DoD Awards Rockwell Collins $13.2M for Communications Equipment with 5-Year Warranty
Contract Overview
Contract Amount: $13,205,931 ($13.2M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-17
End Date: 2027-12-31
Contract Duration: 835 days
Daily Burn Rate: $15.8K/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 $13.2 million to ROCKWELL COLLINS, INC. for work described as: RT-2036(C)/ARC W/ 5 YEAR WARRANTY Key points: 1. Significant award to Rockwell Collins for essential communications equipment. 2. Sole-source procurement raises questions about price discovery and competition. 3. Long warranty period suggests a focus on reliability and reduced lifecycle costs. 4. Sector is dominated by a few large players, limiting competitive options.
Value Assessment
Rating: fair
The award amount of $13.2M for radio and wireless communications equipment with a 5-year warranty appears within a reasonable range for specialized defense systems. However, without specific unit counts or detailed feature comparisons, a precise valuation against similar contracts is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs compared to a competitive bidding process. The justification for sole-sourcing is critical for assessing value.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive pricing, potentially leading to a less efficient use of resources.
Public Impact
Ensures critical communication capabilities for the Department of the Navy. Supports a major defense contractor, potentially impacting jobs and industry stability. Long-term warranty may reduce future maintenance costs for the government. Lack of competition could set a precedent for future sole-source awards in this area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for overpayment due to lack of competitive bidding.
- Long-term commitment without clear performance metrics beyond warranty.
Positive Signals
- Includes a 5-year warranty, indicating a focus on product longevity.
- Supports a known defense contractor with established capabilities.
- Awarded to a company located in Iowa, potentially supporting regional economic interests.
Sector Analysis
The defense communications equipment sector is characterized by high technological complexity and stringent performance requirements. Spending benchmarks are difficult to establish due to the specialized nature of the equipment and the prevalence of sole-source or limited competition contracts.
Small Business Impact
This contract was awarded to Rockwell Collins, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which is common for large, specialized defense contracts.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is fair and reasonable. Accountability rests with the contracting officers to justify the lack of competition and monitor contract performance.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price inflation
- Limited transparency on price justification
- Vendor lock-in risk
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 $13.2 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 $13.2 million.
What is the period of performance?
Start: 2025-09-17. End: 2027-12-31.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Contracting officers must conduct market research and price analysis, potentially using historical data or independent cost estimates, to validate the reasonableness of the price. Without this information, it's difficult to assess if taxpayers received optimal value.
How does the 5-year warranty impact the overall cost-effectiveness of this procurement compared to shorter warranty periods?
A 5-year warranty suggests a commitment to reliability and potentially lower lifecycle costs by covering repairs and defects for an extended period. This could be cost-effective if it significantly reduces the need for unscheduled maintenance, spare parts, and associated labor over the system's operational life. However, the upfront cost may be higher, requiring a thorough total cost of ownership analysis.
What are the potential risks associated with relying on a single vendor for critical communications equipment, especially given the long contract duration?
The primary risks include vendor lock-in, reduced leverage for future negotiations, and potential supply chain disruptions if the vendor faces financial or operational issues. Long-term reliance on a sole source can also stifle innovation if the vendor does not proactively upgrade technology. This necessitates robust contract management and contingency planning.
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: $13,205,931
Exercised Options: $13,205,931
Current Obligation: $13,205,931
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042123D0001
IDV Type: IDC
Timeline
Start Date: 2025-09-17
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-09-17
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