DoD's $75M SIMULATED MAINTENANCE TRAINER contract awarded to Rockwell Collins for machinery manufacturing

Contract Overview

Contract Amount: $74,988,483 ($75.0M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2010-04-29

End Date: 2014-08-31

Contract Duration: 1,585 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: SIMULATED MAINTENANCE TRAINER (SMT)

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $75.0 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: SIMULATED MAINTENANCE TRAINER (SMT) Key points: 1. The contract value of $75.98 million represents a significant investment in advanced training solutions. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this award to similar training system procurements. 5. The contract falls within the broader Defense sector, specifically focusing on simulation and training technologies. 6. The use of a Cost Plus Incentive Fee (CPIF) contract type suggests a need for performance-based incentives. 7. The duration of the contract (1585 days) indicates a long-term need for these training services.

Value Assessment

Rating: good

The contract value of $75.98 million for simulated maintenance trainers appears reasonable given the scope and duration. Benchmarking against similar complex simulation systems suggests that the pricing is competitive. The CPIF contract type allows for cost savings if performance targets are met, indicating a focus on value for money. However, a detailed cost breakdown would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bidders suggests a moderate level of competition. While not a highly contested award, full and open competition generally promotes price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price for the required training systems. The moderate competition level suggests that while some price pressure existed, it might not have reached the lowest possible price point.

Public Impact

The primary beneficiaries are U.S. Air Force personnel requiring maintenance training for specific aircraft or systems. The contract delivers simulated training environments, enhancing readiness and reducing the need for live training exercises. The geographic impact is primarily within Iowa, where Rockwell Collins Simulation & Training Solutions LLC is located. Workforce implications include the employment of skilled engineers, technicians, and support staff involved in developing and maintaining the simulation systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee (CPIF) contracts if performance targets are not well-defined or achievable.
Reliance on a single contractor for specialized simulation technology could pose a risk if the contractor faces financial or operational difficulties.
The long contract duration may lead to technological obsolescence if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The use of CPIF incentivizes contractor performance and cost efficiency.
The contractor, Rockwell Collins, is a known entity in the simulation and training sector, implying established expertise.

Sector Analysis

This contract falls within the broader aerospace and defense industry, specifically the simulation and training sub-sector. This market is characterized by high technological complexity and significant government investment. Comparable spending benchmarks for advanced training systems can vary widely based on the fidelity and scope of the simulation, but multi-million dollar contracts are common for sophisticated platforms.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on large, specialized contractors capable of delivering complex simulation systems. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and performance standards. Accountability measures are embedded within the CPIF structure, linking contractor payment to performance. Transparency is generally maintained through contract award databases, though detailed cost breakdowns may be proprietary.

Related Government Programs

Military Training Simulators
Flight Simulators
Maintenance Training Systems
Defense Simulation and Training Programs

Risk Flags

Contract Type Risk (CPIF)
Potential for Cost Overruns
Technological Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.0 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. SIMULATED MAINTENANCE TRAINER (SMT)

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 $75.0 million.

What is the period of performance?

Start: 2010-04-29. End: 2014-08-31.

What is Rockwell Collins Simulation & Training Solutions LLC's track record with similar DoD contracts?

Rockwell Collins Simulation & Training Solutions LLC, now part of Collins Aerospace, has a long history of providing simulation and training systems to the Department of Defense and other government agencies. They have been involved in numerous contracts for flight simulators, maintenance trainers, and other virtual training environments across various military platforms. Their track record generally indicates a strong capability in developing and delivering complex simulation technologies. However, specific performance metrics and any past issues on similar contracts would require a deeper dive into contract performance databases and historical award data to fully assess their reliability for this specific SIMULATED MAINTENANCE TRAINER (SMT) contract.

How does the $75.98 million contract value compare to similar simulated maintenance trainer procurements?

The $75.98 million contract value for the SIMULATED MAINTENANCE TRAINER (SMT) appears to be within a reasonable range for advanced military training systems. The cost of such systems can vary significantly based on the complexity, fidelity, and specific platform being simulated. Contracts for full-mission simulators or highly detailed maintenance trainers for advanced aircraft can easily reach tens or even hundreds of millions of dollars. Given that this contract was awarded under full and open competition with two bidders, and has a duration of 1585 days (approximately 4.3 years), the price point suggests a substantial but not necessarily exorbitant investment for the capabilities delivered. A precise comparison would necessitate identifying contracts for identical or highly similar training systems for comparable military assets.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for simulation systems?

The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for simulation systems revolve around cost control and performance definition. While CPIF aims to incentivize efficiency by sharing cost savings or overruns between the government and contractor, there's a risk that poorly defined performance targets could lead to disputes or suboptimal outcomes. If the incentive structure is not carefully crafted, the contractor might focus on achieving the incentive rather than the overall best value or operational effectiveness. For complex simulation systems, estimating costs accurately can be challenging, potentially leading to cost growth that erodes the intended benefits of the incentive fee. Ensuring robust government oversight to monitor costs and verify performance against targets is crucial to mitigate these risks.

How effective are simulated maintenance trainers in improving military readiness compared to traditional training methods?

Simulated maintenance trainers (SMTs) are generally considered highly effective in improving military readiness by providing a safe, repeatable, and cost-efficient training environment. They allow personnel to practice complex maintenance procedures on virtual systems without the risk of damaging expensive equipment or causing safety incidents. SMTs can replicate a wide range of scenarios, including rare malfunctions or hazardous conditions, that are difficult or impossible to simulate in live training. This leads to better skill retention and faster proficiency development. Furthermore, SMTs reduce the operational costs associated with using actual aircraft or equipment for training, such as fuel, maintenance, and flight hours, thereby freeing up valuable assets for operational missions. Their effectiveness is maximized when integrated into a comprehensive training strategy that complements hands-on experience.

What is the historical spending trend for simulated maintenance trainers within the Department of Defense?

Historical spending trends for simulated maintenance trainers within the Department of Defense have generally shown a consistent and often increasing investment over the past two decades. As military platforms become more technologically advanced and complex, the need for sophisticated training solutions like SMTs grows. The DoD recognizes the cost-saving and readiness-enhancing benefits of simulation, leading to sustained funding for these systems across various branches and platforms. Factors such as budget allocations for modernization, the phasing out of older equipment, and the development of new weapon systems all influence spending patterns. While specific figures fluctuate annually based on program priorities and budget cycles, the overall trajectory indicates a strong and ongoing commitment to simulation-based training.

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: N6133902R0063

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

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

Address: 22626 SALLY RIDE DRIVE, STERLING, VA, 20164

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $77,513,252

Exercised Options: $75,076,508

Current Obligation: $74,988,483

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6133903D5007

IDV Type: IDC

Timeline