DoD awards $6.89M for wireless communications equipment, with limited competition and a 5-year warranty
Contract Overview
Contract Amount: $6,885,280 ($6.9M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-08-26
End Date: 2026-08-31
Contract Duration: 735 days
Daily Burn Rate: $9.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RT-2036 (C)/ARC W/ 5 YEAR WARRANTY (FMS)
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $6.9 million to ROCKWELL COLLINS, INC. for work described as: RT-2036 (C)/ARC W/ 5 YEAR WARRANTY (FMS) Key points: 1. The contract value of $6.89M appears reasonable for specialized wireless communications equipment, especially considering the included 5-year warranty. 2. Limited competition for this contract may have influenced pricing, potentially leading to higher costs than a fully competed scenario. 3. The fixed-price contract type shifts performance risk to the contractor, Rockwell Collins, Inc. 4. This award falls within the broader category of defense communications and electronics manufacturing. 5. The contract duration of approximately two years (735 days) is standard for this type of equipment procurement. 6. The 'IA' status code suggests the contract is for Information Assurance, indicating a focus on secure communications.
Value Assessment
Rating: good
The contract value of $6.89M for specialized wireless communications equipment, including a 5-year warranty, seems within a reasonable range for defense procurements. Benchmarking against similar sole-source or limited-competition contracts for advanced communication systems would provide a more precise value assessment. The firm fixed-price structure is generally favorable for the government when contractor performance risks are well-defined.
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 solicited. This approach is typically used when a unique capability or product is required, or when there is insufficient time to conduct a full competition. The lack of multiple bidders limits price discovery and may result in a higher price than if the contract had been competed.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding. This necessitates careful justification and oversight to ensure the price paid is fair and reasonable.
Public Impact
The Department of the Navy benefits from the acquisition of critical wireless communications equipment essential for its operations. This contract supports the delivery of advanced radio and television broadcasting and wireless communications equipment. The geographic impact is primarily within the Department of Defense's operational areas, with potential implications for naval bases and deployed units. The contract supports the specialized manufacturing workforce within the wireless communications equipment sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially increasing costs for taxpayers.
- Lack of transparency in the sole-source justification process could obscure potential alternatives.
- The specific nature of 'IA' (Information Assurance) requires rigorous validation of security protocols.
- Reliance on a single vendor for critical communications equipment could pose long-term supply chain risks.
Positive Signals
- Inclusion of a 5-year warranty significantly reduces long-term maintenance and replacement costs.
- Firm fixed-price contract shifts cost overrun risk to the contractor.
- Awarding to Rockwell Collins, Inc., a known entity in aerospace and defense, suggests a degree of confidence in their capabilities.
- The contract supports the development and manufacturing of advanced wireless communications technology.
Sector Analysis
This contract falls within the Information Technology and Defense sectors, specifically focusing on wireless communications equipment manufacturing. The market for such specialized equipment is often characterized by high barriers to entry due to technological complexity and stringent security requirements. Rockwell Collins, Inc. is a significant player in this niche. Comparable spending benchmarks would involve analyzing other sole-source or limited-competition awards for similar advanced communication systems within the DoD.
Small Business Impact
This contract does not appear to have a small business set-aside (ss=false, sb=false). As a sole-source award to a large prime contractor, there are no direct subcontracting implications for small businesses mandated by this specific award. However, the prime contractor may engage small businesses for components or services, but this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. As a sole-source award, the justification for this procurement method is critical and subject to review. Transparency is limited due to the non-competitive nature, but contract performance and payment would be monitored. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Communications Systems
- Naval Aviation Electronics
- Wireless Communications Equipment Procurement
- Information Assurance Technology
Risk Flags
- Sole-source award requires strong justification to ensure fair pricing.
- Potential for higher costs due to lack of competition.
- Reliance on a single vendor for critical technology.
- Need to verify Information Assurance (IA) compliance rigorously.
Tags
defense, department-of-the-navy, rockwell-collins-inc, sole-source, wireless-communications-equipment, information-assurance, firm-fixed-price, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, iowa, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.9 million to ROCKWELL COLLINS, INC.. RT-2036 (C)/ARC W/ 5 YEAR 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 $6.9 million.
What is the period of performance?
Start: 2024-08-26. End: 2026-08-31.
What is the specific justification for awarding this contract on a sole-source basis to Rockwell Collins, Inc.?
The provided data indicates the contract was 'NOT COMPETED' and is 'sole-source'. While the specific justification is not detailed, common reasons for sole-source awards in defense include unique technical capabilities, proprietary technology, urgent operational needs where competition is not feasible, or when only one responsible source can provide the required product or service. For Rockwell Collins, Inc., this could relate to specific radio and television broadcasting and wireless communications equipment that is either proprietary or has been previously qualified and integrated into existing naval systems, making a transition to another vendor impractical or excessively costly.
How does the 5-year warranty impact the overall value proposition of this contract?
The inclusion of a 5-year warranty significantly enhances the value proposition by extending the period of guaranteed performance and reducing the likelihood of unexpected repair or replacement costs for the government. This shifts a greater portion of the long-term operational risk to the contractor, Rockwell Collins, Inc. Over the warranty period, the government benefits from predictable maintenance expenses and ensures the equipment remains functional and reliable. This is particularly valuable for specialized defense equipment where downtime can have significant operational consequences.
What are the potential risks associated with a sole-source award for critical communications equipment?
The primary risk of a sole-source award for critical communications equipment is the lack of competitive pricing, which can lead to higher costs for the government compared to a fully competed contract. There is also a reduced incentive for the sole-source provider to innovate or offer cost efficiencies once the contract is secured. Furthermore, reliance on a single vendor can create supply chain vulnerabilities and limit flexibility if the contractor's performance declines or if the technology becomes obsolete and the contractor is unable or unwilling to adapt.
Can the 'IA' status code provide insight into the specific type of wireless communications equipment being procured?
The 'IA' status code typically stands for 'Information Assurance' within federal procurement. This strongly suggests that the wireless communications equipment being procured is intended for secure operations, requiring robust cybersecurity features and compliance with stringent government standards for data protection and network integrity. This could include encrypted communication devices, secure network infrastructure components, or systems designed to prevent unauthorized access or interference, rather than standard commercial off-the-shelf wireless equipment.
What is the historical spending pattern for Rockwell Collins, Inc. with the Department of the Navy for similar equipment?
Without access to historical spending databases, a precise analysis of Rockwell Collins, Inc.'s spending patterns with the Department of the Navy for similar equipment cannot be provided. However, Rockwell Collins (now part of Collins Aerospace, a Raytheon Technologies company) is a well-established supplier of avionics, communications, and electronic systems to the defense sector, including the Navy. It is probable that they have a history of supplying various communication and electronic warfare systems. This specific contract's value and nature would need to be compared against their broader portfolio of contracts to identify trends.
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: $6,885,280
Exercised Options: $6,885,280
Current Obligation: $6,885,280
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042123D0001
IDV Type: IDC
Timeline
Start Date: 2024-08-26
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2025-12-29
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