taxpayer funds are being used for a sole-source award, which warrants scrutiny to ensure value for money.
Public Impact
Ensures continued operational readiness of critical Navy navigation systems. Supports a key defense contractor, potentially impacting jobs in the aerospace sector. Highlights the reliance on specific vendors for specialized defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of competition may lead to inflated costs.
Positive Signals
- Supports critical defense systems for national security.
- Award to established contractor with proven capabilities.
- Long-term support ensures system availability.
Sector Analysis
This award falls within the aerospace and defense sector, specifically focusing on navigation and guidance systems. Spending in this area is often characterized by long procurement cycles and specialized requirements, leading to fewer competitors.
Small Business Impact
The awardee, Rockwell Collins, is a large business. There is no indication of small business participation in this specific task order, which is common for highly specialized defense contracts.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust financial oversight to manage costs effectively and prevent potential overruns.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of transparency in pricing due to sole-source nature
Tags
search-detection-navigation-guidance-aer, department-of-defense, ia, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.7 million to ROCKWELL COLLINS, INC.. TO AWARD TASK ORDER FOR CONTINUED IDIQ SUPPORT
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 $8.7 million.
What is the period of performance?
Start: 2023-09-28. End: 2026-09-30.
What specific justification was provided for the sole-source award, and how does it align with federal procurement regulations for non-competitive procurements?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Federal regulations (like FAR Part 6) outline specific criteria for sole-source procurements. Without the official justification document, it's difficult to assess its validity and ensure it truly represents the only viable option for the required support.
How will the Department of the Navy ensure cost control and prevent potential overruns under the Cost Plus Fixed Fee contract structure?
Effective oversight is crucial. The Navy should implement rigorous monitoring of Rockwell Collins' costs, conduct regular audits, and establish clear performance metrics. Negotiating a fair fixed fee based on realistic cost estimates and profit margins is also key. Proactive communication and change control processes can help manage scope creep and associated cost increases.
What is the long-term strategy for ensuring competitive sourcing for similar navigation system support requirements in the future?
The Navy should explore strategies to foster competition for future requirements. This could involve breaking down large requirements into smaller, more accessible contracts, investing in training for organic personnel, or encouraging new entrants into the market through R&D initiatives. A market research effort to identify potential competitors should be a priority.
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: $15,868,218
Exercised Options: $15,868,218
Current Obligation: $8,662,021
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $1,197,026
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: 2023-09-28
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-08
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