DoD Awards $65M E2D Trainer to Rockwell Collins for France, Lacking Competition

Contract Overview

Contract Amount: $65,000,000 ($65.0M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-31

End Date: 2028-07-31

Contract Duration: 1,277 days

Daily Burn Rate: $50.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF ONE (1) E2D WEAPONS SYSTEM TRAINER FOR FRANCE MINISTRY OF ARMED FORCES (FMOAF), NAVAL AIR BASE LANN-BIHOUE (BASE AERONAVALE DE LANN BIHOUE), LORIENT, FRANCE.

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20164

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $65.0 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: PROCUREMENT OF ONE (1) E2D WEAPONS SYSTEM TRAINER FOR FRANCE MINISTRY OF ARMED FORCES (FMOAF), NAVAL AIR BASE LANN-BIHOUE (BASE AERONAVALE DE LANN BIHOUE), LORIENT, FRANCE. Key points: 1. Significant sole-source award for a specialized defense trainer. 2. High contract value suggests critical capability for the French Navy. 3. Lack of competition raises questions about price discovery and value. 4. IT/Defense sector, with potential for future international sales.

Value Assessment

Rating: questionable

The contract value of $65 million for a single E2D Weapons System Trainer is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar international trainer procurements or if it reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. This limits price discovery and may result in a higher cost to the taxpayer than if multiple vendors had competed.

Taxpayer Impact: The $65 million expenditure represents a significant investment, and the lack of competition means taxpayers may not be receiving the best possible price for this specialized training system.

Public Impact

Enhances French naval aviation capabilities with advanced training. Potential implications for interoperability between US and French forces. Highlights US defense industry's role in supporting allied military modernization. International sale could boost US defense contractor revenue.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
High contract value requires careful justification.
Potential for cost overruns without competitive pressure.

Positive Signals

Provides critical training capability for an allied nation.
Supports US defense industrial base through foreign military sales.
Firm Fixed Price contract offers cost certainty.

Sector Analysis

This procurement falls within the Defense sector, specifically related to advanced simulation and training equipment for naval aviation. Benchmarks for similar international trainer procurements are scarce due to their specialized nature.

Small Business Impact

The awardee, Rockwell Collins Simulation & Training Solutions LLC, is a large business. There is no indication that small businesses were involved in this specific sole-source procurement.

Oversight & Accountability

As a sole-source award for a foreign military sale, oversight would likely involve both the Department of the Navy and the French Ministry of Armed Forces to ensure the trainer meets specifications and the price is justified.

Related Government Programs

Commercial and Service Industry Machinery Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition may lead to inflated pricing.
Sole-source nature limits transparency in price justification.
Potential for vendor lock-in for future sustainment and upgrades.
Dependence on a single supplier for critical training capability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.0 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. PROCUREMENT OF ONE (1) E2D WEAPONS SYSTEM TRAINER FOR FRANCE MINISTRY OF ARMED FORCES (FMOAF), NAVAL AIR BASE LANN-BIHOUE (BASE AERONAVALE DE LANN BIHOUE), LORIENT, FRANCE.

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 $65.0 million.

What is the period of performance?

Start: 2025-01-31. End: 2028-07-31.

What specific factors necessitated a sole-source award for this E2D trainer, and were alternative competitive strategies considered?

Sole-source awards are typically justified when only one vendor possesses the unique capability, technology, or intellectual property required for the product or service. For specialized defense trainers like the E2D system, it's possible that Rockwell Collins holds exclusive rights or has developed proprietary technology essential for accurate simulation, making competition infeasible or prohibitively expensive to replicate.

How does the $65 million price point compare to similar international procurements of advanced aviation trainers, and what cost-saving measures were explored?

Benchmarking this $65 million price is challenging due to the niche nature of E2D trainers. However, the Department of Defense and the French Ministry of Armed Forces would typically conduct internal cost analyses, potentially referencing historical data or similar complex simulation systems. Without competition, the emphasis would be on ensuring the firm fixed price accurately reflects the scope and minimizing any potential for cost growth through stringent contract management.

What is the long-term strategic value and potential for follow-on work or sustainment contracts associated with this trainer award?

The long-term value lies in enhancing the French Navy's operational readiness and interoperability with NATO allies. This initial trainer procurement often serves as a precursor to potential future sustainment contracts, upgrades, and additional training devices, creating a long-term revenue stream for the provider and ensuring continued capability for the end-user.

Industry Classification

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

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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

Financial Breakdown

Contract Ceiling: $65,000,000

Exercised Options: $65,000,000

Current Obligation: $65,000,000

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $651,074

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline