DoD's $140.5M Rockwell Collins Contract for Navigation Systems: A Deep Dive
Contract Overview
Contract Amount: $140,542,826 ($140.5M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-05-26
End Date: 2019-08-30
Contract Duration: 4,844 days
Daily Burn Rate: $29.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $140.5 million to ROCKWELL COLLINS, INC. for work described as: Key points: 1. Significant investment in critical defense navigation technology. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract type (Cost Plus Award Fee) can incentivize performance but requires careful oversight. 4. Sector focus on advanced manufacturing for defense systems.
Value Assessment
Rating: good
The contract value of $140.5M over its duration appears reasonable for complex, long-term defense systems development and manufacturing. Benchmarking against similar large-scale navigation system contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. It allows multiple vendors to bid, theoretically driving down costs and ensuring the government receives competitive offers for the required navigation systems.
Taxpayer Impact: Full and open competition aims to maximize taxpayer value by fostering a competitive environment that should lead to more efficient use of funds.
Public Impact
Enhances U.S. military's situational awareness and operational capabilities. Supports advanced technological development in the aerospace and defense sector. Potential for job creation within Rockwell Collins and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can lead to cost overruns if not managed tightly.
- Long contract duration (4844 days) increases risk of scope creep or obsolescence.
- Lack of small business participation noted.
Positive Signals
- Full and open competition utilized.
- Contract awarded to a reputable defense contractor.
- Focus on critical defense technology.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on the manufacturing of advanced navigation and guidance systems. Spending in this area is crucial for maintaining technological superiority but can be high due to R&D and specialized manufacturing requirements.
Small Business Impact
The data indicates no specific small business set-aside or participation. While the prime contractor is large, opportunities for small businesses may exist further down the supply chain, but this contract does not appear to directly prioritize them.
Oversight & Accountability
The use of a Cost Plus Award Fee contract necessitates robust oversight from the Defense Contract Management Agency to ensure performance targets are met and costs are controlled effectively. Regular audits and performance reviews are critical.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Award Fee structure requires diligent oversight.
- Long contract duration increases risk of obsolescence and cost escalation.
- Lack of explicit small business participation.
- Potential for contractor performance issues impacting critical defense capabilities.
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 $140.5 million to ROCKWELL COLLINS, INC.. See the official description on USAspending.
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 $140.5 million.
What is the period of performance?
Start: 2006-05-26. End: 2019-08-30.
What specific performance metrics were used to determine award fees for Rockwell Collins under this contract?
The specific performance metrics for award fees are not detailed in the provided data. Typically, for Cost Plus Award Fee contracts, these metrics are tied to technical performance, schedule adherence, cost control, and overall program management effectiveness. The Defense Contract Management Agency would be responsible for evaluating Rockwell Collins against these pre-defined criteria to determine the fee amount.
How does the $140.5M cost compare to the expected lifecycle cost of the navigation systems being developed?
The provided data does not include information on the expected lifecycle cost of the navigation systems. The $140.5M represents the contract award value, which may cover development, manufacturing, and initial support. A full lifecycle cost analysis would be necessary to determine if this initial investment is cost-effective over the system's operational life.
What are the potential risks associated with the long contract duration of 4844 days for navigation system manufacturing?
A long contract duration of 4844 days (over 13 years) for navigation system manufacturing presents several risks. These include technological obsolescence, as advancements may outpace the system's capabilities during its development and production. There's also a risk of increased costs due to inflation, potential changes in requirements, and the challenge of maintaining contractor focus and efficiency over an extended period.
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: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
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
Financial Breakdown
Contract Ceiling: $77,493,530
Exercised Options: $78,413,893
Current Obligation: $140,542,826
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-05-26
Current End Date: 2019-08-30
Potential End Date: 2019-08-30 00:00:00
Last Modified: 2019-09-17
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