DoD's $414M F119 Engine Sustainment Contract with RTX Corporation Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $414,168,824 ($414.2M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2023-12-31
Contract Duration: 364 days
Daily Burn Rate: $1.1M/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: F119 CY23 ENGINE SUSTAINMENT
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $414.2 million to RTX CORPORATION for work described as: F119 CY23 ENGINE SUSTAINMENT Key points: 1. Significant spending on engine sustainment highlights critical infrastructure needs. 2. Sole reliance on RTX Corporation raises concerns about market competition and potential price inflation. 3. The fixed-price incentive contract structure requires careful monitoring to ensure cost control. 4. Lack of small business participation limits broader economic impact. 5. The contract's duration and value warrant close oversight to maximize taxpayer value.
Value Assessment
Rating: questionable
The contract's value of $414M for engine sustainment is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar services or alternative providers, raising questions about whether the government is receiving the best possible value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and negotiation leverage, potentially leading to higher costs for the government compared to a competitive environment.
Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for engine sustainment services, as there is no market pressure to drive down prices.
Public Impact
Ensures continued operational readiness of critical Air Force assets. Supports high-tech manufacturing jobs within the aerospace sector. Potential for increased costs impacts overall defense budget allocation. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- No small business participation
Positive Signals
- Ensures critical asset sustainment
- Fixed-price incentive contract structure
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on engine sustainment for Air Force aircraft. Spending benchmarks in this area are often high due to specialized technology and limited providers, but competition is key to controlling costs.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to foster small business growth within the defense industrial base and could indicate a lack of outreach or accessibility for smaller entities in this specialized market.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Department of Defense to ensure fair pricing, performance standards, and prevent potential cost overruns. Regular audits and performance reviews are crucial.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for price inflation
- No small business participation
- High contract value
- Limited transparency
Tags
other-support-activities-for-air-transpo, department-of-defense, ct, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $414.2 million to RTX CORPORATION. F119 CY23 ENGINE SUSTAINMENT
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 $414.2 million.
What is the period of performance?
Start: 2023-01-01. End: 2023-12-31.
What steps are being taken to explore competitive alternatives for F119 engine sustainment in the future to ensure better value for taxpayer dollars?
Future strategies should involve market research to identify potential competitors or alternative sustainment models. This could include breaking down the contract into smaller components, encouraging new entrants through technology transfer, or exploring public-private partnerships. Proactive planning and engagement with industry are essential to foster competition and achieve cost savings.
How is the performance of RTX Corporation being monitored under this fixed-price incentive contract to mitigate risks associated with sole-source awards?
The Department of Defense must implement rigorous performance monitoring, including key performance indicators (KPIs) tied to engine availability, turnaround time, and quality metrics. Regular technical reviews and financial audits are necessary to ensure RTX meets its obligations and that incentive clauses are appropriately applied. Transparency in reporting and clear communication channels are vital.
What is the long-term strategy for ensuring the cost-effectiveness of F119 engine sustainment, considering the current lack of competition?
A long-term strategy should prioritize fostering a competitive environment. This could involve incentivizing R&D for alternative engine technologies, developing organic government repair capabilities, or creating a more accessible supply chain for parts. Strategic sourcing and contract phasing can also be employed to gradually introduce competition and drive down costs over the lifecycle of the F119 engine.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $414,168,824
Exercised Options: $414,168,824
Current Obligation: $414,168,824
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $133,790
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA861118D2850
IDV Type: IDC
Timeline
Start Date: 2023-01-01
Current End Date: 2023-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-07-31
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