DoD awards $41.9M for T-BOS DEVICE #10 to Rockwell Collins, raising concerns about competition

Contract Overview

Contract Amount: $41,904,239 ($41.9M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-30

End Date: 2014-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $28.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: T-BOS DEVICE #10

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $41.9 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: T-BOS DEVICE #10 Key points: 1. Significant award value of $41.9M for aircraft parts. 2. Sole provider Rockwell Collins raises competition concerns. 3. Potential risk due to lack of competitive bidding. 4. Spending falls within the Defense sector's broad procurement activities.

Value Assessment

Rating: questionable

The contract value of $41.9M for T-BOS DEVICE #10 is difficult to assess without comparable contract data. The lack of competition suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in a higher price than if multiple vendors had vied for the contract.

Public Impact

Taxpayers may have paid more due to the lack of competitive bidding. The Department of Defense relies on specialized equipment, impacting readiness. The duration of the contract (2010-2014) suggests a long-term need for this device.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Definitive contract awarded
Firm Fixed Price contract type

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code, a segment within the broader Defense industrial base. Spending benchmarks for specialized components like this can vary widely.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' are false. This suggests the prime contractor is a large entity.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency. Oversight effectiveness is difficult to gauge without further information on performance and cost reviews.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
No indication of small business participation.
Contract duration is substantial (nearly 4 years).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.9 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. T-BOS DEVICE #10

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 $41.9 million.

What is the period of performance?

Start: 2010-09-30. End: 2014-09-29.

What was the justification for the sole-source award, and was a market research conducted to ensure no other vendors could provide the T-BOS DEVICE #10?

The justification for a sole-source award is critical for understanding the procurement's validity. Agencies typically require extensive market research to confirm that only one source can meet the requirement. Without this documentation, it raises significant concerns about whether competition was improperly excluded, potentially leading to inflated prices and inefficient use of taxpayer funds.

How does the $41.9M contract value compare to similar T-BOS devices or systems procured competitively by the DoD or other agencies?

Benchmarking this contract's value against competitively procured, similar systems is essential for assessing value for money. If comparable systems were acquired at a significantly lower cost, it would strongly suggest that the sole-source nature of this award led to overpayment. This comparison is a key indicator of potential financial mismanagement.

What was the operational effectiveness and performance of the T-BOS DEVICE #10 procured under this contract, and did it meet the DoD's requirements?

Assessing the operational effectiveness and performance of the T-BOS DEVICE #10 is crucial for determining if the $41.9M expenditure was justified. Even with a sole-source award, the equipment must fulfill its intended purpose and meet the military's needs. Documented performance issues or unmet requirements would indicate a failure in both procurement and operational outcomes.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $41,904,239

Exercised Options: $41,904,239

Current Obligation: $41,904,239

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline