DoD's $6.87M Crypto Modernization Contract Awarded to Rockwell Collins, Inc. with No Competition

Contract Overview

Contract Amount: $6,873,916 ($6.9M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-25

End Date: 2027-04-30

Contract Duration: 582 days

Daily Burn Rate: $11.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CRYPTO MODERNIZATION DESIGN AND INTEGRATION PLAN (CMDIP)

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to ROCKWELL COLLINS, INC. for work described as: CRYPTO MODERNIZATION DESIGN AND INTEGRATION PLAN (CMDIP) Key points: 1. The contract focuses on designing and integrating cryptographic modernization plans, a critical area for national security. 2. Awarded on a firm-fixed-price basis, indicating a defined scope and cost structure. 3. The duration of over 580 days suggests a substantial project requiring significant planning and execution. 4. The absence of competition raises questions about potential cost efficiencies and the exploration of alternative solutions. 5. The contract's value, while significant, needs to be benchmarked against similar efforts in cryptographic modernization. 6. The specific nature of 'Other Communications Equipment Manufacturing' (NAICS 334290) warrants further investigation into the precise technological scope.

Value Assessment

Rating: questionable

Benchmarking the value of this $6.87 million contract is challenging without specific details on the deliverables and the scope of 'design and integration.' However, the lack of competition suggests that a thorough price analysis may not have been conducted against market alternatives. Comparing this to other firm-fixed-price contracts for similar cryptographic modernization design and integration efforts would be necessary to assess if the pricing is reasonable. The absence of competitive bids means there's no direct market validation of the proposed costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Rockwell Collins, Inc., was considered. The justification for this approach is not provided, but sole-source awards typically occur when only one responsible source can provide the required supplies or services. This lack of competition limits the government's ability to explore a wider range of technical solutions and potentially secure more favorable pricing through a competitive bidding process.

Taxpayer Impact: The absence of competition means taxpayers may not be benefiting from the cost savings that could arise from a competitive bidding environment. Without multiple bids, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, which will receive enhanced cryptographic capabilities. The contract will deliver a 'CRYPTO MODERNIZATION DESIGN AND INTEGRATION PLAN (CMDIP)', crucial for securing sensitive communications. The geographic impact is likely concentrated within the Navy's operational and support infrastructure, potentially across various bases and deployed units. Workforce implications may include specialized engineering and technical roles within Rockwell Collins and potentially within the Navy's acquisition and oversight teams.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Sole-source awards can reduce the incentive for contractors to innovate or offer the most efficient solutions.
The specific technical requirements and justification for a sole-source award are not detailed, raising transparency concerns.
The 'Other Communications Equipment Manufacturing' classification is broad and may obscure the precise nature of the technology involved.

Positive Signals

Award to a known entity, Rockwell Collins, Inc., may suggest a reliance on established expertise in a critical security domain.
Firm-fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The contract duration indicates a commitment to a comprehensive modernization effort, suggesting strategic importance.
The focus on cryptographic modernization is vital for maintaining national security and protecting classified information.

Sector Analysis

The defense sector, particularly within communications and cybersecurity, is characterized by high technological complexity and significant government investment. Cryptographic modernization is a continuous and essential process to counter evolving threats and maintain the integrity of sensitive data. This contract fits within the broader trend of defense agencies upgrading their communication systems to meet modern security standards. Comparable spending benchmarks for cryptographic modernization design and integration can vary widely based on the scope, technology, and specific agency requirements, but typically involve substantial investments in research, development, and implementation.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by 'ss': false and 'sb': false. The prime contractor, Rockwell Collins, Inc., is a large business. There is no explicit information provided regarding subcontracting plans or opportunities for small businesses within this specific award. Therefore, the direct impact on the small business ecosystem from this particular contract is likely minimal, unless Rockwell Collins voluntarily engages small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a firm-fixed-price contract, oversight would focus on ensuring adherence to the defined scope, schedule, and quality standards. Transparency regarding the justification for the sole-source award and the specific technical details of the CMDIP would enhance accountability. The Inspector General for the Department of Defense may have jurisdiction for audits or investigations if concerns regarding waste, fraud, or abuse arise.

Related Government Programs

DoD Cybersecurity Modernization Programs
Naval Communication Systems Upgrades
Cryptographic Technology Research and Development
Secure Communications Infrastructure Projects
Defense Information Assurance Programs

Risk Flags

Sole-source award raises concerns about competition and potential cost efficiencies.
Lack of detailed justification for sole-source award impacts transparency.
Broad NAICS code may obscure specific technological focus.
Contract duration and value warrant close monitoring of deliverables and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to ROCKWELL COLLINS, INC.. CRYPTO MODERNIZATION DESIGN AND INTEGRATION PLAN (CMDIP)

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 $6.9 million.

What is the period of performance?

Start: 2025-09-25. End: 2027-04-30.

What specific cryptographic technologies or standards is this modernization plan intended to address?

The provided data does not specify the exact cryptographic technologies or standards the 'CRYPTO MODERNIZATION DESIGN AND INTEGRATION PLAN (CMDIP)' is intended to address. However, given the context of defense and the need for secure communications, it likely pertains to upgrading or replacing existing encryption algorithms, key management systems, and secure communication protocols to counter emerging threats and comply with evolving national security standards. This could include advancements in areas like post-quantum cryptography, enhanced key distribution mechanisms, or more robust authentication protocols to protect against sophisticated cyberattacks and ensure the confidentiality and integrity of classified information.

What is the justification for awarding this contract on a sole-source basis to Rockwell Collins, Inc.?

The provided data indicates the contract was awarded on a 'NOT COMPETED' basis, implying a sole-source justification. However, the specific rationale for this sole-source award is not detailed in the data. Typically, sole-source procurements are justified when only one responsible source is available to meet the government's needs, often due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), it is impossible to ascertain the precise reasons why Rockwell Collins, Inc. was the only considered vendor for this cryptographic modernization effort.

How does the $6.87 million contract value compare to similar cryptographic modernization efforts within the DoD or other federal agencies?

Benchmarking the $6.87 million contract value for Rockwell Collins, Inc.'s 'CRYPTO MODERNIZATION DESIGN AND INTEGRATION PLAN (CMDIP)' against similar efforts is difficult without more specific details on the scope and deliverables. Cryptographic modernization projects can range significantly in cost depending on their complexity, the technologies involved, and the scale of implementation. Smaller-scale design studies or integration plans might fall within this range, while full-scale system deployments or research into novel cryptographic methods could cost tens or hundreds of millions of dollars. The absence of competitive bids for this specific contract also hinders a direct price comparison to market rates.

What are the potential risks associated with awarding a critical cybersecurity contract like this without competition?

Awarding a critical cybersecurity contract without competition presents several potential risks. Firstly, it can lead to higher costs for taxpayers, as the government may not benefit from the price reductions typically achieved through competitive bidding. Secondly, it limits the government's exposure to innovative solutions or alternative approaches that other vendors might offer. There's also a risk that the chosen vendor may not be the most capable or cost-effective provider in the long run. Furthermore, a lack of transparency surrounding the sole-source justification can raise concerns about fairness and potential conflicts of interest, potentially impacting overall program security and efficiency.

What is Rockwell Collins, Inc.'s track record in providing cryptographic solutions or similar defense communication technologies?

Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing and significant track record in providing advanced avionics, communication, and electronic systems for military and commercial applications. They are known for their expertise in secure communication systems, including encryption technologies, satellite communications, and integrated avionics suites for various platforms. Their history includes numerous contracts with the Department of Defense and other government agencies for complex communication and information systems, suggesting they possess the necessary technical capabilities and experience to undertake a cryptographic modernization project.

What are the expected performance metrics or deliverables for this CMDIP contract?

The provided data identifies the contract as a 'CRYPTO MODERNIZATION DESIGN AND INTEGRATION PLAN (CMDIP)' awarded to Rockwell Collins, Inc. While the specific performance metrics and detailed deliverables are not listed, the title suggests the primary output will be a comprehensive plan. This plan would likely outline the strategy, architecture, technical requirements, implementation roadmap, and integration procedures for modernizing the Department of the Navy's cryptographic capabilities. Expected deliverables could include design documents, technical specifications, risk assessments, testing protocols, and a phased implementation schedule to ensure the secure and effective transition to new cryptographic systems.

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: 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: $16,799,120

Exercised Options: $6,873,916

Current Obligation: $6,873,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0042121G0005

IDV Type: BOA

Timeline