DoD awards $9.4M for Black Hawk display maintenance, a sole-source contract to Rockwell Collins

Contract Overview

Contract Amount: $9,390,550 ($9.4M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-25

End Date: 2027-04-30

Contract Duration: 947 days

Daily Burn Rate: $9.9K/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 BLACK HAWK.

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $9.4 million to ROCKWELL COLLINS, INC. for work described as: MAINTENANCE AND OVERHAUL OF THE DISPLAY UNIT IN SUPPORT OF THE UH-60 BLACK HAWK. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Focus on maintenance and overhaul suggests a need for specialized expertise. 3. Long-term contract duration (nearly 3 years) indicates ongoing support requirements. 4. Firm Fixed Price contract type shifts cost risk to the contractor. 5. The specific component (display unit) is critical for helicopter operations. 6. No small business set-aside, potentially impacting smaller firms' participation.

Value Assessment

Rating: fair

Benchmarking the value for this specific display unit maintenance is challenging without detailed cost breakdowns or comparable sole-source contracts. The $9.4 million award over nearly three years suggests a significant investment in maintaining a critical component for the UH-60 Black Hawk fleet. Given the sole-source nature, it's difficult to assess if this represents optimal value for money compared to a competitive scenario. However, the firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This typically occurs when only one vendor possesses the necessary technical expertise, proprietary knowledge, or unique capabilities to perform the required service. The lack of competition means the government did not benefit from potential price reductions or innovative solutions that might arise from multiple bidders.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without market pressure, the awarded price might be higher than what could be achieved in a fully competed environment.

Public Impact

The primary beneficiaries are the Department of the Army and the operators of the UH-60 Black Hawk helicopter fleet. Services delivered include essential maintenance and overhaul for critical display units. Geographic impact is national, supporting Army aviation readiness across various deployments. Workforce implications include the need for specialized technicians at Rockwell Collins to perform the maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other qualified vendors and potentially increases costs.
Lack of transparency in pricing due to no-bid nature makes value assessment difficult.
Dependence on a single contractor for critical component maintenance poses a long-term risk.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Contractor (Rockwell Collins) likely possesses specialized knowledge for this specific component.
Long-term contract ensures continued operational readiness of the Black Hawk fleet.

Sector Analysis

The aerospace and defense industry is characterized by high barriers to entry, specialized technology, and significant government investment. Contracts for aircraft component maintenance and overhaul are common, often awarded to original equipment manufacturers or their authorized service providers due to proprietary knowledge and certifications. The market for UH-60 Black Hawk support services is likely dominated by a few key players, making sole-source awards for specific components not uncommon, though they warrant scrutiny for value.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large corporation, it is unlikely to directly benefit the small business ecosystem unless Rockwell Collins voluntarily engages small business subcontractors for specific tasks, which is not indicated here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The firm fixed-price nature simplifies some aspects of financial oversight by providing cost certainty. However, the sole-source award necessitates careful monitoring of performance and adherence to contract terms to ensure value is being delivered. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

UH-60 Black Hawk Helicopter Support
Aviation Component Maintenance
Defense Logistics Agency (DLA) Contracts
Department of Defense Aviation Readiness Programs

Risk Flags

Sole-source award may lead to higher costs.
Lack of competition limits transparency and potential for innovation.
Dependence on a single contractor for critical component.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 million to ROCKWELL COLLINS, INC.. MAINTENANCE AND OVERHAUL OF THE DISPLAY UNIT IN SUPPORT OF THE UH-60 BLACK HAWK.

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 $9.4 million.

What is the period of performance?

Start: 2024-09-25. End: 2027-04-30.

What is Rockwell Collins' track record with the Department of Defense, specifically regarding UH-60 Black Hawk components?

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 track record typically involves providing advanced technology and support services. For the UH-60, they have been a key supplier for integrated avionics systems, displays, and related components. Historical data would need to be reviewed to assess the performance and reliability of their delivered products and services specifically for the Black Hawk program, looking at past contract awards, delivery performance, and any reported issues or successes.

How does the $9.4 million cost compare to similar maintenance contracts for helicopter display units?

Direct comparison of the $9.4 million cost for this specific contract is difficult without access to detailed cost breakdowns and a robust database of similar sole-source maintenance contracts for helicopter display units across different platforms. The value is influenced by the complexity of the display unit, the required overhaul procedures, the contractor's specialized knowledge, and the contract duration (nearly three years). In a competitive market, prices could vary significantly. However, as a sole-source award, this figure represents the negotiated price between the government and Rockwell Collins, and its true value relative to market alternatives remains unverified without further analysis of comparable sole-source agreements or detailed cost audits.

What are the primary risks associated with a sole-source award for critical helicopter component maintenance?

The primary risks associated with a sole-source award for critical helicopter component maintenance include potential overpricing due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in cost justification. There's also a strategic risk if the sole-source provider faces financial difficulties or decides to exit the market, potentially disrupting the supply chain for essential parts and services. For the government, it limits flexibility in seeking alternative solutions or leveraging market competition to secure better terms. This dependence can also lead to vendor lock-in, making future transitions more complex and costly.

How does the firm fixed-price contract type benefit the government in this scenario?

The firm fixed-price (FFP) contract type is generally advantageous for the government as it shifts the majority of the cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs incurred. This provides the government with cost certainty and predictability, making budgeting more straightforward. It incentivizes the contractor to manage their costs efficiently to maximize profit. For maintenance and overhaul services where the scope of work is well-defined, FFP is often preferred to control expenditures and avoid potential cost overruns that could occur with cost-reimbursement contracts.

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

Historical spending data for UH-60 Black Hawk display unit maintenance by the Department of the Army would require a deep dive into contract databases and financial reports. Without specific access to this granular data, it's impossible to provide a precise trend. However, it's reasonable to assume that spending on such maintenance would fluctuate based on the age of the fleet, the number of operational aircraft, technological upgrades, and the overall maintenance schedules. Given the longevity and widespread use of the UH-60, consistent investment in component maintenance, including displays, is expected. The current $9.4 million award over nearly three years suggests a significant, ongoing commitment to maintaining this critical system.

What are the implications of this contract for the operational readiness of the UH-60 Black Hawk fleet?

This contract directly supports the operational readiness of the UH-60 Black Hawk fleet by ensuring that a critical component – the display unit – is maintained and overhauled. The UH-60 is a workhorse helicopter for the Army, used in a wide array of missions, including troop transport, medical evacuation, and special operations. Functional and reliable display units are essential for pilots to navigate, monitor aircraft systems, and execute missions safely and effectively. By securing this maintenance service through Rockwell Collins, the Army aims to prevent component failures, extend the lifespan of existing units, and ensure that a sufficient number of aircraft remain mission-capable, thereby sustaining overall fleet readiness.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Computer Terminal and Other Computer Peripheral Equipment Manufacturing

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: $9,390,550

Exercised Options: $9,390,550

Current Obligation: $9,390,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ24D0076

IDV Type: IDC

Timeline