DoD awards $7.86M contract for UH-60 Black Hawk display unit maintenance to Rockwell Collins, Inc
Contract Overview
Contract Amount: $7,859,137 ($7.9M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-11-16
End Date: 2026-12-31
Contract Duration: 1,506 days
Daily Burn Rate: $5.2K/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: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $7.9 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 value of $7.86M for display unit maintenance represents a significant investment in fleet readiness. 2. Sole-source award to Rockwell Collins, Inc. raises questions about potential lack of competitive pricing. 3. Long contract duration of over 4 years suggests a need for sustained support and potential for cost escalation. 4. The contract's focus on a critical component like the display unit highlights its importance to aircraft operation. 5. This spending falls within the broader category of aircraft component maintenance and sustainment for the DoD. 6. The absence of competition may limit opportunities for innovation and cost savings from alternative providers.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the scope of 'maintenance and overhaul' for the display unit. However, a $7.86 million award over approximately four years for a single component suggests a substantial per-unit cost or a high volume of units requiring service. Comparing this to similar sustainment contracts for complex avionics systems would be necessary to determine if the pricing is competitive. The firm-fixed-price nature provides some cost certainty, but the lack of competition could mean taxpayers are not receiving the best possible value.
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 typically occurs when a specific capability or proprietary technology is required, or when there is insufficient time to conduct a competitive procurement. The lack of competition means that pricing was not tested against market alternatives, potentially leading to higher costs for the government. It also limits the government's ability to explore different maintenance approaches or technologies that other vendors might offer.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price for the services rendered.
Public Impact
The primary beneficiaries are the U.S. Army, ensuring the operational readiness of its UH-60 Black Hawk helicopters. Services delivered include the maintenance and overhaul of critical display units, essential for pilot situational awareness and flight operations. The geographic impact is national, supporting Army aviation units across various bases and operational theaters. Workforce implications include the potential for continued employment for skilled technicians at Rockwell Collins, Inc. and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially inflates costs.
- Long contract duration increases risk of cost overruns or scope creep.
- Lack of competition may stifle innovation in maintenance and overhaul processes.
- Dependence on a single supplier for critical components can create supply chain vulnerabilities.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Focus on a critical component ensures continued operational capability of the Black Hawk fleet.
- Long-term contract may ensure consistent availability of maintenance services.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft component sustainment and maintenance. The market for military aircraft parts and services is often characterized by long product lifecycles and specialized requirements, leading to significant spending on upkeep. Comparable spending benchmarks would involve analyzing other contracts for avionics maintenance, particularly for widely used platforms like the UH-60 Black Hawk. The total addressable market for military aircraft MRO (Maintenance, Repair, and Overhaul) is substantial, with governments being major customers.
Small Business Impact
There is no indication that this contract includes a small business set-aside. Given the sole-source nature and the specialized technical requirements for maintaining complex avionics, it is unlikely that small businesses would be primary awardees. However, Rockwell Collins, Inc. may engage small businesses as subcontractors for certain components or services, though this is not explicitly stated in the provided data. The impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities arise.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. Accountability measures are embedded in the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source nature, as the justification for the award and the pricing details are not publicly scrutinized through a competitive process. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- UH-60 Black Hawk Helicopter Sustainment
- Avionics Maintenance Contracts
- Department of Defense Aircraft Component Repair
- Firm Fixed Price Service Contracts
Risk Flags
- Sole-source award
- Lack of competitive pricing benchmark
- Long contract duration
- Potential for cost escalation
Tags
defense, department-of-defense, department-of-the-army, rockwell-collins-inc, uh-60-black-hawk, avionics-maintenance, sole-source, firm-fixed-price, aircraft-components, iowa, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.9 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 $7.9 million.
What is the period of performance?
Start: 2022-11-16. End: 2026-12-31.
What is the specific nature of the 'maintenance and overhaul' required for the display unit, and what is the expected lifespan extension or performance improvement?
The provided data does not detail the specific maintenance and overhaul procedures for the UH-60 Black Hawk display unit. Typically, such services involve diagnostics, repair of faulty components, calibration, software updates, and potentially refurbishment or replacement of worn parts. The objective is to ensure the display unit functions within its specified performance parameters, maintaining pilot situational awareness and operational safety. The expected lifespan extension or performance improvement would depend on the condition of the units being serviced and the scope of the overhaul. Without further details, it's difficult to quantify the precise benefits beyond ensuring continued functionality.
How does the awarded amount of $7.86 million compare to historical spending on similar maintenance for the UH-60 Black Hawk display units?
Historical spending data for the maintenance and overhaul of UH-60 Black Hawk display units is not provided. To conduct a meaningful comparison, one would need to access historical contract awards for this specific component or similar avionics systems for the Black Hawk platform. Factors such as inflation, technological upgrades to the display units over time, and changes in maintenance requirements would need to be considered. A significant deviation from historical trends, especially without clear justification, could indicate potential issues with the current contract's pricing or scope.
What is Rockwell Collins, Inc.'s track record with the Department of Defense, particularly concerning UH-60 Black Hawk components?
Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing and extensive track record as a supplier of avionics and communication systems to the Department of Defense, including for the UH-60 Black Hawk helicopter. They are a major provider of various integrated systems for military aircraft. Their history with the DoD generally involves numerous contracts for development, production, and sustainment of complex electronic systems. Assessing their specific track record for this particular display unit maintenance would require examining past performance evaluations and contract histories related to this item, looking for any past issues with delivery, quality, or cost.
What are the potential risks associated with a sole-source award for critical aircraft components like the display unit?
The primary risk of a sole-source award for critical aircraft components is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may pay more than necessary for the maintenance and overhaul services. Another risk is reduced innovation, as the sole provider may have less incentive to invest in improving processes or offering new solutions. Furthermore, sole-source contracts can create dependency on a single supplier, making the government vulnerable to supply chain disruptions, price hikes, or changes in the supplier's business strategy. This can also limit flexibility if the government later decides to switch to a different technology or service provider.
Given the contract duration of over 4 years, what mechanisms are in place to manage potential cost increases or scope creep?
The firm-fixed-price (FFP) nature of this contract is the primary mechanism to control costs and prevent scope creep. Under an FFP contract, the contractor agrees to a set price for the defined scope of work, and assumes the risk of cost overruns. However, contract modifications can still occur if the scope of work changes significantly, which could lead to increased costs. Effective contract management by the Army contracting officers would involve rigorous oversight of performance, strict adherence to the defined scope, and careful evaluation of any proposed changes to prevent unauthorized scope expansion or unjustified price adjustments. Clear performance metrics and reporting requirements also aid in monitoring.
What is the estimated number of UH-60 Black Hawk display units that will undergo maintenance under this contract?
The provided data does not specify the estimated number of UH-60 Black Hawk display units to be maintained under this contract. The contract value of $7.86 million over approximately four years suggests a significant number of units or a high cost per unit for maintenance and overhaul. Without knowing the average cost of servicing a single display unit, it is impossible to estimate the total quantity. This information would typically be part of the contract's detailed statement of work or associated cost breakdowns, which are not included here.
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: $7,859,137
Exercised Options: $7,859,137
Current Obligation: $7,859,137
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ19D0083
IDV Type: IDC
Timeline
Start Date: 2022-11-16
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-09
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