DoD awards $11.7M for KC-135 aircraft parts, citing sole-source justification
Contract Overview
Contract Amount: $11,724,022 ($11.7M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-12-19
End Date: 2027-09-30
Contract Duration: 650 days
Daily Burn Rate: $18.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NEW MANUFACTURE OF COMMUNICATION, NAVIGATION, SURVEILLANCE/AIR TRAFFIC MANAGEMENT (CNS/ATM) SPARES FOR THE KC-135 AIRCRAFT.
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $11.7 million to ROCKWELL COLLINS, INC. for work described as: NEW MANUFACTURE OF COMMUNICATION, NAVIGATION, SURVEILLANCE/AIR TRAFFIC MANAGEMENT (CNS/ATM) SPARES FOR THE KC-135 AIRCRAFT. Key points: 1. Contract focuses on essential communication, navigation, and air traffic management spares. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long contract duration (over 2 years) suggests a need for sustained supply chain support. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Awarded by Defense Logistics Agency, indicating a focus on sustainment and readiness. 6. No small business set-aside, suggesting the prime contractor is a large business.
Value Assessment
Rating: questionable
The contract value of $11.7 million for aircraft spares is difficult to benchmark without specific part details and quantities. However, the sole-source nature of the award, coupled with the absence of competitive bidding, raises concerns about whether the government secured the best possible price. Without comparative pricing data from other potential suppliers or historical contract data for these specific spares, it's challenging to definitively assess value for money. The firm fixed-price structure does offer some cost certainty, but the lack of competition could lead to inflated unit costs.
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. The justification for this approach is not detailed in the provided data but typically involves reasons such as unique capabilities, proprietary technology, or urgent and compelling needs where competition is not feasible. The lack of competition means there was no direct price comparison or negotiation against alternative suppliers, potentially limiting the government's ability to achieve the lowest possible price.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically driven by competitive bidding processes.
Public Impact
The primary beneficiaries are the U.S. Air Force and its KC-135 Stratotanker fleet, ensuring operational readiness. Services delivered include the manufacture and supply of critical communication, navigation, and air traffic management spare parts. The geographic impact is primarily within the United States, supporting domestic aerospace manufacturing and logistics. Workforce implications include continued employment for skilled manufacturing and logistics personnel at Rockwell Collins and its supply chain partners.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially increases costs for taxpayers.
- Lack of competition may indicate a lack of market availability or a reliance on a single supplier for critical components.
- Contract duration extends over two years, requiring careful monitoring of performance and potential cost overruns.
Positive Signals
- Firm fixed-price contract shifts cost risk to the contractor, providing budget certainty.
- Award to an established contractor (Rockwell Collins) suggests a degree of reliability and existing expertise.
- Focus on critical spares for a long-standing aircraft platform (KC-135) supports essential military readiness.
Sector Analysis
This contract falls within the aerospace manufacturing and defense logistics sectors. The market for specialized aircraft parts is often characterized by high barriers to entry due to technical expertise, certifications, and established relationships with defense agencies. Rockwell Collins is a significant player in avionics and communication systems for both military and commercial aircraft. Spending on aircraft parts and maintenance is a substantial component of the Department of Defense's overall budget, aimed at ensuring the operational readiness of its vast fleet.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Rockwell Collins, Inc. is a large aerospace manufacturer. This suggests that the prime contract will be performed by a large business, and there is no explicit requirement for subcontracting to small businesses within the provided data. The absence of a small business set-aside means that opportunities for small businesses to participate in this specific contract as prime contractors are limited.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) and potentially the Department of Defense's various Inspector General offices. DLA is responsible for ensuring timely delivery and quality of the parts. The firm fixed-price contract type provides some level of cost control, but performance monitoring will be crucial. Transparency is generally maintained through contract award databases, though detailed performance metrics are often not publicly disclosed.
Related Government Programs
- KC-135 Stratotanker Sustainment Programs
- Defense Logistics Agency Aviation Support
- Aerospace Parts Manufacturing Contracts
- Communication, Navigation, and Surveillance Systems Procurement
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Reliance on single supplier
Tags
defense, department-of-defense, defense-logistics-agency, rockwell-collins, kc-135, aircraft-parts, communication-navigation-surveillance, sole-source, firm-fixed-price, iowa, large-business, manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.7 million to ROCKWELL COLLINS, INC.. NEW MANUFACTURE OF COMMUNICATION, NAVIGATION, SURVEILLANCE/AIR TRAFFIC MANAGEMENT (CNS/ATM) SPARES FOR THE KC-135 AIRCRAFT.
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 $11.7 million.
What is the period of performance?
Start: 2025-12-19. End: 2027-09-30.
What is Rockwell Collins' track record with the Defense Logistics Agency and for KC-135 spares specifically?
Rockwell Collins, now part of Collins Aerospace, has a long-standing relationship with the Department of Defense and the Defense Logistics Agency, supplying various avionics, communication, and navigation systems across multiple platforms. Their history includes providing components and support for the KC-135 fleet. While specific details on past performance for these exact spares are not publicly available in this data, the company's established presence in the defense sector suggests a degree of familiarity and capability. However, a deeper dive into past contract performance, delivery timeliness, and quality metrics for similar items would be necessary for a comprehensive assessment of their track record on this specific award.
How does the $11.7 million value compare to similar contracts for KC-135 spares?
Benchmarking the $11.7 million value for these specific spares is challenging without detailed information on the exact parts, quantities, and their unit costs. Aircraft spares can vary significantly in price based on complexity, technology, and rarity. Given this is a sole-source award, direct comparison to competitively bid contracts for similar items is difficult. Historically, sole-source procurements can sometimes be at a premium compared to competitive ones. To provide a robust comparison, one would need access to DLA's historical procurement data for KC-135 spares, including unit prices and total values of previous awards, ideally from competitive sources, to establish a fair market price baseline.
What are the primary risks associated with a sole-source award for critical aircraft spares?
The primary risks associated with a sole-source award for critical aircraft spares include potential overpricing due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a potential lack of supply chain resilience if the sole source faces production issues. Taxpayers may bear a higher cost than if the contract were competed. Furthermore, the government becomes dependent on a single supplier, which can create leverage issues during future negotiations or in situations requiring urgent delivery. Without competitive pressure, there's also a risk that the quality or lead times might not be as optimized as they could be under a competitive environment.
How effective is the firm fixed-price contract type in managing costs for these types of spares?
The firm fixed-price (FFP) contract type is generally considered effective in managing costs for well-defined products like manufactured spares, as it shifts the cost risk from the government to the contractor. The contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides budget certainty for the government. However, the effectiveness of FFP is highly dependent on the accuracy of the initial cost estimates and the contractor's ability to manage their own expenses. In a sole-source scenario, the initial price negotiation is critical, as the contractor may have less incentive to minimize costs if they believe the government has limited alternatives.
What is the historical spending trend for KC-135 aircraft parts by the Defense Logistics Agency?
Historical spending data for KC-135 aircraft parts by the Defense Logistics Agency (DLA) typically shows consistent and significant investment to maintain the operational readiness of this aging but vital air refueling and transport platform. DLA Aviation, which manages a vast inventory of aircraft parts, consistently procures spares, components, and repair services for numerous aircraft types, including the KC-135. Annual spending can fluctuate based on specific sustainment needs, depot maintenance schedules, and the availability of existing inventory. While precise aggregate figures for KC-135 spares over multiple years require database queries, it's understood that sustainment costs for legacy platforms like the KC-135 represent a substantial and ongoing portion of the DLA's budget.
What are the implications of the contract duration (ending Sept 2027) for supply chain management?
The contract duration, extending through September 2027 (approximately 650 days from the start date), implies a need for sustained production and delivery of these specific communication, navigation, surveillance, and air traffic management spares. For supply chain management, this extended period necessitates robust planning by Rockwell Collins to ensure material availability, production capacity, and quality control throughout the contract term. It also requires the Defense Logistics Agency to manage the contract effectively, monitor performance, and potentially plan for follow-on procurements or alternative sourcing strategies as the end date approaches. A longer duration can sometimes allow for economies of scale in manufacturing but also ties up government funds for an extended period.
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: 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: $11,724,022
Exercised Options: $11,724,022
Current Obligation: $11,724,022
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE4AX20D9407
IDV Type: IDC
Timeline
Start Date: 2025-12-19
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-12-19
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