DoD Awards $573M for Airborne Radio Navigation Equipment to Rockwell Collins, Inc
Contract Overview
Contract Amount: $573,216,053 ($573.2M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2002-11-06
End Date: 2015-11-01
Contract Duration: 4,743 days
Daily Burn Rate: $120.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200302!000006!5700!CZ46 !SMC/PKG LOS ANGELES AFB !F0470102C0011 !A!N! !N! !20021106!20030930!060605883!962960589!962960589!N!ROCKWELL COLLINS, INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LINN !IOWA !+000005026814!N!N!000005026814!5826!RADIO NAVIGATION EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !334220!E! !3! ! ! ! ! !99990909!B! ! !B! !A!U!J!2!003!B! !A!N!F! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $573.2 million to ROCKWELL COLLINS, INC. for work described as: 200302!000006!5700!CZ46 !SMC/PKG LOS ANGELES AFB !F0470102C0011 !A!N! !N! !20021106!20030930!060605883!962960589!962960589!N!ROCKWELL COLLINS, INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LINN … Key points: 1. Significant contract awarded to a single, established vendor. 2. The contract spans over a decade, indicating long-term need. 3. Potential for cost savings through competitive bidding, though details are limited. 4. Sector is Electronics and Communication, a critical area for defense.
Value Assessment
Rating: good
The contract value of $573M over 13 years suggests a substantial investment. Benchmarking against similar large-scale defense electronics contracts would be necessary for a precise value assessment, but the duration implies a consistent need and potentially stable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making it difficult to fully assess the competitive pressure on pricing.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers compared to sole-source or limited competition contracts.
Public Impact
Enhances critical airborne navigation capabilities for the Department of Defense. Supports a major defense contractor, potentially impacting regional employment. Long-term nature of the contract suggests sustained defense spending in this area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed bidding process information
- Long contract duration could mask price escalations
Positive Signals
- Awarded under full and open competition
- Addresses a critical defense need
Sector Analysis
This contract falls within the Electronics and Communication sector, specifically focusing on airborne radio navigation equipment. Defense spending in this area is crucial for maintaining technological superiority and operational effectiveness. Benchmarks for similar large-scale defense electronics procurements would provide further context.
Small Business Impact
While the primary awardee is Rockwell Collins, Inc., a large corporation, there is no specific information provided regarding subcontracting opportunities for small businesses within this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating established oversight mechanisms. However, the long duration and lack of detailed bidding information warrant continued monitoring for accountability and value.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration
- Limited transparency on bidding details
- Potential for price escalation over time
- No explicit small business participation noted
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ia, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $573.2 million to ROCKWELL COLLINS, INC.. 200302!000006!5700!CZ46 !SMC/PKG LOS ANGELES AFB !F0470102C0011 !A!N! !N! !20021106!20030930!060605883!962960589!962960589!N!ROCKWELL COLLINS, INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LINN !IOWA !+000005026814!N!N!000005026814!5826!RADIO NAVIGATION EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !334220!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $573.2 million.
What is the period of performance?
Start: 2002-11-06. End: 2015-11-01.
What was the competitive landscape during the bidding process?
The contract was awarded under 'full and open competition,' suggesting multiple bidders were eligible. However, specific details regarding the number of bids received, the evaluation criteria, and the reasons for selecting Rockwell Collins, Inc. are not publicly discernible from the provided data. This limits a full assessment of the competitive intensity.
What is the risk of cost overruns given the contract's duration?
The contract spans over 13 years (from 2002 to 2015), which presents a moderate risk of cost overruns due to potential inflation, changes in material costs, or evolving technological requirements. The firm fixed-price nature offers some protection, but contract modifications or unforeseen issues could still impact the final cost.
How effective is this spending in meeting the DoD's navigation needs?
The award of a significant contract for airborne radio navigation equipment suggests a clear and sustained need within the DoD. The long duration implies that this technology is expected to remain critical for an extended period. Effectiveness would ultimately be measured by the equipment's performance, reliability, and contribution to mission success.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 02
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $72,493,863
Exercised Options: $72,493,863
Current Obligation: $573,216,053
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-11-06
Current End Date: 2015-11-01
Potential End Date: 2015-11-01 00:00:00
Last Modified: 2012-01-23
More Contracts from Rockwell Collins, Inc.
- Federal Contract — $694.0M (Department of Defense)
- ARC-210 FY10-13 Production — $596.6M (Department of Defense)
- 200510!303493!1700!n00019!naval AIR Systems Command !N0001905C0050 !A!N! !N! ! !20050712!20070131!060605883!962960589!962960589!n!rockwell Collins, Inc !400 Collins RD NE !cedar Rapids !ia!52498!12000!113!19!cedar Rapids !linn !iowa !+000002915880!n!n!000282900632!5821!radio and TV Comm Equipment, Airborne !A7 !electronics and Communication Equip !000 !* !334290!A!A!3! ! ! ! ! !20200930!B! ! !A! !d!u!j!1!001!n!1a!z!n!z! ! !Y!C!N! ! ! !z!z!a!a!000!a!b!n! ! ! ! !1719!N00019!0001! ! — $410.2M (Department of Defense)
- E-6B Block I/ Ipbe Phase 3 MOD Kits — $405.0M (Department of Defense)
- Tcts Increment II (tcts Inc II) — $400.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)