DoD Awards $177M for E-6B Modification Kits to Rockwell Collins, Lacking Competition
Contract Overview
Contract Amount: $177,108,376 ($177.1M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-07-20
End Date: 2016-02-28
Contract Duration: 2,049 days
Daily Burn Rate: $86.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: E-6B BLOCK I MODIFICATION KIT
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $177.1 million to ROCKWELL COLLINS, INC. for work described as: E-6B BLOCK I MODIFICATION KIT Key points: 1. Significant investment in aircraft modification kits for the E-6B. 2. Sole-source award to Rockwell Collins raises questions about price discovery. 3. Potential risk of overpayment due to limited competition. 4. Spending falls within the broad Defense sector, specifically aircraft manufacturing.
Value Assessment
Rating: questionable
The contract value of $177M for modification kits is substantial. Without competitive bidding, it's difficult to assess if this price is reasonable compared to potential market alternatives or previous similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Rockwell Collins. This lack of competition limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $177M contract suggests taxpayers may not be receiving the best possible price, potentially leading to inefficient use of funds.
Public Impact
Enhances the capabilities of the E-6B aircraft, crucial for strategic communications. Impacts the readiness and operational effectiveness of a key military asset. Funds allocated to a single contractor, Rockwell Collins, for a significant modification effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Addresses critical E-6B modification needs
- Supports national defense capabilities
Sector Analysis
This spending is within the Defense sector, specifically related to aircraft manufacturing and modification. Benchmarks for similar sole-source modification contracts are difficult to establish without competitive data, but the scale of this award warrants 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 award.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Further oversight would be needed to ensure the justification for the sole-source award was robust and that pricing was adequately scrutinized.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpricing
- Sole-source award justification
- Limited transparency in pricing
Tags
aircraft-manufacturing, department-of-defense, ia, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $177.1 million to ROCKWELL COLLINS, INC.. E-6B BLOCK I MODIFICATION KIT
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 $177.1 million.
What is the period of performance?
Start: 2010-07-20. End: 2016-02-28.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can fulfill. Without access to the specific contract file, it's impossible to detail the exact justification. However, the contracting agency should have documented why competition was not feasible or practicable, and explored options to ensure fair and reasonable pricing despite the lack of bids.
How does the per-unit cost of these modification kits compare to industry benchmarks, if available, given the sole-source nature of the award?
Assessing the per-unit cost against industry benchmarks is challenging for sole-source contracts due to the absence of competitive pricing data. If Rockwell Collins possesses unique technology or intellectual property related to the E-6B modification, direct comparisons may be limited. However, the government should have employed cost analysis techniques, such as reviewing historical pricing, analyzing the contractor's cost proposals, and benchmarking against similar, albeit not identical, modifications to ensure reasonableness.
What is the long-term strategic value and potential obsolescence risk associated with these E-6B modification kits?
The E-6B Mercury is a critical airborne command post and communications relay aircraft for the U.S. strategic deterrent. Modifications like Block I are intended to enhance its survivability, capability, and extend its service life. The strategic value lies in maintaining this vital link. However, risks include the potential for rapid technological obsolescence in the fast-evolving aerospace and defense landscape, requiring continuous upgrades and potentially rendering current modifications less effective over time.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001909R0285
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
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: $177,913,605
Exercised Options: $177,913,605
Current Obligation: $177,108,376
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $90,086
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-07-20
Current End Date: 2016-02-28
Potential End Date: 2016-02-28 00:00:00
Last Modified: 2023-05-25
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