DoD's $10.7M Rockwell Collins Contract for Communications Equipment: Not Competed
Contract Overview
Contract Amount: $10,745,550 ($10.7M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-03-15
End Date: 2012-02-28
Contract Duration: 2,541 days
Daily Burn Rate: $4.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $10.7 million to ROCKWELL COLLINS, INC. for work described as: Key points: 1. Significant spending on specialized communications equipment. 2. Sole-source award to Rockwell Collins raises competition concerns. 3. Long contract duration (2005-2012) may impact price competitiveness. 4. Focus on 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $10.7M over its lifespan is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to similar equipment from other manufacturers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Limited visibility into the specific 'Other Communications Equipment' procured. Potential for outdated technology given the long contract period (2005-2012).
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for inflated pricing
Positive Signals
- Specific vendor identified (Rockwell Collins)
- Contract type is Firm Fixed Price
Sector Analysis
This contract falls within the 'Other Communications Equipment Manufacturing' sector, which is crucial for defense operations. Benchmarks for this specific niche are hard to establish without competitive data, but overall defense spending on communications is significant.
Small Business Impact
The data indicates this was a large contract awarded to Rockwell Collins, a major corporation. There is no indication that small businesses were involved in this specific procurement.
Oversight & Accountability
The 'IA' status and 'IOWA' location suggest oversight by the Defense Contract Management Agency in Iowa. However, the lack of competition warrants further scrutiny regarding the justification for a sole-source award.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpayment
- Long contract duration may indicate lack of market responsiveness
- No small business participation evident
Tags
other-communications-equipment-manufactu, department-of-defense, ia, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.7 million to ROCKWELL COLLINS, INC.. See the official description on USAspending.
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $10.7 million.
What is the period of performance?
Start: 2005-03-15. End: 2012-02-28.
What was the justification for awarding this contract on a sole-source basis instead of competing it?
The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, this involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without this justification, it's impossible to determine if the government acted appropriately or missed an opportunity for better value.
How does the $10.7M cost compare to similar communications equipment procured competitively during the 2005-2012 period?
Comparing this $10.7M contract to similar, competitively procured communications equipment from the same era is essential for assessing value. If comparable systems were acquired at significantly lower prices through competition, it would strongly suggest that this sole-source award was not cost-effective for the taxpayer.
What was the operational effectiveness and technological relevance of the equipment procured under this contract by its end date in 2012?
Given the contract spanned from 2005 to 2012, assessing the equipment's effectiveness and relevance by its conclusion is important. Technology evolves rapidly, especially in communications. If the equipment was already nearing obsolescence by 2012, the long-term value and return on the $10.7M investment would be diminished.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 52498
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-03-15
Current End Date: 2012-02-28
Potential End Date: 2012-02-28 00:00:00
Last Modified: 2019-01-28
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