DoD's $20.8M F-15 Communication System Contract Awarded to Rockwell Collins Raises Questions on Competition
Contract Overview
Contract Amount: $20,798,848 ($20.8M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-08-01
End Date: 2017-09-01
Contract Duration: 1,127 days
Daily Burn Rate: $18.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HEADS UNIT DISPLAY (HUD) APPLICABLE F-15
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $20.8 million to ROCKWELL COLLINS, INC. for work described as: HEADS UNIT DISPLAY (HUD) APPLICABLE F-15 Key points: 1. The contract for HEADS UNIT DISPLAY (HUD) applicable F-15 systems was awarded to Rockwell Collins, Inc. 2. The total award amount is $20,798,848. 3. The contract was not competed, raising potential concerns about price discovery and value for taxpayer money. 4. The sector is Defense, specifically related to communications equipment manufacturing.
Value Assessment
Rating: questionable
Without competitive bidding, it is difficult to assess if the $20.8 million price represents fair market value. Benchmarking against similar communication systems for military aircraft would be necessary to determine if the pricing is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This lack of competition limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for this communication system.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding on this defense contract. The sole-source nature of the award warrants scrutiny to ensure the government received the best possible price. The specific F-15 communication system's necessity and functionality should be clearly justified to the public.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Firm Fixed Price contract type can provide cost certainty if priced appropriately
- Awarded to a known defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically for manufacturing wireless communications equipment for military aircraft. Spending in this area is critical for national security but requires careful oversight to ensure efficiency.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in oversight or justification for avoiding a competitive process. Robust oversight is crucial to ensure fair pricing and prevent waste in sole-source procurements.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award justification
- No indication of small business participation
- Risk of vendor lock-in
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ia, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to ROCKWELL COLLINS, INC.. HEADS UNIT DISPLAY (HUD) APPLICABLE F-15
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 $20.8 million.
What is the period of performance?
Start: 2014-08-01. End: 2017-09-01.
What was the justification for not competing this contract, and was a full and open competition truly not feasible?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a strong justification, such as unique capabilities, urgent need, or lack of viable alternatives. Without this information, it's impossible to determine if a full and open competition was genuinely infeasible, raising concerns about potential circumvention of standard procurement practices.
How does the unit cost of this F-15 communication system compare to similar systems procured competitively for other aircraft or previous F-15 upgrades?
Benchmarking the unit cost against similar communication systems is essential for assessing value. Without access to comparative pricing data from competitive procurements, it's difficult to ascertain if Rockwell Collins' pricing is reasonable. A thorough analysis would involve comparing specifications, capabilities, and contract terms of comparable systems to identify any significant deviations.
What is the long-term sustainment and upgrade strategy for this communication system, and how will future procurements be handled to ensure competition?
The long-term strategy for sustainment and upgrades is critical for managing costs over the system's lifecycle. Future procurements should aim for competitive bidding to leverage market forces and achieve better pricing. Understanding the technology roadmap and potential for future competition will help ensure sustained value and prevent lock-in with a single vendor.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
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: $20,798,848
Exercised Options: $20,798,848
Current Obligation: $20,798,848
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA852304D0002
IDV Type: IDC
Timeline
Start Date: 2014-08-01
Current End Date: 2017-09-01
Potential End Date: 2017-09-01 00:00:00
Last Modified: 2014-09-25
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