DoD awards $142.5M for radio transmitters, services to Rockwell Collins under full and open competition
Contract Overview
Contract Amount: $142,537,096 ($142.5M)
Contractor: Rockwell Collins, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-11
End Date: 2028-06-30
Contract Duration: 1,388 days
Daily Burn Rate: $102.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MANPACK FULL RATE PRODUCTION (FRP)4 COMPETITIVE PROCUREMENT AWARD OF RADIO TRANSMITTERS, WARRANTIES, RELATED ANCILLARY EQUIPMENT, AND SERVICES INCLUDING KEY PERSONNEL TRAINING, SECURITY, SOFTWARE AND TOOLS FOR LOADING RADIOS, CONFIGURATION CONTROL.
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52498
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $142.5 million to ROCKWELL COLLINS, INC. for work described as: MANPACK FULL RATE PRODUCTION (FRP)4 COMPETITIVE PROCUREMENT AWARD OF RADIO TRANSMITTERS, WARRANTIES, RELATED ANCILLARY EQUIPMENT, AND SERVICES INCLUDING KEY PERSONNEL TRAINING, SECURITY, SOFTWARE AND TOOLS FOR LOADING RADIOS, CONFIGURATION CONTROL. Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. The contract includes hardware, software, training, and support, indicating a comprehensive solution. 3. Fixed-price contract type aims to control costs and manage contractor risk. 4. Long duration of 1388 days suggests a sustained need for these communication systems. 5. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The North American Industry Classification System (NAICS) code 334220 points to the wireless communications equipment manufacturing sector.
Value Assessment
Rating: good
Benchmarking the value of this $142.5 million contract is challenging without specific unit details or comparison to similar recent awards. However, the firm-fixed-price structure suggests an effort to lock in costs. The inclusion of comprehensive services alongside equipment indicates a potential for good value if integrated effectively. Further analysis would require comparing pricing against industry standards for similar radio systems and associated support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of multiple bidders (implied by 'full and open') typically fosters price competition and encourages contractors to offer competitive terms. The specific number of bids received is not detailed, but the competitive nature of the procurement is a positive indicator for price discovery.
Taxpayer Impact: Taxpayers benefit from a competitive process that is expected to yield a fair market price for essential communication equipment and services.
Public Impact
The Department of the Army benefits from the acquisition of advanced radio transmitters and associated support. End-users, likely military personnel, will receive reliable communication equipment crucial for operational effectiveness. The contract supports the manufacturing sector for wireless communications equipment. Personnel involved in training and support services will see employment opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs despite fixed-price terms.
- Dependence on a single contractor for critical communication hardware and services.
- Risk of obsolescence if technology advances rapidly during the contract period.
Positive Signals
- Firm-fixed-price contract type helps control costs.
- Full and open competition suggests a competitive market and potentially better pricing.
- Comprehensive package of equipment, training, and services can lead to efficient integration.
- Award to a known entity (Rockwell Collins) may indicate a track record of performance.
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector, a key component of the broader telecommunications industry. The market for military-grade communication systems is specialized, often characterized by stringent performance requirements and long product lifecycles. Spending in this sector is driven by defense modernization efforts and the need for secure, reliable communication capabilities in diverse operational environments. Comparable spending benchmarks would involve analyzing other large-scale procurements for tactical communication systems by defense agencies.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless Rockwell Collins voluntarily engages small businesses for subcontracting opportunities. Analysis of subcontracting plans would be necessary to fully assess the impact.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods and services. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Tactical Radio Systems
- Military Communications Equipment
- Defense Procurement
- Wireless Communications Manufacturing
- Department of Defense Contracts
Risk Flags
- Potential for technological obsolescence
- Contract duration exceeds typical hardware refresh cycles
- Lack of specific unit cost data for benchmarking
- Dependence on a single supplier for critical components
Tags
department-of-defense, department-of-the-army, rockwell-collins, full-and-open-competition, firm-fixed-price, delivery-order, radio-transmitters, wireless-communications-equipment-manufacturing, iowa, defense-sector, communication-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $142.5 million to ROCKWELL COLLINS, INC.. MANPACK FULL RATE PRODUCTION (FRP)4 COMPETITIVE PROCUREMENT AWARD OF RADIO TRANSMITTERS, WARRANTIES, RELATED ANCILLARY EQUIPMENT, AND SERVICES INCLUDING KEY PERSONNEL TRAINING, SECURITY, SOFTWARE AND TOOLS FOR LOADING RADIOS, CONFIGURATION CONTROL.
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 Army).
What is the total obligated amount?
The obligated amount is $142.5 million.
What is the period of performance?
Start: 2024-09-11. End: 2028-06-30.
What is Rockwell Collins' track record with similar Department of Defense contracts?
Rockwell Collins, now part of Collins Aerospace (a Raytheon Technologies company), has a long history of providing avionics, communication, and electronic systems to the Department of Defense. They have been a significant supplier of military radios, including tactical communication systems, for decades. Their track record includes numerous awards for similar equipment, software, and support services across various military branches. While specific performance metrics for past contracts are not detailed here, their sustained presence as a prime contractor suggests a generally positive performance history and established capabilities in meeting defense requirements. However, a deeper dive into past performance reviews and any past performance issues would be necessary for a comprehensive assessment.
How does the pricing of this contract compare to similar procurements for radio transmitters?
Direct price comparison is difficult without specific unit costs and detailed specifications of the radio transmitters and associated equipment. The total award value of $142.5 million over approximately 4.6 years (1388 days) provides a broad financial context. To benchmark value, one would need to compare the per-unit cost of similar tactical radio systems procured by the DoD or allied nations, considering factors like technological sophistication, range, encryption capabilities, and ruggedization. The firm-fixed-price nature of this contract aims to provide cost certainty, but the actual value for money depends on the negotiated unit prices and the overall effectiveness of the delivered system in meeting operational needs.
What are the primary risks associated with this contract for the Department of the Army?
The primary risks for the Department of the Army in this contract include potential technological obsolescence, as military communication technology evolves rapidly. There's also a risk of vendor lock-in, given the comprehensive nature of the award and the specialized training and software involved, which could make switching providers difficult or costly. Performance risk, though mitigated by the fixed-price structure, remains if the contractor fails to meet stringent technical specifications or delivery schedules. Finally, integration risks exist, ensuring seamless interoperability with existing military networks and systems. The long duration of the contract amplifies these risks over time.
How effective is the 'full and open competition' approach in ensuring value for this type of defense procurement?
The 'full and open competition' approach is generally considered highly effective for ensuring value in defense procurements, including for complex systems like radio transmitters. It maximizes the pool of potential bidders, fostering robust price competition and encouraging innovation. This process allows the government to solicit best-of-breed solutions and potentially achieve lower prices than through sole-source or limited competition methods. For this specific contract, it suggests that multiple manufacturers were capable of meeting the Army's demanding requirements, leading to a more competitive bidding environment and increasing the likelihood that the government secured a fair market price and a technically suitable solution.
What are the historical spending patterns for similar radio communication systems within the Department of the Army?
Historical spending patterns for similar radio communication systems within the Department of the Army typically show significant and sustained investment. The Army, like other military branches, relies heavily on robust and secure tactical communication networks. Spending in this area often fluctuates based on modernization cycles, operational tempo, and evolving threats. Major programs for tactical radios have historically involved multi-year procurements, often awarded through competitive processes, with values ranging from tens to hundreds of millions of dollars. The Army has procured various generations of manpack, vehicular, and handheld radios, with each iteration representing advancements in capability and cost. Analyzing past budgets and contract awards for similar systems would reveal trends in acquisition strategies and overall investment levels.
What are the implications of the firm-fixed-price (FFP) contract type on cost control and contractor performance?
The firm-fixed-price (FFP) contract type is designed to provide the greatest cost control for the buyer. Under an FFP agreement, the contractor assumes most of the risk for cost overruns. This incentivizes the contractor to manage its expenses efficiently and to perform the work within the agreed-upon budget. For the Department of the Army, this means the total cost of the contract is largely predetermined, barring any significant contract modifications. However, this structure can sometimes lead contractors to cut corners on quality or performance to protect their profit margins if not adequately monitored. It also requires very clear and detailed specifications upfront to avoid disputes over scope.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $294,290,627
Exercised Options: $142,537,096
Current Obligation: $142,537,096
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $630,026
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T16D0003
IDV Type: IDC
Timeline
Start Date: 2024-09-11
Current End Date: 2028-06-30
Potential End Date: 2028-06-30 12:06:00
Last Modified: 2025-12-11
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