DoD awards $11M+ to Rockwell Collins for aircraft parts, raising questions on competition and value
Contract Overview
Contract Amount: $11,028,037 ($11.0M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-25
End Date: 2028-04-19
Contract Duration: 937 days
Daily Burn Rate: $11.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ROCKWELL COLLINS
Place of Performance
Location: ROCKY MOUNT, NASH County, NORTH CAROLINA, 27804
Plain-Language Summary
Department of Defense obligated $11.0 million to ROCKWELL COLLINS, INC. for work described as: ROCKWELL COLLINS Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Limited competition raises concerns about achieving best value for taxpayer funds. 3. The contract duration of over 2.5 years suggests a need for sustained support. 4. The specific aircraft parts are critical for maintaining operational readiness within the DoD. 5. The award to a single, established supplier may indicate a lack of market alternatives or a strategic sourcing decision. 6. Performance risk appears moderate given the contractor's established role in defense supply chains.
Value Assessment
Rating: fair
Benchmarking the value of this sole-source award is challenging without competitive data. The firm fixed-price structure provides some cost certainty, but the absence of competition means there's no direct comparison to market rates or other potential suppliers. The total award value of over $11 million over nearly three years warrants scrutiny to ensure it aligns with industry standards for similar aircraft parts and services, though specific benchmarks are unavailable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source can provide the required supplies or services. The lack of competition means that multiple bidders were not considered, which can limit price negotiation and potentially lead to higher costs for the government compared to a fully competed contract.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from competitive bidding processes, potentially resulting in a higher overall expenditure for these aircraft parts.
Public Impact
The primary beneficiaries are the Department of Defense, ensuring the continued operation and maintenance of its aircraft fleet. Services delivered include the provision of critical aircraft parts, essential for flight safety and mission readiness. The geographic impact is primarily within the Department of Defense's operational theaters, supporting global missions. Workforce implications are indirect, supporting the maintenance and operational personnel within the DoD who rely on these parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing.
- Sole-source awards can reduce market pressure for innovation and efficiency.
- Dependence on a single supplier can create supply chain vulnerabilities.
Positive Signals
- Award to an established contractor like Rockwell Collins suggests reliability and familiarity with DoD requirements.
- Firm fixed-price contract provides cost predictability.
- Longer contract duration indicates a recognized need for sustained support.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized aircraft components is often characterized by high barriers to entry due to stringent quality and certification requirements. Spending in this area is critical for maintaining national security assets. Comparable spending benchmarks are difficult to establish without knowing the specific part numbers and their market demand, but overall DoD spending on aircraft maintenance and parts is in the billions annually.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Rockwell Collins, Inc. is a large business. There is no explicit information regarding subcontracting plans for small businesses within this award notice. This means opportunities for small businesses to participate in fulfilling this contract are likely limited unless proactively sought by the prime contractor.
Oversight & Accountability
The Department of Defense's Defense Contract Management Agency (DCMA) typically oversees contract performance. Oversight mechanisms would include monitoring delivery schedules, quality control, and compliance with contract terms. Transparency is facilitated through contract databases like FPDS, though detailed performance metrics are often not publicly disclosed. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- DoD Aircraft Maintenance Contracts
- Defense Logistics Agency Procurement
- Aerospace Component Manufacturing
- Sole-Source Defense Procurements
Risk Flags
- Sole-source award lacks competitive justification
- Potential for above-market pricing
- Limited transparency into cost drivers
- Dependency on a single supplier
Tags
defense, department-of-defense, rockwell-collins, sole-source, aircraft-parts, defense-logistics-agency, firm-fixed-price, north-carolina, large-business, non-competitive
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.0 million to ROCKWELL COLLINS, INC.. ROCKWELL COLLINS
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 $11.0 million.
What is the period of performance?
Start: 2025-09-25. End: 2028-04-19.
What is Rockwell Collins' track record with the Department of Defense, particularly on similar sole-source contracts?
Rockwell Collins, now part of Collins Aerospace, has a long-standing relationship with the Department of Defense, supplying a wide range of avionics, communication, and aircraft systems. Their track record includes numerous contracts for aircraft parts, maintenance, and upgrades. While specific data on their sole-source contracts is not detailed here, their extensive history suggests a familiarity with DoD requirements and processes. However, the nature of sole-source awards means that performance is assessed against the contract's stated requirements rather than through direct comparison with competitors. Historical data would need to be analyzed to identify patterns in delivery timeliness, quality, and cost overruns on previous sole-source engagements to fully assess their performance in such scenarios.
How does the per-unit cost of these aircraft parts compare to market rates or similar contracts?
Direct comparison of per-unit costs is not feasible with the provided data, especially given the sole-source nature of this award. Market rates for specialized aircraft parts are highly variable and depend on factors like part rarity, certification requirements, and volume. Without access to competitive bids or a broader market analysis for these specific components, it's impossible to benchmark the pricing effectively. The firm fixed-price contract offers some cost certainty, but the absence of competition prevents a definitive assessment of whether taxpayers are receiving the best possible value on a per-unit basis. Further analysis would require identifying the specific parts and researching their availability and pricing from other potential suppliers or through industry cost-estimating tools.
What are the primary risks associated with awarding this contract on a sole-source basis?
The primary risks of a sole-source award include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and increased vulnerability in the supply chain if the sole supplier faces production issues or goes out of business. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, the government's negotiating leverage is diminished. While the DoD may have determined that Rockwell Collins is the only viable source, this determination itself carries risk if not thoroughly justified and validated. The long-term reliance on a single provider can also hinder the adoption of newer technologies or alternative solutions.
How effective is the Defense Logistics Agency (DLA) in ensuring value for money on sole-source procurements like this one?
The DLA's effectiveness in ensuring value for money on sole-source procurements is variable and depends heavily on the specific circumstances and the justification for the sole-source award. DLA utilizes various tools, including should-cost analysis and market research, to validate pricing and ensure reasonableness, even without competition. However, the inherent limitation of sole-source awards is the absence of direct price competition, which is the most potent driver of value. DLA's role is to rigorously scrutinize the contractor's proposed costs, negotiate the best possible terms, and ensure the necessity of the sole-source approach. Oversight is crucial, and the effectiveness can be gauged by the frequency of post-award audits and the government's ability to challenge pricing if discrepancies arise.
What is the historical spending pattern for this specific type of aircraft part or for Rockwell Collins with the DLA?
Analyzing historical spending patterns for this specific contract requires identifying the National Stock Number (NSN) or specific part details, which are not provided in the summary data. However, general trends for Rockwell Collins (now Collins Aerospace) with the DLA indicate a significant and ongoing relationship, involving substantial annual spending across various categories of aircraft components, avionics, and support services. DLA is a major procurer of spare parts for military aircraft. Historical data would likely show consistent awards to Rockwell Collins due to their established position as a prime contractor and original equipment manufacturer for many DoD platforms. Trends might reveal fluctuations based on fleet readiness needs, modernization programs, and budget allocations, but a detailed historical analysis would necessitate access to more granular procurement data.
Are there any indications of potential supply chain risks or dependencies related to this contract?
The primary supply chain risk indicated by this award is the inherent dependency on a single supplier, Rockwell Collins. If Rockwell Collins experiences manufacturing disruptions, financial instability, or faces geopolitical challenges affecting its production or delivery capabilities, the DoD's supply of these critical aircraft parts could be jeopardized. This risk is amplified because the contract is sole-source, meaning alternative suppliers are not readily available or qualified. Mitigating this risk often involves close collaboration between the DLA and Rockwell Collins, including monitoring their production capacity, financial health, and contingency planning. The long contract duration (nearly three years) also increases the exposure to potential long-term supply chain disruptions.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY 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: $11,028,037
Exercised Options: $11,028,037
Current Obligation: $11,028,037
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE4AX20D9407
IDV Type: IDC
Timeline
Start Date: 2025-09-25
Current End Date: 2028-04-19
Potential End Date: 2028-04-19 00:00:00
Last Modified: 2025-09-25
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