DHS Coast Guard awards $19.4M for A1U Upgrade to Rockwell Collins, citing no competition

Contract Overview

Contract Amount: $19,416,982 ($19.4M)

Contractor: Rockwell Collins, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-05-10

End Date: 2014-11-03

Contract Duration: 1,638 days

Daily Burn Rate: $11.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A1U UPGRADE

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.4 million to ROCKWELL COLLINS, INC. for work described as: A1U UPGRADE Key points: 1. Significant contract value of $19.4M for aircraft parts. 2. Sole-source award to Rockwell Collins indicates potential lack of competition. 3. Contract duration of 1638 days suggests a long-term need. 4. The 'Other Aircraft Parts' sector is broad and requires specific context for deeper analysis.

Value Assessment

Rating: fair

The contract value of $19.4M for aircraft parts is substantial. Without specific benchmarks for 'A1U Upgrade' components, it's difficult to definitively assess pricing. However, the lack of competition raises concerns about whether a fair market price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning it was not competed. This method limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The sole-source nature of this award potentially means taxpayers paid more than necessary due to the absence of competitive bidding.

Public Impact

Taxpayers may have overpaid due to the lack of competition. The U.S. Coast Guard's operational readiness could be impacted by the availability and cost of these aircraft parts. Dependence on a single supplier can create supply chain risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining aviation fleets across government agencies. Benchmarks are highly dependent on the specific components and their complexity.

Small Business Impact

The awardee, Rockwell Collins, Inc., is a large business. There is no indication that small businesses were involved in this specific sole-source contract, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source justification and award process would be subject to oversight by the Department of Homeland Security's contracting officers and potentially the Government Accountability Office (GAO) if protested. Transparency in the justification for sole-source is key.

Related Government Programs

Risk Flags

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-homeland-security, ia, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.4 million to ROCKWELL COLLINS, INC.. A1U UPGRADE

Who is the contractor on this award?

The obligated recipient is ROCKWELL COLLINS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2010-05-10. End: 2014-11-03.

What specific justification was provided for the sole-source award, and was it adequately documented to ensure fair value?

The justification for a sole-source award typically needs to demonstrate that only one responsible source can satisfy the agency's needs. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without access to the specific justification document, it's impossible to verify its adequacy or confirm if fair value was achieved through negotiation.

What is the long-term risk associated with relying on Rockwell Collins for these specific aircraft parts, especially given the lack of competition?

The primary long-term risk is vendor lock-in and potential price escalation over time. Without competitive pressure, Rockwell Collins may have less incentive to offer competitive pricing in future procurements. Additionally, the Coast Guard's ability to source parts from alternative suppliers or negotiate better terms is diminished, potentially impacting maintenance schedules and budgets.

How does the 'A1U Upgrade' contribute to the U.S. Coast Guard's mission effectiveness, and was this upgrade essential enough to warrant a sole-source procurement?

The 'A1U Upgrade' likely enhances the performance, safety, or operational capabilities of specific Coast Guard aircraft, thereby contributing to mission effectiveness. However, the necessity of a sole-source award hinges on whether alternative solutions or suppliers could have met these critical needs. A thorough analysis would compare the benefits of the upgrade against the potential costs and risks of non-competitive procurement.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,416,982

Exercised Options: $19,416,982

Current Obligation: $19,416,982

Parent Contract

Parent Award PIID: DTCG3803D200011

IDV Type: IDC

Timeline

Start Date: 2010-05-10

Current End Date: 2014-11-03

Potential End Date: 2014-11-03 00:00:00

Last Modified: 2015-01-15

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