DoD awards $128M for F117-PW-100 Engines to RTX Corporation, impacting Aircraft Engine Manufacturing
Contract Overview
Contract Amount: $128,088,840 ($128.1M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2012-09-28
End Date: 2015-09-28
Contract Duration: 1,095 days
Daily Burn Rate: $117.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F117-PW-100 ENGINES FOR USAF
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06108
Plain-Language Summary
Department of Defense obligated $128.1 million to RTX CORPORATION for work described as: F117-PW-100 ENGINES FOR USAF Key points: 1. Significant contract value of $128M for specialized aircraft engines. 2. Sole-source award to RTX Corporation raises questions about competition. 3. Potential risk associated with single-supplier dependency for critical components. 4. Spending falls within the Defense sector, specifically Aircraft Engine Manufacturing.
Value Assessment
Rating: fair
The contract value of $128M for 100 engines appears high, especially given the lack of competition. Benchmarking against similar sole-source contracts for advanced aircraft engines is difficult but suggests potential overpricing.
Cost Per Unit: $1,280,888
Competition Analysis
Competition Level: sole-source
This was a sole-source award, meaning there was no competitive bidding process. This significantly limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award likely results in a higher cost to taxpayers than a competitively bid contract would.
Public Impact
Taxpayers may be overpaying for critical aircraft engine components due to the sole-source nature of the contract. The Department of the Air Force's reliance on a single supplier for these engines could pose a long-term supply chain risk. The significant investment in engine parts highlights the ongoing operational needs and costs of the Air Force's fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High per-unit cost
Positive Signals
- Critical component for Air Force operations
- Long-term contract duration
Sector Analysis
The defense sector, particularly aircraft engine manufacturing, involves high-value, specialized components. Spending benchmarks for such sole-source contracts are difficult to establish due to unique requirements and limited market availability.
Small Business Impact
This contract was awarded to RTX Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within this specific award data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and explore future competitive strategies for similar procurements.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- High per-unit cost raises concerns about value for money.
- Potential for supply chain disruption due to single-supplier dependency.
- Lack of transparency in the procurement process.
- No clear indication of small business participation.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ct, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $128.1 million to RTX CORPORATION. F117-PW-100 ENGINES FOR USAF
Who is the contractor on this award?
The obligated recipient is RTX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $128.1 million.
What is the period of performance?
Start: 2012-09-28. End: 2015-09-28.
What is the justification for the sole-source award, and were alternatives considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without further documentation, it's difficult to assess if the Air Force thoroughly explored all options or if the justification is robust. This lack of competition directly impacts price discovery and potentially increases the cost to taxpayers.
How does the per-unit cost compare to similar, potentially competitive, engine procurements?
Benchmarking this sole-source per-unit cost of $1.28 million is challenging. However, if comparable engines were ever procured competitively, this figure would likely be higher. A thorough review would involve comparing it to historical data for similar engine types or components, even if those were under different contract vehicles or from different manufacturers.
What is the long-term strategy to mitigate supply chain risks associated with a single supplier for these critical engines?
The long-term strategy should focus on fostering competition where possible, perhaps through technology insertion or by developing alternative sources over time. The Department of Defense should actively monitor RTX Corporation's production capacity and explore potential partnerships or development programs that could introduce future competition or reduce reliance on a single entity.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
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 MAIN ST, EAST HARTFORD, CT, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $128,088,840
Exercised Options: $128,088,840
Current Obligation: $128,088,840
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862612D2063
IDV Type: IDC
Timeline
Start Date: 2012-09-28
Current End Date: 2015-09-28
Potential End Date: 2015-09-28 00:00:00
Last Modified: 2014-09-29
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