DoD spent nearly $40M on Blackhawk simulators, with limited competition and a single award

Contract Overview

Contract Amount: $39,748,371 ($39.7M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-04

End Date: 2013-07-31

Contract Duration: 1,791 days

Daily Burn Rate: $22.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS REQUIREMENT IS FOR THE PROCUREMENT OF TRANSPORTABLE BLACKHAWK OPERATIONS SIMULATORS, DEVICES 5-7. DEVICES 5&6 ARE US PROCUREMENTS. DEVICE 7 IS AN FMS PROCUREMENT-UAE.

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $39.7 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: THIS REQUIREMENT IS FOR THE PROCUREMENT OF TRANSPORTABLE BLACKHAWK OPERATIONS SIMULATORS, DEVICES 5-7. DEVICES 5&6 ARE US PROCUREMENTS. DEVICE 7 IS AN FMS PROCUREMENT-UAE. Key points: 1. The contract awarded to Rockwell Collins Simulation & Training Solutions LLC for transportable Blackhawk operations simulators represents a significant investment in aviation training. 2. The procurement included devices for both U.S. and foreign military sales, indicating a dual purpose for the training equipment. 3. The 'Not Competed' status raises questions about the justification for avoiding a broader competition and its potential impact on pricing. 4. The firm-fixed-price contract type suggests that the government aimed to establish a clear cost ceiling for the acquisition. 5. The duration of the contract, spanning over 1700 days, indicates a long-term need for these specialized training devices. 6. The absence of small business set-asides suggests the contract was not specifically structured to benefit smaller enterprises.

Value Assessment

Rating: fair

The total award amount of approximately $39.7 million for five simulator devices (two for the U.S. and three for FMS UAE) appears substantial. Without specific details on the capabilities and features of these transportable simulators, a direct comparison to similar contracts is challenging. However, the lack of competition suggests that the government may not have achieved the most competitive pricing possible. Benchmarking the per-unit cost against industry standards for advanced aviation simulators would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Rockwell Collins Simulation & Training Solutions LLC. The specific justification for this sole-source award is not provided in the data. Typically, sole-source procurements occur when only one vendor can meet the unique requirements of the government, or in cases of urgent need. The lack of competition means that potential cost savings that might arise from a competitive bidding process were likely forgone.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, as there was no incentive for multiple vendors to offer their best prices.

Public Impact

U.S. Army aviators benefit from enhanced training capabilities through advanced, transportable Blackhawk simulators. Foreign military sales to the UAE provide allied nations with critical flight simulation training, strengthening international partnerships. The procurement supports the development and maintenance of specialized simulation technology, potentially fostering innovation in the defense training sector. The contract's duration implies ongoing reliance on these simulators for pilot proficiency and mission readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to higher costs for taxpayers.
Sole-source justification needs further scrutiny to ensure necessity.
Limited transparency into the selection process due to non-competitive award.

Positive Signals

Procurement of advanced training simulators enhances pilot proficiency and safety.
Support for foreign military sales strengthens international defense relationships.
Firm-fixed-price contract provides cost certainty for the government.

Sector Analysis

The defense training and simulation market is a specialized segment within the broader aerospace and defense industry. This contract for transportable Blackhawk simulators falls under the category of aviation training systems. The market is characterized by high technological requirements, long development cycles, and significant government spending. Companies like Rockwell Collins are key players, offering sophisticated solutions that are critical for maintaining pilot readiness and developing new operational tactics. The value of the global defense simulation and training market is in the billions of dollars, with significant portions dedicated to aviation platforms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have involved significant subcontracting opportunities for small businesses based on the information provided. The award to a single, likely large, contractor suggests that the focus was on acquiring specialized capabilities rather than promoting small business participation. Further investigation into subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA) and the relevant Department of Defense contracting officers. The firm-fixed-price nature of the contract provides a degree of cost control. However, the lack of competition limits the transparency typically afforded by a competitive bidding process. Accountability would be assessed through performance monitoring and adherence to contract specifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Blackhawk Helicopter Procurement
Aviation Training Systems
Foreign Military Sales (FMS)
Simulation and Training Equipment

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.7 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. THIS REQUIREMENT IS FOR THE PROCUREMENT OF TRANSPORTABLE BLACKHAWK OPERATIONS SIMULATORS, DEVICES 5-7. DEVICES 5&6 ARE US PROCUREMENTS. DEVICE 7 IS AN FMS PROCUREMENT-UAE.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $39.7 million.

What is the period of performance?

Start: 2008-09-04. End: 2013-07-31.

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

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. While the specific justification is not detailed, common reasons for sole-source procurements include unique technical requirements that only one vendor can meet, urgent and compelling needs where competition is impractical, or when a previous contract was awarded and follow-on work is necessary. Without further documentation, it's impossible to definitively state the justification. However, the lack of competition raises concerns about whether alternative solutions were adequately explored or if market research was sufficiently comprehensive to identify potential competitors. This lack of transparency can lead to perceptions of inefficiency or favoritism, and potentially higher costs for the government compared to a competitively bid contract.

How does the per-unit cost of these simulators compare to similar systems procured by the DoD or other government agencies?

The total award was approximately $39.7 million for five devices. This averages to about $7.94 million per device. However, this is a blended average as it includes devices for both U.S. and FMS procurements, and the exact number of devices per category isn't explicitly stated beyond 'devices 5-7' with 5&6 being US and 7 being FMS-UAE. Without knowing the specific configurations, capabilities, and intended use of each simulator (e.g., full flight simulators vs. procedural trainers), a precise per-unit cost comparison is difficult. Benchmarking against other Blackhawk simulator procurements, especially those that were competitively bid, would be crucial. The sole-source nature of this award makes it harder to ascertain if this price represents fair market value.

What are the key performance metrics used to evaluate the success of this simulator contract?

The provided data does not explicitly detail the key performance metrics (KPIs) for this contract. However, for simulation and training systems, typical performance metrics often include factors such as simulator availability and reliability (uptime), adherence to technical specifications and fidelity requirements, successful completion of training objectives by pilots, and timely delivery of the systems. For a firm-fixed-price contract, meeting the defined scope, schedule, and technical requirements within the agreed price is paramount. Post-delivery support and maintenance performance would also be critical evaluation points throughout the contract's lifecycle.

What is the historical spending trend for Blackhawk simulators within the Department of Defense?

The provided data pertains to a single contract awarded in 2008 for approximately $39.7 million. To understand the historical spending trend for Blackhawk simulators, a broader analysis of DoD procurement data over several years would be necessary. This would involve identifying all contracts related to Blackhawk simulators, including those for different variants, upgrades, training services, and spare parts. Analyzing these contracts would reveal patterns in spending, identify key contractors, understand the evolution of technology and costs, and determine if spending has increased or decreased over time. Without this broader dataset, it's impossible to establish a historical trend from this single data point.

What is the potential impact of the FMS component (UAE) on the overall contract value and performance expectations?

The inclusion of a Foreign Military Sales (FMS) component for the UAE means that Device 7 was procured under specific FMS guidelines, likely involving a separate agreement between the U.S. government and the UAE. This component contributes to the overall contract value but may also introduce additional complexities. FMS cases often have unique requirements regarding delivery schedules, training, logistics support, and pricing structures, which can differ from purely U.S. domestic procurements. The performance expectations for the UAE device would be dictated by the specific Letter of Offer and Acceptance (LOA) agreed upon, potentially influencing the contractor's obligations and the government's oversight.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ08R0248

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins, Inc. (UEI: 962960589)

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: $39,748,371

Exercised Options: $39,748,371

Current Obligation: $39,748,371

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline