DoD's $12M contract for radio and TV equipment to Rockwell Collins shows limited competition and fair value
Contract Overview
Contract Amount: $12,052,069 ($12.1M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-03-22
End Date: 2014-12-31
Contract Duration: 2,841 days
Daily Burn Rate: $4.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPARES
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $12.1 million to ROCKWELL COLLINS, INC. for work described as: SPARES Key points: 1. The contract's value of $12 million over seven years suggests a moderate annual spend. 2. Limited competition for this contract may have impacted price discovery and potentially increased costs. 3. The firm fixed-price contract type offers cost certainty for the government. 4. The duration of the contract (2841 days) indicates a long-term need for these specialized equipment. 5. The contractor, Rockwell Collins, is a significant player in the aerospace and defense sector. 6. The absence of small business set-asides suggests this contract was not specifically targeted for smaller enterprises.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the equipment procured. However, a $12 million spend over nearly eight years averages to approximately $1.5 million annually. This appears to be a reasonable amount for specialized defense communication equipment, especially considering the contractor's established presence. The firm fixed-price nature of the contract provides cost predictability, which is a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that the government did not benefit from the potential price reductions and innovation that can arise from a competitive bidding process.
Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is less pressure on the contractor to offer the most competitive bid.
Public Impact
The Department of Defense is the primary beneficiary, receiving essential radio and television broadcasting and wireless communications equipment. This equipment likely supports critical communication infrastructure for military operations and personnel. The contract's impact is primarily national, supporting defense capabilities rather than specific geographic regions. The contract supports the workforce of Rockwell Collins, a major defense contractor, in its manufacturing and engineering roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
- Lack of transparency regarding the justification for sole-source award.
- Long contract duration could lead to technology obsolescence if not managed carefully.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Contractor is an established and experienced provider in the defense sector.
- Contract supports critical defense communication needs.
Sector Analysis
The contract falls within the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector (NAICS 334220). This is a specialized segment of the manufacturing industry focused on producing equipment for communication networks. The market is characterized by high technological requirements and often involves significant research and development. Spending in this sector for defense purposes is crucial for maintaining secure and reliable communication capabilities.
Small Business Impact
This contract was not awarded as a small business set-aside, and the contractor, Rockwell Collins, is a large corporation. There is no indication of subcontracting plans specifically for small businesses within the provided data. This means the contract did not directly contribute to the small business ecosystem through set-aside goals.
Oversight & Accountability
The provided data does not detail specific oversight mechanisms for this contract. However, as a Department of Defense contract, it would typically be subject to oversight by the Defense Contract Management Agency (DCMA) for performance and compliance. Inspector General investigations could be initiated if fraud or mismanagement were suspected. Transparency is limited by the sole-source nature and lack of public detail.
Related Government Programs
- Defense Communications Equipment Procurement
- Wireless Communication Systems
- Broadcasting Equipment Manufacturing
- Department of Defense IT and Communications
Risk Flags
- Sole-source award may lead to higher costs.
- Lack of competition limits price discovery.
- Potential for technology obsolescence over the contract's long duration.
Tags
defense, department-of-defense, rockwell-collins, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, sole-source, firm-fixed-price, large-contract, iowa, information-assurance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to ROCKWELL COLLINS, INC.. SPARES
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $12.1 million.
What is the period of performance?
Start: 2007-03-22. End: 2014-12-31.
What specific types of radio and television broadcasting and wireless communications equipment were procured under this contract?
The provided data does not specify the exact types of equipment. However, given the contractor (Rockwell Collins, known for avionics and communication systems) and the NAICS code (334220 - Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing), it is likely that the equipment includes advanced radio transceivers, communication systems for aircraft or ground vehicles, potentially satellite communication terminals, or related broadcasting infrastructure components. The 'IA' contract status might indicate 'Information Assurance' related equipment, suggesting secure communication devices.
What was the justification for awarding this contract on a sole-source basis?
The data indicates the contract was 'NOT COMPETED' and awarded on a sole-source basis. Specific justifications are not provided in the data snippet. Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For defense contracts, this could involve proprietary technology, unique integration requirements with existing systems, or a critical and immediate operational need where a full and open competition would be impractical or detrimental to national security.
How does the $12 million contract value compare to similar procurements for defense communication equipment?
Comparing the $12 million value requires context on the specific equipment and its capabilities. As an approximately $1.5 million annual spend over seven years, it represents a moderate investment. Without knowing the exact nature of the equipment (e.g., tactical radios vs. large-scale broadcasting infrastructure), direct comparison is difficult. However, for specialized, high-reliability defense communication systems, this value range is not unusual. Large-scale procurements for advanced systems can easily reach tens or hundreds of millions of dollars, while smaller, more standardized items would be significantly less.
What is Rockwell Collins' track record with the Department of Defense for similar equipment?
Rockwell Collins (now part of Collins Aerospace, a Raytheon Technologies company) has a long and extensive track record of supplying communication, navigation, and avionics systems to the Department of Defense. They are a well-established prime contractor for numerous military platforms, including aircraft and ground systems. Their history with the DoD suggests a strong capability in delivering complex, high-technology equipment that meets stringent military specifications. This specific contract likely builds upon that established relationship and demonstrated performance.
What are the potential risks associated with a sole-source award for this type of equipment?
The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Taxpayers may end up paying more than they would in a competitive environment. Other risks include reduced innovation, as the contractor may have less incentive to develop cost-saving or performance-enhancing solutions. There's also a risk of vendor lock-in, making it difficult and costly to switch providers in the future. Furthermore, without competition, there's a reduced opportunity to discover alternative, potentially superior, technologies or suppliers.
How does the 'IA' contract status potentially influence the type of equipment and associated risks?
The 'IA' status, often associated with Information Assurance, suggests that the procured equipment is intended for secure communication and data protection. This implies a focus on cybersecurity features, encryption capabilities, and resistance to electronic warfare. The risks associated with such equipment are heightened; a failure in information assurance could lead to compromised sensitive data, loss of communication integrity, or network breaches. Therefore, the reliability, security, and compliance with stringent defense standards are paramount, potentially justifying a sole-source award if only one vendor meets these exacting requirements.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,052,069
Exercised Options: $12,052,069
Current Obligation: $12,052,069
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA852304D0002
IDV Type: IDC
Timeline
Start Date: 2007-03-22
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2014-07-24
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