DHS Coast Guard Awards $7.75M for Logistics Services to Rockwell Collins, Inc
Contract Overview
Contract Amount: $7,749,617 ($7.7M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2024-08-14
End Date: 2025-08-31
Contract Duration: 382 days
Daily Burn Rate: $20.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPTION PERIOD FOUR (4) PERFORMANCE-BASED LOGISTICS SERVICES FOR ALC.
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Homeland Security obligated $7.7 million to ROCKWELL COLLINS, INC. for work described as: OPTION PERIOD FOUR (4) PERFORMANCE-BASED LOGISTICS SERVICES FOR ALC. Key points: 1. Significant contract value for logistics support. 2. Sole-source award raises questions about competition. 3. Potential for cost savings through competitive bidding. 4. Focus on air transportation support activities.
Value Assessment
Rating: fair
The $7.75 million award for Option Period Four is a substantial amount for logistics services. Without comparable contract data, it's difficult to definitively assess if the pricing is optimal, but the firm-fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Rockwell Collins, Inc. This limits price discovery and may result in higher costs than if multiple vendors had competed for the business.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these essential logistics services.
Public Impact
Ensures continued operational readiness for the U.S. Coast Guard's aviation assets. Supports critical logistics functions for air transportation. Potential impact on future contract awards if competition is consistently bypassed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Firm-fixed-price contract
- Performance-based logistics
Sector Analysis
This contract falls under 'Other Support Activities for Air Transportation,' a sector crucial for government operations. Benchmarks for similar logistics contracts can vary widely based on scope and complexity, making direct comparison challenging without more detail.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award, as it was a sole-source delivery order. Further analysis would be needed to determine if small business participation is being adequately addressed in broader contracting strategies for this service area.
Oversight & Accountability
The U.S. Coast Guard is responsible for overseeing this contract. Accountability for the effectiveness and cost of these logistics services rests with the agency, particularly given the sole-source nature of the award.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated costs due to lack of bidding.
- Limited transparency on cost-effectiveness.
- No indication of small business participation.
Tags
other-support-activities-for-air-transpo, department-of-homeland-security, ia, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $7.7 million to ROCKWELL COLLINS, INC.. OPTION PERIOD FOUR (4) PERFORMANCE-BASED LOGISTICS SERVICES FOR ALC.
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $7.7 million.
What is the period of performance?
Start: 2024-08-14. End: 2025-08-31.
What is the justification for the sole-source award, and were any attempts made to explore competitive options?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without specific documentation, it's unclear why Rockwell Collins, Inc. was the only viable option. Agencies are generally required to justify sole-source awards and demonstrate that competitive procedures were considered or found impractical.
How does the per-unit cost of these logistics services compare to industry benchmarks or previous contracts?
As this is a sole-source award and specific performance metrics are not detailed, a direct per-unit cost comparison is difficult. The firm-fixed-price structure provides some cost control, but without competitive bids or detailed cost breakdowns, assessing value against benchmarks is challenging. Further analysis of the contract's historical pricing and industry standards would be necessary.
What is the long-term strategy for ensuring cost-effective logistics support for the U.S. Coast Guard's aviation assets?
The long-term strategy should ideally involve exploring competitive contracting methods to foster innovation and drive down costs. While sole-source awards may be necessary in specific circumstances, a consistent reliance on them could lead to inefficiencies. The agency should periodically reassess the market to identify opportunities for future competition.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 52498
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,749,617
Exercised Options: $7,749,617
Current Obligation: $7,749,617
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z03820DB2000019
IDV Type: IDC
Timeline
Start Date: 2024-08-14
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-12-08
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