DoD's $597M Rockwell Collins Contract for Communications Equipment Lacked Competition
Contract Overview
Contract Amount: $596,572,982 ($596.6M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-09-28
End Date: 2017-09-06
Contract Duration: 2,900 days
Daily Burn Rate: $205.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ARC-210 FY10-13 PRODUCTION
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $596.6 million to ROCKWELL COLLINS, INC. for work described as: ARC-210 FY10-13 PRODUCTION Key points: 1. Significant spending of $597M on communications equipment. 2. Sole provider Rockwell Collins, Inc. raises competition concerns. 3. Risk of inflated costs due to lack of competitive bidding. 4. Sector: Defense, specifically Other Communications Equipment Manufacturing.
Value Assessment
Rating: questionable
The total award of $596,572,982 over several years for ARC-210 production suggests a substantial investment. Without competitive benchmarking, it's difficult to definitively assess value, but the lack of competition raises concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Rockwell Collins, Inc. This significantly limits price discovery and potentially leads to higher costs for the government compared to a competitive environment.
Taxpayer Impact: The absence of competition likely resulted in taxpayers paying a premium for this equipment, as there was no market pressure to drive down prices.
Public Impact
Taxpayers may have overpaid for critical defense communications equipment. Lack of competition could stifle innovation in the defense communications sector. Dependence on a single supplier for essential technology poses a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Sole-Source Award
- Potential for Overpricing
Positive Signals
- Definitive Contract Awarded
- Firm Fixed Price Contract
Sector Analysis
The defense sector relies heavily on specialized communications equipment. Spending benchmarks for similar 'Other Communications Equipment Manufacturing' contracts are difficult to ascertain without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates this contract was awarded to Rockwell Collins, Inc., a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Further oversight would be needed to determine if the pricing was justified despite the sole-source nature.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns due to no market pressure.
- Limited visibility into true value for money.
- Supply chain vulnerability due to single supplier.
Tags
other-communications-equipment-manufactu, department-of-defense, ia, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $596.6 million to ROCKWELL COLLINS, INC.. ARC-210 FY10-13 PRODUCTION
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 $596.6 million.
What is the period of performance?
Start: 2009-09-28. End: 2017-09-06.
What was the justification for awarding this contract on a sole-source basis?
The provided data states the contract was 'NOT COMPETED'. A full analysis would require accessing the contract file to understand the specific justification, such as a critical need, unique capability, or lack of viable alternatives at the time of award. Without this, the sole-source nature remains a significant concern regarding value for money.
How does the unit cost compare to similar, potentially competed, systems?
Direct comparison is challenging due to the sole-source nature and lack of specific unit cost data. However, the overall award of $596.6 million for ARC-210 production over approximately 8 years suggests a substantial per-unit cost. A competitive process would typically yield lower prices, making the current cost potentially higher than market value.
What is the long-term risk associated with relying on a single supplier for this equipment?
Long-term reliance on Rockwell Collins for the ARC-210 system presents supply chain risks, including potential disruptions, price increases without competitive pressure, and limited options for upgrades or replacements. This dependence could also hinder the adoption of newer, potentially more advanced technologies from other manufacturers.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001908R0065
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 COLLINS ROAD NE, CEDAR RAPIDS, IA, 52406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $765,779,528
Exercised Options: $596,572,982
Current Obligation: $596,572,982
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-28
Current End Date: 2017-09-06
Potential End Date: 2017-09-06 00:00:00
Last Modified: 2020-09-14
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