DoD's $102M Contract for Aircraft Engines Awarded to United Technologies Corp
Contract Overview
Contract Amount: $10,204,345 ($10.2M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2004-08-25
End Date: 2009-08-31
Contract Duration: 1,832 days
Daily Burn Rate: $5.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200411!001277!5700!GD60 !OKLAHOMA CITY ALC/LPD !FA810404C0109 !A!N! !N! ! !20040825!20051230!001447952!835551474!001344142!N!UNITED TECHNOLOGIES CORP !400 MAIN STREET !EAST HARTFORD !CT!06108!22700!003!09!EAST HARTFORD !HARTFORD !CONN !+000009674645!Y!N!000000000000!2840!GAS TURBINES AND JET ENGINES, ACFT & COMPS !A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336412!E! !3! ! ! ! ! !99990909!B! ! !A! !B!N!J!1!001!N!4A!A!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!00 !A!C!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06108
Plain-Language Summary
Department of Defense obligated $10.2 million to RTX CORPORATION for work described as: 200411!001277!5700!GD60 !OKLAHOMA CITY ALC/LPD !FA810404C0109 !A!N! !N! ! !20040825!20051230!001447952!835551474!001344142!N!UNITED TECHNOLOGIES CORP !400 MAIN STREET !EAST HARTFORD !CT!06108!22700!003!09!EAST HARTFORD !HART… Key points: 1. The contract value is $102,043,453.50, awarded on 2004-08-25 and set to expire on 2009-08-31. 2. The primary contractor is United Technologies Corp., with RTX Corporation listed as a competitor. 3. The contract is for Aircraft Engine and Engine Parts Manufacturing, falling under the NAICS code 336412. 4. The award was made by the Department of Defense, specifically the Department of the Air Force, indicating a defense sector focus.
Value Assessment
Rating: fair
The contract value of $102M over 5 years for aircraft engines appears reasonable given the specialized nature of the product. However, without specific per-unit cost data or comparison to similar sole-source contracts, a definitive assessment of value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The lack of competition for this significant contract may result in a higher cost to taxpayers than if multiple vendors had vied for the award.
Public Impact
This contract directly impacts national defense by ensuring the availability of critical aircraft engines for the Air Force. The award to a major aerospace manufacturer like United Technologies Corp. supports jobs and economic activity within Connecticut. The long-term nature of the contract suggests a sustained need for these components, highlighting their importance in military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potentially increases cost.
- Lack of detailed cost breakdowns makes value assessment challenging.
- Long contract duration could lead to price increases if not managed effectively.
Positive Signals
- Award to a reputable contractor with a history in aerospace.
- Ensures critical component availability for defense operations.
- Supports domestic manufacturing and employment in Connecticut.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft engines. Spending in this area is critical for national security and often involves high-value, specialized procurements. Benchmarks for similar sole-source engine contracts would be necessary for a more precise comparison.
Small Business Impact
There is no explicit mention of small business participation in this contract award. As a sole-source contract likely awarded to a large prime contractor, opportunities for small businesses may be limited to subcontracting roles, which are not detailed here.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, implying oversight from this branch of the DoD. However, the sole-source nature raises questions about the extent of competitive oversight applied during the procurement process.
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 competitive pricing.
- Lack of detailed cost breakdown hinders value assessment.
- Long contract duration may not reflect current market prices.
- Potential for cost overruns without competitive pressure.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ct, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.2 million to RTX CORPORATION. 200411!001277!5700!GD60 !OKLAHOMA CITY ALC/LPD !FA810404C0109 !A!N! !N! ! !20040825!20051230!001447952!835551474!001344142!N!UNITED TECHNOLOGIES CORP !400 MAIN STREET !EAST HARTFORD !CT!06108!22700!003!09!EAST HARTFORD !HARTFORD !CONN !+000009674645!Y!N!000000000000!2840!GAS TURBINES AND JET ENGINES, ACFT & COMPS !A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336412!E! !3! ! ! ! ! !999
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 $10.2 million.
What is the period of performance?
Start: 2004-08-25. End: 2009-08-31.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing without competition?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed the Air Force followed established procedures for sole-source justifications. However, the absence of competition inherently limits price discovery, making it crucial that internal cost analyses and negotiation strategies were robust to ensure fair and reasonable pricing for the taxpayer.
How does the per-unit cost of these aircraft engines compare to similar components procured competitively by other military branches or allied nations?
A direct comparison of per-unit costs is not possible with the provided data. Sole-source contracts often lack the transparent pricing benchmarks found in competitive procurements. To assess value, a detailed analysis of the contractor's cost structure, profit margins, and historical pricing for similar components would be required. Benchmarking against international procurements or other DoD contracts for comparable engines, if available, would also be essential for a comprehensive risk assessment.
What is the long-term strategic value of this contract for the Air Force's operational readiness and technological advancement?
This contract ensures the continued availability of critical aircraft engines, directly supporting the operational readiness of the Air Force's fleet. By securing a supply from a major manufacturer like United Technologies Corp., the Air Force maintains access to essential components and potentially leverages the contractor's ongoing research and development in engine technology. This sustained relationship can foster innovation and ensure the fleet remains equipped with advanced, reliable propulsion systems.
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 AVAILABLE FOR COMPETITION
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 STREET, EAST HARTFORD, CT, 01
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-08-25
Current End Date: 2009-08-31
Potential End Date: 2009-08-31 00:00:00
Last Modified: 2009-08-31
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