DoD Awards $145M Contract to Rockwell Collins for VLF Modernization NRE
Contract Overview
Contract Amount: $145,006,193 ($145.0M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-02-22
End Date: 2026-09-30
Contract Duration: 1,681 days
Daily Burn Rate: $86.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: VLF MODERNIZATION NRE
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $145.0 million to ROCKWELL COLLINS, INC. for work described as: VLF MODERNIZATION NRE Key points: 1. Significant investment in naval communication technology. 2. Sole-source award raises questions about competition and price discovery. 3. Long contract duration (2026) implies substantial future spending. 4. Focus on Aircraft Manufacturing sector, specifically naval aviation support.
Value Assessment
Rating: questionable
The contract value of $145M for NRE (Non-Recurring Engineering) is substantial. Without comparable contracts or detailed cost breakdowns, assessing its value against industry benchmarks is difficult. The 'COST NO FEE' pricing structure suggests potential for cost overruns if not closely monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competed contract. The justification for sole-sourcing is critical.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competition.
Public Impact
Enhances critical naval communication capabilities. Potential for technological advancements in VLF systems. Impacts readiness and operational effectiveness of naval assets. Supports a major defense contractor, Rockwell Collins.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus pricing structure can incentivize higher spending.
- Long contract duration increases risk of cost escalation.
- Lack of clear NRE cost breakdown.
Positive Signals
- Addresses critical modernization need.
- Supports advanced naval communication technology.
- Long-term commitment to a key defense capability.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically supporting naval aviation and communication systems. The $145M value for NRE is significant, and benchmarks for similar specialized NRE projects in defense are often proprietary or difficult to ascertain.
Small Business Impact
The contract was awarded to Rockwell Collins, Inc., a large defense contractor. There is no indication that small businesses were involved in this specific sole-source award, suggesting limited direct impact on the small business sector for this procurement.
Oversight & Accountability
Oversight will be crucial given the sole-source nature and cost-plus pricing. The Department of the Navy must ensure rigorous monitoring of Rockwell Collins' expenditures to control costs and verify the necessity of all incurred expenses.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award.
- Cost-plus pricing.
- Long contract duration.
- Lack of transparency in NRE costs.
- Potential for scope creep.
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 $145.0 million to ROCKWELL COLLINS, INC.. VLF MODERNIZATION NRE
Who is the contractor on this award?
The obligated recipient is ROCKWELL COLLINS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $145.0 million.
What is the period of performance?
Start: 2022-02-22. End: 2026-09-30.
What is the specific justification for the sole-source award, and what steps were taken to ensure fair pricing without competition?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Department of the Navy would need to document these reasons extensively. To ensure fair pricing, they might rely on historical pricing data, independent cost estimates, or price analysis techniques, though these are less effective than competitive bidding.
How will the 'COST NO FEE' structure be managed to prevent cost overruns and ensure efficient use of taxpayer funds?
Managing a 'COST NO FEE' contract requires stringent oversight. The Navy must implement robust auditing processes to verify all costs incurred by Rockwell Collins are reasonable, allocable, and necessary. Regular reviews of progress reports, financial statements, and performance metrics are essential to identify potential cost escalations early and take corrective actions.
What are the key performance indicators (KPIs) for this NRE contract, and how will their achievement be measured to ensure the modernization meets its objectives?
Key performance indicators for NRE contracts often include successful completion of design milestones, prototype development, system integration testing, and validation of technical specifications. The Navy will need to define clear, measurable KPIs tied to the VLF modernization's goals. Regular technical reviews and acceptance testing will be critical to verify that Rockwell Collins is meeting these performance benchmarks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001921R0086
Offers Received: 1
Pricing Type: COST NO FEE (S)
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: $145,006,193
Exercised Options: $145,006,193
Current Obligation: $145,006,193
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $456,150
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-02-22
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-06-04
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