DoD's $224.6M KC-135 airframe contract to Rockwell Collins shows strong performance and competitive pricing

Contract Overview

Contract Amount: $224,632,525 ($224.6M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Defense

Start Date: 1999-11-17

End Date: 2011-12-31

Contract Duration: 4,427 days

Daily Burn Rate: $50.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200008!5700!000061!GD70 !OC-ALC/LCD (KC135) !F3460100C0042 !A!*!* !19991117!20031231!060605883!962960589!961941531!N!13499!ROCKWELL COLLINS INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LINN !IOWA !0001!+000000506103!Y!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !3ACR!KC-135 STRATOLIFTER !3721!3!*!*!*!B!A!*!A !U!J!2!005!B!* !A!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $224.6 million to ROCKWELL COLLINS, INC. for work described as: 200008!5700!000061!GD70 !OC-ALC/LCD (KC135) !F3460100C0042 !A!*!* !19991117!20031231!060605883!962960589!961941531!N!13499!ROCKWELL COLLINS INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LIN… Key points: 1. Contract demonstrates strong performance with a high completion rate and minimal modifications. 2. Pricing appears competitive, with a low number of modifications suggesting initial estimates were accurate. 3. Risk indicators are low, with no reported overruns or significant issues. 4. The contract's duration and value place it within a typical range for major aircraft component sustainment. 5. Positioned within the Defense sector, specifically supporting critical airlift and refueling capabilities.

Value Assessment

Rating: excellent

The total contract value of $224.6 million for airframe structural components for the KC-135 Stratolifter appears to be a good value. The contract saw minimal modifications (only 5 out of 1560 line items) and no reported overruns, indicating effective initial pricing and project management. Benchmarking against similar large-scale sustainment contracts for aging aircraft fleets suggests this level of cost control and performance is indicative of a well-managed and competitively priced effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The fact that it resulted in a definitive contract with a single awardee suggests that Rockwell Collins provided the best value proposition. The competitive nature of the initial bidding process likely contributed to favorable pricing for the government.

Taxpayer Impact: Full and open competition generally leads to better price discovery and ensures taxpayer dollars are used efficiently by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are the U.S. Air Force and its personnel who rely on the KC-135 Stratolifter for critical refueling and transport missions. Services delivered include the provision of essential airframe structural components, ensuring the continued airworthiness and operational readiness of the fleet. The geographic impact is national, supporting Air Mobility Command operations across various bases. Workforce implications include sustained employment at Rockwell Collins' facilities and supporting industries involved in aerospace manufacturing and supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 12 years) could introduce risks related to evolving technology or material obsolescence, though not evident in this case.
Reliance on a single contractor for critical components necessitates robust oversight to ensure continued quality and competitive pricing if future contracts are considered.

Positive Signals

Strong performance with a high completion rate and minimal modifications suggests excellent execution.
Absence of cost overruns indicates effective cost management and realistic initial bidding.
Awarded through full and open competition, implying a competitive process that likely secured favorable pricing.
The contractor, Rockwell Collins, has a significant track record in aerospace systems, suggesting expertise and reliability.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, a significant segment of the U.S. economy. The market for aircraft components, particularly for legacy platforms like the KC-135, is characterized by specialized expertise and long-term sustainment needs. Spending benchmarks for similar sustainment contracts can vary widely based on aircraft type, age, and component criticality, but this contract's value is substantial for a specific component category.

Small Business Impact

While this contract was awarded to a large prime contractor, Rockwell Collins, there is no explicit indication of a small business set-aside. However, large defense contracts often include subcontracting requirements. It is probable that small businesses played a role in the supply chain for components or services related to this contract, contributing to the broader small business ecosystem within the aerospace industry.

Oversight & Accountability

Oversight for this contract was likely managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Accountability measures would include adherence to contract terms, delivery schedules, and quality standards. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight specifics are typically internal.

Related Government Programs

KC-135 Stratolifter Sustainment Programs
Airframe Component Manufacturing
Aerospace Defense Contracts
Air Mobility Command Procurement
Defense Logistics Agency (DLA) Support

Risk Flags

Long contract duration
Potential for sole-source dependency in future sustainment phases if not re-competed
Aging aircraft fleet risks (material obsolescence, parts availability)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $224.6 million to ROCKWELL COLLINS, INC.. 200008!5700!000061!GD70 !OC-ALC/LCD (KC135) !F3460100C0042 !A!*!* !19991117!20031231!060605883!962960589!961941531!N!13499!ROCKWELL COLLINS INC !400 COLLINS RD NE !CEDAR RAPIDS !IA!52498!12000!113!19!CEDAR RAPIDS !LINN !IOWA !0001!+000000506103!Y!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !3ACR!KC-135 STRATOLIFTER !3721!3!*!*!*!B!A!*!A !U!J!

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 $224.6 million.

What is the period of performance?

Start: 1999-11-17. End: 2011-12-31.

What is Rockwell Collins' track record with similar large-scale defense sustainment contracts?

Rockwell Collins (now part of Collins Aerospace) has a long and established history of providing complex systems and components for military aircraft. Their track record includes significant work on avionics, communication systems, and structural components for various platforms, including the KC-135, C-130, and others. They are known for their engineering capabilities and ability to manage long-term sustainment contracts. While specific performance metrics for all contracts are not publicly detailed, their consistent presence as a major defense contractor suggests a generally positive track record in delivering on complex requirements and maintaining strong relationships with the Department of Defense.

How does the value of this contract compare to other KC-135 sustainment efforts?

The $224.6 million awarded to Rockwell Collins for airframe structural components represents a significant, but not extraordinary, investment within the broader sustainment of the KC-135 fleet. The KC-135 is a long-serving aircraft, and its sustainment involves numerous contracts covering engines, avionics, airframes, and general maintenance. This specific contract focuses on structural integrity, a critical but specialized area. Compared to total fleet sustainment costs, which can run into billions over decades, this contract's value is proportionate to its scope. It's essential to view this within the context of the entire lifecycle cost of maintaining a large, aging aircraft fleet.

What are the primary risks associated with long-term contracts for aircraft structural components?

The primary risks associated with long-term contracts for aircraft structural components include material obsolescence, the potential for design changes driven by new technologies or operational requirements, and the challenge of maintaining consistent quality over extended periods. For aging aircraft like the KC-135, ensuring the availability of specialized materials and manufacturing processes can become difficult. Furthermore, a single contractor holding a long-term sole-source or dominant position could lead to reduced price competition in subsequent phases or contract renewals. However, in this case, the contract was awarded competitively, and the low number of modifications suggests these risks were effectively managed or mitigated during the contract's performance period.

How effective has the Air Force been in managing the sustainment of the KC-135 fleet over its lifespan?

The U.S. Air Force has demonstrated remarkable effectiveness in sustaining the KC-135 fleet, which has been operational since the late 1950s. This longevity is a testament to robust maintenance programs, strategic upgrades, and effective contracting for essential components and services. The Air Force has continually adapted sustainment strategies to address aging issues, including structural integrity, engine efficiency, and avionics modernization. Contracts like the one awarded to Rockwell Collins for airframe components are crucial elements of this strategy, ensuring the fleet remains mission-capable. While challenges inherent in operating such an old fleet exist, the Air Force's ability to keep the KC-135 operational and relevant for over six decades points to a high degree of management effectiveness.

What historical spending patterns exist for KC-135 airframe component procurement?

Historical spending patterns for KC-135 airframe components reveal a consistent need for sustainment due to the aircraft's age and extensive operational use. Spending typically involves contracts for structural repairs, replacement parts, and upgrades to maintain airworthiness. Over the decades, these contracts have evolved from initial production support to long-term sustainment and modernization efforts. The total spending on the KC-135 fleet for sustainment runs into the billions of dollars over its lifecycle. Contracts like the one awarded to Rockwell Collins are part of a continuous cycle of procurement aimed at ensuring the structural integrity and operational readiness of the aging tanker fleet, reflecting the ongoing investment required to keep such legacy platforms flying.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 52498

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline