DoD awards $405M for E-6B aircraft modification kits, with no competition
Contract Overview
Contract Amount: $404,963,641 ($405.0M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-11-27
End Date: 2021-06-30
Contract Duration: 3,137 days
Daily Burn Rate: $129.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: E-6B BLOCK I/ IPBE PHASE 3 MOD KITS
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $405.0 million to ROCKWELL COLLINS, INC. for work described as: E-6B BLOCK I/ IPBE PHASE 3 MOD KITS Key points: 1. Significant investment in aging aircraft sustainment. 2. Sole-source award raises questions about price justification. 3. Long contract duration suggests a sustained need for upgrades. 4. Focus on maintaining strategic airborne command capabilities. 5. Potential for cost overruns due to lack of competitive pressure.
Value Assessment
Rating: questionable
The total award of over $404 million for E-6B Block I/IPBE Phase 3 Mod Kits represents a substantial expenditure. Without competitive bidding, it is difficult to benchmark the value for money. The firm-fixed-price contract type offers some cost certainty, but the absence of competition means taxpayers may not be receiving the best possible price. Further analysis of historical pricing for similar modification kits or internal cost estimates would be needed for a more definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one bidder, Rockwell Collins, Inc., was considered. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from multiple qualified vendors. The lack of competition limits the government's ability to leverage market forces to drive down costs and ensure the most innovative solutions are explored.
Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to offer the lowest bid. This can result in less efficient use of public funds compared to competitively awarded contracts.
Public Impact
Ensures the continued operational readiness of the E-6B Mercury aircraft, a critical component of the U.S. strategic command and control system. Supports the modernization of aging aircraft to meet evolving mission requirements. Benefits the Department of Defense by maintaining a key strategic asset. Impacts the aerospace manufacturing sector through sustained demand for specialized kits and integration services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing.
- Long-term contract duration without competitive review increases risk of cost creep.
- Reliance on a single source for critical aircraft modifications.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the base award.
- Contract awarded to a known entity with existing expertise on the E-6B platform.
Sector Analysis
The E-6B Mercury is a highly specialized aircraft used for strategic communications and command and control. The market for modifications and sustainment of such unique platforms is inherently limited, often leading to sole-source or limited competition scenarios. Rockwell Collins, Inc. (now part of Collins Aerospace) is a significant player in aerospace manufacturing and defense electronics, making them a likely incumbent for such specialized work. Spending on aircraft modifications and upgrades is a substantial part of the defense budget, reflecting the need to maintain a technologically advanced and operationally ready fleet.
Small Business Impact
This contract was not competed and there is no indication of small business set-asides or subcontracting plans. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely minimal unless Rockwell Collins, Inc. voluntarily engages them for specific components or services. The absence of a competitive solicitation means opportunities for small businesses to participate as prime contractors or major subcontractors were not actively pursued through this procurement.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration services to the Department of Defense. Oversight would typically involve monitoring performance, ensuring compliance with contract terms, and verifying delivery of goods and services. The firm-fixed-price nature of the contract provides some level of cost control. However, the lack of competition means that oversight is primarily focused on execution rather than ensuring the best possible price was achieved.
Related Government Programs
- E-6B Mercury Program
- Strategic Communications Aircraft
- Airborne Command Post Programs
- Aerospace Modification and Sustainment Contracts
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Aging aircraft sustainment
Tags
defense, department-of-defense, rockwell-collins-inc, e-6b, aircraft-manufacturing, modification-kits, definitive-contract, firm-fixed-price, sole-source, iowa, strategic-command-and-control
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $405.0 million to ROCKWELL COLLINS, INC.. E-6B BLOCK I/ IPBE PHASE 3 MOD KITS
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 $405.0 million.
What is the period of performance?
Start: 2012-11-27. End: 2021-06-30.
What is the historical spending trend for E-6B modification kits?
Analyzing historical spending on E-6B modification kits requires access to detailed contract databases and specific line item data. However, given the E-6B's role as a critical strategic asset and its aging airframe, it is reasonable to infer a consistent need for sustainment and upgrade activities over its service life. The current $405 million award for Block I/IPBE Phase 3 Mod Kits suggests a significant, multi-year investment. Without specific historical data for this exact modification phase or comparable upgrades, it's challenging to establish a precise trend. However, the longevity of the E-6B platform implies a sustained, albeit potentially fluctuating, expenditure pattern for modifications and maintenance to ensure its continued operational capability.
How does the pricing of this contract compare to similar aircraft modification contracts?
Directly comparing the pricing of this $405 million sole-source contract for E-6B modification kits to similar aircraft modification contracts is difficult without knowing the specific scope of work, the complexity of the modifications, and the type of aircraft involved. Aircraft modification contracts can vary widely in cost based on factors such as the age and complexity of the airframe, the technological advancements being integrated, and the required testing and certification processes. Since this was a sole-source award, there is no competitive benchmark to assess if the price is favorable. A true comparison would require access to data on contracts for modifications of similarly aged and specialized aircraft, ideally those awarded competitively, to establish a market rate for such services.
What are the primary risks associated with a sole-source award for critical aircraft modifications?
The primary risks associated with a sole-source award for critical aircraft modifications, such as these E-6B mod kits, revolve around cost and innovation. Without competition, the government lacks leverage to negotiate the lowest possible price, potentially leading to inflated costs for taxpayers. There's also a reduced incentive for the sole provider to innovate or offer cost-saving efficiencies, as they face no direct threat from competitors. Furthermore, reliance on a single source can create supply chain vulnerabilities and limit flexibility if the contractor encounters production issues or decides to exit the market. This can also impact long-term sustainment if the original provider is the only one with the necessary proprietary knowledge or tooling.
What is the expected impact of these modifications on the E-6B's operational effectiveness?
The E-6B Block I/IPBE Phase 3 Mod Kits are intended to enhance the operational effectiveness of the E-6B Mercury aircraft, which serves as a survivable and reliable mobile command post and communications relay system. These modifications likely address obsolescence issues, improve system reliability, and potentially incorporate upgrades to communication suites, avionics, or command and control systems. The goal is to ensure the E-6B can continue to perform its critical mission of providing secure and survivable command, control, and communications for the nation's strategic forces. The specific enhancements would depend on the details of the 'Block I' and 'IPBE Phase 3' designations, but generally, such upgrades aim to extend the aircraft's service life and maintain its relevance in a modern threat environment.
What is Rockwell Collins, Inc.'s track record with the E-6B program?
Rockwell Collins, Inc. (now part of Collins Aerospace) has a long-standing relationship with the E-6B Mercury program, providing various avionics, communication systems, and modification services. As a major defense contractor specializing in aerospace electronics, they possess significant expertise relevant to the E-6B's complex systems. Their involvement likely spans multiple upgrade phases and sustainment efforts over the aircraft's operational history. While specific details of their performance on past E-6B contracts would require deeper investigation, their continued selection for significant modification efforts suggests a generally satisfactory performance history and established technical capability with this specific platform.
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: N0001911R0038
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 400 COLLINS RD NE, CEDAR RAPIDS, IA, 52498
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $405,649,235
Exercised Options: $405,439,592
Current Obligation: $404,963,641
Actual Outlays: $22,879,217
Subaward Activity
Number of Subawards: 80
Total Subaward Amount: $4,564,059,236
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-11-27
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2025-06-18
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