Army awards $7.4M for Black Hawk display unit maintenance, a sole-source contract
Contract Overview
Contract Amount: $7,378,193 ($7.4M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-05-19
End Date: 2026-06-30
Contract Duration: 1,503 days
Daily Burn Rate: $4.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MAINTENANCE AND OVERHAUL OF THE DISPLAY UNIT IN SUPPORT OF THE UH-60 BLACKHAWK.
Place of Performance
Location: ATLANTA, CLAYTON County, GEORGIA, 30349
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $7.4 million to ROCKWELL COLLINS, INC. for work described as: MAINTENANCE AND OVERHAUL OF THE DISPLAY UNIT IN SUPPORT OF THE UH-60 BLACKHAWK. Key points: 1. Contract awarded to Rockwell Collins, Inc. for essential Black Hawk helicopter display unit maintenance. 2. The contract duration extends over three years, indicating a need for sustained support. 3. Fixed-price contract type suggests cost certainty for the government. 4. The award was not competed, raising questions about potential cost savings through competition. 5. The specific nature of the display unit suggests a specialized technical requirement. 6. Geographic location of performance is Georgia.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without comparable sole-source awards for similar specialized helicopter components. The firm fixed-price structure provides cost predictability. However, the lack of competition means there's no direct market comparison to assess if the price is optimal. Further analysis would require understanding the specific technological components and Rockwell Collins' unique position as a supplier.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price.
Taxpayer Impact: Taxpayers may not benefit from the potential cost savings that could arise from a competitive bidding process. Without competition, there is a risk that the awarded price is higher than it might be in a more open market.
Public Impact
The primary beneficiaries are the U.S. Army aviation units relying on the UH-60 Black Hawk helicopter fleet. The contract ensures the continued operational readiness and safety of critical helicopter display systems. Services are performed in Georgia, potentially supporting local technical jobs. Maintenance of these specialized components is crucial for pilot situational awareness and mission success.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential savings.
- Lack of competition may indicate a lack of market alternatives or a reliance on a single supplier.
- Specific technical nature of the component could lead to vendor lock-in.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Contract duration suggests a stable, long-term need for the service.
- Rockwell Collins is a known entity in aerospace and defense, potentially indicating established quality.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aviation maintenance and support. The market for specialized helicopter components and their maintenance is often characterized by high technical barriers to entry and a limited number of qualified suppliers. Spending in this area is critical for maintaining the operational readiness of military aviation assets, with significant government investment directed towards sustainment and upgrade programs.
Small Business Impact
There is no indication of a small business set-aside for this contract, nor are there explicit subcontracting requirements mentioned. Given the specialized nature of the work and the sole-source award to a large corporation, the direct impact on the small business ecosystem is likely minimal. However, Rockwell Collins may engage small businesses as subcontractors for less specialized aspects of the maintenance or supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability is maintained through contract performance monitoring and adherence to the firm fixed-price terms. Transparency is limited due to the sole-source nature, but contract award details are publicly available. The Inspector General may investigate any allegations of fraud, waste, or abuse.
Related Government Programs
- UH-60 Black Hawk Helicopter Sustainment
- Avionics Maintenance Contracts
- Aerospace Component Repair
- Department of Defense Aviation Support
Risk Flags
- Sole-source award
- Lack of competition
- Potential for higher costs without competitive bidding
Tags
defense, department-of-the-army, uh-60-black-hawk, avionics, maintenance, sole-source, firm-fixed-price, rockwell-collins, georgia, helicopter-parts
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.4 million to ROCKWELL COLLINS, INC.. MAINTENANCE AND OVERHAUL OF THE DISPLAY UNIT IN SUPPORT OF THE UH-60 BLACKHAWK.
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 $7.4 million.
What is the period of performance?
Start: 2022-05-19. End: 2026-06-30.
What is Rockwell Collins' track record with the Department of Defense, particularly on UH-60 Black Hawk related contracts?
Rockwell Collins, now part of Collins Aerospace, has a long-standing relationship with the Department of Defense, supplying a wide range of avionics, communication, and navigation systems for various military aircraft, including the UH-60 Black Hawk. Their history includes numerous contracts for the development, integration, and sustainment of complex systems. While specific details on past Black Hawk display unit maintenance contracts with Rockwell Collins are not immediately available in this data, their extensive experience in military aviation electronics suggests a strong capability. Past performance reviews and contract histories would provide a more granular understanding of their reliability and quality in delivering similar services to the DoD.
How does the $7.4 million contract value compare to similar maintenance contracts for helicopter display units?
Directly comparing the $7.4 million value for this specific UH-60 Black Hawk display unit maintenance contract is difficult without access to a broader database of similar sole-source or competed contracts for comparable helicopter components across different branches of the military. Sole-source awards, by their nature, lack direct competitive benchmarks. However, the duration of the contract (approximately 3 years) suggests an average annual cost of around $2.5 million. This figure needs to be assessed against the complexity, technological sophistication, and criticality of the display unit. If the unit is highly advanced or requires specialized, proprietary repair processes, this cost might be justifiable. A comprehensive value-for-money assessment would require benchmarking against industry standards for similar high-tech aerospace component maintenance.
What are the primary risks associated with a sole-source contract for critical helicopter components?
The primary risks associated with a sole-source contract for critical helicopter components like the UH-60 Black Hawk display unit include potential overpricing due to the absence of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of flexibility if the contractor's performance falters or if better alternatives emerge. There's also a strategic risk of vendor lock-in, making the government dependent on a single supplier for essential parts or services. This dependency can be particularly concerning in long-term sustainment scenarios where technological advancements or geopolitical shifts could impact the sole-source provider's ability to deliver.
How does the firm fixed-price contract type mitigate financial risks for the government?
The firm fixed-price (FFP) contract type is designed to mitigate financial risks for the government by establishing a ceiling price that will not be adjusted except in rare circumstances, such as significant scope changes. Under an FFP contract, the contractor assumes the majority of the cost risk. If the contractor's actual costs exceed the agreed-upon price, their profit margin decreases. Conversely, if costs are lower than anticipated, the contractor's profit increases. This structure provides the government with cost certainty, making budgeting more predictable and protecting against unexpected cost overruns that could occur with cost-reimbursement type contracts.
What is the historical spending pattern for UH-60 Black Hawk display unit maintenance by the Department of the Army?
Historical spending patterns for specific components like the UH-60 Black Hawk display unit are not directly detailed in the provided data. However, the Department of the Army consistently allocates significant funds towards the sustainment and modernization of its vast helicopter fleet, including the UH-60 Black Hawk. This includes expenditures on maintenance, repair, overhaul, and upgrades of various systems, avionics, and airframes. Given the operational tempo and the age of some Black Hawk variants, ongoing investments in component maintenance are expected. A deeper analysis would require examining aggregated spending data for UH-60 sustainment over several fiscal years, potentially identifying trends in component repair or replacement costs.
Industry Classification
NAICS: Manufacturing › Manufacturing and Reproducing Magnetic and Optical Media › Software and Other Prerecorded Compact Disc, Tape, and Record Reproducing
Product/Service Code: IT AND TELECOM - END USER
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: $7,378,193
Exercised Options: $7,378,193
Current Obligation: $7,378,193
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ19D0083
IDV Type: IDC
Timeline
Start Date: 2022-05-19
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2025-12-05
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