DoD awards $103.7M sole-source contract for KC-135 aircraft data acquisition, raising value concerns

Contract Overview

Contract Amount: $10,374,837 ($10.4M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-22

End Date: 2028-05-31

Contract Duration: 891 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DATA ACQUISITION UN FOR KC-135 AIRCRAFT.

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to ROCKWELL COLLINS, INC. for work described as: DATA ACQUISITION UN FOR KC-135 AIRCRAFT. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long performance period of nearly 5 years may not reflect current market conditions. 3. Firm Fixed Price contract type shifts risk to the government. 4. No small business set-aside, potentially excluding smaller specialized firms. 5. Contractor has a history of sole-source awards in similar categories. 6. Performance is for aircraft parts, a critical but potentially commoditized sector.

Value Assessment

Rating: questionable

The $103.7 million contract value for data acquisition for KC-135 aircraft appears high given the sole-source nature of the award. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The firm fixed-price structure, while providing cost certainty, means the government bears the risk of cost overruns if the contractor's initial estimates are inaccurate. The long duration of the contract (nearly 5 years) also raises questions about whether the pricing reflects the most current technological advancements or market efficiencies.

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 approach bypasses the competitive bidding process, which typically drives down prices and fosters innovation. The lack of competition means there is no direct comparison to assess if the government received the best possible value or if alternative solutions were overlooked. The justification for a sole-source award would need to be exceptionally strong to ensure taxpayer funds are used efficiently.

Taxpayer Impact: Sole-source awards limit the government's ability to negotiate favorable pricing, potentially leading to higher costs for taxpayers. Without competition, there's less incentive for the contractor to offer their most competitive rates.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force's KC-135 fleet, ensuring continued operational readiness. The contract delivers essential data acquisition capabilities crucial for aircraft maintenance, performance monitoring, and potential upgrades. The geographic impact is primarily within the United States, supporting military operations and logistics. Workforce implications may include specialized technical roles at Rockwell Collins, Inc., focused on aerospace data systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Firm Fixed Price contract places cost overrun risk on the government.
Long contract duration may not capture market efficiencies.
Lack of small business participation could limit access to specialized solutions.

Positive Signals

Contract ensures critical data acquisition for a vital military aircraft.
Firm Fixed Price contract provides cost certainty for budgeting.
Awardee is an established entity with experience in aerospace systems.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for specialized data acquisition systems for military aircraft is often characterized by high barriers to entry due to stringent performance requirements and security protocols. Comparable spending benchmarks are difficult to establish without competitive data, but investments in avionics and data systems for aging fleets like the KC-135 are substantial and ongoing.

Small Business Impact

The contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This means that opportunities for small businesses to participate in this significant defense contract are limited unless they are direct suppliers or subcontractors to Rockwell Collins, Inc. The absence of a set-aside may reflect the specialized nature of the required data acquisition technology or a strategic decision by the contracting agency.

Oversight & Accountability

Oversight for this contract will likely fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), responsible for monitoring performance, costs, and compliance. Transparency is facilitated through contract databases like FPDS, though detailed justifications for sole-source awards are not always publicly accessible. Inspector General investigations could be initiated if performance issues or allegations of impropriety arise.

Related Government Programs

KC-135 Stratotanker Sustainment Programs
Aerospace Data Systems Procurement
Defense Logistics Agency Aircraft Parts Contracts
Rockwell Collins Defense Contracts
Sole-Source Defense Acquisitions

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to ROCKWELL COLLINS, INC.. DATA ACQUISITION UN FOR 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 $10.4 million.

What is the period of performance?

Start: 2025-12-22. End: 2028-05-31.

What is Rockwell Collins, Inc.'s track record with sole-source defense contracts, particularly for aircraft data systems?

Rockwell Collins, Inc. (now part of RTX Corporation) has a significant history of securing defense contracts, including sole-source awards, particularly in avionics, communication, and information management systems for military aircraft. Their expertise in these areas often positions them as a primary or sole provider for highly specialized or integrated systems where developing a competitive landscape is challenging. Analysis of past awards indicates a pattern of sole-source or limited-competition contracts for unique technological solutions, often stemming from proprietary technology or long-standing platform integration. This specific contract for KC-135 data acquisition aligns with their established capabilities and historical award trends within the Department of Defense, suggesting a reliance on their specialized knowledge and existing infrastructure.

How does the $103.7 million contract value compare to similar data acquisition systems for military aircraft?

Direct comparison of the $103.7 million contract value for KC-135 data acquisition is challenging due to the sole-source nature of this award and the proprietary aspects of such systems. However, general market intelligence suggests that advanced data acquisition and management systems for complex military platforms can range from tens to hundreds of millions of dollars over their lifecycle, depending on scope, technology, and duration. Contracts for similar functionalities on other aging aircraft fleets, when competed, have shown a wide variance in pricing. The absence of competitive bids here prevents a definitive value-for-money assessment against industry benchmarks. The firm fixed-price nature implies the government has accepted the contractor's proposed price as reasonable without market validation.

What are the primary risks associated with a sole-source, firm-fixed-price contract of this magnitude and duration?

The primary risks associated with this sole-source, firm-fixed-price contract include potential overpayment due to lack of competition, and the government bearing the financial risk of cost overruns if the contractor's estimates are inaccurate. Since only one vendor was solicited, there's no market pressure to ensure the lowest possible price. The firm-fixed-price (FFP) structure means that while the price is set, the contractor is incentivized to manage costs efficiently, but any unforeseen issues or scope creep that increase costs are borne by the government unless contract modifications are made. The long duration (nearly 5 years) increases the risk of technological obsolescence or the emergence of more cost-effective solutions during the contract period, which the government may be locked into.

What is the historical spending pattern for data acquisition systems for the KC-135 aircraft program?

Historical spending data for data acquisition systems specifically for the KC-135 aircraft program is not readily available in aggregated public databases. However, the KC-135 is a long-serving aircraft platform, and sustainment, upgrades, and modernization efforts have been ongoing for decades. Spending on such systems typically occurs through various contract vehicles, including modifications to existing aircraft, new system procurements, and sustainment support contracts. Given the age of the fleet, investments in maintaining and enhancing its operational capabilities, including data systems for diagnostics, performance monitoring, and communication, are continuous. This $103.7 million award represents a significant, discrete investment for a specific period, likely addressing current or evolving data needs for the platform's continued service life.

What are the implications of this contract for the future sustainment and modernization of the KC-135 fleet?

This contract is crucial for the future sustainment of the KC-135 fleet by providing essential data acquisition capabilities. These capabilities are vital for maintaining the aircraft's operational readiness, enabling better diagnostics, predictive maintenance, and performance analysis. For modernization, the data acquired could inform future upgrade decisions, identify areas for efficiency improvements, or support the integration of new technologies. However, the sole-source nature raises questions about whether the chosen solution represents the most forward-looking or cost-effective approach compared to what might emerge from a competitive process. The long-term impact depends on how effectively the acquired data is utilized by the DoD for strategic planning and sustainment initiatives.

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: $10,374,837

Exercised Options: $10,374,837

Current Obligation: $10,374,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE4AX20D9407

IDV Type: IDC

Timeline