DoD awards $34.6M to Rockwell Collins for Black Hawk simulator, citing sole-source justification

Contract Overview

Contract Amount: $34,602,552 ($34.6M)

Contractor: Rockwell Collins Simulation & Training Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-10

End Date: 2025-06-01

Contract Duration: 2,244 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF TRANSPORTABLE BLACK HAWK OPERATIONS SIMULATOR (TBOS) FOR SAUDI ARABIA NATIONAL GUARD (SANG) 3&4.

Plain-Language Summary

Department of Defense obligated $34.6 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC for work described as: IGF::OT::IGF TRANSPORTABLE BLACK HAWK OPERATIONS SIMULATOR (TBOS) FOR SAUDI ARABIA NATIONAL GUARD (SANG) 3&4. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and limited market exploration. 2. The firm fixed-price contract structure shifts performance risk to the contractor, but the lack of competition may negate cost savings. 3. Long contract duration of 2244 days suggests a significant, ongoing need for simulator services. 4. The award falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' indicating a specialized niche within the defense industrial base. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller firms in this specialized sector.

Value Assessment

Rating: questionable

The contract's value of $34.6 million for a transportable Black Hawk simulator requires careful benchmarking against similar sole-source procurements. Without competitive bidding, it is difficult to ascertain if the pricing reflects fair market value. The lack of transparency in the sole-source justification makes it challenging to assess the value-for-money proposition for taxpayers. Further analysis would be needed to compare the cost of this simulator to other training solutions or previous procurements of similar systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Army did not conduct a competitive solicitation. The justification for this approach is not detailed in the provided data. Sole-source awards can limit price discovery and may result in higher costs for the government compared to competitively awarded contracts. The absence of multiple bidders means there was no direct comparison of capabilities or pricing from different vendors.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition, as the government did not leverage market forces to secure the best possible price and value.

Public Impact

The primary beneficiaries are the Saudi Arabia National Guard (SANG), receiving advanced training capabilities for their Black Hawk helicopter fleet. The contract delivers a transportable simulator, enabling flexible and deployable training solutions. This procurement supports the U.S. foreign military sales program, enhancing the operational readiness of allied forces. The contract has implications for the specialized workforce in simulation and training technology, supporting jobs at Rockwell Collins.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs.
Lack of transparency in justification for sole-source award.
Long contract duration could lead to scope creep or cost overruns if not managed effectively.

Positive Signals

Firm fixed-price contract shifts risk to the contractor.
Award to a known entity (Rockwell Collins) suggests established capability.
Simulator technology directly supports critical training needs for allied forces.

Sector Analysis

The defense simulation and training market is a significant segment of the aerospace and defense industry. Companies like Rockwell Collins are key players, providing advanced solutions for military readiness. This contract fits within the broader category of defense support services and equipment manufacturing. Benchmarking this spending would involve comparing it to other simulator procurements, particularly those for rotary-wing aircraft, and considering the specific technological capabilities offered.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The sole-source nature of the award further suggests that opportunities for small businesses to participate were likely limited from the outset. This contract does not appear to actively contribute to the small business ecosystem in this specialized area.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The firm fixed-price nature provides some cost control, but the sole-source award necessitates robust oversight to ensure the contractor meets all performance requirements and that the pricing remains justified throughout the contract's duration. Transparency regarding performance metrics and any modifications would be key accountability measures.

Related Government Programs

Foreign Military Sales (FMS)
Rotary-Wing Aircraft Training
Defense Simulation and Training Systems
U.S. Army Aviation Programs

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Limited transparency on performance metrics and value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 million to ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC. IGF::OT::IGF TRANSPORTABLE BLACK HAWK OPERATIONS SIMULATOR (TBOS) FOR SAUDI ARABIA NATIONAL GUARD (SANG) 3&4.

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 Army).

What is the total obligated amount?

The obligated amount is $34.6 million.

What is the period of performance?

Start: 2019-04-10. End: 2025-06-01.

What is Rockwell Collins' track record with similar sole-source simulator contracts for foreign military sales?

Rockwell Collins, now part of Collins Aerospace, has a history of providing simulation and training solutions to various military customers, including for foreign military sales. While specific details on prior sole-source simulator contracts for the Saudi Arabian National Guard are not publicly detailed in this data, the company is a recognized leader in this field. Their experience typically involves developing complex training systems that meet stringent military requirements. However, the sole-source nature of this particular award warrants scrutiny to ensure that past performance, while generally strong, did not lead to an inflated price due to a lack of competitive pressure. A review of past performance on similar FMS contracts, especially those awarded non-competitively, would be necessary to fully assess this aspect.

How does the $34.6 million cost compare to similar Black Hawk simulator procurements, especially those awarded non-competitively?

Directly comparing the $34.6 million cost to similar Black Hawk simulator procurements is challenging without access to detailed cost breakdowns and specific contract terms for other awards. Sole-source contracts, by their nature, lack the price discovery inherent in competitive bidding, making direct value comparisons difficult. If other Black Hawk simulators, particularly transportable versions with comparable capabilities, were procured competitively, their pricing would serve as a more reliable benchmark. The absence of such competitive data for this specific contract means that assessing whether $34.6 million represents a fair market price is speculative. Further investigation into the specific features, technology level, and support included in this contract, compared to any available comparable data, is needed.

What are the primary risks associated with a sole-source award for a critical training system like this simulator?

The primary risks associated with a sole-source award for a critical training system include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or offer cost efficiencies, and a potential lack of transparency in the justification for not seeking competition. Taxpayers may bear a higher cost than necessary. Furthermore, if the sole-source provider experiences financial difficulties or strategic shifts, the government could face significant disruption in obtaining necessary support or future upgrades. The government also misses out on potential benefits derived from a competitive market, such as broader technological advancements and a more robust supplier base.

How effective is a transportable simulator in meeting the training needs of the Saudi Arabia National Guard compared to fixed-site simulators?

Transportable simulators offer significant advantages in flexibility and deployability, allowing training to occur closer to operational units or in locations where fixed infrastructure may be limited or unavailable. This can be particularly beneficial for forces operating across diverse geographic areas or facing rapidly changing deployment requirements, such as the Saudi Arabia National Guard might experience. While fixed-site simulators may offer more extensive facilities and potentially higher fidelity in some aspects, transportable versions are designed to provide comprehensive training for specific aircraft systems, like the Black Hawk, meeting critical mission readiness needs. The effectiveness hinges on the simulator's fidelity, the quality of the training program it supports, and its ability to replicate realistic operational scenarios relevant to the SANG's mission profile.

What is the historical spending pattern for transportable Black Hawk simulators by the Department of Defense or allied nations?

Historical spending patterns for transportable Black Hawk simulators are not readily available in the public domain without extensive database searches. However, the U.S. Department of Defense and allied nations have consistently invested in advanced training solutions for their rotary-wing fleets. Procurements of simulators, whether transportable or fixed, are typically substantial investments driven by the high cost of operational flight training and the need for realistic, safe training environments. Spending in this area is influenced by fleet size, operational tempo, modernization programs, and foreign military sales priorities. The $34.6 million award for this specific simulator suggests a significant investment, consistent with the high-value nature of advanced military training equipment.

What are the implications of the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' indicates that the primary business activity of the contractor, Rockwell Collins Simulation & Training Solutions LLC, falls within the manufacturing of components and auxiliary equipment for aircraft, excluding engines and complete aircraft. For this specific contract, it signifies that the simulator, while a training device, is categorized within the broader aerospace manufacturing supply chain. This classification might influence regulatory oversight, trade data reporting, and the types of industrial capabilities the government is seeking to support. It suggests the government views the simulator's production and integration as falling under specialized aerospace manufacturing expertise.

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

Solicitation ID: W900KK18R0042

Offers Received: 1

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

Financial Breakdown

Contract Ceiling: $34,602,552

Exercised Options: $34,602,552

Current Obligation: $34,602,552

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,323,409

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline