DoD's $25.4M contract for anti-manportable systems awarded to Rockwell Collins, Inc. without competition

Contract Overview

Contract Amount: $25,416,512 ($25.4M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-28

End Date: 2014-09-28

Contract Duration: 1,826 days

Daily Burn Rate: $13.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DESIGN AND DEVELOPMENT OF 60 (SIXTY) INTERNATIONAL PARTNERS VARIATN (IPV) SINGLE CHANNEL ANTI-MANPORTABLE (SCAMP)

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to ROCKWELL COLLINS, INC. for work described as: DESIGN AND DEVELOPMENT OF 60 (SIXTY) INTERNATIONAL PARTNERS VARIATN (IPV) SINGLE CHANNEL ANTI-MANPORTABLE (SCAMP) Key points: 1. The contract's value of $25.4 million over five years suggests a significant investment in specialized defense technology. 2. The sole-source award to Rockwell Collins, Inc. raises questions about potential missed opportunities for cost savings through competition. 3. The absence of competition is a key risk indicator, potentially leading to higher prices and reduced innovation. 4. The contract's performance period of five years indicates a long-term need for these anti-manportable systems. 5. This contract falls within the 'Other Communications Equipment Manufacturing' sector, highlighting a niche but critical area of defense spending. 6. The firm-fixed-price contract type aims to provide cost certainty for the government, though the lack of competition may undermine this.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specialized equipment. Without competitive bids, it's difficult to ascertain if the $25.4 million represents a fair market price. The lack of comparable contracts in the public domain makes a direct value-for-money assessment problematic. However, the absence of competition inherently introduces a risk of overpayment compared to a scenario with multiple bidders vying for the contract.

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 standard competitive bidding process. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they limit price discovery and can reduce the government's leverage in negotiations. The lack of multiple bidders means taxpayers did not benefit from the potential cost reductions that competition typically drives.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium. Without competitive pressure, the selected contractor faced less incentive to offer the lowest possible price, potentially leading to less efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will be equipped with advanced anti-manportable systems. The contract delivers specialized international partner variant (IPV) single-channel anti-manportable (SCAMP) systems, crucial for force protection. The geographic impact is likely global, supporting international partnerships and deployed forces. Workforce implications may include specialized manufacturing and technical support roles within Rockwell Collins, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source awards can limit access to potentially more innovative solutions from other vendors.
Dependence on a single supplier can create supply chain risks.
The specific nature of 'anti-manportable' systems suggests a high-stakes, potentially sensitive application.

Positive Signals

The contract addresses a critical defense need for specialized equipment.
Rockwell Collins, Inc. is a known entity in defense contracting, suggesting a degree of established capability.
The firm-fixed-price contract type provides budget predictability.

Sector Analysis

This contract falls under the 'Other Communications Equipment Manufacturing' (NAICS 334290) sector. This is a specialized segment within the broader defense industrial base, focusing on equipment critical for communication and surveillance. The market for such niche defense technologies is often characterized by a limited number of highly capable suppliers. Spending in this area is driven by evolving threats and the need for advanced technological solutions to maintain military superiority and protect personnel.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting plans. As a sole-source award to a large prime contractor, it is unlikely to directly benefit small businesses through set-aside provisions. The primary impact on the small business ecosystem would be indirect, potentially through Rockwell Collins, Inc.'s own supply chain, but this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures, potentially involving the Defense Contract Management Agency (DCMA) given their role in contract administration. Transparency is limited due to the sole-source nature. Accountability would be measured by the contractor's adherence to the firm-fixed-price terms and delivery schedules. Specific Inspector General (IG) involvement would depend on any reported issues or audits.

Related Government Programs

Defense Communications Equipment
Force Protection Systems
International Partner Support
Specialized Military Hardware

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited innovation incentives

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to ROCKWELL COLLINS, INC.. DESIGN AND DEVELOPMENT OF 60 (SIXTY) INTERNATIONAL PARTNERS VARIATN (IPV) SINGLE CHANNEL ANTI-MANPORTABLE (SCAMP)

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 $25.4 million.

What is the period of performance?

Start: 2009-09-28. End: 2014-09-28.

What is the specific capability of the International Partner Variatn (IPV) Single Channel Anti-Manportable (SCAMP) system?

The provided data does not detail the specific technical capabilities of the IPV SCAMP system. However, the designation 'anti-manportable' suggests it is designed to detect, deter, or neutralize threats posed by individuals carrying or deploying man-portable weapons or devices. 'Single Channel' might refer to a specific communication or detection method, and 'International Partner Variatn' indicates it is tailored for use by allied nations. Such systems are critical for base security, convoy protection, and forward operating bases, often involving sensors, communication links, and potentially defensive measures.

Why was this contract awarded on a sole-source basis instead of being competed?

The specific justification for the sole-source award is not detailed in the provided data. Common reasons for sole-source contracts include the existence of unique capabilities possessed only by a single vendor, urgent and compelling needs where competition is impractical, or when the contract is a follow-on to a previous competitive award where only the original contractor can provide necessary integration or sustainment. Without further documentation, it's impossible to confirm the exact rationale, but it implies that Rockwell Collins, Inc. was deemed the only viable source for these specific IPV SCAMP systems at the time of award.

What is Rockwell Collins, Inc.'s track record with similar defense contracts?

Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long and established history of providing avionics, communications, and integrated systems to the Department of Defense and other government agencies. They are known for their expertise in areas like secure communications, navigation systems, and electronic warfare. While this specific contract is for 'Other Communications Equipment Manufacturing,' their broader experience in defense electronics suggests a strong technical foundation. However, the performance specifics and value-for-money on past sole-source awards would require deeper investigation.

How does the $25.4 million spending compare to other similar defense equipment procurements?

Direct comparison is difficult due to the specialized nature of the IPV SCAMP system and the sole-source award. However, $25.4 million over five years ($5.08 million annually) for advanced, niche defense technology is within the typical range for such procurements. Many defense contracts for specialized electronics, sensors, or communication systems can run into tens or hundreds of millions of dollars. The key concern here is not the absolute dollar amount, but whether this amount represents good value in the absence of competition, which is inherently hard to determine.

What are the potential risks associated with a sole-source contract for critical defense equipment?

The primary risks of a sole-source contract for critical defense equipment include higher costs due to the lack of competitive pressure, potential for complacency from the contractor regarding innovation and efficiency, and increased vulnerability if the sole supplier faces production issues, financial instability, or geopolitical challenges. It also limits the government's ability to leverage market dynamics for better pricing or to access alternative, potentially superior technologies developed by other firms. This dependence can create long-term strategic risks for the DoD.

What is the historical spending trend for 'Other Communications Equipment Manufacturing' by the Department of Defense?

Historical spending data for the specific NAICS code '334290 - Other Communications Equipment Manufacturing' by the DoD would require a comprehensive analysis of federal procurement databases. Generally, spending in this sector fluctuates based on technological advancements, evolving threat landscapes, and specific program requirements. Contracts can range from small R&D efforts to large-scale production runs. The DoD consistently invests significant sums in communications and related equipment to maintain operational effectiveness, but the precise trend for this niche category would need dedicated data mining.

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

Solicitation ID: W15P7T09RL010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 400 COLLINS ROAD NE, CEDAR RAPIDS, IA, 02

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,199,512

Exercised Options: $25,416,512

Current Obligation: $25,416,512

Contract Characteristics

Cost or Pricing Data: YES

Timeline