DoD's $36.5M contract for aircraft training devices awarded to Rockwell Collins, with a 3-year duration

Contract Overview

Contract Amount: $36,521,909 ($36.5M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2005-07-08

End Date: 2012-03-23

Contract Duration: 2,450 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200510!000118!5700!FA8223!OO-ALC/PKT/YWK !F4263099D0244 !A!N! !N!0013 ! !20050708!20060131!809238447!809238447!962960589!N!ROCKWELL COLLINS SIMULATION & !22626 SALLY RIDE DR !STERLING !VA!20164!75376!107!51!STERLING !LOUDOUN !VIRGINIA !+000000999975!N!N!000000000000!J069!MAINT & REPAIR OF EQ/TRAINING AIDS & DEVICES !S1 !SERVICES !000 !* !336413!E! !5!A!S! ! ! !20200930!B! ! !A! !A!N!J!2!002!K! !C!N!Z! ! !N!B!N!N! ! !A! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498, UNITED STATES OF AMERICA

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $36.5 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: 200510!000118!5700!FA8223!OO-ALC/PKT/YWK !F4263099D0244 !A!N! !N!0013 ! !20050708!20060131!809238447!809238447!962960589!N!ROCKWELL COLLINS SIMULATION & !22626 SALLY RIDE DR !STERLING !VA!20164!75376!107!51!STERLING !LOUD… Key points: 1. The contract value of $36.5 million represents a significant investment in maintaining and repairing training equipment. 2. Competition dynamics for this contract are complex, involving a 'full and open competition after exclusion of sources' approach. 3. Risk indicators appear moderate, with a firm fixed-price contract type potentially mitigating cost overruns. 4. Performance context suggests a focus on ensuring the operational readiness of critical training aids for aircrews. 5. This contract positions Rockwell Collins as a key provider within the defense training and simulation sector.

Value Assessment

Rating: good

The contract value of $36.5 million for maintenance and repair of training aids and devices appears reasonable given the duration and the specialized nature of the equipment. Benchmarking against similar contracts for complex simulation systems is challenging without more specific details on the exact devices and services. However, the firm fixed-price structure suggests an effort to control costs, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was open, certain sources may have been excluded for specific reasons. The number of bidders is not explicitly stated, but this procurement method suggests a potentially limited pool of qualified offerors. This could impact price discovery, as fewer bidders might lead to less aggressive pricing.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the most aggressive pricing achievable through a broader bidding process. However, the 'full and open' aspect suggests that eligible companies had a chance to compete.

Public Impact

Air Force personnel and aircrews benefit from reliable and up-to-date training simulators. Services delivered include maintenance and repair of essential training aids and devices. The geographic impact is likely concentrated around Air Force bases where these training devices are deployed. Workforce implications include the need for skilled technicians to maintain and repair sophisticated simulation equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition to result in higher costs for taxpayers.
Dependence on a single contractor for critical training equipment maintenance could pose a risk if performance falters.
The 'exclusion of sources' clause warrants further investigation to understand its justification and impact on competition.

Positive Signals

Firm fixed-price contract type helps control costs and provides budget certainty.
Rockwell Collins' established presence in defense simulation suggests a high likelihood of successful performance.
The contract duration of over 7 years indicates a long-term commitment to maintaining critical training capabilities.

Sector Analysis

The defense simulation and training market is a specialized segment within the broader aerospace and defense industry. Companies like Rockwell Collins are key players, providing advanced solutions that are crucial for military readiness. Spending in this sector is driven by the need for realistic training environments that can replicate complex combat scenarios, reducing risks and costs associated with live training. This contract fits within the category of sustainment and maintenance for existing training infrastructure.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. Given the specialized nature of the equipment and services, it is possible that subcontracting opportunities may exist for smaller firms with specific technical expertise. However, the primary awardee is a large corporation, suggesting that direct small business participation may be limited unless specifically mandated or pursued through subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The firm fixed-price nature of the contract provides a degree of accountability by capping the government's financial liability. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed cost breakdowns may not always be publicly available.

Related Government Programs

Aircraft Maintenance and Repair
Defense Training Systems
Simulation and Modeling
Air Force Equipment Procurement
Aerospace Manufacturing Support

Risk Flags

Limited competition may impact price.
Long contract duration increases risk of performance degradation or obsolescence.
Exclusion of sources requires justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.5 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. 200510!000118!5700!FA8223!OO-ALC/PKT/YWK !F4263099D0244 !A!N! !N!0013 ! !20050708!20060131!809238447!809238447!962960589!N!ROCKWELL COLLINS SIMULATION & !22626 SALLY RIDE DR !STERLING !VA!20164!75376!107!51!STERLING !LOUDOUN !VIRGINIA !+000000999975!N!N!000000000000!J069!MAINT & REPAIR OF EQ/TRAINING AIDS & DEVICES !S1 !SERVICES !000 !* !336413!E! !5!A!S! ! ! !202

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 $36.5 million.

What is the period of performance?

Start: 2005-07-08. End: 2012-03-23.

What specific types of aircraft training devices are covered under this contract?

The contract data indicates the National Item Identification Number (NIIN) is '336413', which corresponds to 'Aircraft simulator components' or 'Training aids and devices'. While the specific models or types of simulators are not detailed in the provided data, this classification suggests the contract covers the maintenance and repair of equipment used for pilot training, flight simulation, and potentially other operational training scenarios for aircrews. The broad description 'MAINT & REPAIR OF EQ/TRAINING AIDS & DEVICES' implies a range of equipment critical to maintaining pilot proficiency and mission readiness.

How does the 'full and open competition after exclusion of sources' procurement method compare to standard full and open competition?

Standard full and open competition allows all responsible sources to submit an offer, ensuring the widest possible competition. 'Full and open competition after exclusion of sources' is a specific type of competitive procurement where the agency initially excludes certain sources from consideration, often due to reasons like national security, proprietary information, or specific technical requirements that only a limited number of entities can meet. After this exclusion, the remaining pool of potential offerors competes on a full and open basis. This method aims to balance the benefits of broad competition with the need to address specific constraints or requirements that might limit the eligible bidder pool from the outset.

What is the historical spending trend for similar aircraft training device maintenance contracts by the Department of Defense?

Analyzing historical spending trends for similar contracts requires access to extensive historical procurement data. However, it is generally understood that the Department of Defense consistently invests significant resources in maintaining and upgrading its training and simulation capabilities. This is driven by the evolving nature of warfare, the need for realistic training environments, and the high cost of live training exercises. Spending in this area tends to be stable, with fluctuations often tied to modernization programs, new aircraft platforms, or changes in training doctrine. Contracts for maintenance and repair are crucial for ensuring the longevity and operational readiness of these expensive training assets.

What are the potential risks associated with a long-term contract (over 7 years) for maintenance and repair services?

Long-term contracts for maintenance and repair, like this one spanning over seven years (from initial award date to final delivery date), carry several potential risks. Firstly, there's the risk of contractor performance degradation over time; initial quality may not be sustained. Secondly, technological obsolescence is a concern; the training devices might become outdated during the contract period, requiring modifications or new solutions not initially envisioned. Thirdly, cost escalation can occur if the firm fixed-price model doesn't adequately account for unforeseen inflation or material cost increases, potentially leading to contract modifications or disputes. Finally, there's a risk of vendor lock-in, making it difficult and costly to switch providers if performance issues arise or better alternatives emerge.

How does Rockwell Collins' track record in defense simulation influence the assessment of this contract's success probability?

Rockwell Collins (now part of Collins Aerospace) has a well-established and strong track record in the defense simulation and training sector. They are known for developing and supporting a wide range of sophisticated training systems for various military platforms. This extensive experience suggests a high probability of successful performance on this contract. Their familiarity with military requirements, established manufacturing and support processes, and existing relationships within the DoD likely contribute to their ability to meet the contract's technical and performance specifications effectively. A proven history reduces the perceived risk associated with contractor capability.

What is the significance of the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code in relation to this contract?

The North American Industry Classification System (NAICS) code '336413 - Other Aircraft Parts and Auxiliary Equipment Manufacturing' is assigned to this contract. While the contract's description focuses on 'MAINT & REPAIR OF EQ/TRAINING AIDS & DEVICES,' this NAICS code suggests that the contractor, Rockwell Collins, is categorized within this manufacturing sector. This implies that the company's primary business activities, or at least a significant portion thereof, involve the production or support of parts and auxiliary equipment for aircraft. For this specific contract, it indicates that the maintenance and repair services provided are likely related to specialized components or systems integral to aircraft operation or training, rather than general-purpose equipment.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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

Parent Contract

Parent Award PIID: F4263099D0244

IDV Type: IDC

Timeline