Air Force awards $31M for Aircraft Engine Sustainment to RTX Corporation
Contract Overview
Contract Amount: $31,000,000 ($31.0M)
Contractor: RTX Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-23
End Date: 2026-09-22
Contract Duration: 364 days
Daily Burn Rate: $85.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TASK ORDER FA812425FB0047 IS HEREBY ISSUED TO AUTHORIZE EFFORTS UNDER BASIC CONTRACT FA812422D0006. SPECIFICALLY, THIS EFFORT SUPPORTS ENGINEERING SUSTAINMENT SUPPORT (EESS), VH039 BIRD STRIKE, PEASE SPARE ENGINE, AND SPARES REPRESERVATION.
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06118
Plain-Language Summary
Department of Defense obligated $31.0 million to RTX CORPORATION for work described as: TASK ORDER FA812425FB0047 IS HEREBY ISSUED TO AUTHORIZE EFFORTS UNDER BASIC CONTRACT FA812422D0006. SPECIFICALLY, THIS EFFORT SUPPORTS ENGINEERING SUSTAINMENT SUPPORT (EESS), VH039 BIRD STRIKE, PEASE SPARE ENGINE, AND SPARES REPRESERVATION. Key points: 1. This task order focuses on critical engineering sustainment for aircraft engines, including bird strike and spare parts. 2. The awardee, RTX Corporation, is a major defense contractor with extensive experience in this sector. 3. The contract is Firm Fixed Price, which helps manage cost certainty for the government. 4. The lack of competition raises questions about potential price overruns and missed savings opportunities.
Value Assessment
Rating: fair
The $31 million award is for a 364-day period. Without specific unit costs or historical data for similar sustainment efforts, a precise pricing assessment is difficult. However, the duration and scope suggest a moderate investment for critical operational support.
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 may prevent the government from obtaining the best possible value through competitive bidding.
Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a fully competed contract.
Public Impact
Ensures continued operational readiness of Air Force aircraft by maintaining critical engine components. Supports specialized engineering sustainment, including repairs for bird strike damage and preservation of spare engines. The award directly benefits RTX Corporation, a significant player in the aerospace and defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for higher costs due to sole-source award
- Limited transparency on pricing benchmarks
Positive Signals
- Firm Fixed Price contract type
- Supports critical defense sustainment operations
- Awardee has relevant expertise
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often characterized by high R&D costs and long product lifecycles, with significant consolidation among major players.
Small Business Impact
This contract was awarded directly to RTX Corporation and does not indicate any subcontracting set-asides for small businesses. The nature of specialized engine sustainment often requires large, established prime contractors.
Oversight & Accountability
The contract is a Delivery Order under an existing Basic Contract, suggesting some level of prior oversight. However, the sole-source nature warrants close monitoring to ensure fair pricing and effective performance throughout the period of execution.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition
- Potential for inflated pricing without competitive pressure
- Lack of transparency on cost breakdown
- Dependence on a single contractor for critical sustainment
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.0 million to RTX CORPORATION. TASK ORDER FA812425FB0047 IS HEREBY ISSUED TO AUTHORIZE EFFORTS UNDER BASIC CONTRACT FA812422D0006. SPECIFICALLY, THIS EFFORT SUPPORTS ENGINEERING SUSTAINMENT SUPPORT (EESS), VH039 BIRD STRIKE, PEASE SPARE ENGINE, AND SPARES REPRESERVATION.
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 $31.0 million.
What is the period of performance?
Start: 2025-09-23. End: 2026-09-22.
What is the justification for awarding this contract sole-source, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Agencies must still conduct a price analysis to ensure the price is fair and reasonable, often by comparing to historical prices, other contracts, or independent cost estimates. Robust oversight is crucial to mitigate risks associated with non-competitive awards.
How does the $31 million cost compare to similar sustainment contracts for aircraft engines, considering the scope and duration?
Benchmarking this $31 million award requires detailed comparison with contracts for similar engine types, sustainment activities (like engineering support, spare parts, and repair), and contract duration. Without access to specific performance metrics and pricing structures of comparable contracts, it's challenging to definitively assess if this represents excellent, good, or fair value. The firm fixed price offers some cost control.
What is the potential impact on long-term aircraft readiness if sustainment efforts are not competitively procured?
Non-competitive procurement can lead to reduced innovation and potentially higher costs over the long term, which could strain readiness budgets. If a sole provider faces challenges or increases prices significantly, the Air Force may have fewer options to ensure timely and cost-effective sustainment, potentially impacting aircraft availability and operational readiness.
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: $31,000,000
Exercised Options: $31,000,000
Current Obligation: $31,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA812422D0006
IDV Type: IDC
Timeline
Start Date: 2025-09-23
Current End Date: 2026-09-22
Potential End Date: 2026-09-22 00:00:00
Last Modified: 2026-02-24
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