DoD's $34.2M E-2C OFT Upgrade contract awarded to Rockwell Collins for flight simulator enhancements

Contract Overview

Contract Amount: $34,200,369 ($34.2M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-24

End Date: 2015-06-30

Contract Duration: 1,740 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: E-2C OPERATIONAL FLIGHT TRAINER (OFT) DEVICE 2F110 S/N AND S/N 2 COMPREHENSIVE UPGRADE

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $34.2 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: E-2C OPERATIONAL FLIGHT TRAINER (OFT) DEVICE 2F110 S/N AND S/N 2 COMPREHENSIVE UPGRADE Key points: 1. The contract focused on upgrading operational flight trainers, enhancing pilot training capabilities for the E-2C aircraft. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price incentive contract type aims to balance cost control with performance incentives. 4. The duration of the contract was approximately 5 years, indicating a significant investment in training technology. 5. The upgrade likely improved simulation fidelity and training effectiveness for naval aviators. 6. The contract value of $34.2 million represents a substantial investment in aviation training infrastructure.

Value Assessment

Rating: good

The contract value of $34.2 million for a comprehensive upgrade of two operational flight trainers appears reasonable given the complexity of aviation simulation technology. Benchmarking against similar large-scale simulator upgrades would provide a more precise value assessment, but the scope suggests a significant technological enhancement. The fixed-price incentive structure implies a focus on achieving specific performance targets while managing costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of two bids suggests a degree of competition, which generally benefits price discovery and can lead to more favorable terms for the government. The specific number of bidders and the evaluation criteria would offer further insight into the competitive intensity.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, potentially driving down costs and improving the quality of services received.

Public Impact

Naval aviators operating the E-2C Hawkeye aircraft benefit from enhanced training realism and effectiveness. The upgrade directly supports the readiness and proficiency of aircrews responsible for critical airborne early warning and command and control missions. The geographic impact is primarily at naval air stations where the E-2C squadrons are based and training occurs. The contract supports specialized technical jobs in simulation and training technology development and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if performance incentives are not carefully managed.
Risk of obsolescence if the technology upgrade does not anticipate future training needs.
Dependence on a single contractor for long-term support and maintenance of the upgraded trainers.

Positive Signals

Enhances pilot proficiency and mission readiness through advanced simulation.
The fixed-price incentive contract structure encourages contractor performance.
Full and open competition likely resulted in a competitive price.
Modernizes critical training infrastructure for naval aviation.

Sector Analysis

The defense training and simulation market is a significant segment within the broader aerospace and defense industry. Companies like Rockwell Collins are key players, providing advanced simulation solutions that are crucial for military readiness. This contract fits within the sector's trend of investing in high-fidelity simulators to reduce operational costs and improve training outcomes compared to live-flight exercises. Comparable spending benchmarks would involve looking at other major simulator upgrade programs for different aircraft platforms.

Small Business Impact

The contract was awarded to Rockwell Collins Simulation & Training Solutions LLC, a large business. There is no explicit indication of small business set-asides for this specific contract. However, large prime contractors are often required to meet subcontracting goals with small businesses, which could have provided opportunities for smaller firms to participate in specific aspects of the upgrade or maintenance.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the fixed-price incentive contract type, which links payment to performance milestones and cost targets. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of performance and cost may be sensitive.

Related Government Programs

E-2 Hawkeye Program
Naval Aviation Training Systems
Flight Simulator Modernization
Defense Training and Simulation Contracts

Risk Flags

Contract duration and scope may indicate potential for cost overruns if not managed effectively.
Reliance on a single contractor for critical training system upgrades could pose long-term sustainment risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.2 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. E-2C OPERATIONAL FLIGHT TRAINER (OFT) DEVICE 2F110 S/N AND S/N 2 COMPREHENSIVE UPGRADE

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 Navy).

What is the total obligated amount?

The obligated amount is $34.2 million.

What is the period of performance?

Start: 2010-09-24. End: 2015-06-30.

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

Rockwell Collins, now part of Collins Aerospace, has a long and established history of providing simulation and training solutions to various branches of the U.S. military and international partners. They have been a significant player in developing and manufacturing flight simulators, including those for complex aircraft platforms like the E-2 Hawkeye. Their portfolio includes numerous contracts for simulator upgrades, full-mission simulators, and training systems. This extensive experience suggests a strong capability to deliver on complex projects like the E-2C OFT upgrade, with a proven ability to meet stringent military requirements and performance standards. Their track record generally indicates a reliable partner for advanced defense training technologies.

How does the $34.2 million cost compare to other E-2C simulator upgrades or similar defense training systems?

Benchmarking the $34.2 million cost requires comparing it to similar large-scale, comprehensive upgrades of advanced flight simulators for complex military aircraft. While specific figures for E-2C simulator upgrades are not readily public, similar programs for other high-fidelity simulators (e.g., for fighter jets or bombers) can range from tens to hundreds of millions of dollars, depending on the scope of modernization, the number of devices, and the technological advancements incorporated. Given that this contract covered two OFT devices with comprehensive upgrades over a multi-year period, the cost appears to be within a reasonable range for sophisticated defense training equipment. Factors like the specific avionics and software updates, as well as the integration of new training capabilities, would influence the final price.

What are the primary risks associated with this type of fixed-price incentive contract for simulator upgrades?

Fixed-price incentive (FPI) contracts aim to share cost risks and provide incentives for performance. For simulator upgrades, key risks include the contractor potentially cutting corners on quality to meet cost targets, or conversely, the government not achieving desired performance outcomes if incentives are not well-structured. There's also the risk of scope creep if requirements evolve significantly during the upgrade process, leading to disputes over cost adjustments. For the government, ensuring the incentive targets are aligned with critical training needs and that the final product meets all performance specifications is paramount. The contractor faces the risk of absorbing cost overruns if they exceed the target cost without achieving the target profit.

How effective are operational flight trainers (OFTs) in enhancing pilot proficiency compared to actual flight hours?

Operational Flight Trainers (OFTs) are highly effective tools for enhancing pilot proficiency and are often more cost-efficient than accumulating extensive flight hours, especially for complex maneuvers or emergency procedures. OFTs allow pilots to practice scenarios that are too dangerous, expensive, or impractical to replicate in actual aircraft. They provide a safe environment for repetition, skill development, and decision-making under pressure. Modern OFTs, especially after comprehensive upgrades like the one described, offer high-fidelity simulations that closely replicate the aircraft's performance, cockpit environment, and sensory feedback. While they cannot entirely replace live flight training, OFTs significantly reduce the need for expensive flight time, improve training consistency, and allow for focused practice on specific mission-critical skills, thereby increasing overall pilot readiness.

What is the historical spending trend for E-2C training systems and upgrades within the Department of the Navy?

Historical spending on E-2C training systems and upgrades within the Department of the Navy reflects a continuous need to maintain the operational readiness of this critical airborne early warning platform. Over the years, the Navy has invested in various iterations of flight simulators, maintenance trainers, and associated software updates to keep pace with aircraft modernization and evolving threats. Spending patterns would likely show initial procurement costs for new simulator systems, followed by periodic sustainment contracts and significant upgrade efforts, such as the one awarded to Rockwell Collins. These upgrades are driven by the need to incorporate new avionics, operational procedures, and threat environments into the training simulations. Analyzing historical data would reveal cycles of investment tied to the E-2C's lifecycle and technological advancements.

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: FIXED PRICE INCENTIVE (L)

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: $34,200,369

Exercised Options: $34,200,369

Current Obligation: $34,200,369

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6133903D5007

IDV Type: IDC

Timeline