DoD awards $930M F117 ESS contract to RTX Corporation without competition
Contract Overview
Contract Amount: $929,677,158 ($929.7M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2022-11-01
End Date: 2023-09-30
Contract Duration: 333 days
Daily Burn Rate: $2.8M/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F117 ESS FY23 TASK ORDER
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $929.7 million to RTX CORPORATION for work described as: F117 ESS FY23 TASK ORDER Key points: 1. Significant award to a single large contractor, RTX Corporation. 2. Lack of competition raises concerns about price discovery and value. 3. Contract supports the Department of the Air Force's F117 engine sustainment. 4. Potential for higher costs due to sole-source nature.
Value Assessment
Rating: questionable
The contract value of $930M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value for the F117 ESS sustainment services provided by RTX Corporation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This limits price discovery and may lead to inflated costs compared to a competitive environment.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for F117 engine sustainment.
Public Impact
Ensures continued operational readiness for Air Force F117-powered aircraft. Supports critical maintenance and supply chain for a key defense asset. Potential impact on budget allocation for other defense priorities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in pricing
- Potential for cost overruns
Positive Signals
- Ensures critical system sustainment
- Supports established contractor relationship
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft engine maintenance and support. Spending benchmarks for such services can vary widely based on system complexity and contract type.
Small Business Impact
The contract was awarded to RTX Corporation, a large prime contractor. There is no indication of small business participation in this specific sole-source award.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of the Air Force must rigorously monitor performance and costs.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns without competitive pressure.
- Lack of transparency in the procurement process.
- Dependence on a single contractor for critical sustainment.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $929.7 million to RTX CORPORATION. F117 ESS FY23 TASK ORDER
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 $929.7 million.
What is the period of performance?
Start: 2022-11-01. End: 2023-09-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or the unavailability of alternative sources. A thorough review would be required to validate these claims and ensure no viable competitive options were overlooked.
How will the government ensure cost-effectiveness without competition?
Without competition, cost-effectiveness relies heavily on robust government negotiation, detailed cost analysis, and stringent performance monitoring. The government should seek to establish clear performance metrics and potentially incorporate incentive structures to drive efficiency.
What is the long-term strategy for F117 engine sustainment to encourage future competition?
The long-term strategy should involve market research to identify potential competitors and foster a competitive environment for future sustainment needs. This could include breaking down requirements into smaller, more accessible contracts or exploring alternative technologies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA812415R0001
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 400 MAIN ST, EAST HARTFORD, CT, 06118
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $929,677,158
Exercised Options: $929,677,158
Current Obligation: $929,677,158
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA812418D0001
IDV Type: IDC
Timeline
Start Date: 2022-11-01
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2025-04-22
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