DoD awards $14.9M for wireless communications equipment, with limited competition and a firm fixed price
Contract Overview
Contract Amount: $14,898,936 ($14.9M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-09
End Date: 2027-06-30
Contract Duration: 1,024 days
Daily Burn Rate: $14.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RT-2036(C)/ARC W/ 3-YR WARRANTY
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $14.9 million to ROCKWELL COLLINS, INC. for work described as: RT-2036(C)/ARC W/ 3-YR WARRANTY Key points: 1. The contract's firm fixed price structure aims to control costs, but the limited competition raises concerns about optimal value. 2. Limited competition for this contract may lead to higher prices than a fully competed scenario. 3. The contract duration of over 3 years suggests a need for sustained wireless communications capabilities. 4. The award to Rockwell Collins, Inc. indicates a reliance on established vendors for specialized equipment. 5. The absence of small business set-asides suggests this contract may not directly benefit smaller enterprises. 6. The 'IA' (Information Assurance) contract type implies a focus on secure and reliable communication systems.
Value Assessment
Rating: fair
Benchmarking the value of this $14.9 million contract is challenging without specific performance metrics or comparable contract data. The firm fixed price is a positive indicator for cost control. However, the limited competition suggests that the price may not be as competitive as it could be in a broader bidding environment. Further analysis would require understanding the specific equipment procured and its market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited procurement approach. This suggests that either only one source was capable of meeting the requirement, or the agency opted for a non-competitive process for specific reasons. The lack of multiple bidders means there was no direct price comparison or negotiation leverage derived from a competitive bidding process, potentially impacting the final price.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The limited competition reduces the likelihood of securing the best possible price for the government.
Public Impact
The Department of the Navy benefits from enhanced wireless communications capabilities, crucial for operational effectiveness. This contract supports the deployment and maintenance of radio and television broadcasting and wireless communications equipment. The geographic impact is likely concentrated within Department of Defense operational areas requiring secure communications. The contract supports the workforce involved in the manufacturing, installation, and maintenance of advanced wireless systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may result in higher costs for taxpayers.
- Lack of small business participation could limit innovation and broader economic impact.
- The firm fixed price, while good for cost certainty, might not reflect the lowest possible market price without competition.
Positive Signals
- Firm fixed price contract provides cost certainty for the government.
- Award to an established vendor like Rockwell Collins suggests a focus on reliability and proven technology.
- The contract duration indicates a long-term need for these critical communication systems.
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. This industry is characterized by rapid technological advancements and a need for secure, reliable communication systems, particularly for government and defense applications. The market size for defense-related communications equipment is substantial, driven by ongoing modernization efforts and global security requirements. This specific award likely contributes to the Navy's broader strategy for maintaining advanced communication networks.
Small Business Impact
The data indicates that this contract was not competed and did not include small business set-asides. This means that small businesses were not specifically targeted for this procurement, and their opportunity to participate was likely limited to subcontracting roles, if any. The absence of direct small business involvement suggests that the primary focus was on securing specialized equipment from a known provider, potentially overlooking opportunities to foster small business growth within this sector.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. Accountability measures are inherent in the firm fixed price structure, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited by the non-competitive nature of the award; however, contract details should be publicly accessible through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Communications Systems
- Naval Communication Equipment Procurement
- Wireless Technology Manufacturing
- Radio and Broadcasting Equipment
Risk Flags
- Limited competition
- Potential for overpricing
- Reliance on a single vendor
Tags
department-of-defense, department-of-the-navy, wireless-communications-equipment, not-competed, firm-fixed-price, rockwell-collins, information-assurance, defense-contracting, federal-spending, iowa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.9 million to ROCKWELL COLLINS, INC.. RT-2036(C)/ARC W/ 3-YR 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 $14.9 million.
What is the period of performance?
Start: 2024-09-09. End: 2027-06-30.
What is the specific type of wireless communications equipment being procured under this contract?
The contract specifies 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' (NAICS code 334220). While the exact model or system is not detailed in the provided data, it pertains to equipment used for broadcasting and wireless communication. Given the Department of Defense context, this likely includes advanced, secure, and potentially specialized radio systems, transceivers, or related infrastructure components essential for military operations and command and control. The 'IA' (Information Assurance) designation further suggests a focus on secure communication capabilities.
How does the $14.9 million award compare to historical spending on similar wireless communications equipment by the Department of the Navy?
Without access to historical spending data for specific wireless communications equipment categories by the Department of the Navy, a direct comparison is not possible. However, $14.9 million represents a significant investment. The limited competition and firm fixed price structure suggest this is for a specific, potentially high-value or specialized, set of equipment. To provide a meaningful comparison, one would need to analyze past contracts for similar equipment, considering factors like quantity, technological sophistication, and vendor. A trend of increasing or decreasing spending in this area would also be informative.
What are the primary risks associated with a 'not competed' contract for critical communication equipment?
The primary risks associated with a 'not competed' contract for critical communication equipment include potential overpricing due to lack of competitive bidding, limited vendor options leading to reliance on a single supplier, and a reduced incentive for innovation. Taxpayers may not receive the best value for their money. Furthermore, if the sole-source provider faces production issues or goes out of business, the government's ability to procure necessary equipment or support could be severely jeopardized. The lack of competition also makes it harder to assess the true market value of the equipment.
What is the expected performance context or operational impact of this wireless communications equipment for the Department of the Navy?
The operational impact of this wireless communications equipment for the Department of the Navy is expected to be significant, enhancing command, control, and communication (C3) capabilities. The 'IA' (Information Assurance) designation highlights a critical need for secure and reliable communication channels, essential for maintaining operational security and preventing unauthorized access or interference. This equipment likely supports various naval operations, from shipboard communications to shore-based command centers and potentially tactical deployments. Improved wireless capabilities can lead to faster decision-making, better situational awareness, and more effective coordination among naval assets.
What is Rockwell Collins, Inc.'s track record with the Department of Defense, particularly in wireless communications?
Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing and extensive track record of providing advanced technology solutions, including communication systems, to the Department of Defense and other government agencies. They are well-known for their expertise in avionics, communication, and information management systems. Their involvement with the DoD spans decades, encompassing a wide range of platforms and applications, including secure communication systems, navigation equipment, and integrated mission systems. Their history suggests a capability to deliver complex and reliable solutions tailored to military requirements.
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: $14,898,936
Exercised Options: $14,898,936
Current Obligation: $14,898,936
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $121,959
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042123D0001
IDV Type: IDC
Timeline
Start Date: 2024-09-09
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2025-12-18
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