DoD awards $36.3M for aircraft parts to Rockwell Collins, raising questions on sole-source justification
Contract Overview
Contract Amount: $36,329,249 ($36.3M)
Contractor: Rockwell Collins Simulation & Training Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2011-07-31
Contract Duration: 1,033 days
Daily Burn Rate: $35.2K/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: CLS
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52401, UNITED STATES OF AMERICA
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $36.3 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: CLS Key points: 1. Significant contract value of $36.3M awarded. 2. Rockwell Collins is the sole awardee. 3. Competition method raises potential concerns regarding price discovery. 4. Contract falls under 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $36.3M is substantial. Without clear benchmarks or competitive pricing data, it's difficult to assess if this price is optimal. The 'exclusion of sources' clause warrants further scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This method may restrict price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The limited competition approach could result in a less favorable price for taxpayers compared to a fully open and competitive process.
Public Impact
Taxpayers may be paying a premium due to limited competition. The specific aircraft parts and their necessity require transparency. Potential for future contracts to follow similar limited competition patterns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition justification
- Lack of transparency in pricing
- Potential for cost overruns
Positive Signals
- Award to established vendor
- Specific need for aircraft parts
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely based on defense needs and technological advancements. Benchmarks are difficult without specific part identification.
Small Business Impact
The contract was awarded to Rockwell Collins Simulation & Training Solutions LLC, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The 'exclusion of sources' clause requires robust justification from the Department of the Air Force to ensure proper oversight and accountability. A review of the justification is crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Justification for exclusion of sources
- Potential for inflated pricing
- Lack of small business participation
- Limited transparency in award process
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ia, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.3 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. CLS
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 $36.3 million.
What is the period of performance?
Start: 2008-10-01. End: 2011-07-31.
What specific justification was provided for excluding other potential sources, and how does it align with FAR regulations?
The justification for excluding other sources is critical for understanding the procurement's validity. It must demonstrate compelling reasons, such as unique capabilities or urgent needs, that outweigh the benefits of full and open competition. Without this detailed justification, the award process appears less transparent and potentially less cost-effective for the government.
How does the unit cost of these aircraft parts compare to similar components procured through fully competitive means?
Comparing the unit cost to similar components procured competitively is essential for assessing value. If this contract's pricing is significantly higher, it suggests that the limited competition may have resulted in a less favorable price for the government. Further analysis of the specific parts and their market prices is needed.
What is the long-term strategic impact of awarding such contracts with limited competition on the overall defense supply chain and innovation?
Awarding contracts with limited competition can stifle innovation and reduce the agility of the defense supply chain. Over-reliance on a few vendors may lead to complacency and higher prices. Encouraging broader competition fosters a more robust and cost-effective ecosystem, ensuring access to a wider range of technologies and solutions.
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
Financial Breakdown
Contract Ceiling: $36,329,249
Exercised Options: $36,329,249
Current Obligation: $36,329,249
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F4263099D0244
IDV Type: IDC
Timeline
Start Date: 2008-10-01
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2016-02-10
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