Rockwell Collins awarded $11.7M DHS contract for air logistics support, raising questions on competition

Contract Overview

Contract Amount: $11,687,587 ($11.7M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-11

End Date: 2026-08-31

Contract Duration: 354 days

Daily Burn Rate: $33.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE PERIOD 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 $11.7 million to ROCKWELL COLLINS, INC. for work described as: BASE PERIOD PERFORMANCE-BASED LOGISTICS SERVICES FOR ALC. Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Performance-based logistics services indicate a focus on outcomes rather than specific inputs. 3. The contract duration of 354 days suggests a short-term need or a bridge to a larger procurement. 4. The U.S. Coast Guard's reliance on this specific vendor warrants scrutiny of alternatives. 5. Lack of competition may signal limited market availability or a strategic sourcing decision. 6. The firm-fixed-price structure shifts some risk to the contractor, but the sole-source nature mitigates competitive pressure.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and specific performance-based logistics requirements. Without competitive bids, it's difficult to ascertain if the $11.7 million price reflects optimal market value. However, the firm-fixed-price structure provides some cost certainty. Further analysis would require comparing the scope and deliverables to similar, competitively awarded contracts for air logistics support, which are not readily available in the provided data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means there were no other bidders to compare against, potentially leading to a higher price than if the contract had been open to a wider market. This limits the government's ability to leverage market forces for better pricing and innovation.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive bidding. The government did not benefit from the price reductions and improved terms that often result from a competitive procurement process.

Public Impact

The U.S. Coast Guard benefits from essential air logistics support, ensuring operational readiness. This contract supports the maintenance and operational efficiency of Coast Guard aviation assets. The services delivered are critical for the Coast Guard's maritime security and safety missions. The primary beneficiaries are the personnel and operations of the U.S. Coast Guard's aviation fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Lack of transparency in the justification for sole-source award requires further investigation.
Short contract duration may indicate a temporary solution or a precursor to a larger, potentially uncompeted, award.

Positive Signals

Performance-based contract structure encourages contractor efficiency and outcome achievement.
Firm-fixed-price contract provides cost certainty for the government.
Award to Rockwell Collins, a known entity in aviation support, may indicate specialized capabilities.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on support services for aviation. The market for performance-based logistics (PBL) in defense is significant, aiming to improve readiness and reduce total ownership costs. While specific market size data for air logistics support for agencies like the Coast Guard is not provided, it's a critical niche within the larger defense logistics industry. Comparable spending benchmarks would typically involve analyzing other PBL contracts for similar aviation platforms or support functions across government agencies.

Small Business Impact

The provided data indicates that small business participation was not a stated requirement or outcome for this contract (ss: false, sb: false). As a sole-source award to a large corporation, there are no explicit set-aside provisions. Subcontracting opportunities for small businesses are not detailed in this award notice. The impact on the small business ecosystem is likely minimal, as the contract appears to be directly awarded to a prime contractor without a focus on small business inclusion.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. As a sole-source award, the justification and approval process would have undergone specific review. Transparency is limited by the lack of competitive bidding information. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's performance or award.

Related Government Programs

Department of Homeland Security Aviation Support Contracts
U.S. Coast Guard Logistics and Maintenance Services
Performance-Based Logistics (PBL) Contracts
Air Transportation Support Services

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.7 million to ROCKWELL COLLINS, INC.. BASE PERIOD 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 $11.7 million.

What is the period of performance?

Start: 2025-09-11. End: 2026-08-31.

What is the specific justification for awarding this contract on a sole-source basis to Rockwell Collins, Inc.?

The provided data indicates the contract was awarded as 'NOT COMPETED' (ct: NOT COMPETED) and is sole-source. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without further documentation (e.g., a Justification and Approval document), the precise reason remains unclear. This could be due to unique proprietary technology, specialized expertise held exclusively by Rockwell Collins, or a critical operational need that could not be met through a competitive process within the required timeframe. Further investigation into the contract file would be necessary to confirm the official justification.

How does the $11.7 million contract value compare to similar air logistics support contracts awarded by the U.S. Coast Guard or other DHS components?

Direct comparison of the $11.7 million contract value is difficult without knowing the precise scope of 'BASE PERIOD PERFORMANCE-BASED LOGISTICS SERVICES FOR ALC.' The 'ALC' acronym is not defined, and the specific services rendered under this performance-based contract are not detailed. However, for context, major aviation support contracts for federal agencies can range from millions to hundreds of millions of dollars annually, depending on the fleet size, type of aircraft, and level of support required (e.g., full depot maintenance, component repair, supply chain management). The duration of 354 days suggests this is a significant but potentially short-term or foundational award. A true benchmark would require analyzing contracts with similar service level agreements, aircraft types, and performance metrics, ideally from competitively awarded procurements.

What are the key performance indicators (KPIs) or metrics used to measure the success of this performance-based logistics contract?

The provided data describes the contract as 'BASE PERIOD PERFORMANCE-BASED LOGISTICS SERVICES' but does not specify the Key Performance Indicators (KPIs) or metrics. Performance-Based Logistics (PBL) contracts are designed around achieving specific outcomes rather than dictating how the contractor performs tasks. Common KPIs in aviation PBL contracts include aircraft availability rates, response times for parts and repairs, turnaround times for maintenance, mission capable rates, and overall system reliability. The success of this contract would be measured against pre-defined targets for these or similar metrics, with potential financial incentives or penalties tied to performance. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS).

What is Rockwell Collins, Inc.'s track record with the U.S. Coast Guard and Department of Homeland Security for similar services?

Rockwell Collins, Inc. (now part of Collins Aerospace, a Raytheon Technologies company) has a long-standing history of providing avionics, systems, and support services to various branches of the U.S. military and federal agencies, including the U.S. Coast Guard and DHS. They are a major supplier of integrated cockpit and mission systems for numerous aircraft platforms. Their track record typically involves supplying and maintaining complex electronic systems, communication equipment, and navigation aids. While specific details on past performance-based logistics contracts for the Coast Guard are not in the provided data, their extensive experience in aviation electronics and systems integration suggests a strong capability to fulfill such requirements. Past performance evaluations would be a key factor in any award, even sole-source.

Given the sole-source nature, what are the potential risks associated with this contract for the U.S. Coast Guard?

The primary risk associated with a sole-source contract is the potential for reduced value for money due to the lack of competition. This can manifest as higher prices than might be achieved in a competitive environment. Another risk is vendor lock-in, where the government becomes heavily reliant on a single provider, making it difficult or costly to switch vendors in the future. There's also a potential risk of complacency from the contractor, as competitive pressure to innovate or improve service levels is diminished. Furthermore, if the sole-source justification is weak or based on outdated information, it could indicate poor strategic sourcing or planning by the agency, potentially leading to suboptimal support.

What is the historical spending pattern for air logistics support by the U.S. Coast Guard, and how does this contract fit in?

Historical spending patterns for the U.S. Coast Guard's air logistics support are not detailed in the provided data. However, agencies like the Coast Guard operate and maintain a diverse fleet of aircraft (e.g., helicopters, fixed-wing planes) for missions ranging from search and rescue to maritime law enforcement. These operations inherently require significant investment in logistics, maintenance, repair, and overhaul (MRO) services. Contracts for such support can be awarded through various mechanisms, including sole-source agreements for specialized components or services, competitive bids for broader support packages, and performance-based contracts aimed at optimizing readiness and cost-effectiveness. This $11.7 million contract represents a specific instance of funding for such support, potentially covering a defined period or a particular set of services, and its sole-source nature suggests it addresses a specific, non-competed requirement within their overall logistics strategy.

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: $11,687,587

Exercised Options: $11,687,587

Current Obligation: $11,687,587

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $151,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03825DB0000008

IDV Type: IDC

Timeline