DoD's $70M E-2D HITS-II OFT DEVICE contract awarded to Rockwell Collins for simulation training

Contract Overview

Contract Amount: $70,008,105 ($70.0M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2014-08-11

End Date: 2019-11-15

Contract Duration: 1,922 days

Daily Burn Rate: $36.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: E-2D HITS-II OFT DEVICE 2F210 S/N 2

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $70.0 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: E-2D HITS-II OFT DEVICE 2F210 S/N 2 Key points: 1. Contract value of $70M over approximately 5 years suggests a significant investment in advanced training capabilities. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The duration of 1922 days (approx. 5.2 years) aligns with the lifecycle of complex training systems. 5. The product service code (PSC) is not specified, making direct comparison to similar equipment difficult. 6. The contractor, Rockwell Collins, is a known entity in aerospace and defense simulation.

Value Assessment

Rating: good

The contract value of $70M for simulation and training devices appears reasonable given the complexity and duration. Without specific per-unit cost data or detailed feature comparisons, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract suggests the government has secured a defined cost for the deliverables, transferring potential cost overruns to the contractor. Benchmarking against similar advanced simulation systems would provide further insight into its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's choice of this competition type indicates confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: A full and open competition typically benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, potentially driving down costs and improving the quality of the delivered product.

Public Impact

The primary beneficiaries are U.S. Navy personnel who will utilize the E-2D HITS-II OFT DEVICE for training. The contract delivers a crucial training device for the E-2D Hawkeye aircraft, enhancing pilot and crew readiness. The geographic impact is likely concentrated around naval air stations where E-2D training occurs. Workforce implications include roles in manufacturing, integration, testing, and maintenance of the simulation device.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the training device.
The absence of detailed cost breakdowns hinders a granular value-for-money analysis.
Potential for scope creep or cost increases if unforeseen technical challenges arise, despite the FFP contract.
Dependence on a single contractor for sustainment and potential upgrades could limit future flexibility.

Positive Signals

Awarded under full and open competition, suggesting a robust market response.
Firm Fixed Price contract structure provides cost certainty for the government.
Contractor (Rockwell Collins) has established expertise in simulation and training systems.
The duration of the contract aligns with the expected operational life of such training equipment.

Sector Analysis

This contract falls within the aerospace and defense simulation and training sector. This market is characterized by high technological complexity, stringent performance requirements, and significant R&D investment. The E-2D HITS-II OFT DEVICE is a specialized training system for a critical naval aviation platform. Spending in this sector is driven by military modernization efforts and the need for realistic, cost-effective training solutions. Comparable spending benchmarks would involve other advanced flight simulators and training systems for complex aircraft.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. There is no explicit mention of small business subcontracting goals. This suggests that the prime contractor, Rockwell Collins, likely handled the majority of the work internally or with larger partners, potentially limiting direct opportunities for small businesses on this particular contract. Further investigation into subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor compliance with terms and conditions. Accountability measures are embedded within the Firm Fixed Price structure, incentivizing the contractor to meet delivery schedules and performance specifications. Transparency is facilitated through contract award databases, though detailed performance reports may be less accessible to the public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

E-2D Hawkeye Aircraft Program
Naval Aviation Training Systems
Flight Simulators
Defense Training and Simulation Contracts
Aerospace Manufacturing

Risk Flags

Potential for schedule delays due to technological complexity.
Risk of cost overruns if unforeseen technical challenges arise.
Dependence on contractor for sustainment and potential future upgrades.
Ensuring long-term maintainability and obsolescence management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.0 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. E-2D HITS-II OFT DEVICE 2F210 S/N 2

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $70.0 million.

What is the period of performance?

Start: 2014-08-11. End: 2019-11-15.

What is Rockwell Collins' track record with similar defense simulation contracts?

Rockwell Collins, now part of RTX (formerly Raytheon Technologies), has a long-standing reputation and extensive experience in developing and manufacturing advanced simulation and training systems for various military platforms. They have a history of delivering complex simulators, including flight simulators, mission trainers, and virtual reality training environments for both fixed-wing and rotary-wing aircraft. Their portfolio includes systems for numerous U.S. military branches and international allies. Past performance on similar contracts, particularly those involving sophisticated avionics integration and high-fidelity simulation for naval aviation, would be a key indicator of their capability to successfully execute the E-2D HITS-II OFT DEVICE contract. Reviewing their performance history on contracts with similar scope, complexity, and value would provide insight into their reliability, quality of deliverables, and adherence to schedule and budget.

How does the $70M contract value compare to other E-2D training system procurements?

Direct comparison of the $70M contract value for the E-2D HITS-II OFT DEVICE to other procurements is challenging without specific details on the scope and capabilities of those other systems. However, the value suggests a significant investment in a high-fidelity training solution. Advanced flight simulators for complex platforms like the E-2D Hawkeye, which involves sophisticated radar and command-and-control functions, typically command substantial budgets due to the intricate hardware, software, and integration required. The duration of the contract (approx. 5.2 years) also indicates a comprehensive development, delivery, and potentially initial support phase. Benchmarking against other major simulator programs within the DoD, particularly for naval aviation platforms, would provide a broader context for assessing whether this $70M figure represents a typical or outlier cost for such capabilities.

What are the primary risks associated with this contract?

Key risks associated with this contract include technological complexity, potential for schedule delays, and cost overruns despite the Firm Fixed Price (FFP) structure. Developing and integrating highly realistic simulation systems requires advanced engineering and can encounter unforeseen technical challenges. The E-2D Hawkeye is a complex aircraft, and replicating its operational environment accurately in a simulator demands significant expertise. Delays in development or delivery could impact Navy training schedules and readiness. While FFP shifts cost risk to the contractor, significant issues could still lead to contract disputes or performance degradation if the contractor struggles to absorb unexpected costs. Furthermore, reliance on specific hardware and software components introduces supply chain risks. Ensuring the long-term maintainability and upgradeability of the system also presents a potential challenge.

How effective is the E-2D HITS-II OFT DEVICE likely to be in improving pilot and crew performance?

The E-2D HITS-II OFT DEVICE is designed to significantly enhance pilot and crew performance by providing a realistic and immersive training environment that mirrors actual operational conditions. High-fidelity simulators allow trainees to practice complex scenarios, emergency procedures, and tactical decision-making in a safe, repeatable setting without the risks and costs associated with live flight training. The 'HITS-II' designation suggests it is likely an advanced iteration, potentially incorporating improved fidelity, expanded training scenarios, or better integration with other training systems compared to earlier versions. Its effectiveness hinges on the accuracy of the simulation, the quality of the training curriculum developed around it, and the proficiency of the instructors utilizing the device. Assuming successful development and implementation, it should contribute substantially to mission readiness and operational proficiency for E-2D crews.

What has been the historical spending trend for E-2D simulation and training equipment?

Analyzing historical spending trends for E-2D simulation and training equipment requires access to detailed procurement data over time. However, it's reasonable to infer that spending in this area would correlate with the E-2D Hawkeye program's lifecycle – from initial development and fielding to sustainment and upgrades. Early years likely saw higher investment in initial system development and procurement of the first training devices. As the fleet matures and operational tempo increases, spending may shift towards sustainment, modernization, and potentially the procurement of additional training devices or upgrades to existing ones to reflect evolving threats and tactics. The $70M award represents a significant single investment, suggesting a need for enhanced or updated training capabilities for the E-2D fleet.

What is the significance of the 'OFT DEVICE' designation?

The 'OFT DEVICE' designation likely stands for 'Operational Flight Trainer' or a similar term indicating a device designed for realistic flight simulation. In the context of the E-2D Hawkeye, an OFT DEVICE would aim to replicate the cockpit environment, flight dynamics, and mission systems of the aircraft as closely as possible. This allows aircrew to train for a wide range of operational scenarios, including navigation, tactical employment of the aircraft's systems (like its advanced radar and battle management capabilities), and emergency procedures. The 'HITS-II' part of the name suggests this is the second iteration or a specific variant of a Hawkeye Integrated Training System, implying advancements in simulation fidelity or scope over previous versions.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6134014R0077

Offers Received: 1

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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $70,008,105

Exercised Options: $70,008,105

Current Obligation: $70,008,105

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $6,860,776

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134012D5113

IDV Type: IDC

Timeline