DoD Awards $31.5M for Avionics Spares to Rockwell Collins, Raising Competition Concerns
Contract Overview
Contract Amount: $31,453,736 ($31.5M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-03-07
End Date: 2025-06-30
Contract Duration: 480 days
Daily Burn Rate: $65.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPARES DELIVERY ORDER FOR AVIONICS EQUIPMENT
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $31.5 million to ROCKWELL COLLINS, INC. for work described as: SPARES DELIVERY ORDER FOR AVIONICS EQUIPMENT Key points: 1. Significant award for critical avionics spares. 2. Sole-source award to Rockwell Collins limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. Impact on defense readiness and taxpayer value needs scrutiny.
Value Assessment
Rating: questionable
The award of $31.5 million for avionics spares is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or industry benchmarks.
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 solicited. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these essential avionics spares.
Public Impact
Ensures availability of critical avionics parts for military aircraft. Potential for increased defense spending due to non-competitive award. Highlights reliance on specific manufacturers for specialized equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Potential for cost overruns
Positive Signals
- Ensures supply of critical avionics equipment
- Long-term contract provides stability
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is often characterized by high R&D costs and specialized production, but competitive bidding is crucial for cost control.
Small Business Impact
The data indicates no specific set-aside for small businesses in this sole-source award. This means opportunities for small businesses in the supply chain or as potential competitors were likely missed.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Defense Logistics Agency to ensure the price is justified and that future procurements explore competitive options.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price justification.
- Dependency on a single supplier.
- Missed opportunities for small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.5 million to ROCKWELL COLLINS, INC.. SPARES DELIVERY ORDER FOR AVIONICS EQUIPMENT
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $31.5 million.
What is the period of performance?
Start: 2024-03-07. End: 2025-06-30.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The Defense Logistics Agency should provide documentation supporting this determination. Oversight should focus on validating the necessity of sole-sourcing and scrutinizing cost elements to ensure the price paid is reasonable and reflects fair market value, even without direct competition.
What are the potential risks to national security or operational readiness if Rockwell Collins is the sole provider of these avionics spares?
The primary risk is a lack of supply chain resilience and potential price gouging. If Rockwell Collins faces production issues or significantly raises prices, the DoD's ability to maintain its aircraft fleet could be compromised. This dependence also limits the government's leverage in negotiations and could impact long-term sustainment costs.
How does this sole-source award impact the overall effectiveness of the DoD's procurement strategy for avionics equipment?
Sole-source awards, while sometimes necessary, generally reduce the effectiveness of procurement strategies by eliminating competition, which is a key driver of cost savings and innovation. This award suggests a potential gap in the market or a failure to foster alternative suppliers, which could lead to less efficient spending and hinder the adoption of newer technologies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $31,453,736
Exercised Options: $31,453,736
Current Obligation: $31,453,736
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPRRA120D0001
IDV Type: IDC
Timeline
Start Date: 2024-03-07
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-04-26
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