DoD awards $64M for 917 navigation systems, raising questions about competition and value
Contract Overview
Contract Amount: $64,042,280 ($64.0M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-06-20
End Date: 2025-05-30
Contract Duration: 710 days
Daily Burn Rate: $90.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY ORDER PROCURES 917 MAPS GEN II LINE REPLACEABLE UNITS. EACH MAPS GEN II CONSISTS OF ONE NAVIGATION RECEIVER AND ONE ANTI JAM ANTENNA SYSTEM.
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $64.0 million to ROCKWELL COLLINS, INC. for work described as: THIS DELIVERY ORDER PROCURES 917 MAPS GEN II LINE REPLACEABLE UNITS. EACH MAPS GEN II CONSISTS OF ONE NAVIGATION RECEIVER AND ONE ANTI JAM ANTENNA SYSTEM. Key points: 1. The contract is for 917 MAPS Gen II units, comprising navigation receivers and anti-jam antenna systems. 2. The sole-source nature of this award limits price discovery and potentially increases costs for taxpayers. 3. The fixed-price contract type shifts some performance risk to the contractor, but value for money is unclear without competition. 4. The duration of the contract (710 days) suggests a significant operational need for these systems. 5. The contractor, Rockwell Collins, Inc., is a known entity in defense electronics, but specific performance on this contract is not detailed. 6. The absence of small business participation is noted, with no set-aside or subcontracting plans indicated.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the lack of competitive bidding. The total award of $64,042,280.47 for 917 units implies a per-unit cost of approximately $69,893. Without comparable contract data or market analysis, it is difficult to definitively assess if this price represents good value for money. The firm fixed-price nature provides some cost certainty, but the absence of competition means there's no market validation of the pricing.
Cost Per Unit: Approximately $69,893 per unit (MAPS Gen II system).
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The specific justification for this approach is not provided in the available data. Sole-source procurements typically occur when only one vendor can meet the requirement, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means that potential cost savings that could arise from a bidding process are likely forgone.
Taxpayer Impact: Taxpayers may be paying a premium for this equipment due to the absence of competitive pressure to drive down prices. Without a competitive process, there is less assurance that the government is securing the best possible price.
Public Impact
The primary beneficiaries are the Department of the Army, which will receive advanced navigation and anti-jamming capabilities for its platforms. The contract delivers 917 MAPS Gen II Line Replaceable Units, essential for modern military operations. The geographic impact is likely concentrated within military operational areas where these systems are deployed. Workforce implications may include continued employment for engineers and technicians at Rockwell Collins, Inc., involved in the production and support of these systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Limited transparency into the justification for a sole-source award.
- No indication of small business participation or subcontracting opportunities.
- Performance metrics and specific value-for-money assessments are not publicly available.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Contractor (Rockwell Collins, Inc.) is an established player in the defense electronics market.
- Delivery of critical navigation and anti-jamming technology to the Department of the Army.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the manufacturing of navigation and guidance systems. The North American Industry Classification System (NAICS) code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' represents a specialized segment of the manufacturing industry. The market for such advanced defense electronics is often characterized by high barriers to entry, significant R&D investment, and a limited number of qualified suppliers, which can contribute to sole-source or limited-competition awards.
Small Business Impact
This contract does not appear to include any small business set-aside provisions, nor is there any indication of subcontracting plans aimed at small businesses. The award is made directly to Rockwell Collins, Inc., a large corporation. This suggests that the primary economic benefits will accrue to the prime contractor, with limited direct opportunities for the small business ecosystem in this specific procurement. Further analysis would be needed to determine if any small businesses are involved further down the supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. Specific oversight mechanisms are not detailed in the provided data. Accountability would be managed through contract performance monitoring, milestone reviews, and payment processes. Transparency is limited by the sole-source nature and the lack of publicly available performance details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Military Navigation Systems
- Avionics Manufacturing
- Defense Electronics Procurement
- Line Replaceable Units (LRUs)
- Anti-Jamming Technology
- Department of the Army Contracts
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for inflated pricing due to lack of competition.
- No small business participation noted.
- Limited public information on performance and value.
Tags
defense, department-of-defense, department-of-the-army, rockwell-collins-inc, navigation-systems, anti-jam-antenna, sole-source, firm-fixed-price, large-contract, iowa, aerospace-and-defense, manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $64.0 million to ROCKWELL COLLINS, INC.. THIS DELIVERY ORDER PROCURES 917 MAPS GEN II LINE REPLACEABLE UNITS. EACH MAPS GEN II CONSISTS OF ONE NAVIGATION RECEIVER AND ONE ANTI JAM ANTENNA SYSTEM.
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $64.0 million.
What is the period of performance?
Start: 2023-06-20. End: 2025-05-30.
What is the specific justification for awarding this contract on a sole-source basis?
The provided data does not explicitly state the justification for this sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available, or for reasons of urgency, national security, or compatibility with existing systems. Without this specific justification, it is difficult to assess whether the sole-source approach was appropriate and necessary. Further investigation into the contract file or agency justifications would be required to understand the rationale behind bypassing the competitive bidding process.
How does the per-unit cost of $69,893 compare to similar navigation systems or previous procurements?
A direct comparison of the per-unit cost of approximately $69,893 for the MAPS Gen II system is challenging without access to specific benchmarking data or details on comparable systems. The 'MAPS Gen II' designation suggests it is an advanced or second-generation system, which may inherently carry a higher cost than older or less sophisticated navigation units. Furthermore, the inclusion of an anti-jam antenna system adds complexity and cost. To provide a robust comparison, one would need to identify contracts for similar military-grade navigation and anti-jamming systems, analyze their unit costs, and account for differences in features, capabilities, quantities, and contract types. The lack of competition for this specific award further complicates a direct value-for-money assessment against market rates.
What are the key performance risks associated with this contract for Rockwell Collins, Inc.?
As this is a Firm Fixed Price (FFP) contract, the primary performance risk lies with the contractor, Rockwell Collins, Inc. Key risks include the ability to deliver all 917 MAPS Gen II Line Replaceable Units (comprising navigation receivers and anti-jam antennas) by the contract end date of May 30, 2025. This involves managing production schedules, ensuring quality control to meet military specifications, and mitigating potential supply chain disruptions for components. Failure to meet delivery schedules or quality standards could result in penalties, contract termination, or reputational damage. Rockwell Collins also assumes the risk of cost overruns if their production costs exceed the fixed price agreed upon.
What is the historical spending pattern for MAPS Gen II or similar navigation systems by the Department of the Army?
The provided data does not include historical spending patterns for MAPS Gen II or similar systems. To assess this, one would need to query federal procurement databases (like FPDS or USASpending) for past contracts awarded by the Department of the Army (or other DoD branches) for navigation systems, specifically looking for 'MAPS Gen II' or related terms and components like 'navigation receiver' and 'anti-jam antenna.' Analyzing the volume, value, and frequency of such awards over several fiscal years would reveal spending trends, identify key contractors, and indicate whether this $64 million award represents a significant increase or continuation of prior investment in this technology.
Are there any known issues with Rockwell Collins, Inc.'s past performance on similar defense contracts?
The provided data does not contain information on Rockwell Collins, Inc.'s past performance on similar defense contracts. A comprehensive assessment of contractor track record would require accessing performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS) or conducting a thorough review of their contract history within the Department of Defense and other federal agencies. Such a review would look for indicators of timely delivery, adherence to quality standards, cost control, and overall customer satisfaction on previous engagements. Without this information, it's difficult to gauge the reliability of Rockwell Collins for this specific delivery order.
What is the strategic importance of the MAPS Gen II system for the Department of the Army?
The MAPS Gen II system, consisting of a navigation receiver and an anti-jam antenna, is strategically important for the Department of the Army as it provides crucial capabilities for modern military operations. Reliable navigation is fundamental for troop movement, targeting, and situational awareness, especially in complex or contested environments. The 'anti-jam' feature is particularly critical, as adversaries may attempt to disrupt or deny GPS and other satellite navigation signals. By ensuring that friendly forces can navigate accurately and maintain communication links even under electronic warfare conditions, the MAPS Gen II system enhances operational effectiveness, survivability, and mission success across various platforms and domains.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
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: $64,042,280
Exercised Options: $64,042,280
Current Obligation: $64,042,280
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $22,661,119
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56KGY22D0004
IDV Type: IDC
Timeline
Start Date: 2023-06-20
Current End Date: 2025-05-30
Potential End Date: 2025-05-30 12:05:00
Last Modified: 2024-09-26
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