DoD Awards $12.5M for Rockwell Collins Communications Equipment, Sole-Source Contract
Contract Overview
Contract Amount: $12,543,855 ($12.5M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-19
End Date: 2027-11-30
Contract Duration: 802 days
Daily Burn Rate: $15.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RT-2036(C)/ARC W/ 1 YEAR WARRANTY (FMS)
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $12.5 million to ROCKWELL COLLINS, INC. for work described as: RT-2036(C)/ARC W/ 1 YEAR WARRANTY (FMS) Key points: 1. Significant award to Rockwell Collins for specialized communications equipment. 2. Sole-source procurement raises questions about price discovery and competition. 3. Contract duration extends over two years, impacting long-term budget planning. 4. Focus on wireless communications equipment manufacturing within the defense sector.
Value Assessment
Rating: fair
The award amount of $12.5M for a 1-year warranty on communications equipment appears high without competitive benchmarking. Further analysis is needed to compare pricing against similar sole-source contracts or commercial equivalents.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the required communications equipment.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single vendor could create future supply chain vulnerabilities. The specialized nature of the equipment might justify the sole-source approach, but transparency is crucial.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Potential for overpayment
Positive Signals
- Award to established vendor
- Includes warranty
Sector Analysis
The Department of the Navy's procurement of radio and television broadcasting and wireless communications equipment falls within the broader IT and Defense sectors. Spending benchmarks for similar specialized equipment are difficult to ascertain without competitive data.
Small Business Impact
The contract was awarded to Rockwell Collins, Inc., a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Accountability rests with the Department of the Navy to justify the lack of competition.
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 inflated pricing
- Limited transparency on price justification
- No small business participation noted
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 $12.5 million to ROCKWELL COLLINS, INC.. RT-2036(C)/ARC W/ 1 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 $12.5 million.
What is the period of performance?
Start: 2025-09-19. End: 2027-11-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. The Department of the Navy should have conducted a price analysis, comparing the proposed price to historical prices, commercial prices, or other government contracts to ensure it is fair and reasonable. Documentation of this analysis is critical for accountability.
What are the long-term risks associated with relying on a sole-source vendor for critical communications equipment?
Long-term risks include vendor lock-in, potential price increases over time as competition is absent, and reduced innovation. If the vendor faces financial difficulties or decides to discontinue the product line, the government could face significant challenges in sourcing replacements or obtaining support, potentially impacting operational readiness.
How does the inclusion of a 1-year warranty impact the overall value proposition of this contract?
A 1-year warranty can enhance the value by reducing immediate post-delivery maintenance costs and ensuring operational readiness. However, its value must be weighed against the potentially inflated price due to the sole-source nature. The cost of the warranty should be assessed as part of the total contract price to determine if it represents a fair deal.
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: $12,543,855
Exercised Options: $12,543,855
Current Obligation: $12,543,855
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042123D0001
IDV Type: IDC
Timeline
Start Date: 2025-09-19
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2025-10-30
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