DoD Awards $1.13B F117 ESS Task Order to RTX Corporation for Aircraft Parts
Contract Overview
Contract Amount: $1,127,037,481 ($1.1B)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2023-10-01
End Date: 2024-09-30
Contract Duration: 365 days
Daily Burn Rate: $3.1M/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F117 ESS FY24 TASK ORDER
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $1.13 billion to RTX CORPORATION for work described as: F117 ESS FY24 TASK ORDER Key points: 1. Significant contract value of over $1.1 billion for essential aircraft parts. 2. Sole awardee, RTX Corporation, raises questions about competitive pricing. 3. Potential risk associated with a single supplier for critical components. 4. Spending falls under the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $1.13 billion is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives for similar aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to lower bids.
Taxpayer Impact: The lack of competition on this large contract may result in taxpayers paying a premium for the required aircraft parts.
Public Impact
Ensures continued availability of critical F117 engine sustainment parts for the Air Force. Supports a major defense contractor, RTX Corporation, and its supply chain. Potential for increased costs due to non-competitive award impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Essential for aircraft sustainment
- Supports critical defense capability
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation readiness, but competitive procurement is key to cost efficiency.
Small Business Impact
The data indicates this award went to RTX Corporation, a large prime contractor. There is no information provided to suggest any subcontracting opportunities for small businesses on this specific task order.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable, and to understand why competition was not pursued.
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 competition.
- Potential for inflated pricing due to lack of competition.
- Dependency on a single supplier for critical parts.
- Significant financial outlay without competitive validation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.13 billion to RTX CORPORATION. F117 ESS FY24 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 $1.13 billion.
What is the period of performance?
Start: 2023-10-01. End: 2024-09-30.
What is the justification for the sole-source award of this significant contract, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Oversight bodies should review the documentation supporting this decision. To ensure fair pricing, agencies often conduct independent cost analyses or rely on historical pricing data, though competitive benchmarking remains the most robust method for price validation.
What are the potential risks associated with relying on a single supplier for critical F117 engine parts, especially given the contract's duration?
Relying on a single supplier, like RTX Corporation in this case, poses risks such as supply chain disruptions if the supplier faces production issues or financial instability. It also reduces leverage for negotiating future prices or terms. The long duration increases exposure to these risks, potentially impacting aircraft availability and maintenance schedules if supply is interrupted.
How does the $1.13 billion expenditure on this task order align with broader Air Force sustainment strategies and budget priorities?
This substantial expenditure highlights the significant investment required for maintaining the F117 engine fleet. Its alignment with broader strategies depends on the engine's criticality to current and future Air Force operations. Budgetary analysis would need to compare this spending against other sustainment priorities and modernization efforts to assess overall resource allocation effectiveness.
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
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: $1,127,037,481
Exercised Options: $1,127,037,481
Current Obligation: $1,127,037,481
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA812418D0001
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-07-17
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