DoD Awards $18.9M Contract for Radio Equipment to Rockwell Collins, Lacking Competition
Contract Overview
Contract Amount: $18,895,342 ($18.9M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-27
End Date: 2027-03-31
Contract Duration: 734 days
Daily Burn Rate: $25.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RT-2036(C)/ARC W/ 3 YEAR WARRANTY
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $18.9 million to ROCKWELL COLLINS, INC. for work described as: RT-2036(C)/ARC W/ 3 YEAR WARRANTY Key points: 1. Significant award to a single vendor, Rockwell Collins, for radio equipment. 2. The contract value is substantial at $18.9 million over three years. 3. Lack of competition raises concerns about potential overpricing and value for taxpayer money. 4. The sector is Wireless Communications Equipment Manufacturing, a critical area for defense.
Value Assessment
Rating: questionable
The contract is firm fixed price, which can offer cost certainty. However, without competitive bidding, it's difficult to assess if the $18.9 million price represents fair market value compared to similar contracts or commercial offerings.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and negotiation leverage, potentially leading to higher costs for the government.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for this essential radio equipment.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of the Navy relies on this equipment, making its acquisition critical. Future procurements in this category could be influenced by this non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in price negotiation
Positive Signals
- Firm fixed price contract type
- Award to established vendor
Sector Analysis
The Department of Defense's spending in the Wireless Communications Equipment Manufacturing sector is substantial. Benchmarks for similar radio equipment contracts are difficult to establish without competitive data, but non-competitive awards often exceed market rates.
Small Business Impact
There is no indication that small businesses were involved in this procurement, as it was awarded directly to Rockwell Collins, Inc.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny from oversight bodies to ensure the government obtained the best value possible and that justifications for sole-source procurement are robust.
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 lacks competitive pricing.
- Potential for overpayment due to lack of negotiation leverage.
- Limited transparency in the procurement process.
- Risk of setting a precedent for non-competitive awards in this sector.
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 $18.9 million to ROCKWELL COLLINS, INC.. RT-2036(C)/ARC W/ 3 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 $18.9 million.
What is the period of performance?
Start: 2025-03-27. End: 2027-03-31.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of available alternatives. Without specific documentation, it's impossible to determine the exact reason. However, the absence of competition inherently reduces the government's ability to secure the most cost-effective solution.
How does the $18.9 million price compare to industry benchmarks for similar radio equipment, considering the lack of competition?
Direct comparison to industry benchmarks is challenging without competitive data. Sole-source contracts often carry a premium. A thorough review would involve comparing the awarded price against commercial sales of similar equipment or other government contracts awarded competitively, if available, to identify potential overpricing.
What is the potential impact on future procurements if non-competitive awards become the norm for this type of equipment?
If non-competitive awards become prevalent, it could signal a weakening of the government's procurement strategy, potentially leading to consistently higher prices and reduced innovation. It may also discourage potential competitors from entering the market if they perceive opportunities are consistently awarded without competition.
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: $18,895,342
Exercised Options: $18,895,342
Current Obligation: $18,895,342
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $59,480
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042123D0001
IDV Type: IDC
Timeline
Start Date: 2025-03-27
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2025-03-27
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