DoD Awards $809M for Operational Training Devices to Intelx Corp, Raising Oversight Concerns
Contract Overview
Contract Amount: $98,534,900 ($98.5M)
Contractor: Rockwell Collins Simulation & Training Solutions LLC
Awarding Agency: Department of Defense
Start Date: 1999-06-04
End Date: 2011-09-09
Contract Duration: 4,480 days
Daily Burn Rate: $22.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 199909!5700!0053!GU86 !ASC/YWK !F3365798D0008 !A!*!0002 !19990604!20031030!809238447!809238447!809238447!N!00WX8!INTELX CORPORATION !741 MILLER DR SE F !LEESBURG !VA!20175!44984!107!51!LEESBURG !LOUDOUN !VIRGINIA !0001!+000006306906!N!N!000000000000!6930!OPERATIONAL TRAINING DEVICES !A1C!OTHER AIRCRAFT EQUIPMENT !3000!NOT DISCERNABLE OR CLASSIFIED !3728!5!A!S!*!B!B!*!A !N!J!2!003!F!* !Z!N!Z!* !* !N!B!*!Z!*!C!A!A!*!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $98.5 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: 199909!5700!0053!GU86 !ASC/YWK !F3365798D0008 !A!*!0002 !19990604!20031030!809238447!809238447!809238447!N!00WX8!INTELX CORPORATION !741 MILLER DR SE F !LEESBURG !VA!20175!44984!107!51!LEESBURG !LOUDOU… Key points: 1. Significant contract value of $809M for training devices. 2. Competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' warrants scrutiny. 3. Potential risk due to lack of clear competition and sole-source-like award. 4. Sector is 'Other Aircraft Equipment', part of the broader Defense industry.
Value Assessment
Rating: questionable
The contract value of $809M is substantial. Without clear benchmarks for 'OPERATIONAL TRAINING DEVICES', assessing value for money is difficult. The pricing structure (TIME AND MATERIALS) can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a limited competition. This method may not have yielded the best possible price discovery, potentially impacting cost-effectiveness for taxpayers.
Taxpayer Impact: The limited competition and potential for cost growth under a Time and Materials contract raise concerns about the optimal use of taxpayer funds.
Public Impact
Taxpayers may not have received the best value due to restricted competition. The Department of Defense's procurement process for specialized training equipment is under scrutiny. Lack of transparency in the award process could erode public trust. This contract highlights the need for robust oversight in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Time and Materials pricing
- Lack of clear justification for source exclusion
- Potential for cost overruns
Positive Signals
- Awarded to a specific corporation for specialized equipment
- Contract duration indicates a long-term need for training solutions
Sector Analysis
This contract falls within the Defense sector, specifically for 'OPERATIONAL TRAINING DEVICES'. Spending in this area is critical for military readiness but requires careful oversight to ensure efficiency and value, especially given the specialized nature of the equipment.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. The focus appears to be on larger, specialized providers within the defense supply chain.
Oversight & Accountability
The award method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggests a need for enhanced oversight to ensure the exclusion of sources was justified and that fair pricing was achieved. The lack of small business participation also warrants review.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition raises value concerns.
- Time and Materials contract type increases cost overrun risk.
- Lack of transparency in source exclusion.
- No small business participation noted.
- Substantial contract value requires rigorous oversight.
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 $98.5 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. 199909!5700!0053!GU86 !ASC/YWK !F3365798D0008 !A!*!0002 !19990604!20031030!809238447!809238447!809238447!N!00WX8!INTELX CORPORATION !741 MILLER DR SE F !LEESBURG !VA!20175!44984!107!51!LEESBURG !LOUDOUN !VIRGINIA !0001!+000006306906!N!N!000000000000!6930!OPERATIONAL TRAINING DEVICES !A1C!OTHER AIRCRAFT EQUIPMENT !3000!NOT DISCERNABLE OR CLASSIFIED !3728!5!A!S!*!B!B!*!A !N!J!2!0
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $98.5 million.
What is the period of performance?
Start: 1999-06-04. End: 2011-09-09.
What was the specific justification for excluding other potential sources in this 'full and open competition'?
The justification for excluding other sources is not detailed in the provided data. Typically, such exclusions require a strong rationale, such as unique capabilities, proprietary technology, or urgent needs. Without this information, it's difficult to assess if the competition was truly maximized or if alternative solutions were overlooked, potentially impacting the final price and value.
How does the Time and Materials pricing model mitigate cost risks for operational training devices?
The Time and Materials (T&M) pricing model generally poses a higher risk of cost overruns for the government, as it reimburses the contractor for direct labor and materials plus a fixed fee or percentage. For specialized items like operational training devices, T&M can be justified if the scope is highly uncertain or evolves rapidly. However, robust oversight, detailed cost tracking, and defined ceiling prices are crucial to control spending.
What is the long-term effectiveness and value proposition of these operational training devices?
The long-term effectiveness and value proposition of these operational training devices are not explicitly detailed in the data. Effectiveness would depend on factors like realism, training outcomes achieved, and technological relevance over time. Value is assessed by comparing the training benefits and operational readiness improvements against the total cost of ownership, including maintenance and upgrades, over the system's lifecycle.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins, Inc. (UEI: 962960589)
Address: 741 MILLER DR SE F, LEESBURG, VA, 20175
Business Categories: Category Business, Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3365798D0008
IDV Type: IDC
Timeline
Start Date: 1999-06-04
Current End Date: 2011-09-09
Potential End Date: 2011-09-09 00:00:00
Last Modified: 2018-10-17
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