DoD's $324.7M CRIIS Phase II EMD Contract with Rockwell Collins Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $324,709,102 ($324.7M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-08-17
End Date: 2025-05-31
Contract Duration: 5,401 days
Daily Burn Rate: $60.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS) PHASE II EMD
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $324.7 million to ROCKWELL COLLINS, INC. for work described as: COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS) PHASE II EMD Key points: 1. The contract's significant value raises questions about cost-effectiveness given the pricing structure. 2. Limited competition post-exclusion of sources may have impacted price discovery. 3. Potential risks include cost overruns and performance issues due to the CPIF contract type. 4. The sector is critical for naval operations, highlighting the importance of efficient spending.
Value Assessment
Rating: questionable
The Cost Plus Incentive Fee (CPIF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar complex instrumentation systems is difficult without more granular data, but the total value suggests a need for rigorous oversight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited initial competition. This method can restrict the pool of potential bidders and potentially lead to higher prices than a truly open competition.
Taxpayer Impact: The limited competition and CPIF structure raise concerns about taxpayer value, as the government may not be achieving the lowest possible price for this critical system.
Public Impact
Impacts naval search, detection, and navigation capabilities. Potential for cost overruns could divert funds from other defense priorities. Ensuring the system meets performance requirements is crucial for operational effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- CPIF contract type
- Long duration with potential for scope creep
Positive Signals
- Critical technology for naval operations
- Experienced contractor
Sector Analysis
This contract falls within the Defense sector, specifically in the manufacturing of advanced navigation and guidance systems. Spending in this area is often high due to technological complexity and national security requirements. Benchmarks are difficult without specific system comparisons.
Small Business Impact
The data indicates this contract was awarded to Rockwell Collins, Inc., and does not specify any subcontracting to small businesses. Further analysis would be needed to determine if small business participation goals were met.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and CPIF contract type warrant close oversight to ensure cost control and performance. Regular reviews of contractor performance and spending are essential.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPIF structure
- Limited competition may have inflated price
- Long contract duration increases risk of scope creep
- Lack of transparency in source exclusion process
Tags
search-detection-navigation-guidance-aer, department-of-defense, ia, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $324.7 million to ROCKWELL COLLINS, INC.. COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS) PHASE II EMD
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $324.7 million.
What is the period of performance?
Start: 2010-08-17. End: 2025-05-31.
What specific criteria led to the exclusion of other sources, and how did this impact the final contract price?
The exclusion of sources likely stemmed from specific technical requirements or prior development phases that favored certain contractors. Without detailed documentation on this exclusion process, it's difficult to definitively assess its impact on price discovery. However, such exclusions generally limit competitive pressure, potentially leading to less favorable pricing for the government compared to a fully open bid.
How is the incentive fee structure being applied, and what are the key performance metrics driving potential fee adjustments?
The incentive fee structure under a CPIF contract is designed to align contractor and government interests by rewarding performance above target costs or schedule milestones. Key metrics typically include technical performance, delivery schedules, and cost control. The specific metrics and target ranges for this contract would need to be reviewed to understand how they influence the final cost and contractor motivation.
What is the projected total cost variance based on current performance trends, and how does it compare to similar complex system development contracts?
Projecting total cost variance requires ongoing monitoring of the contract's performance against its baseline. Given the CPIF structure and long duration, there's inherent risk of cost growth. A comparative analysis against similar complex system development contracts would be valuable, but requires access to detailed cost performance data and industry benchmarks, which are not provided here.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
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: $454,304,633
Exercised Options: $340,298,547
Current Obligation: $324,709,102
Actual Outlays: $2,670,086
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-08-17
Current End Date: 2025-05-31
Potential End Date: 2025-05-31 00:00:00
Last Modified: 2025-07-30
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