DoD's $396M DAGR Follow-On Contract Awarded to Rockwell Collins Without Competition
Contract Overview
Contract Amount: $396,227,744 ($396.2M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-03-10
End Date: 2017-06-30
Contract Duration: 3,034 days
Daily Burn Rate: $130.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DAGR FOLLOW-ON
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $396.2 million to ROCKWELL COLLINS, INC. for work described as: DAGR FOLLOW-ON Key points: 1. Significant spending on navigation systems, highlighting reliance on specialized technology. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The sole-source award to Rockwell Collins suggests a potential barrier to entry for competitors. 4. The IT sector, specifically navigation systems, is critical for defense operations.
Value Assessment
Rating: questionable
The contract value of $396 million over 8 years is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar navigation system contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on this large contract likely results in a higher cost to taxpayers than if it had been competed.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The defense sector's reliance on specific vendors can impact technological advancement. Operational effectiveness could be compromised if the system is not cost-efficiently maintained.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Definitive contract awarded
- Long-term engagement
Sector Analysis
This contract falls within the IT sector, specifically focusing on navigation systems crucial for defense operations. Spending benchmarks for such specialized systems are hard to establish without competitive data.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting a focus on large, established defense contractors for this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the contractor is meeting all performance requirements.
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
- Potential for overpricing due to sole-source award.
- Lack of transparency in the procurement process.
- Risk of vendor lock-in.
- Limited opportunities for small businesses.
- Questionable value for taxpayer money.
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 $396.2 million to ROCKWELL COLLINS, INC.. DAGR FOLLOW-ON
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 $396.2 million.
What is the period of performance?
Start: 2009-03-10. End: 2017-06-30.
What specific factors justified the sole-source award for the DAGR Follow-On, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without detailed documentation, it's unclear if alternatives were thoroughly explored or if the justification was robust enough to warrant foregoing competition, which is generally preferred for ensuring best value.
How does the cost of this contract compare to similar navigation system procurements, considering the lack of competition?
Direct cost comparison is challenging due to the sole-source nature. However, the absence of competition inherently removes market pressure, potentially inflating costs. Benchmarking against publicly available data for similar, competed contracts would be necessary to identify potential cost deviations and assess value for money.
What is the long-term strategic impact of awarding such a significant contract without competition on the broader defense navigation system market?
Awarding large contracts without competition can stifle innovation and discourage new entrants in the defense market. It may entrench incumbent providers, potentially leading to reduced technological advancement and higher long-term costs for the DoD if competitors are not given opportunities to develop and offer alternative solutions.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $1,113,539,686
Exercised Options: $415,151,620
Current Obligation: $396,227,744
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-03-10
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 00:00:00
Last Modified: 2021-02-24
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