DoD Awards $33.8M for C/KC-130T CDNU Update, Sole-Source to Rockwell Collins
Contract Overview
Contract Amount: $33,854,217 ($33.9M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-28
End Date: 2027-12-29
Contract Duration: 1,006 days
Daily Burn Rate: $33.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: C/KC-130T CDNU900 TO CDNU7000 UPDATE NRE
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $33.9 million to ROCKWELL COLLINS, INC. for work described as: C/KC-130T CDNU900 TO CDNU7000 UPDATE NRE Key points: 1. Significant investment in aircraft communication systems modernization. 2. Sole-source award raises questions about price discovery and competition. 3. Long-term contract duration (2027) suggests critical, ongoing need. 4. Potential for cost overruns given Cost Plus Fixed Fee contract type.
Value Assessment
Rating: questionable
The contract is a sole-source award, making direct pricing comparisons difficult. The Cost Plus Fixed Fee structure, while common for complex development, can lead to higher costs if not managed tightly. Benchmarking is challenging without competitive data.
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 compared to a competitive environment. The justification for sole-source is critical for assessing value.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive bidding, potentially increasing the overall cost of the C/KC-130T modernization.
Public Impact
Ensures continued operational readiness for critical C/KC-130T aircraft. Supports advanced communication capabilities for military transport and refueling missions. Potential impact on future aircraft upgrade contracts and procurement strategies. Highlights reliance on specific vendors for specialized defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
- Long contract duration
Positive Signals
- Modernizes critical aircraft systems
- Ensures operational capability
- Supports established vendor relationship
Sector Analysis
This contract falls under 'Other Communications Equipment Manufacturing' within the broader defense sector. Spending in this area is driven by modernization needs and maintaining legacy platforms. Benchmarks are difficult without specific comparable systems.
Small Business Impact
The awardee, Rockwell Collins, is a large business. There is no indication in the provided data that small businesses will be involved in the subcontracting for this specific contract, which is common for sole-source awards of this nature.
Oversight & Accountability
Oversight will be crucial given the sole-source nature and Cost Plus Fixed Fee structure. The Department of the Navy must ensure rigorous monitoring of costs and performance to prevent waste and ensure the NRE is justified and controlled.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Cost Plus Fixed Fee contract type carries inherent cost risk.
- Potential for contractor to maximize profit through cost incurrence.
- Lack of transparency in pricing due to non-competitive nature.
- Long contract duration increases exposure to cost fluctuations.
Tags
other-communications-equipment-manufactu, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.9 million to ROCKWELL COLLINS, INC.. C/KC-130T CDNU900 TO CDNU7000 UPDATE NRE
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 $33.9 million.
What is the period of performance?
Start: 2025-03-28. End: 2027-12-29.
What is the specific justification for the sole-source award, and has an alternatives analysis been performed?
The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, this involves demonstrating that only one source can meet the requirement due to unique capabilities, proprietary technology, or urgent needs. A thorough alternatives analysis should have been conducted to ensure no other viable options existed, thereby validating the necessity of this non-competitive approach.
How will the Cost Plus Fixed Fee structure be managed to control costs and prevent overruns?
Managing a Cost Plus Fixed Fee (CPFF) contract requires robust oversight to control costs. The government must closely monitor all incurred costs, ensuring they are reasonable, allocable, and allowable. Performance metrics and milestones should be clearly defined and tracked. Regular audits and reviews of the contractor's financial records are essential to verify expenses and prevent scope creep or inefficient practices that could inflate the final price.
What is the projected impact of this NRE update on the long-term sustainment costs of the C/KC-130T fleet?
The NRE (Non-Recurring Engineering) update aims to modernize the C/KC-130T's communication systems, potentially improving reliability and reducing future maintenance needs. However, the initial investment is substantial. The long-term impact on sustainment costs depends on the effectiveness of the upgrade, the integration complexity, and whether it truly reduces lifecycle expenses or introduces new sustainment challenges and associated costs.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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: 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: $34,693,296
Exercised Options: $33,854,217
Current Obligation: $33,854,217
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $57,020
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042121G0005
IDV Type: BOA
Timeline
Start Date: 2025-03-28
Current End Date: 2027-12-29
Potential End Date: 2027-12-29 00:00:00
Last Modified: 2025-09-25
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