DoD Awards $36.6M Non-Recurring Engineering Services Contract to Rockwell Collins, Inc
Contract Overview
Contract Amount: $36,618,862 ($36.6M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-07-31
End Date: 2027-08-02
Contract Duration: 1,097 days
Daily Burn Rate: $33.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NON-RECURRING ENGINEERING SERVICES
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $36.6 million to ROCKWELL COLLINS, INC. for work described as: NON-RECURRING ENGINEERING SERVICES Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (nearly 3 years) requires ongoing monitoring. 4. Focus on aircraft parts manufacturing suggests a critical defense supply chain component.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition for a $36.6 million contract means taxpayers may not be receiving the best possible value, as alternative, potentially lower-cost solutions were not explored.
Public Impact
Impacts the Department of the Army's capabilities in aircraft parts manufacturing. Potential for increased costs due to sole-source nature affects taxpayer burden. Long-term nature of the contract suggests sustained reliance on Rockwell Collins for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
Positive Signals
- Addresses a specific need for non-recurring engineering
- Long-term contract provides stability
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is critical for national security, but often involves complex, specialized services where competition can be limited.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' (small business set-aside) and 'sb' (small business) are false. This suggests larger prime contractors are involved, with potential for subcontracting opportunities.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. The Department of the Army should actively monitor expenditures and deliverables throughout the contract's duration.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding may lead to inflated costs.
- Cost Plus Fixed Fee contracts carry inherent risk of cost overruns.
- Long contract duration increases exposure to potential performance issues.
- Sole-source awards can limit innovation by excluding alternative solutions.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.6 million to ROCKWELL COLLINS, INC.. NON-RECURRING ENGINEERING SERVICES
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 $36.6 million.
What is the period of performance?
Start: 2024-07-31. End: 2027-08-02.
What specific non-recurring engineering tasks are included in this contract, and how do they align with the Army's strategic objectives?
The contract details are limited, but 'Non-Recurring Engineering Services' typically involve the design, development, and testing of new or significantly improved components or systems. For the Army, this could relate to upgrades for existing aircraft, development of new avionics, or specialized modifications to meet evolving mission requirements. Understanding the precise scope is crucial for assessing its strategic value and ensuring alignment with long-term defense modernization goals.
Given the sole-source award, what mechanisms are in place to ensure Rockwell Collins' pricing remains fair and reasonable throughout the contract's lifecycle?
With a sole-source award, the government relies heavily on negotiation and cost analysis. The CPFF structure necessitates rigorous auditing of Rockwell Collins' actual costs and a fixed fee. The Army should employ experienced contract specialists to scrutinize cost proposals, conduct forward pricing rate agreements, and potentially engage independent cost estimators to validate the reasonableness of the pricing and prevent potential overcharges.
How will the effectiveness of these non-recurring engineering services be measured, particularly considering the long duration and the CPFF contract type?
Effectiveness will be measured through a combination of technical performance metrics, milestone achievement, and final product acceptance. For CPFF contracts, tracking cost performance against the estimated cost is also critical. The Army should establish clear, measurable deliverables and key performance indicators (KPIs) upfront. Regular progress reviews and independent verification of engineering outputs will be essential to ensure the services are not only completed but also meet the required technical specifications and operational needs.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $36,618,862
Exercised Options: $36,618,862
Current Obligation: $36,618,862
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ21D0067
IDV Type: IDC
Timeline
Start Date: 2024-07-31
Current End Date: 2027-08-02
Potential End Date: 2027-08-02 12:08:00
Last Modified: 2025-12-10
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