DoD Awards $23.2M for Aircraft Parts to Rockwell Collins, Inc. Under Sole-Source Contract
Contract Overview
Contract Amount: $23,208,300 ($23.2M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-08-15
End Date: 2026-04-30
Contract Duration: 623 days
Daily Burn Rate: $37.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DISPLAY, UNIT MULTIF
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $23.2 million to ROCKWELL COLLINS, INC. for work described as: DISPLAY, UNIT MULTIF Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing. 3. Focus on aircraft parts suggests a critical defense supply chain component. 4. Long contract duration indicates sustained need for these parts.
Value Assessment
Rating: questionable
The contract value of $23.2 million for 'Other Aircraft Parts' is difficult to assess without specific item details. However, the absence of competition suggests potential for higher pricing than if multiple vendors were involved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in less favorable pricing for the government compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these aircraft parts, potentially leading to inefficient use of funds.
Public Impact
Ensures continued availability of critical aircraft parts for defense operations. Supports a major defense contractor, potentially impacting jobs and the defense industrial base. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Contract duration is substantial (623 days).
- No indication of small business participation.
Positive Signals
- Ensures supply of necessary aircraft parts.
- Contract awarded to a known entity (Rockwell Collins).
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military readiness, but competitive bidding is typically preferred to ensure cost-effectiveness.
Small Business Impact
There is no indication of small business participation in this contract. The award to Rockwell Collins, a large corporation, suggests that opportunities for small businesses in this specific procurement were either not sought or not available.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the necessity of the sole-source justification and verifying that the pricing is reasonable despite the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- No small business participation identified
- Long contract duration
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 $23.2 million to ROCKWELL COLLINS, INC.. DISPLAY, UNIT MULTIF
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 $23.2 million.
What is the period of performance?
Start: 2024-08-15. End: 2026-04-30.
What is the justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. The contracting officer must still establish a fair and reasonable price, often through historical data, cost analysis, or independent government cost estimates, even without competitive bids.
What are the potential risks associated with relying on a single supplier for these critical aircraft parts over an extended period?
Risks include supply chain disruptions if the sole supplier faces production issues, potential price increases over time due to lack of competitive pressure, and reduced leverage for the government in negotiations. Dependence on one vendor can also create vulnerabilities if that vendor's business or strategic priorities change.
How does this contract contribute to the overall effectiveness and readiness of the Department of Defense's aviation assets?
This contract is essential for maintaining the operational readiness of aircraft by ensuring the availability of necessary parts. Consistent supply of high-quality components directly impacts aircraft serviceability, mission capability, and the overall effectiveness of air operations, supporting national security objectives.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: FIRE CONTROL 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: $23,208,300
Exercised Options: $23,208,300
Current Obligation: $23,208,300
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $116,699
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: 2024-08-15
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 12:04:00
Last Modified: 2025-08-06
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