DoD's $113.6M Contract for Aircraft Parts with Rockwell Collins: A Deep Dive

Contract Overview

Contract Amount: $113,629,224 ($113.6M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2006-02-23

End Date: 2013-10-31

Contract Duration: 2,807 days

Daily Burn Rate: $40.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $113.6 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: Key points: 1. Significant spending on aircraft parts, highlighting the defense sector's reliance on specialized components. 2. Sole-source award to Rockwell Collins suggests a lack of readily available alternatives or specific expertise. 3. Long contract duration (2006-2013) indicates a sustained need and potential for price escalation. 4. Fixed Price Incentive contract type aims to balance cost control with performance incentives. 5. No small business participation noted, potentially missing opportunities for smaller defense contractors.

Value Assessment

Rating: fair

The total award amount of $113.6M over seven years is substantial. Without specific unit cost data or benchmarks for similar 'Other Aircraft Parts' contracts, a precise value assessment is difficult. The Fixed Price Incentive structure suggests an attempt at cost management, but the long duration could lead to cost overruns if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and competition, potentially leading to higher costs for taxpayers. The justification for sole-source procurement would be critical to understanding if this was a necessary approach.

Taxpayer Impact: The lack of competition in this sole-source award may have resulted in higher prices than could have been achieved through a competitive bidding process, impacting taxpayer funds.

Public Impact

Taxpayers funded a significant sole-source contract for aircraft parts, raising questions about procurement efficiency. The extended contract period suggests a long-term reliance on specific components, impacting future defense readiness planning. The absence of small business involvement limits opportunities for economic diversification within the defense supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Long contract duration increases risk of cost overruns.
Lack of small business participation.

Positive Signals

Fixed Price Incentive contract type aims for cost control.
Award to a known entity (Rockwell Collins) may ensure specialized capability.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is crucial for maintaining military aviation capabilities. Spending benchmarks for this category can vary widely based on the specific components and technological sophistication required. This contract's value is significant within its niche.

Small Business Impact

This contract did not involve small businesses, as indicated by 'sb': false. This represents a missed opportunity to engage smaller, potentially agile companies in the defense supply chain and could limit broader economic benefits.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny regarding the justification for not competing. Robust oversight would be necessary to ensure the government received fair value and that the contractor met all performance requirements throughout the contract's long duration.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competitive pricing.
Long contract duration increases risk of cost escalation.
Potential for technology obsolescence over contract life.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $113.6 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. See the official description on USAspending.

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 $113.6 million.

What is the period of performance?

Start: 2006-02-23. End: 2013-10-31.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The justification for a sole-source award is critical for understanding the necessity of bypassing competition. Typically, sole-source procurements are reserved for situations where only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this specific justification, it's difficult to assess if taxpayer funds were used optimally or if competitive alternatives were overlooked.

How did the 'Fixed Price Incentive' (FPI) structure perform over the contract's duration, and were target costs met or exceeded?

The FPI contract type aims to incentivize the contractor to control costs while meeting performance targets. Analyzing the final cost and profit achieved versus the initial targets would reveal the effectiveness of this structure. If the contractor significantly exceeded targets, it could indicate issues with initial cost estimations or insufficient oversight, impacting overall value for money.

What was the impact of the long contract duration (2006-2013) on the overall cost-effectiveness and technological relevance of the acquired aircraft parts?

A seven-year contract duration for aircraft parts raises questions about potential obsolescence and the ability to incorporate newer technologies. While it ensures supply continuity, it could also lead to higher costs due to inflation or the procurement of parts for aging platforms. Assessing whether the parts remained technologically relevant and cost-effective throughout the period is key to evaluating the contract's long-term success.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins, Inc. (UEI: 962960589)

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: $113,629,224

Exercised Options: $113,629,224

Current Obligation: $113,629,224

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: F3365701D0012

IDV Type: IDC

Timeline