DoD Awards $7.36M for Turbine Blades to RTX Corporation, Raising Concerns Over Competition
Contract Overview
Contract Amount: $7,358,005 ($7.4M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2022-01-07
End Date: 2024-11-08
Contract Duration: 1,036 days
Daily Burn Rate: $7.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MANUFACTURE OF TURBINE BLADES
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $7.4 million to RTX CORPORATION for work described as: MANUFACTURE OF TURBINE BLADES Key points: 1. Significant contract value for specialized turbine blade manufacturing. 2. Sole reliance on RTX Corporation limits competitive pricing and innovation. 3. Potential for inflated costs due to lack of market pressure. 4. Sector is critical for defense aviation readiness.
Value Assessment
Rating: questionable
The award of $7.36 million for turbine blades to RTX Corporation warrants scrutiny. Without competitive bidding, it's difficult to ascertain if this price reflects fair market value compared to similar specialized manufacturing contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to RTX Corporation. This lack of competition prevents price discovery through market forces, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these essential turbine blades.
Public Impact
Impacts Air Force readiness by supplying critical aircraft components. Concentrates manufacturing expertise with a single provider. Raises questions about long-term cost-effectiveness for the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited small business participation
Positive Signals
- Essential component for defense
- Established manufacturer
Sector Analysis
This contract falls within the aerospace manufacturing sector, specifically for critical components like turbine blades. Spending benchmarks in this niche area are highly dependent on technological complexity and material science, making direct comparisons challenging without competitive data.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the sole-source nature of this award to a large corporation like RTX suggests limited opportunities for small business participation in this particular contract.
Oversight & Accountability
The non-competitive award necessitates robust oversight to ensure the quality of the turbine blades and to monitor costs. Further justification for the sole-source decision should be readily available.
Related Government Programs
- Bolt, Nut, Screw, Rivet, and Washer Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency in price determination
- Risk of supply chain vulnerability
- No clear small business participation
Tags
bolt-nut-screw-rivet-and-washer-manufact, department-of-defense, ct, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.4 million to RTX CORPORATION. MANUFACTURE OF TURBINE BLADES
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 $7.4 million.
What is the period of performance?
Start: 2022-01-07. End: 2024-11-08.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair pricing, the agency should conduct a thorough price analysis, comparing the proposed costs to historical data, independent cost estimates, or prices paid for similar items by other government agencies or commercial customers.
What are the risks associated with relying on a single supplier for critical turbine blades, particularly concerning supply chain disruptions or future price increases?
Relying on a single supplier for critical components like turbine blades poses significant risks. Supply chain disruptions, whether due to geopolitical events, natural disasters, or the supplier's own operational issues, could halt production and impact military readiness. Furthermore, the lack of competition allows the sole supplier to potentially dictate future price increases without market-based checks.
How does the performance and quality of these turbine blades compare to industry standards, and are there mechanisms to ensure continued high quality under a sole-source arrangement?
Ensuring continued high quality under a sole-source arrangement relies heavily on stringent contract terms, performance metrics, and rigorous inspection processes. The contract should clearly define quality standards, acceptable defect rates, and testing protocols. Regular performance reviews and independent quality assurance checks by the government are crucial to mitigate risks and ensure the delivered components meet or exceed industry standards.
Industry Classification
NAICS: Manufacturing › Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing › Bolt, Nut, Screw, Rivet, and Washer Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 400 MAIN ST, EAST HARTFORD, CT, 06118
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,358,005
Exercised Options: $7,358,005
Current Obligation: $7,358,005
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX16D9476
IDV Type: IDC
Timeline
Start Date: 2022-01-07
Current End Date: 2024-11-08
Potential End Date: 2024-11-08 00:00:00
Last Modified: 2025-12-30
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