DoD awards $80.3M contract for H-60M helicopter avionics, citing sole-source justification

Contract Overview

Contract Amount: $80,287,202 ($80.3M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-06

End Date: 2029-03-07

Contract Duration: 1,462 days

Daily Burn Rate: $54.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MODULAR OPEN SYSTEMS ARCHITECTURE (MOSA) AVIONICS ARCHITECTURE SOLUTION (AAS) FOR H-60M

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $80.3 million to ROCKWELL COLLINS, INC. for work described as: MODULAR OPEN SYSTEMS ARCHITECTURE (MOSA) AVIONICS ARCHITECTURE SOLUTION (AAS) FOR H-60M Key points: 1. Contract awarded to Rockwell Collins, Inc. for Modular Open Systems Architecture (MOSA) avionics. 2. Focus on H-60M Black Hawk helicopter upgrades to enhance interoperability and future adaptability. 3. Sole-source award raises questions about competition and potential cost efficiencies. 4. Contract duration of approximately 4 years suggests a significant upgrade or sustainment effort. 5. The award falls under the Aircraft Manufacturing sector, specifically supporting rotary-wing aircraft. 6. No small business set-aside was applied, indicating a focus on specialized capabilities.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging without competitive data. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex R&D or uncertain scope, can lead to cost overruns if not meticulously managed. The awarded amount of $80.3 million over roughly four years needs careful monitoring to ensure it aligns with industry standards for avionics upgrades, especially considering the MOSA framework aims for cost savings through standardization.

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. The justification for this approach is not detailed in the provided data, but sole-source awards typically occur when a specific capability is only available from a single source, or for urgent needs. The lack of competition means potential savings from a bidding process are foregone, and pricing is negotiated directly with the incumbent.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding, which typically drives down prices. Without competition, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the U.S. Army, which operates the H-60M Black Hawk fleet, receiving modernized avionics. Services delivered include the development and integration of a Modular Open Systems Architecture (MOSA) compliant avionics solution. The geographic impact is primarily within the U.S. Army's operational footprint, supporting aviation readiness. Workforce implications may include specialized engineering and integration roles at Rockwell Collins and potentially within Army aviation units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
CPFF contract type requires robust oversight to manage costs effectively.
Lack of competition may reduce incentive for maximum efficiency.
Specific performance metrics and deliverables are not detailed, posing a risk to outcome assessment.

Positive Signals

Focus on MOSA aligns with DoD strategy for interoperability and reduced lifecycle costs.
Upgrading H-60M avionics enhances platform capability and extends its service life.
Awarding to a known entity like Rockwell Collins may leverage existing expertise and reduce initial integration risks.

Sector Analysis

The defense avionics market is a significant segment within the broader aerospace and defense industry, characterized by high technological barriers to entry and long product lifecycles. Companies like Rockwell Collins (now part of Collins Aerospace) are key players, providing advanced systems for military aircraft. Spending in this area is driven by the need for enhanced capabilities, modernization of aging fleets, and adherence to evolving standards like MOSA, which aims to improve system integration and reduce long-term sustainment costs.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the specialized nature of advanced avionics development and integration for military platforms, prime contractors often possess unique capabilities. However, opportunities for small businesses may exist further down the supply chain, particularly in providing components or specialized services to the prime contractor, though this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Given the Cost Plus Fixed Fee (CPFF) structure, rigorous financial oversight and performance monitoring will be crucial to ensure costs remain within acceptable parameters and that the project meets its technical objectives. Transparency may be limited due to the sole-source nature, but contract performance reviews and milestone tracking are standard accountability measures.

Related Government Programs

H-60 Black Hawk Helicopter Program
Modular Open Systems Architecture (MOSA) Initiatives
Avionics Modernization Programs
Department of Defense Aircraft Manufacturing Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Potential for cost overruns
Complexity of MOSA implementation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.3 million to ROCKWELL COLLINS, INC.. MODULAR OPEN SYSTEMS ARCHITECTURE (MOSA) AVIONICS ARCHITECTURE SOLUTION (AAS) FOR H-60M

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 $80.3 million.

What is the period of performance?

Start: 2025-03-06. End: 2029-03-07.

What is the specific technical scope and expected performance improvement for the H-60M avionics upgrade under this contract?

The contract specifies a 'MODULAR OPEN SYSTEMS ARCHITECTURE (MOSA) AVIONICS ARCHITECTURE SOLUTION (AAS) FOR H-60M'. This implies the upgrade will focus on implementing a standardized, open architecture for the helicopter's avionics systems. The goal of MOSA is to enhance interoperability between different systems, facilitate easier upgrades and maintenance, and reduce lifecycle costs by avoiding proprietary hardware and software lock-in. Expected performance improvements likely include enhanced situational awareness for pilots, improved data processing capabilities, greater flexibility in integrating new technologies, and potentially reduced pilot workload through more intuitive interfaces. The specific metrics for performance improvement, such as increased processing speed, reduced failure rates, or enhanced communication bandwidth, would typically be detailed in the contract's Statement of Work (SOW).

Why was this contract awarded on a sole-source basis instead of through full and open competition?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For advanced avionics solutions like MOSA for a specific platform such as the H-60M, the justification might stem from unique proprietary technology held by Rockwell Collins, extensive prior development work and expertise specific to the H-60M platform, or the need for seamless integration with existing systems where only the original equipment manufacturer possesses the necessary knowledge and access. The Department of the Army would have had to formally document and approve this justification, often citing specific Federal Acquisition Regulation (FAR) clauses that permit sole-source procurement, such as those related to follow-on work or unique capabilities.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives for this project?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor (Rockwell Collins) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used for research and development or when the scope of work is not precisely defined at the outset. For cost control, the government's Defense Contract Audit Agency (DCAA) and contracting officers must rigorously audit the contractor's claimed costs to ensure they are reasonable, allocable, and allowable. Contractor incentives are primarily driven by the fixed fee; while they are reimbursed for costs, there is no direct financial incentive to minimize costs beyond what is necessary to complete the work and earn the fee. This necessitates strong government oversight to prevent cost overruns and ensure efficient performance.

What are the potential risks associated with implementing a MOSA avionics architecture on the H-60M platform?

Implementing a Modular Open Systems Architecture (MOSA) on the H-60M platform carries several potential risks. Firstly, the transition from legacy systems to a new architecture can be complex and may encounter unforeseen technical challenges during integration, potentially leading to schedule delays and cost increases. Secondly, defining and adhering to open standards requires careful management to ensure true interoperability and avoid the emergence of new 'de facto' proprietary interfaces. Thirdly, the initial investment in developing or adapting MOSA-compliant systems can be substantial. Finally, ensuring the security of open architecture systems against cyber threats is paramount and requires robust cybersecurity measures throughout the design, implementation, and sustainment phases. The success hinges on effective program management and rigorous testing.

What is Rockwell Collins' track record with DoD avionics upgrades, particularly for rotary-wing aircraft?

Rockwell Collins, now part of Collins Aerospace, has a long and established history of providing avionics systems and upgrades for a wide range of military aircraft, including numerous platforms for the Department of Defense. They have been a significant supplier of cockpit systems, communication, navigation, and mission management equipment. Their experience extends to both fixed-wing and rotary-wing aircraft. For the H-60 family, Rockwell Collins has previously supplied components and integrated systems. Their involvement in developing advanced avionics architectures, including efforts aligned with open systems principles, suggests a strong capability relevant to this MOSA contract. Their track record generally indicates a capacity for delivering complex avionics solutions, though specific performance on past DoD contracts would require deeper analysis.

How does this $80.3 million contract compare to historical spending on H-60M avionics modernization or similar platforms?

Comparing this $80.3 million contract requires context regarding the scope and duration of historical spending. This contract is for approximately four years and focuses on a specific avionics architecture solution. Historical spending on H-60M modernization could encompass a broader range of upgrades, including airframes, engines, and mission equipment, potentially involving multiple contracts over many years. A single avionics architecture contract of this magnitude is significant, reflecting the complexity and strategic importance of modernizing the H-60M's core systems. To provide a precise comparison, one would need to analyze historical contract data for H-60M avionics specifically, looking at the total investment in similar upgrades over comparable timeframes and considering inflation adjustments. Without that granular data, it's difficult to definitively state if $80.3M is high or low relative to past efforts.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

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: Rockwell Collins Australia PTY Limited

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: $80,287,202

Exercised Options: $80,287,202

Current Obligation: $80,287,202

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ20D0070

IDV Type: IDC

Timeline