DoD awards $34.7M for Black Hawk simulators, raising questions about competition and value

Contract Overview

Contract Amount: $34,749,474 ($34.7M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2013-07-11

End Date: 2020-05-25

Contract Duration: 2,510 days

Daily Burn Rate: $13.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LETTER CONTRACT FOR TWO TRANSPORTABLE BLACK HAWK OPERATION SIMULATOR DEVICES.

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $34.7 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: LETTER CONTRACT FOR TWO TRANSPORTABLE BLACK HAWK OPERATION SIMULATOR DEVICES. Key points: 1. Significant investment in specialized training equipment for Black Hawk helicopters. 2. Sole-source award to Rockwell Collins Simulation & Training Solutions LLC. 3. Long contract duration (2510 days) suggests a complex or evolving need. 4. Lack of competition may lead to inflated pricing and reduced value for taxpayers.

Value Assessment

Rating: questionable

The $34.7 million contract for two simulator devices lacks clear benchmarks for comparison. Without competitive bidding, it's difficult to assess if the price reflects fair market value for this specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially increases costs for the government, as there was no market pressure to offer competitive pricing.

Taxpayer Impact: The absence of competition raises concerns about whether taxpayers received the best possible value for this significant expenditure.

Public Impact

Enhances pilot training capabilities for critical Black Hawk helicopter operations. Supports the readiness and effectiveness of military aviation personnel. Potential for cost overruns due to lack of competitive bidding. Long-term commitment to a specific training solution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value
Long duration

Positive Signals

Provides essential training equipment
Supports critical military operations

Sector Analysis

This contract falls within the defense sector, specifically related to specialized training equipment. Spending on simulation and training systems is common in defense to enhance operational readiness and reduce risks associated with live training.

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 contract, either as prime contractors or subcontractors.

Oversight & Accountability

The contract was awarded by the Department of Defense and managed by the Defense Contract Management Agency. Oversight would focus on contract performance, delivery, and adherence to terms, but the lack of competition limits oversight on price reasonableness.

Related Government Programs

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

Risk Flags

Potential for overpricing due to sole-source award.
Lack of transparency in the procurement process.
Risk of vendor lock-in for future training needs.
Limited opportunity for innovation from other market players.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.7 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. LETTER CONTRACT FOR TWO TRANSPORTABLE BLACK HAWK OPERATION SIMULATOR DEVICES.

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 $34.7 million.

What is the period of performance?

Start: 2013-07-11. End: 2020-05-25.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other vendors. Without further documentation, it's unclear if alternatives were explored. A thorough review would examine the specific reasons cited for non-competition and assess if they were valid and documented according to federal acquisition regulations.

How does the per-unit cost of these simulators compare to similar systems acquired competitively by other agencies or allies?

Benchmarking the per-unit cost against similar, competitively procured simulator systems is crucial for assessing value. If this contract's pricing is significantly higher than comparable systems, it indicates potential overpayment. A detailed analysis would require identifying and comparing specifications, features, and acquisition costs of relevant systems.

What is the long-term plan for maintaining and upgrading these simulators, and will future procurements be competed?

The long duration of this contract (2510 days) raises questions about future sustainment and upgrade strategies. It's important to understand if the initial award includes provisions for ongoing support or if separate contracts will be issued. Future procurements should ideally be competed to ensure ongoing cost-effectiveness and access to the latest technology.

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: RTX Corp (UEI: 001344142)

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: $34,749,474

Exercised Options: $34,749,474

Current Obligation: $34,749,474

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,881,408

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline