DoD's $44.9M contract for prototype concept refinement awarded to Rockwell Collins, with no competition

Contract Overview

Contract Amount: $44,875,499 ($44.9M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-27

End Date: 2023-03-17

Contract Duration: 1,632 days

Daily Burn Rate: $27.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: D-DRT PROTOTYPE CONCEPT REFINEMENT

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $44.9 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: D-DRT PROTOTYPE CONCEPT REFINEMENT Key points: 1. The contract's value of $44.9 million represents a significant investment in advanced defense capabilities. 2. Awarded on a sole-source basis, the lack of competition raises questions about potential price efficiencies. 3. The contract duration of 1632 days suggests a long-term commitment to the prototype's development. 4. The 'IA' (Intelligence & Cryptographic Equipment) Speciality Type indicates a focus on sensitive technology. 5. The firm-fixed-price nature of the contract shifts performance risk to the contractor. 6. The contract was awarded to Rockwell Collins Simulation & Training Solutions LLC, a known entity in defense simulation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific prototype focus. Without competitive bids, it's difficult to ascertain if the $44.9 million represents optimal value for money. The absence of comparable contracts for similar prototype concept refinement makes a direct price comparison problematic. However, the duration and scope suggest a substantial effort, and the firm-fixed-price structure implies that the contractor bears cost overruns, which can be a positive indicator of risk management if the price was set appropriately.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Rockwell Collins Simulation & Training Solutions LLC, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they limit the government's ability to explore a wider range of solutions and potentially secure more favorable pricing through competition. The lack of bidders means there was no direct price discovery mechanism.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. The absence of competition could lead to a higher price than might have been achieved in an open market scenario.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, which will receive advanced prototype concepts. The services delivered involve the refinement of concepts for a prototype, likely related to simulation and training technologies. The geographic impact is centered around the contractor's operations in Iowa, where the contract is managed. Workforce implications include specialized engineering, design, and simulation roles within Rockwell Collins and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competitive award.
Sole-source awards can limit innovation by not exploring alternative solutions from other vendors.
The long duration of the contract could introduce risks related to technological obsolescence or changing requirements.

Positive Signals

Award to an established contractor with a track record in simulation and training.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
The contract focuses on prototype concept refinement, a critical early stage of development.

Sector Analysis

This contract falls within the broader 'Other Commercial and Service Industry Machinery Manufacturing' sector, specifically focusing on simulation and training solutions for defense applications. The market for defense simulation and training is substantial, driven by the need for realistic and cost-effective training environments. Comparable spending benchmarks are difficult to establish for unique prototype concept refinement, but overall defense simulation spending runs into billions annually. This contract represents a specific investment in advancing a particular technological concept within that larger market.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests it was not specifically designated for small business concerns. Consequently, there are no direct subcontracting implications for small businesses mandated by this award. The absence of a small business focus means that opportunities for small business participation are likely dependent on Rockwell Collins' own subcontracting decisions, rather than a contractual requirement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price structure, which incentivizes the contractor to manage costs effectively. Transparency is limited due to the sole-source nature of the award, with less public visibility into the negotiation process. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Simulation and Training Programs
Prototype Development Contracts
Advanced Technology Development
Naval Aviation Training Systems

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher cost due to lack of competition.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.9 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. D-DRT PROTOTYPE CONCEPT REFINEMENT

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 $44.9 million.

What is the period of performance?

Start: 2018-09-27. End: 2023-03-17.

What is Rockwell Collins' track record with similar sole-source defense contracts?

Rockwell Collins, now part of Collins Aerospace, has a long history of working with the Department of Defense, often on sole-source or limited-competition contracts for specialized systems. Their expertise lies in areas such as simulation, avionics, and communication systems. While specific details on past sole-source prototype refinement contracts are not readily available in the public domain, their extensive experience in developing complex defense technologies suggests a capacity to handle such projects. However, the lack of competition on this particular $44.9 million contract means that a direct comparison of their performance on similar sole-source awards is difficult without access to internal DoD evaluations or contract histories. The firm-fixed-price nature of this contract implies that the government has sought to mitigate cost risks associated with sole-source awards by placing the onus of cost control on the contractor.

How does the $44.9 million value compare to similar prototype concept refinement efforts in the defense sector?

Directly comparing the $44.9 million value of this contract to similar prototype concept refinement efforts is challenging due to the proprietary and specialized nature of such work, especially when awarded on a sole-source basis. Prototype refinement is a critical but often unique phase in technology development. Contracts for early-stage R&D and concept refinement can vary widely in cost depending on the complexity of the technology, the required level of detail, and the duration of the effort. Without access to a database of comparable sole-source prototype refinement contracts, it's difficult to establish a precise benchmark. However, $44.9 million for a multi-year effort (1632 days) focused on refining a defense prototype concept suggests a significant undertaking, likely involving advanced simulation or specialized hardware/software development.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude ($44.9 million) include potential overpayment due to the absence of competitive pressure, limited exploration of alternative technological solutions, and a reduced incentive for the contractor to innovate beyond the initially defined scope if not carefully managed. Without competition, the government may not achieve the best possible price or the most optimal technical solution. There's also a risk that the contractor might not be as motivated to control costs as they would be in a competitive environment, although the firm-fixed-price structure mitigates some of this. Furthermore, sole-source awards can sometimes lead to perceptions of favoritism or a lack of transparency, potentially impacting public trust.

How effective is a firm-fixed-price contract in managing risks for a sole-source prototype development?

A firm-fixed-price (FFP) contract is generally considered effective in managing cost risks for the government, especially in sole-source situations. Under an FFP contract, the contractor assumes the responsibility for all costs incurred and agrees to a fixed price for the defined scope of work. This means that any cost overruns are borne by Rockwell Collins, not the Department of the Navy. This structure incentivizes the contractor to manage their resources efficiently and control expenses. However, the effectiveness of the FFP in this sole-source context hinges on the accuracy of the initial price negotiation. If the initial price was set too high due to the lack of competition, the government might still overpay, even though cost overruns are the contractor's responsibility. The FFP structure is less effective at managing scope creep or technical performance risks, which would require careful contract administration and oversight.

What is the historical spending pattern for Rockwell Collins Simulation & Training Solutions LLC with the Department of Defense?

Rockwell Collins Simulation & Training Solutions LLC, now part of Collins Aerospace, has a substantial history of receiving contracts from the Department of Defense. While specific historical spending figures for this exact entity and contract type are not detailed here, Collins Aerospace (and its predecessors) consistently secures significant contracts for simulation, training, avionics, and communication systems. Their awards often span multiple years and involve substantial dollar values, reflecting their established position as a key defense contractor. Analyzing their broader contract portfolio with the DoD would likely reveal a pattern of consistent awards for complex, high-value systems, often in areas requiring specialized expertise. The $44.9 million for this prototype refinement contract aligns with the scale of projects they typically undertake for military branches.

What does the 'IA' specialty type signify in the context of this contract?

The 'IA' specialty type, often associated with 'Intelligence & Cryptographic Equipment,' suggests that this contract for prototype concept refinement is likely related to technologies used for intelligence gathering, analysis, or secure communications. This could involve advanced sensor systems, data processing algorithms, secure networking solutions, or cryptographic hardware/software. Given the sensitive nature of intelligence and cryptographic equipment, contracts in this area often involve stringent security requirements, specialized technical expertise, and potentially limited competition due to the unique capabilities required. The focus on 'concept refinement' implies that the project is in an early stage, aiming to develop and mature the foundational ideas for such advanced systems before moving into full-scale development or production.

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: N6134018R1193

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

Financial Breakdown

Contract Ceiling: $44,875,499

Exercised Options: $44,875,499

Current Obligation: $44,875,499

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,421,269

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline