DoD spent $16.3M on aircraft parts, with Rockwell Collins receiving a sole-source contract

Contract Overview

Contract Amount: $16,263,264 ($16.3M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-28

End Date: 2012-09-27

Contract Duration: 730 days

Daily Burn Rate: $22.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OTHER AIRCRAFT PART AND AUXILIARY EQUIPMENT MANUFACTURING

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: OTHER AIRCRAFT PART AND AUXILIARY EQUIPMENT MANUFACTURING Key points: 1. Contract awarded to a single vendor suggests limited market engagement. 2. Fixed-price contract type may shift some risk to the government. 3. Contract duration of two years indicates a need for ongoing support. 4. Awarded by the Air Force, highlighting defense sector focus. 5. The contract falls under the 'Other Aircraft Parts' manufacturing NAICS code. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: questionable

Benchmarking the value of this $16.3 million contract is challenging without specific performance metrics or comparable contract data. The sole-source nature raises concerns about whether the government secured the best possible price. Without competition, it's difficult to assess if the pricing is aligned with market rates for similar aircraft parts and auxiliary equipment. The firm fixed-price structure means the contractor is obligated to deliver at the agreed-upon price, but the initial negotiation's fairness is obscured by the lack of competitive bidding.

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 Simulation & Training Solutions LLC, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they typically result in less price discovery and potentially higher costs for the government compared to fully competed contracts. The absence of multiple bidders limits the government's ability to leverage market forces to achieve optimal pricing and terms.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from competitive bidding. This can lead to higher overall spending for the same goods or services.

Public Impact

The primary beneficiaries are likely the U.S. Air Force units requiring specific aircraft parts and auxiliary equipment. The contract delivers essential components for maintaining aircraft operational readiness. Geographic impact is concentrated within the Air Force's operational footprint. Workforce implications are primarily for Rockwell Collins, supporting their manufacturing and supply chain operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Firm fixed-price contract may not fully account for potential cost efficiencies achievable through competition.
Lack of transparency in the sole-source justification process.

Positive Signals

Contract awarded to a known entity (Rockwell Collins) potentially implies a level of trust or established relationship.
Firm fixed-price contract provides cost certainty for the government once awarded.
Contract duration suggests a recognized need for sustained supply.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for such components is characterized by high technical requirements, stringent quality control, and often long lead times. Spending in this area is critical for maintaining the operational readiness of military aviation assets. Comparable spending benchmarks would typically involve analyzing other sole-source or competitively awarded contracts for similar aircraft components across different branches of the military or even allied nations.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large corporation like Rockwell Collins suggests that the primary focus was on the prime contractor's capabilities. This means that opportunities for small businesses to participate in this specific procurement as prime contractors or through mandated subcontracting were likely minimal, potentially limiting their access to this segment of defense spending.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified goods. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the negotiation process difficult. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Parts Manufacturing
Defense Procurement
Aerospace Components
Military Aircraft Support Equipment

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in contract negotiation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. OTHER AIRCRAFT PART AND AUXILIARY EQUIPMENT MANUFACTURING

Who is the contractor on this award?

The obligated recipient is ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $16.3 million.

What is the period of performance?

Start: 2010-09-28. End: 2012-09-27.

What is Rockwell Collins' track record with the Department of Defense, particularly for similar sole-source contracts?

Rockwell Collins (now part of Collins Aerospace, a Raytheon Technologies company) has a long history of supplying the Department of Defense with various avionics, simulation, and communication systems. Their track record generally includes delivering complex technological solutions. However, specific details on their performance for sole-source contracts related to 'Other Aircraft Parts and Auxiliary Equipment' would require a deeper dive into contract databases and performance reviews. Sole-source awards, by their nature, often involve established relationships where performance history is a key factor in the justification for not competing. Analyzing past sole-source awards to Rockwell Collins could reveal patterns in pricing and delivery, but direct comparisons are difficult without specific contract line item details and performance metrics.

How does the $16.3 million contract value compare to similar aircraft parts procurements by the Air Force?

Comparing the $16.3 million value requires context on the specific types of aircraft parts and auxiliary equipment procured. If this contract was for a large quantity of standard parts, it might be considered moderate. However, if it involved highly specialized, custom-manufactured components or complex systems, the value could be justified. Without knowing the exact nature of the 'parts and auxiliary equipment,' a direct comparison is difficult. Generally, sole-source contracts tend to be higher than competitively bid ones for similar items. Benchmarking would ideally involve looking at other contracts under NAICS code 336413 awarded by the Air Force, differentiating between sole-source and competitive awards, and considering contract duration and quantity.

What are the primary risks associated with this sole-source contract for the government?

The primary risks associated with this sole-source contract are related to cost and potential lack of innovation. Without competition, the government risks paying a premium price because there was no market pressure to drive down costs. There's also a risk that the government might not be aware of or able to access potentially superior or more cost-effective solutions available from other vendors. Furthermore, sole-source awards can sometimes lead to complacency on the part of the contractor, potentially impacting delivery schedules or quality if not rigorously managed. The government must rely heavily on its own technical expertise and negotiation skills to mitigate these risks.

What does the 'firm fixed price' contract type imply about the distribution of risk?

A 'firm fixed price' (FFP) contract type implies that the contractor, Rockwell Collins, bears the primary responsibility for all costs incurred and for achieving a profit. The price is set and generally not subject to adjustment based on the contractor's cost experience. This shifts the risk of cost overruns from the government to the contractor. If Rockwell Collins' costs are higher than anticipated, their profit margin will decrease. Conversely, if they manage their costs effectively, their profit will increase. This contract type provides the government with cost certainty, as the total amount payable is fixed, assuming the contractor meets all contract requirements.

What is the historical spending pattern for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of the Air Force?

Historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) by the Department of the Air Force are substantial, reflecting the continuous need to maintain and upgrade its vast fleet of aircraft. This category encompasses a wide range of components, from simple hardware to complex electronic systems. Annual spending can fluctuate based on modernization programs, depot maintenance schedules, and the operational tempo of aircraft. Analyzing historical data would likely show consistent, significant investment in this sector, with a mix of competitive and sole-source awards, the latter often justified for proprietary components or specialized support.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: Rockwell Collins, Inc. (UEI: 962960589)

Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 02

Business Categories: Category Business, Federally Funded Research and Development Corp, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $54,249,066

Exercised Options: $16,263,264

Current Obligation: $16,263,264

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F3365701D0012

IDV Type: IDC

Timeline