DoD Awards $1.67B for RT-2036 Radios to Rockwell Collins, Lacking Competition
Contract Overview
Contract Amount: $16,709,028 ($16.7M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-21
End Date: 2026-04-30
Contract Duration: 952 days
Daily Burn Rate: $17.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RT-2036 (C)/ARC W/ 5 YEAR WARRANTY
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $16.7 million to ROCKWELL COLLINS, INC. for work described as: RT-2036 (C)/ARC W/ 5 YEAR WARRANTY Key points: 1. Significant award value of $1.67 billion for communication equipment. 2. Sole-source award to Rockwell Collins raises concerns about price discovery. 3. Long contract duration of 952 days suggests potential for cost overruns. 4. Focus on radio and wireless communications equipment manufacturing sector.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. Benchmarking against similar radio systems would be necessary.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to Rockwell Collins. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this equipment.
Public Impact
Military readiness may be impacted by the specific communication equipment procured. Taxpayers could be overpaying due to the absence of competitive bidding. Dependence on a single vendor for critical communication technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Long contract duration
Positive Signals
- Essential communication equipment for the Navy
Sector Analysis
This award falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector is critical for defense communications, but competitive procurement is key to ensuring value.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste, fraud, and abuse.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Vendor lock-in
- Long-term dependence on a single supplier
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 $16.7 million to ROCKWELL COLLINS, INC.. RT-2036 (C)/ARC W/ 5 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 $16.7 million.
What is the period of performance?
Start: 2023-09-21. End: 2026-04-30.
What is the justification for the sole-source award, and has an adequate price analysis been performed?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies must conduct thorough price analyses, comparing proposed prices to historical prices, other government contracts, or commercial prices, to ensure the government is not overpaying. Without this information, the value proposition remains unclear.
What are the risks associated with relying on a single vendor for this critical communication equipment over a 5-year period?
Sole-source reliance increases risks such as vendor lock-in, potential price escalations, and supply chain vulnerabilities. If Rockwell Collins faces production issues or decides to discontinue the product line, the Navy could face significant disruption and costly transitions to alternative solutions.
How does the performance and cost of the RT-2036 compare to similar commercially available or previously procured systems?
A comparative analysis of the RT-2036's performance specifications, reliability, and total lifecycle cost against alternative systems is essential. Benchmarking against similar systems, whether procured competitively or available commercially, would reveal if the $1.67 billion award represents a fair market price and optimal technological solution.
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: $16,709,028
Exercised Options: $16,709,028
Current Obligation: $16,709,028
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $64,481
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042123D0001
IDV Type: IDC
Timeline
Start Date: 2023-09-21
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-08-01
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