F117 DEPOT ACTIVATION contract awarded to RTX CORPORATION for over $15M by the Department of the Air Force
Contract Overview
Contract Amount: $15,086,356 ($15.1M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2011-09-27
Contract Duration: 727 days
Daily Burn Rate: $20.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F117 DEPOT ACTIVATION
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06108
Plain-Language Summary
Department of Defense obligated $15.1 million to RTX CORPORATION for work described as: F117 DEPOT ACTIVATION Key points: 1. Contract value of $15.09M for depot activation services. 2. Awarded to a single, large contractor, indicating potential lack of competition. 3. Contract duration of 727 days suggests a significant, multi-year effort. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. The contract falls under Aircraft Engine and Engine Parts Manufacturing. 6. No small business set-aside was utilized for this procurement.
Value Assessment
Rating: fair
The contract value of $15.09M for depot activation is difficult to benchmark without specific details on the scope of services. Given the 'NOT COMPETED' status, a direct comparison to similar contracts is challenging. The firm fixed-price nature suggests an attempt at cost control, but the absence of competition raises questions about whether the government secured the best possible value. Further analysis would require understanding the specific deliverables and market rates for such specialized activation services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, proprietary technology, or when urgency dictates a rapid award. The lack of competition means that price discovery through a bidding process was bypassed, potentially leading to higher costs for the government compared to a competitive procurement.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, the government had limited leverage to negotiate the lowest possible price for these depot activation services.
Public Impact
The primary beneficiary is the Department of the Air Force, which receives services for depot activation. The contract supports the operational readiness and maintenance capabilities of Air Force assets. The geographic impact is likely concentrated around the designated depot location in Connecticut. Workforce implications may include specialized technical roles required for depot activation and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Lack of transparency in the justification for sole-source award.
- Potential for contractor lock-in due to specialized nature of services.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Award to a known entity (RTX CORPORATION) may indicate established capabilities.
- Contract duration suggests a commitment to a specific operational need.
Sector Analysis
The Aircraft Engine and Engine Parts Manufacturing sector is a critical component of the aerospace and defense industry. This contract for depot activation likely supports the maintenance, repair, and overhaul (MRO) of complex aircraft systems or engines. The market for such specialized services is often dominated by a few large, established players due to high barriers to entry, including technical expertise, specialized facilities, and regulatory compliance. Benchmarking this contract's value is challenging without detailed scope, but it represents a significant investment in maintaining critical defense assets.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large corporation like RTX CORPORATION suggests that the scope of work was likely beyond the capacity or specialization of most small businesses in this niche area. This procurement does not appear to contribute to the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be defined by the contract's performance work statement and delivery schedules. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Aircraft Maintenance and Repair Services
- Defense Depot Operations
- Aerospace Manufacturing Support
- Engine Overhaul and Services
- Air Force Logistics Contracts
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns if scope is underestimated by contractor
Tags
defense, department-of-defense, department-of-the-air-force, rtx-corporation, sole-source, firm-fixed-price, aircraft-engine-and-engine-parts-manufacturing, depot-activation, large-business, connecticut
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.1 million to RTX CORPORATION. F117 DEPOT ACTIVATION
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 $15.1 million.
What is the period of performance?
Start: 2009-09-30. End: 2011-09-27.
What specific services are included under 'F117 DEPOT ACTIVATION'?
The term 'F117 DEPOT ACTIVATION' likely refers to the process of establishing or preparing a facility (depot) to perform maintenance, repair, and overhaul (MRO) services for F117 aircraft engines or related components. This could encompass a range of activities such as facility setup, equipment installation and calibration, personnel training, development of standard operating procedures, and initial operational testing. The specific scope would be detailed in the contract's Performance Work Statement (PWS), which outlines the exact tasks, deliverables, and performance standards required from the contractor, RTX CORPORATION. Without access to the PWS, the precise nature and extent of the activation services remain generalized.
Why was this contract awarded on a sole-source basis to RTX CORPORATION?
Sole-source awards are typically justified when only one responsible source can satisfy the government's needs. For RTX CORPORATION (formerly Raytheon Technologies), this could be due to possessing unique intellectual property, specialized manufacturing capabilities, proprietary technology essential for F117 depot activation, or existing infrastructure and expertise directly related to the F117 program. Alternatively, urgent and compelling circumstances, where delaying the award to conduct a full competition would cause significant harm or unacceptable delay to the government's requirements, could also be a justification. The specific rationale would be documented in a Justification and Approval (J&A) document filed with the contract award.
How does the firm fixed-price contract type impact cost and risk for this depot activation?
A Firm Fixed-Price (FFP) contract establishes a price that is not subject to adjustment based on the contractor's cost experience in performing the work. This contract type places the primary risk of cost overruns on the contractor, RTX CORPORATION. For the government, it provides cost certainty, meaning the total expenditure is known upfront, assuming the scope of work does not change. However, if the contractor significantly underestimates costs or encounters unforeseen difficulties, they bear the loss. Conversely, if the contractor performs efficiently and below the estimated cost, they retain the profit. For depot activation, where unforeseen complexities can arise, an FFP contract incentivizes the contractor to manage costs tightly but could also lead to a higher initial price to account for contractor risk.
What is the historical spending pattern for F117 depot activation or similar services by the Department of the Air Force?
Analyzing historical spending for 'F117 DEPOT ACTIVATION' specifically is challenging without more granular data, as this appears to be a specific project rather than an ongoing service category with consistent historical awards. However, the Department of the Air Force (DAF) consistently spends billions annually on aircraft maintenance, repair, and overhaul (MRO), depot-level services, and sustainment programs across its vast fleet. Contracts for depot activation, engine support, and component repair are common. Given the sole-source nature and the value of this $15.09M contract, it represents a specific, potentially one-time or infrequent investment in establishing or enhancing depot capabilities for a particular aircraft system, rather than a recurring operational expense.
What are the potential performance risks associated with this sole-source depot activation contract?
Performance risks for this sole-source contract include potential complacency from the contractor due to the lack of competition, leading to less focus on efficiency or innovation. There's also the risk that RTX CORPORATION may not possess all the necessary specialized expertise or may encounter unforeseen technical challenges during activation that could lead to delays or cost increases, although the FFP structure aims to mitigate the latter for the government. Furthermore, the government's ability to influence scope changes or demand specific performance improvements might be limited compared to a competitively bid contract where multiple vendors are vying for future work or modifications. Effective government oversight and clear performance metrics are crucial to mitigate these risks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
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: $15,102,440
Exercised Options: $15,102,440
Current Obligation: $15,086,356
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-30
Current End Date: 2011-09-27
Potential End Date: 2011-09-27 00:00:00
Last Modified: 2011-09-28
More Contracts from RTX Corporation
- LOT 12 AAC Long Lead for Propulsion Systems — $8.7B (Department of Defense)
- 200204!008533!1700!AF600 !naval AIR Systems Command !N0001902C3003 !A!N! !N! !20011026!20120430!001447952!001447952!001344142!n!united Technologies Corp !400 Main Street !east Hartford !ct!06108!22700!003!09!east Hartford !hartford !conn !+000014000000!n!n!004803460088!ac15!rdte/Aircraft-Eng/Manuf Develop !a1b!aircraft Engines and Spares !2ama!jast/Jsf !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !d!n!r!1!001!n!1a!a!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $7.9B (Department of Defense)
- LOT 15 FMS-1 F135 Ctol Prop System — $7.5B (Department of Defense)
- FY21 PBL2 — $4.9B (Department of Defense)
- F119 Engine Long Term Sustainment Program for the Raptor Engine (spare) — $3.6B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)