DoD awards $10.2M for Black Hawk display unit maintenance, with Rockwell Collins as sole provider

Contract Overview

Contract Amount: $10,211,397 ($10.2M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-24

End Date: 2027-09-30

Contract Duration: 1,498 days

Daily Burn Rate: $6.8K/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 $10.2 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 appears reasonable given the specialized nature of aviation component maintenance. 2. Sole-source award limits price discovery and potential for competitive savings. 3. Long contract duration (nearly 5 years) may not align with rapid technological advancements. 4. Performance risk is moderate, given the critical safety implications of aviation components. 5. This contract supports the sustainment of a widely used military helicopter platform. 6. The fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed cost breakdowns or comparisons to similar sole-source aviation component maintenance contracts. The $10.2 million over nearly five years suggests an average annual spend of approximately $2 million. While this may seem reasonable for specialized military hardware maintenance, the lack of competition prevents a definitive assessment of whether this represents the best possible value for taxpayers. The fixed-price nature of the contract provides some cost certainty, but the absence of competitive bidding means potential savings are likely foregone.

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 is typically justified when a unique product or service is required, or when only one vendor possesses the necessary qualifications or proprietary knowledge. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces. This limits the government's ability to explore alternative solutions or potentially more cost-effective providers.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from competitive pricing, potentially leading to higher costs than if multiple vendors had vied for the contract. This limits the government's leverage in negotiating favorable terms and prices.

Public Impact

The primary beneficiaries are the U.S. Army aviation units operating the UH-60 Black Hawk helicopter, ensuring the continued operational readiness of their aircraft. The contract provides essential maintenance and overhaul services for the display units, critical components for pilot situational awareness and aircraft operation. The geographic impact is national, supporting Army aviation assets across various installations. Workforce implications include the retention of specialized technical skills within Rockwell Collins, Inc., necessary for maintaining complex aviation electronics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs.
Long contract duration may not adapt to evolving technology or market prices.
Lack of transparency in sole-source justification makes value assessment difficult.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Rockwell Collins is an established provider of aviation electronics, suggesting technical capability.
Contract supports critical readiness for a key military asset (UH-60 Black Hawk).

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on the maintenance and sustainment of military aircraft components. The market for specialized aviation electronics maintenance is often characterized by high barriers to entry due to technical expertise, certifications, and proprietary knowledge. Rockwell Collins, Inc. is a significant player in this niche. Comparable spending benchmarks are difficult to establish publicly due to the proprietary nature of defense contracts and the specialized equipment involved.

Small Business Impact

This contract does not appear to involve a small business set-aside. As a sole-source award to a large corporation (Rockwell Collins, Inc.), there are no direct subcontracting opportunities for small businesses mandated by this specific contract. The overall impact on the small business ecosystem is neutral, as it does not actively promote or hinder small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services. Transparency is limited due to the sole-source nature of the award; however, contract details are generally available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

UH-60 Black Hawk Helicopter Sustainment
Military Aircraft Component Maintenance
Avionics Systems Support
Defense Logistics Agency Maintenance Contracts

Risk Flags

Sole-source award
Lack of competition
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 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 $10.2 million.

What is the period of performance?

Start: 2023-08-24. End: 2027-09-30.

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 history of providing avionics and integrated systems to the Department of Defense, including for the UH-60 Black Hawk platform. Their track record generally indicates a strong capability in developing and supporting complex aviation electronics. Publicly available data suggests numerous contracts awarded over the years for various aircraft systems, including display units, communication systems, and navigation equipment. While specific performance metrics for individual contracts are often not public, their continued selection for critical systems implies a satisfactory performance history with the military. However, a deeper dive into past performance reviews and any documented issues related to Black Hawk component maintenance would be necessary for a comprehensive assessment.

How does the $10.2 million contract value compare to similar maintenance contracts for military helicopter display units?

Directly comparing the $10.2 million value for this specific contract is challenging due to the proprietary nature of defense contracting and the specialized components involved. However, the duration of nearly five years (1498 days) suggests an average annual expenditure of approximately $2 million. This figure needs to be contextualized against the complexity and criticality of the UH-60 Black Hawk's display units. Maintenance for such systems often involves highly skilled labor, specialized test equipment, and rigorous quality control processes. Without access to detailed cost breakdowns or data on similar sole-source contracts for comparable helicopter platforms (e.g., Apache, Chinook), it's difficult to definitively benchmark this price. However, the absence of competition means this price is not validated against market alternatives.

What are the primary risks associated with this sole-source contract for the UH-60 Black Hawk display unit maintenance?

The primary risk associated with this sole-source contract is the lack of competitive pressure, which can lead to inflated pricing and reduced incentives for innovation or efficiency. Taxpayers may be paying more than necessary because there is no market validation of the price. Another risk is vendor lock-in; the government becomes dependent on Rockwell Collins for this specific component's maintenance, potentially limiting future flexibility in sourcing or technology upgrades. Performance risk, while mitigated by the fixed-price contract, still exists if the contractor fails to meet quality or delivery standards, potentially impacting aircraft readiness. Finally, the long contract duration could expose the government to risks if technology rapidly advances, making the current display units or their maintenance methods obsolete before the contract ends.

How effective is the firm-fixed-price contract type in ensuring value for money in this scenario?

The firm-fixed-price (FFP) contract type is generally considered effective in providing cost certainty for the government, as the contractor assumes the risk of cost overruns. In this scenario, the $10.2 million represents the ceiling cost for the specified maintenance and overhaul services. This shifts the financial risk of performance to Rockwell Collins, Inc. However, the effectiveness in ensuring 'value for money' is significantly diminished by the sole-source nature of the award. While the FFP structure protects against unexpected cost increases from the contractor's side, it does not guarantee that the initial price negotiated was the most competitive possible. Without competition, the government may not achieve the best possible price, even with an FFP structure. Therefore, while FFP provides cost certainty, the overall value proposition is questionable due to the lack of competitive benchmarking.

What are the historical spending patterns for UH-60 Black Hawk display unit maintenance by the Department of the Army?

Analyzing historical spending patterns for UH-60 Black Hawk display unit maintenance requires access to detailed procurement data over multiple fiscal years. Based on the current award of $10.2 million over approximately 4.75 years, the average annual spend is around $2.15 million. Historical data might reveal if this level of spending is consistent, increasing, or decreasing for this specific component's sustainment. It would be beneficial to know if previous contracts for this service were also sole-source or if competition was previously explored. Understanding trends in spending, contract types used, and the number of bidders over time could highlight potential issues with market competition or identify periods of significant price fluctuations. Without this historical context, it is difficult to ascertain if the current award represents a deviation from established spending norms or if it aligns with a consistent, albeit potentially non-competitive, sustainment strategy.

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: $10,211,397

Exercised Options: $10,211,397

Current Obligation: $10,211,397

Actual Outlays: $565,566

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ19D0083

IDV Type: IDC

Timeline