DoD's $6M RTX Corporation contract for aircraft engine parts awarded via sole-source justification

Contract Overview

Contract Amount: $6,000,000 ($6.0M)

Contractor: RTX Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-06

End Date: 2026-01-31

Contract Duration: 512 days

Daily Burn Rate: $11.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F139 BIRDSTRIKE

Place of Performance

Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $6.0 million to RTX CORPORATION for work described as: F139 BIRDSTRIKE Key points: 1. Contract awarded to a single vendor, raising questions about price competitiveness. 2. The fixed-price contract type offers some cost certainty but limits potential savings. 3. Performance period extends over 1.5 years, indicating a need for ongoing supply. 4. The specific part number (336412) suggests a critical component for aircraft. 5. Lack of competition may lead to higher costs for taxpayers. 6. The contract falls under aircraft engine manufacturing, a specialized sector.

Value Assessment

Rating: questionable

Benchmarking the value of this $6 million contract is challenging without competitive bids. As a sole-source award, there's no direct comparison to market rates derived from a bidding process. The firm fixed-price structure provides cost predictability for the government, but it doesn't inherently guarantee the best possible price. Further analysis would require understanding the specific part's criticality, market availability, and historical pricing trends for similar components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one vendor, RTX Corporation, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be necessary for unique or proprietary items, they significantly reduce the opportunity for price discovery and potentially lead to higher costs compared to a fully competed contract. The lack of multiple bidders means the government did not benefit from a range of proposals and pricing.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competition. Without competing offers, the government cannot be assured it received the lowest possible price for these critical aircraft engine parts.

Public Impact

The Department of the Air Force benefits from the continued supply of essential aircraft engine parts. This contract ensures the operational readiness of Air Force aircraft. The primary beneficiaries are the military personnel who rely on well-maintained aircraft. Geographic impact is likely concentrated around Air Force bases and maintenance facilities. Workforce implications may include continued employment for those involved in manufacturing and maintaining these specific engine parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs.
Lack of transparency in the procurement process due to no-bid award.
Dependence on a single contractor for critical aircraft components.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to RTX Corporation, a known entity in aerospace manufacturing.
Contract supports critical defense needs for aircraft engine parts.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized manufacturing capabilities, and significant government procurement. Contracts for aircraft engine parts fall under the 'Aircraft Engine and Engine Parts Manufacturing' industry code (NAICS 336412). This sector often sees a mix of competitive bidding for standardized components and sole-source or limited competition awards for proprietary or highly specialized parts. Spending benchmarks are difficult to establish without specific part details, but the defense industry's reliance on advanced technology and long product lifecycles means substantial investment in parts and maintenance.

Small Business Impact

This contract does not appear to involve a small business set-aside, as it was awarded sole-source to RTX Corporation. There is no explicit information regarding subcontracting opportunities for small businesses within this specific award. The lack of competition may limit the potential for small businesses to participate in the supply chain for these particular engine parts, unless they are already established subcontractors to RTX.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. The Air Force contracting office responsible for this award would monitor performance and compliance. Inspector General investigations could be initiated if any irregularities or fraud are suspected. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the procurement process more challenging.

Related Government Programs

Aircraft Maintenance and Repair
Defense Logistics Agency Procurement
Air Force Aircraft Procurement
Aerospace Manufacturing Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.0 million to RTX CORPORATION. F139 BIRDSTRIKE

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 $6.0 million.

What is the period of performance?

Start: 2024-09-06. End: 2026-01-31.

What is RTX Corporation's track record with the Department of Defense for similar aircraft engine parts?

RTX Corporation, through its various subsidiaries like Pratt & Whitney, is a major defense contractor with a long history of supplying aircraft engines and parts to the Department of Defense. They have consistently secured significant contracts for both new engine development and sustainment of existing fleets across multiple military branches. Their track record includes numerous awards for engine components, maintenance, and overhaul services. While specific data on past sole-source awards for this exact part number is not provided, RTX's overall engagement with the DoD in this domain is extensive, indicating a deep familiarity with military specifications and operational requirements. However, the absence of competition in this instance warrants scrutiny of past performance and pricing on comparable contracts to ensure value.

How does the $6 million value of this contract compare to similar sole-source awards for aircraft engine parts?

Direct comparison of this $6 million sole-source award to similar contracts is difficult without knowing the specific part number, its criticality, and the market dynamics for its production. Sole-source awards inherently lack a competitive benchmark, making value assessment challenging. Generally, sole-source contracts can be more expensive than competitively bid ones. To assess value, one would need to analyze historical pricing data for this specific part if previously procured, or benchmark against functionally equivalent parts from other manufacturers if available, though this is complicated by the sole-source nature. The firm fixed-price (FFP) contract type offers cost certainty but doesn't guarantee the lowest price achievable through competition.

What are the primary risks associated with awarding a sole-source contract for critical aircraft engine parts?

The primary risks associated with a sole-source award for critical aircraft engine parts include inflated pricing due to the lack of competition, potential for reduced innovation as the contractor faces less pressure to improve efficiency or technology, and increased dependency on a single supplier. This dependency can create vulnerabilities in the supply chain, especially if the sole source experiences production issues, financial instability, or decides to discontinue the product line. Furthermore, the absence of competitive pressure may lead to complacency in quality control or customer service. For taxpayers, the risk is primarily financial, potentially overpaying for essential components needed to maintain military readiness.

What is the expected impact of this contract on the operational readiness of Air Force aircraft?

This contract is expected to positively impact the operational readiness of Air Force aircraft by ensuring the continued availability of necessary engine parts. Aircraft engines are complex systems requiring regular maintenance and replacement of components to function safely and effectively. By securing a supply of these specific parts, the Air Force can perform scheduled maintenance, address unexpected failures, and minimize aircraft downtime. This directly supports the mission capability of the Air Force fleet, ensuring that aircraft are available when and where they are needed for training, operations, and national defense.

What historical spending patterns exist for aircraft engine parts within the Department of Defense?

Historical spending patterns for aircraft engine parts within the Department of Defense are substantial and ongoing, reflecting the large and diverse nature of the U.S. military's aviation assets. The DoD procures billions of dollars worth of aircraft parts annually, covering a vast array of components for fixed-wing, rotary-wing, and unmanned aircraft. Spending is driven by fleet size, aircraft age, operational tempo, and technological advancements. Contracts can range from small, competitively bid orders for common parts to large, sole-source agreements for proprietary or highly specialized components like those for advanced jet engines. Sustainment and maintenance represent a significant portion of this spending, often involving long-term support contracts.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts 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: RTX Corp

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: $6,000,000

Exercised Options: $6,000,000

Current Obligation: $6,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA812422D0006

IDV Type: IDC

Timeline