DoD awards $5.3M contract to Rockwell Collins for critical encryption algorithm upgrade on CRIIS
Contract Overview
Contract Amount: $5,354,321 ($5.4M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-04-15
End Date: 2024-08-31
Contract Duration: 1,234 days
Daily Burn Rate: $4.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS EFFORT IS TO UPGRADE THE ENCRYPTION ALGORITHM ON THE KOV-74 END CRYPTOGRAPHIC UNIT (ECU) IN THE COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS) PER NATIONAL SECURITY AGENCY (NSA) GUIDELINES.
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $5.4 million to ROCKWELL COLLINS, INC. for work described as: THIS EFFORT IS TO UPGRADE THE ENCRYPTION ALGORITHM ON THE KOV-74 END CRYPTOGRAPHIC UNIT (ECU) IN THE COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS) PER NATIONAL SECURITY AGENCY (NSA) GUIDELINES. Key points: 1. Contract addresses essential cybersecurity needs for the Common Range Integrated Instrumentation System (CRIIS). 2. Sole-source award raises questions about potential lack of competitive pricing. 3. Long performance period (over 3 years) may indicate complexity or phased rollout. 4. Focus on NSA guidelines suggests adherence to high national security standards. 5. Upgrade aims to enhance the security posture of sensitive cryptographic units. 6. Limited public information on specific performance metrics or value benchmarks.
Value Assessment
Rating: fair
The contract value of $5.3 million for upgrading encryption algorithms is difficult to benchmark without comparable sole-source procurements. Given the specialized nature of cryptographic systems and NSA compliance, pricing may reflect unique technical requirements and limited vendor options. Further analysis would require access to cost breakdowns and comparisons with similar security-focused upgrades in defense systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that Rockwell Collins, Inc. was the only vendor deemed capable of performing the required encryption algorithm upgrade. The lack of competition means that the government did not benefit from a competitive bidding process, which could potentially lead to higher prices than if multiple vendors had vied for the contract.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing offers, it's harder to ensure the most cost-effective solution was secured.
Public Impact
Enhances the cybersecurity of critical national defense infrastructure. Ensures the integrity and confidentiality of data processed by the CRIIS. Supports the operational readiness of military testing and training ranges. Maintains compliance with stringent National Security Agency (NSA) cryptographic standards. Potentially impacts personnel involved in the operation and maintenance of the CRIIS.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and transparency.
- Long contract duration could lead to cost overruns if not managed effectively.
- Reliance on a single vendor for critical security upgrades poses a potential supply chain risk.
Positive Signals
- Addresses a critical cybersecurity requirement aligned with NSA guidelines.
- Awardee (Rockwell Collins) is a known defense contractor with relevant expertise.
- Contract aims to modernize and secure essential defense instrumentation systems.
Sector Analysis
This contract falls within the Defense Industrial Base sector, specifically focusing on aerospace and defense electronics manufacturing. The market for specialized cryptographic hardware and software is often characterized by high barriers to entry due to intellectual property, security clearances, and stringent regulatory compliance (e.g., NSA standards). Spending in this niche is driven by national security imperatives and the continuous need to counter evolving cyber threats.
Small Business Impact
This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to a large prime contractor, it is unlikely to directly benefit small businesses through prime contract opportunities. Subcontracting opportunities may exist but are not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The contract type (Cost Plus Fixed Fee) suggests that costs will be reimbursed, plus a fixed fee for profit, requiring diligent oversight to manage expenditures. Transparency is limited due to the sole-source nature and the classified aspects often associated with cryptographic systems.
Related Government Programs
- Common Range Integrated Instrumentation System (CRIIS)
- National Security Agency (NSA) Cryptographic Standards
- End Cryptographic Unit (ECU) Modernization
- Defense Cybersecurity Initiatives
Risk Flags
- Sole-source award may indicate limited market availability or a specific capability requirement.
- Cost Plus Fixed Fee contract type requires diligent government oversight to manage costs.
- Long performance period increases the potential for scope creep or unforeseen challenges.
Tags
defense, department-of-defense, rockwell-collins, cybersecurity, encryption, sole-source, cost-plus-fixed-fee, instrumentation-manufacturing, national-security-agency, iowa, delivery-order, critical-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.4 million to ROCKWELL COLLINS, INC.. THIS EFFORT IS TO UPGRADE THE ENCRYPTION ALGORITHM ON THE KOV-74 END CRYPTOGRAPHIC UNIT (ECU) IN THE COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS) PER NATIONAL SECURITY AGENCY (NSA) GUIDELINES.
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $5.4 million.
What is the period of performance?
Start: 2021-04-15. End: 2024-08-31.
What is the specific encryption algorithm being upgraded, and why is this upgrade necessary now?
The provided data does not specify the exact encryption algorithm being upgraded. However, the necessity for the upgrade is driven by National Security Agency (NSA) guidelines, which periodically mandate algorithm updates to maintain cryptographic robustness against emerging threats and computational advancements. These guidelines ensure that classified information remains secure by transitioning to stronger, more resilient encryption methods. The upgrade is likely a proactive measure to stay ahead of potential decryption capabilities and ensure the long-term security of sensitive communications and data handled by the CRIIS.
How does the Cost Plus Fixed Fee (CPFF) contract type impact cost control for this sole-source award?
The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses Rockwell Collins for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing the contractor's profit. For a sole-source award, this structure places a significant burden on the government's oversight to meticulously audit and approve all claimed costs to prevent overspending. While the fixed fee provides some predictability in profit, the variable cost component requires robust monitoring to ensure efficiency and prevent cost escalation. Without competitive pressure, the CPFF structure necessitates strong government cost analysis and negotiation to achieve value for money.
What are the potential risks associated with upgrading cryptographic algorithms on a system like CRIIS?
Upgrading cryptographic algorithms on a critical system like the Common Range Integrated Instrumentation System (CRIIS) carries several risks. Firstly, there's the technical risk of implementation errors, where the new algorithm might not integrate seamlessly with existing hardware or software, potentially causing system instability or failure. Secondly, there's the risk of performance degradation; newer, stronger algorithms can sometimes be more computationally intensive, leading to slower processing speeds or increased latency, which could impact real-time operations. Lastly, there's the risk of unforeseen security vulnerabilities emerging in the new algorithm or its implementation, despite rigorous NSA guidelines, requiring further patches or modifications.
What is the significance of the 'IA' (Iowa) designation for the place of performance?
The 'IA' designation indicates that the primary place of performance for this contract is within the state of Iowa. This suggests that Rockwell Collins, Inc. has facilities or operational centers in Iowa where the work related to upgrading the encryption algorithm on the KOV-74 ECU will be conducted. This information can be relevant for economic impact assessments, workforce analysis, and understanding the geographic distribution of defense spending. It implies that jobs and economic activity associated with this contract will likely be concentrated in Iowa.
How does this contract align with broader trends in defense cybersecurity and modernization?
This contract aligns directly with the broader trend in defense cybersecurity, which emphasizes the continuous need to protect sensitive information and critical infrastructure from evolving cyber threats. The upgrade of encryption algorithms, particularly under NSA guidelines, reflects a proactive approach to maintaining the confidentiality and integrity of defense communications and data. Modernization efforts within the DoD frequently involve updating legacy systems with state-of-the-art security protocols to counter sophisticated adversaries. This specific contract addresses a fundamental aspect of cybersecurity – strong encryption – essential for the operational effectiveness and security of advanced defense systems like CRIIS.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $5,354,321
Exercised Options: $5,354,321
Current Obligation: $5,354,321
Actual Outlays: $1,164,389
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA867816D0048
IDV Type: IDC
Timeline
Start Date: 2021-04-15
Current End Date: 2024-08-31
Potential End Date: 2024-08-31 00:00:00
Last Modified: 2026-01-12
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