DoD's $196M KC-10 Modification Contract Awarded to Rockwell Collins for Air Transportation Support
Contract Overview
Contract Amount: $196,029,038 ($196.0M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-07-01
End Date: 2018-10-30
Contract Duration: 2,678 days
Daily Burn Rate: $73.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST NO FEE
Sector: Defense
Official Description: TRAVEL IN SUPPORT OF KC-10 CNS/ATM MODIFICATION
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $196.0 million to ROCKWELL COLLINS, INC. for work described as: TRAVEL IN SUPPORT OF KC-10 CNS/ATM MODIFICATION Key points: 1. Contract value represents significant investment in aircraft modernization. 2. Sole awardee suggests potential for limited competition or specialized capabilities. 3. Long performance period indicates a complex, multi-year project. 4. Cost-plus-no-fee contract type may incentivize cost escalation. 5. Focus on air transportation support highlights critical defense logistics needs. 6. Contract duration of over 22 years (2678 months) is exceptionally long.
Value Assessment
Rating: questionable
The contract's total value of $196 million for air transportation support is substantial. Without specific benchmarks for KC-10 modifications or similar complex aviation systems, assessing value for money is difficult. The cost-no-fee structure, while common for R&D or uncertain scope projects, can lead to less incentive for the contractor to control costs compared to fixed-price contracts. The extended duration of over 22 years also raises questions about long-term cost-effectiveness and potential for scope creep or obsolescence.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the fact that only one award was made suggests that Rockwell Collins, Inc. was the sole responsible offeror or possessed unique qualifications that made them the most advantageous choice. The level of competition at the award stage, despite the initial open solicitation, warrants further investigation to understand why only one bid was successful.
Taxpayer Impact: While full and open competition is generally beneficial for taxpayers by fostering price discovery, the single award outcome here means taxpayers may not have realized the full benefit of competitive pricing. The government secured a solution, but the potential for lower prices through broader competition was not realized.
Public Impact
The primary beneficiaries are the U.S. Air Force and its KC-10 fleet, ensuring continued operational capability. Services delivered include modifications and support activities crucial for air transportation. Geographic impact is national, supporting Air Mobility Command operations. Workforce implications include specialized engineering, manufacturing, and technical support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-no-fee contract type may lead to less cost control by the contractor.
- The extremely long contract duration of over 22 years presents risks of cost overruns and potential obsolescence.
- Limited competition at award stage, despite full and open solicitation, raises questions about price optimization.
Positive Signals
- Awarded under full and open competition, suggesting a structured procurement process.
- Rockwell Collins, Inc. is a known entity in aerospace and defense, implying established capabilities.
- Contract supports critical national defense assets (KC-10 aircraft).
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft modification and support. The market for such specialized services is often dominated by a few key players with the necessary technical expertise and security clearances. Spending benchmarks for major aircraft modifications can vary widely, but a $196 million contract over an extended period for a critical platform like the KC-10 indicates a significant investment in maintaining and upgrading aging military assets.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the nature of major aircraft modifications and the prime contractor being Rockwell Collins, Inc., it is likely that any small business involvement would be through subcontracting. The extent of small business participation would depend on Rockwell Collins' subcontracting plan and the availability of qualified small businesses for specific components or services.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded within the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may be limited.
Related Government Programs
- KC-10 Extender Program
- Air Mobility Command Modernization Efforts
- Defense Aviation Logistics Support
- Aerospace Systems Modifications
- Air Transportation Services Contracts
Risk Flags
- Unusual contract type (Cost No Fee) for this scale.
- Extremely long contract duration (over 22 years).
- Limited competition at award stage despite full and open solicitation.
- Blank PSC code hinders categorization and comparison.
Tags
defense, department-of-defense, rockwell-collins, kc-10, air-transportation, modification, definitive-contract, full-and-open-competition, cost-plus-no-fee, long-term-contract, aircraft-support, iowa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $196.0 million to ROCKWELL COLLINS, INC.. TRAVEL IN SUPPORT OF KC-10 CNS/ATM MODIFICATION
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 $196.0 million.
What is the period of performance?
Start: 2011-07-01. End: 2018-10-30.
What is Rockwell Collins, Inc.'s track record with similar large-scale defense modification contracts?
Rockwell Collins, Inc. (now part of Collins Aerospace) has a long history of providing avionics, communication, and integrated systems for military aircraft. They have been involved in numerous upgrade and modification programs for various platforms, including commercial and military aircraft. Their experience typically spans systems integration, hardware development, and software engineering. While specific details on past KC-10 related work or contracts of this exact scale require deeper database searches, their general profile suggests a capability to handle complex, high-value defense contracts. Past performance reviews and contract histories would be crucial to fully assess their suitability and execution on this specific $196 million award.
How does the $196 million value compare to other KC-10 modification or sustainment contracts?
Comparing the $196 million value requires access to historical spending data specifically for KC-10 sustainment and modification efforts. However, for a major platform like the KC-10, which has a long service life and requires ongoing upgrades, a contract of this magnitude over its performance period is not unusual. It suggests a comprehensive upgrade or sustainment package. Without direct comparative data points for similar KC-10 modification contracts, it's difficult to definitively state if this represents high or low value. However, the duration (over 22 years) implies a phased approach to modernization or long-term support, which can spread costs but also increases the overall financial commitment.
What are the primary risks associated with a Cost-No-Fee (Cost-Plus-Fixed-Fee or Cost-Plus-Incentive-Fee are more common) contract structure for this type of project?
The 'Cost No Fee' (CNF) contract type, as indicated by 'pt': 'COST NO FEE', is unusual for a contract of this magnitude and duration. CNF contracts are typically used when the scope of work is so uncertain that even defining a fee is impossible, or when the contractor is performing a service where profit is not the primary driver (e.g., government-furnished equipment installation). For a modification project, this structure presents a significant risk of cost escalation, as the contractor is reimbursed for all allowable costs without a defined fee or profit margin to incentivize cost control. This can lead to less scrutiny on expenditures compared to fixed-price or even other cost-reimbursement types with fees. The government bears the primary risk of cost overruns.
What does the 'Other Support Activities for Air Transportation' (ND code) specifically entail for the KC-10?
The 'Other Support Activities for Air Transportation' (NAICS code 488190) typically encompasses a broad range of services related to maintaining and operating air transportation infrastructure and equipment, but not directly operating aircraft. For the KC-10 program, this could include depot-level maintenance, repair and overhaul of components, logistical support, technical data management, engineering services for modifications, testing, and potentially ground support equipment maintenance. Given the contract's focus on 'MODIFICATION', it strongly suggests that the 'support activities' are directly tied to implementing upgrades and enhancements to the KC-10 aircraft systems, rather than routine flight operations or air traffic control.
How does the contract duration of 2678 months (over 22 years) impact the overall cost and risk?
A contract duration of over 22 years is exceptionally long and introduces substantial risks and potential cost implications. Firstly, it significantly increases the likelihood of cost growth due to inflation, evolving technological requirements, and unforeseen challenges over such an extended period. Secondly, the risk of technological obsolescence is high; systems or components installed early in the contract may be outdated by the time the contract concludes. Thirdly, managing such a long-term contract requires sustained oversight and adaptability from both the government and the contractor. It also makes accurate long-term budget forecasting more challenging. While it could allow for phased implementation and potentially smoother integration of upgrades, the sheer length magnifies financial and technical risks considerably.
What is the significance of the 'PSC' code being blank?
The Product and Service Code (PSC) field being blank is unusual for a contract of this nature. PSC codes categorize the type of product or service being procured. A blank PSC might indicate an administrative error in data entry or that the system used did not assign a specific code, possibly because the service fell under a very broad or non-standard category. For a contract involving aircraft modifications and support, one would typically expect codes related to aircraft components, modification services, or engineering support. The absence of a PSC makes it harder to categorize and search for similar procurements, potentially impacting analytical efforts to benchmark this contract against others.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA810609R0007
Offers Received: 4
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 52498
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $221,723,912
Exercised Options: $196,029,038
Current Obligation: $196,029,038
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-07-01
Current End Date: 2018-10-30
Potential End Date: 2018-10-30 00:00:00
Last Modified: 2021-09-09
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