DoD's $315M E2D HITS-III TT DEVICE Contract Awarded to Rockwell Collins Without Competition

Contract Overview

Contract Amount: $315,302,107 ($315.3M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2017-06-15

End Date: 2026-07-31

Contract Duration: 3,333 days

Daily Burn Rate: $94.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: E2D HITS-III TT DEVICE 15F14 S/N 4

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $315.3 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: E2D HITS-III TT DEVICE 15F14 S/N 4 Key points: 1. Significant investment in specialized training equipment for naval aviation. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long contract duration (2017-2026) suggests a critical, long-term need. 4. Contract type (Firm Fixed Price) aims to control costs, but initial price needs benchmarking. 5. Focus on simulation and training highlights the importance of readiness for naval pilots. 6. Geographic concentration in Iowa for a major defense contract.

Value Assessment

Rating: questionable

The contract's value of over $315 million over its lifespan requires careful benchmarking against similar simulation and training systems. Without competitive bidding, it is difficult to ascertain if the pricing reflects fair market value. The firm fixed-price structure is a positive indicator for cost control, but the absence of competition means there's less pressure to optimize pricing. Further analysis would involve comparing the capabilities and cost of this system to other available training solutions, both within the DoD and potentially from commercial providers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This typically occurs when a specific contractor possesses unique capabilities or intellectual property essential for the requirement, or in cases of urgent need where competition is not feasible. The lack of multiple bidders means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure to drive down costs. Without a competitive process, there is a reduced incentive for the contractor to offer the lowest possible price.

Public Impact

Naval aviators will benefit from advanced training capabilities, enhancing pilot proficiency and mission readiness. The contract supports the development and sustainment of critical training systems for the E2D Hawkeye aircraft. The primary geographic impact is in Iowa, where Rockwell Collins Simulation & Training Solutions LLC is located. This contract likely supports specialized engineering, manufacturing, and technical roles within the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Long-term contract duration may not reflect evolving technology or changing training needs.
Lack of transparency in the sole-source justification requires scrutiny.
Potential for cost overruns if not closely monitored due to lack of competitive pressure.

Positive Signals

Firm Fixed Price contract type helps to establish cost certainty.
Focus on simulation and training directly supports warfighter readiness.
Contractor has a history in simulation and training solutions.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on simulation and training systems. The market for defense training solutions is substantial, driven by the need for realistic and cost-effective preparation for complex military operations. Companies like Rockwell Collins are key players, providing sophisticated simulators that reduce the need for expensive live-flight training and mitigate risks. Benchmarking this contract's value would involve comparing it to other large-scale simulation contracts for advanced aircraft platforms.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the award is sole-source to a large corporation and does not mention set-asides. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary benefits of this contract will likely flow to the prime contractor and its direct suppliers, with limited direct impact on the small business defense contracting ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, the justification and negotiation process would be subject to review. Transparency may be limited due to the non-competitive nature, but contract performance, milestones, and financial expenditures would be monitored. The Inspector General's office for the Department of Defense could investigate if specific concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Naval Aviation Training Systems
E2D Hawkeye Program
Defense Simulation and Training Contracts
Sole-Source Defense Procurements
Aerospace Simulation Technology

Risk Flags

Sole-source award requires careful justification and oversight.
Long contract duration increases risk of technological obsolescence.
Lack of competition may impact price competitiveness.
Potential for contractor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $315.3 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. E2D HITS-III TT DEVICE 15F14 S/N 4

Who is the contractor on this award?

The obligated recipient is ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $315.3 million.

What is the period of performance?

Start: 2017-06-15. End: 2026-07-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as the existence of only one responsible source capable of providing the required supplies or services, or when a public exigency requires immediate delivery or performance. For this contract, the justification would likely center on Rockwell Collins' unique capabilities, proprietary technology, or specific integration requirements related to the E2D Hawkeye training systems that cannot be met by other vendors. A thorough review of the Justification for Other Than Full and Open Competition (JOFOC) document would be necessary to understand the precise rationale.

How does the per-unit cost or capability of the E2D HITS-III TT DEVICE compare to similar training systems for other naval aircraft platforms?

Direct comparison of per-unit cost or capability is challenging without detailed specifications and pricing breakdowns for both this contract and comparable systems. The E2D HITS-III TT DEVICE is a highly specialized training system for the E2D Hawkeye, a complex airborne early warning and control aircraft. Its cost is influenced by advanced simulation fidelity, integration with aircraft systems, and the specific training scenarios it must replicate. Benchmarking would require identifying training systems for other naval platforms (e.g., F/A-18, P-8 Poseidon) with similar levels of complexity and technological sophistication. Factors such as the number of training devices procured, software development costs, and sustainment requirements would need to be normalized to provide a meaningful comparison of value for money.

What are the potential risks associated with a long-term, sole-source contract for training equipment?

A long-term, sole-source contract presents several risks. Firstly, the lack of competition can lead to reduced incentive for the contractor to innovate or offer cost efficiencies, potentially resulting in higher prices over the contract's duration. Secondly, technological obsolescence is a risk; the training system might become outdated before the contract ends, requiring costly upgrades or modifications. Thirdly, contractor performance issues or financial instability could significantly disrupt critical training capabilities without readily available alternatives. Finally, the government may become locked into a specific technology or vendor, limiting future flexibility and potentially increasing switching costs if a better solution emerges.

What is Rockwell Collins' track record with Department of Defense simulation and training contracts?

Rockwell Collins (now part of Collins Aerospace, a Raytheon Technologies company) has a well-established and extensive track record with the Department of Defense, particularly in the realm of simulation and training systems. They have been a significant provider of simulators, avionics, and related technologies for numerous military aircraft platforms across different branches of service. Their history includes developing and supporting complex training solutions that often require high fidelity and integration with specific aircraft systems. While specific performance metrics for all past contracts are not detailed here, their continued success in securing large, critical contracts suggests a generally positive performance history and strong technical capabilities in this specialized sector.

How has spending on simulation and training for naval aviation evolved over the past decade?

Spending on simulation and training for naval aviation has generally seen a consistent and significant allocation over the past decade, driven by the need to maintain high levels of pilot proficiency while managing operational costs and safety. There has been a trend towards increasing the use of advanced simulation technologies, including virtual reality and high-fidelity simulators, to replicate complex mission environments and reduce reliance on expensive live-flight training. This shift aims to provide more realistic training scenarios, improve safety by allowing practice of high-risk maneuvers, and offer greater flexibility in scheduling training. While specific figures fluctuate based on platform modernization and new aircraft introductions, the overall investment in simulation and training remains a critical component of naval aviation readiness.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6134016R1004

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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $315,345,152

Exercised Options: $315,345,152

Current Obligation: $315,302,107

Actual Outlays: $29,366,362

Subaward Activity

Number of Subawards: 131

Total Subaward Amount: $74,700,670

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline